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Consumer Financial Protection Bureau (CFPB)
CFPB Announcement Regarding Enforcement Actions Related to Buy Now, Pay Later Loans
The CFPB has announced that it will not prioritize enforcement actions taken on the basis of Regulation Z (Truth in Lending); Use of Digital User Accounts to Access But Now, Pay Later Loans that was published May 31, 2024.
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League InfoSight Highlight |
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CFPB Will Not Prioritize Enforcement of Small Business Lending Data Collection Rule
The small business lending data collection rule, finalized in March 2023, requires covered financial institutions to collect and report data in connection with applications for credit received from a small business. The rule has been tied up in litigation since its issuance and is currently paused by the 5th Circuit Court of Appeals for members of America’s Credit Unions (ACU) and the American Bankers Association.
In early April, the Consumer Financial Protection Bureau (CFPB) announced its plan to reopen the rule to make changes. While this was welcome news for the industry, until that rulemaking is completed, institutions not covered by the court’s injunction (e.g., those credit unions not affiliated with ACU) remain subject to the mandatory compliance dates outlined below:
Having one set of financial institutions subject to compliance as early as July 18, 2025, while others are protected by the court’s injunction, created a bifurcated enforcement environment that the CFPB deemed unfair. As a result, on April 30, 2025, the agency issued a press release in which it announced that it will not prioritize enforcement or supervision of the small business lending data collection rule with regard to financial institutions that are not covered by the court’s injunction. The Bureau said that it looks forward to resolving the status of the status of the rule and ensuring fair, consistent treatment for all entities impacted by the regulation.
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ARTICLES OF INTEREST |
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The Big Fifty: State of Enforcement: Part Two
“Pig Butchering” - When “Catfishing” Meets Crypto-Investment Fraud
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SCAM UPDATES |
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Getting calls from a debt collector? You have rights
Avoid online JOANN impersonators and their fake sales
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COMPLIANCE CALENDAR |
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May 14, 2025: WA DFI Webinar: Protecting Homeowners from Disaster (For Financial Services Institutions)
June 15, 2025: CFPB – Prohibition on Creditors and CRAs Concerning Medical Information (Regulation V)
June 23, 2025: NCUA comments due on Simplification of Share Insurance and Succession Planning
June 23, 2025: NCUA comments due on Changes to the Call Report
July 1, 2025: CFPB and FRB – Reg CC Threshold Adjustments
July 18, 2025: CFPB – Small Business Lending Data – ECOA
Oct. 1, 2025: Quality Control Standards AVMs
Oct. 1, 2025: CFPB: Overdraft Lending: Very Large Financial Institutions (Over $10 billion)
Dec. 30, 2025: CFPB: Overdraft Lending: Very Large Financial Institutions (Over $10 billion)
Jan. 1, 2026: NCUA – Succession Planning Effective Date
March 1, 2026: CFPB: Residential Property Assessed Clean Energy Financing (Reg Z)
April 1, 2026: Compliance Date – CFPB Personal Financial Data Rights for Credit Union’s over $10 billion in assets
June 19, 2026: NACHA – Fraud Return Reason Code
Dec. 12, 2026: NCUA Simplification of Share Insurance Effective Date
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TOOLS & RESOURCES |
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Q&A OF THE WEEK |
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Is the credit union required to provide adverse action notices when members are excluded from credit card solicitations based on credit report information?
No. The Fair Credit Reporting Act uses the same definition of "adverse action" as the Equal Credit Opportunity Act. The ECOA states that an adverse action must involve an "application" by the consumer, a termination of the consumer's account, or an unfavorable change in the terms of that account that does not affect all or a substantial portion of the creditor's accounts within that class. Therefore, it is not an "adverse action" for a creditor to not include a borrower in a credit solicitation based on the review of the borrower's consumer report information. |
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