Consumer Finance Monitor

In this podcast, we discuss the opportunities and challenges created by the use of AI models in consumer financial services, including the benefits of explainable AI and its implications for the consumer financial services industry, especially for applications where understanding the model’s reasons for returning a score or decision are necessary.

Opposition from state regulators to the OCC’s decision to issue special purpose national bank (or fintech) charters continues to be vigorous. In this podcast, we review the charter’s potential benefits, assess the legal arguments made by its opponents, discuss the federal court decision refusing to dismiss the NY banking regulator’s lawsuit, why we think it’s incorrect, and possible next steps for the OCC, and look at fintech charter alternatives.

In this podcast, we discuss the recently-announced changes to the CFPB’s CID policies, how those changes reflect recent court decisions, and the practical implications of the changes (including their utility to companies in responding to CIDs).

In this podcast, Alan Kaplinsky, who leads our Consumer Financial Services Group, interviews Steven Weise, a member of ALI’s Council, about the criticism of the Restatement from businesses and consumer advocates. In addition to explaining the Restatement’s background and rationale, Steven responds to criticism of the research methodology and specific substantive provisions.

In this podcast, Alan Kaplinsky, who leads our Consumer Financial Services Group, interviews Professor Adam Levitin of Georgetown University Law School about why businesses and consumer advocates are both opposed to the proposed Restatement, which would change the law in ways that will harm businesses and consumers.

In this podcast, we discuss significant developments since Congress’ Oct. 2017 override of the CFPB’s arbitration rule, including proposed federal legislation, litigation developments, and how arbitration agreements can be revised to address risks created by those developments. We also review best practices for drafting such agreements and hear from Alan Kaplinsky about his experience as a witness at the Senate’s Apr. 2019 arbitration hearing and current political dynamics surrounding arbitration.

In this podcast, we review recent developments dealing with the provision of financial services to the cannabis industry, including state approaches to banking services, the status of hemp legalization, the interplay between federal and state cannabis law, FinCEN guidance on BSA expectations, the status of federal regulatory and enforcement activity, and the status and prospects of proposed federal legislation.

We explore the affect of the FTC’s proposed amendments to the GLBA Privacy Rule, which affects only motor vehicle dealers, and the broader GLBA Safeguards Rule, which applies to all non-bank financial institutions under FTC jurisdiction.  The FTC has shifted from a flexible approach to data security to a more prescriptive one that mandates specific elements for information security programs.  We will discuss the potential impact of this shift and opportunities for companies to influence the final rules.

Mortgage servicing continues to be a CFPB supervisory focus. In this podcast, we take a close look at the CFPB’s findings involving late fees, PMI cancellation requests, handling of loss mitigation applications, and notices to successors of deceased reverse mortgage borrowers regarding  foreclosure avoidance, share observations on what the findings indicate about the CPPB’s approach to these issues, and discuss the findings’ compliance implications.

In this podcast, we take a close look at the CFPB’s findings on ancillary product refunds by auto loan servicers in the event of total loss or repossession, consider such findings’ implications for early payoffs and a servicer’s duty to request refunds, and share observations on how the CPPB’s use of its UDAAP authority has changed under post-Cordray leadership and what that means for a company’s approach to compliance.

In this podcast, a member of Ballard Spahr’s federal lobbying and government relations team discusses what’s in the Consumers First Act (H.R. 1500, intended to undo Mick Mulvaney’s CFPB actions), the impact of current House dynamics on the bill’s or specific provisions’ prospects for passage, the topics of other financial services bills likely to have bipartisan support, and how CFPB Director Kraninger’s approach is likely to compare to Mr. Mulvaney’s.

In this podcast, we look at co-brand credit card rewards and loyalty programs from the differing perspectives of banks and their merchant partners, including why these programs are important and the issues and challenges they present. We also discuss marketplace trends, assess the risks created by the current regulatory environment, and offer steps for reducing such risks.

The CFPB’s final prepaid rule takes effect on April 1. In this podcast, we look at the top ten issues companies should be considering to confirm compliance and discuss how the CFPB and federal banking regulators are likely to approach compliance using their supervisory and enforcement authorities.

In this podcast, we review the four key focus areas of the 2015 diversity and inclusion standards adopted by the Offices of Minority and Women Inclusion at the CFPB and other federal financial regulators, identify issues regulated entities should consider in addressing those areas and deciding whether to conduct D&I self-assessments, and discuss the evolving Congressional and regulatory D&I landscape since 2015, including recent letters sent to regulated entities regarding D&I efforts and self-assessments.

The CFPB has issued proposals to revise its disclosure sandbox and no action letter policy and create a product sandbox. In this podcast, we review what the CFPB has proposed, assess the criticism advanced by state attorneys general and consumer advocates, and discuss the CFPB’s likely next steps and how the proposal’s critics are apt to respond.