As part of a White House initiative, the CFPB is launching a rulemaking to put a stop to customer service processes that waste consumers’ time and money.
The advisory opinion holds that contract-for-deed sellers must adhere to Truth in Lending Act requirements such as assessing buyers for repayment and providing borrowers with disclosures.
The Fourth Circuit this month ruled that the Truth in Lending Act’s offset provision, which prevents credit card issuers from dipping into a consumer’s deposit account to cover outstanding payments on their credit cards, applies to credit cards tied to a home equity line of credit.
The bureau said it is making clear that there is no exception to the federal consumer financial protection laws for new technology and ensuring regulations don’t stifle competition in pricing or favor incumbents.
The CFPB does not intend to seek penalties for violations of the interpretive rule while BNPL lenders are transitioning into compliance in a good faith and expeditious manner.
Trade groups representing banks believe the proposed rule would reduce a lender’s ability to accurately assess a borrower’s ability to repay. Meanwhile, consumer advocacy groups sought to debunk many of the arguments put forth by the opposers of the rule.
Consumer ire toward financial services and products doesn’t seem to be abating, with complaints to the CFPB hitting a record high in the second quarter of 2024. (Includes two data tables.)
Mortgage industry trade groups want the bureau to explore the repercussions on markets and consumers of any new rule or regulation concerning mortgage closing costs.
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