Case Law

New York Attorney General Letitia James announced she is suing the company behind the electronic payment platform Zelle for failing to protect its users from over $1 billion in fraud. In March, the Consumer Financial Protection Bureau dropped its lawsuit over alleged deficiencies in Zelle’s fraud safeguards.

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The Consumer Financial Protection Bureau asked a federal court to reverse a decision that resulted in a settlement with Townstone Financial. The settlement had resolved allegations of redlining and violations of the Equal Credit Opportunity Act against the Chicago mortgage broker. Read on »

The Consumer Financial Protection Bureau (CFPB) filed a notice of voluntary dismissal of its suit against Capital One, N.A., and its parent company, Capital One Financial Corp., for allegedly cheating millions of consumers out of more than $2 billion in interest.

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A federal court in southern Ohio considered whether the debt settlement companies behind mailers sent as part of a marketing plan were creditors, and whether the practice violated the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA). The case is Jessica Stechenfinger v. Silverlake Fin., LLC, et al., No. 1:24-CV-47, 2024 WL 4266598, (S.D. Ohio Sept. 23, 2024). Read on »

The Consumer Financial Protection Bureau is accustomed to criticism from the financial sector. The day before its newly released data privacy rule became the subject of a lawsuit, the bureau received a letter from multiple trade organizations asserting its September guidance on overdraft fees should be rescinded. Learn more about this matter and other developments in this roundup. Read on »

Fairway Independent Mortgage Corp. is facing redlining allegations levied in a complaint filed by the Consumer Financial Protection Bureau and the Justice Department, along with a proposed settlement against the Birmingham, Ala.-based lender for discriminatory marketing and sales tactics. Dodd Frank Update’s sister publication contacted an industry expert for their insight into why real estate finance professionals should be paying attention. Read on »

The Department of Justice entered into the first redlining settlement with a credit union after finding the institution’s lending practices failed to provide equal access to credit for majority-minority neighborhoods in its service area. Read on »

The U.S. District Court for the Southern District of Texas, McAllen Division described the Texas Bankers Association’s arguments to strike down the Consumer Financial Protections Bureau’s small business lending rule as “all over the place,” using words like “misrepresents” and “grossly overstated” in reference to the organization’s arguments. The opinion comes after a stay was lifted while the district court waited for the U.S. Supreme Court to rule on the bureau’s financial structure’s constitutionality. Read on »

Trade organizations and the Consumer Financial Protection Bureau have filed amicus briefs in a case brought against Citibank by the attorney general of New York alleging violations of the Electronic Fund Transfer Act. But what led to this lawsuit, with the bureau claiming banks have a duty to protect consumers from fraudulent wire transfers and the trades arguing this new interpretation is inconsistent with prior agency statements? Read on »

The Consumer Financial Protection Bureau raised eyebrows when it submitted an amicus brief in a lawsuit filed by the New York attorney general against Citibank, arguing banks are liable for wire fraud under the Electronic Funds Transfer Act. The amicus has raised eyebrows among banking advocates who view the move as the bureau essentially asking a federal court to rewrite the law. Read on »