Spotlight – CFPB Journal

CFPB fines Fifth Third Bank for unauthorized auto insurance accounts

The Consumer Financial Protection Bureau fined Cincinnati-based Fifth Third Bank $20 million for opening fake bank accounts and wrongfully triggering auto repossessions.

CFPB finalizes standards-setting requirements for open banking rule

The Consumer Financial Protection Bureau last week finalized standards-setting qualifications that companies will use to comply with the bureau’s upcoming open banking rule. The standards included a detailed guide on how standard-setters can apply for recognition and how the bureau will evaluate applications.

Supreme Court: CFPB funding structure constitutional

The U.S. Supreme Court has ruled the Consumer Financial Protection Bureau is constitutionally funded.

Federal judge issues injunction against late fee rule

A federal judge last week issued a preliminary injunction against the Consumer Financial Protection Bureau’s proposal to cap most credit card late fees at $8. The May 10 ruling from Northern District of Texas Judge Mark Pittman came four days before the rule was to take effect.

CFPB: Fair Credit Reporting Act proposal coming this year

The Consumer Financial Protection Bureau will propose rules this year to ensure data brokers follow the Fair Credit Reporting Act, Director Rohit Chopra said April 2.

Trade groups sue CFPB for reducing late fee charges

The Consumer Financial Protection Bureau released a finalized rule on March 5 that caps consumer credit card fees at $8 per incident. In response, some trade groups filed a federal lawsuit two days later seeking a preliminary injunction against the rule.

CFPB proposes changes to bank overdraft fees

The Consumer Financial Protection Bureau is looking to overhaul how banks and credit unions with more than $10 billion in assets determine overdraft expenses. The proposal, announced Jan. 17, includes two ways for banks and credit unions to determine costs. The CFPB also proposed banning the mandatory use of preauthorized electronic fund transfers to repay transactions paid into overdrafts by institutions that charge overdraft fees higher than a designated threshold.

Chopra: AI poses safety concerns in banking

Artificial intelligence poses risks to the financial system, according to Consumer Financial Protection Bureau Director Rohit Chopra.

CFPB seeking to regulate large fintech payment processors

The Consumer Financial Protection Bureau wants to supervise large nonbanks that offer digital wallets and payment applications.

CFPB: Mortgage applications fell last year amid rising interest rates

Driven by an increase in mortgage interest rates, the average monthly mortgage payment increased more than 46 percent to $2,045 in December 2022 from $1,400 the previous year. The median interest rate for a 30-year, fixed-rate mortgage was 6.5 percent at the end of last year.