Penalizes Fintech for Taking Consumer Funds Instead of Encouraging Savings
Striking at the heart of the purported financial-inclusion benefits of fintech, the CFPB today took action against Hello Digit under both its UDAAP powers (see FSM Report CONSUMER39) and its more recent stand on AI (see FSM Report FAIRLEND11).
Sen Dems Demand More re Rental Housing, Short-Term Loans in CRA Standards
Senate Banking GOP Ramps Up Fed Demands
Following Sen. Toomey’s (R-PA) diatribe last week, Senate Banking Republicans have followed through with direct demands for greater Fed transparency and recognition of the central bank’s duties to the Congress.
Waters Demands Bureau Halt Equifax Scoring Until Erroneous-Data Problems Revealed, Remediated
HFSC Chairwoman Waters today sent a letter to the CFPB calling on the Bureau to use all of its powers to ensure remediation for consumers harmed by Equifax’s alleged credit-reporting error, as well as institute greater protections for consumers in the “broken” credit-reporting system.
CFPB Sweeps Up Bigtech in Scope of Consumer-Protection Standards
Building on its inquiry into bigtech and a controversial interpretive rule expanding its power to nonbanks (see FSM Report CONSUMER41), the CFPB today issued an expansive interpretive rule subjecting digital companies using behavioral or similar data to market consumer-finance products to the full thrust of federal consumer law.
Progresses Press Hsu on Crypto Authorizations
Sens. Warren (D-MA), Durbin (D-IL), Whitehouse (D-RI), and Sanders (D-VT) today formally requested that Acting Comptroller Hsu withdraw the crypto guidance issued by his Trump Administration predecessor in areas such as crypto-custody services (see FSM Report CRYPTO15) and node-verification networks.
FHFA, GSEs Cracking Down on Servicer Fair-Lending Compliance
To acclaim from Chairman Brown (D-OH), FHFA today announced that Fannie and Freddie will henceforth require servicers not just to obtain, but also retain fair-lending data including those on key demographic categories and a borrower’s preferred language.