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The CFPB has issued a reminder that payday and installment lenders must begin complying with the Bureau's Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (12 C.F.R. 1041) by March 30, 2025.

The regulation was originally set to take effect in 2019 but was delayed by litigation brought to block the rule. The court of appeals hearing the case ultimately rejected the payday lenders’ claims, affirmed the rule, and upheld the CFPB’s finding that the prohibited practice was unfair. More recently, it rejected the payday lenders’ efforts to further delay the rule and confirmed that the rule will finally take effect March 30, as the CFPB previously announced.

The Consumer Financial Protection Bureau on Friday announced it is seeking public input on strengthening privacy protections and preventing harmful surveillance in digital payments, particularly those offered through large technology platforms. The agency is requesting comment on implementing existing financial privacy law and how to address intrusive data collection and personalized pricing. Comments will be accepted through April 11, 2025.

Additionally, the CFPB requested comments by March 31, 2025, on a proposed interpretive rule outlining how the Electronic Fund Transfer Act, which provides consumers with protections against errors and fraud, applies to new types of digital payment mechanisms, such as those currently offered through large technology companies and video gaming platforms, as well as stablecoins and other digital currencies that are not widely used today in consumer transactions. The Bureau also posted a Blog article requesting emailed comments by March 31, 2025, from electronic gamers and the general public on their experiences with video game currencies.

PUBLICATION UPDATES:

• The proposed Regulation E interpretive rule was published at 90 FR 3723 in the 1/15/2025 Federal Register.
• The request for information regarding collection, use, and monetization of consumer payment and other personal financial data was published at 90 FR 3804 on 1/15/2025.

OCC Bulletin 2025-1, issued Friday, announces publication [90 FR 1848] in the Federal Register of a schedule of maximum civil money penalties applicable to national banks and federal savings associations as adjusted for inflation. The adjusted maximum amount of civil money penalties in this announcement are applicable to penalties assessed on or after January 10, 2025, for conduct occurring on or after November 2, 2015.

The Federal Reserve Board has published [90 FR 2607 in today's Federal Register] a similar notice adjusting the maximum civil money penalties for 2025 for violations by banks and holding companies for which the Federal Reserve System is their primary federal regulator.

On Friday, the Treasury Department reported actions to fulfill the G7 commitment to reduce Russian revenues from energy, including blocking two major Russian oil producers. These actions also impose sanctions on an unprecedented number of oil-carrying vessels, many of which are part of the “shadow fleet,” opaque traders of Russian oil, Russia-based oilfield service providers, and Russian energy officials. The actions are underpinned by the issuance of a new determination that authorizes sanctions pursuant to Executive Order 14024 against persons operating or having operated in the energy sector of the Russian Federation economy. The Department of State also took steps to reduce Russia’s energy revenues by blocking two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports. State also designated numerous Russia-based oilfield service providers and senior officials of State Atomic Energy Corporation Rosatom.

Treasury also reported that OFAC has sanctioned eight Venezuelan officials who lead key economic and security agencies enabling Nicolas Maduro’s repression and subversion of democracy in Venezuela. In addition, OFAC sanctioned high-level Venezuelan officials in the military and police who lead entities with roles in carrying out Maduro’s repression and human rights abuses against democratic actors.

For the names and identification information of the designated individuals, entities, and vessels, see this BankersOnline OFAC Update.

The CFPB has announced its recognition of Financial Data Exchange, Inc. (FDX) as a standard-setting body under the CFPB’s Personal Financial Data Rights rule. The order of recognition is the first to be issued under the rule. The Personal Financial Data Rights rule, which was released in October 2024, requires financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free. The CFPB established a formal application process outlining the qualifications to become a recognized industry standard setting body, which can issue standards that companies can use to help them comply with the CFPB’s rule.

The CFPB's order of recognition, valid for five years, includes conditions, such as:

• A ban on "pay-to-play" and other conflicts of interest
• Mandatory reporting on market adoption
• Transparency and availability of standards

The CFPB also issued updated procedures for how companies can request special regulatory treatment, such as a no-action letter. The procedures seek to increase transparency and reduce favoritism for individual companies.

• Updated Policy Statement on No-Action Letters
• Updated Policy Statement on Compliance Assistance Sandbox Approvals

The Federal Reserve Board's archive of Community Reinvestment Act evaluations includes 10 evaluations released by the Reserve Banks in December 2024. All 10 of those evaluations received ratings of Satisfactory.

The CFPB yesterday announced it has sued Experian Information Solutions, Inc., the nationwide consumer reporting agency, for unlawfully failing to properly investigate consumer disputes. The CFPB alleges that Experian does not take sufficient steps to intake, process, investigate, and notify consumers about consumer disputes, resulting in the inclusion of incorrect information on credit reports.

Specifically, the CFPB alleges that Experian is harming consumers by:

• Conducting sham investigations that fail to properly address consumer disputes
• Improperly reinserting inaccurate information on consumer report

The CFPB also alleges that Experian’s faulty dispute intake procedures and failure to provide furnishers with consumer-submitted documentation, uncritical deference to furnishers’ responses to disputed information, and failure to prevent improper tradeline reinsertions also violate the Consumer Financial Protection Act’s prohibition on unfair acts or practices.

• CFPB's complaint

The Treasury Department yesterday issued two announcements of actions taken by its Office of Foreign Assets Control (OFAC):

• The sanctioning of Mohammad Hamdan Daglo Mousa (Hemedti), the leader of Sudan’s Rapid Support Forces (RSF), and seven companies and one individual linked to the RSF.
• The sanctioning of Antal Rogan, a senior Hungarian government official, for his involvement in corruption in Hungary. He was designated under the authority of Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act.

For more information on the designated individuals and entities, see yesterday's BankersOnline OFAC Update.

The CFPB yesterday sent an email reminder that the filing period fro HMDA data collected in 2024 opened on January 1, 2025, and submissions will be considered timely if received on or before Monday, March 3, 2025.

As of January 1, 2025, users logging into the HMDA Platform will need to login via Login.gov, which utilizes multifactor authentication (MFA). Users will no longer have the option to sign in using the existing process. To facilitate this change, a Quick Reference Guide and Frequently Asked Questions have been created to help users establish a Login.gov account. Users may only use business email addresses; accounts associated with a personal email domain will not be accepted.

The CFPB has published a final rule making inflation adjustments to civil money penalty limits within its jurisdiction at 90 CFR 1355 in this morning's Federal Register. The rule, which will become effective January 15, 2025, amends the CFPB's regulation at 12 C.F.R. part 1083.

The multiplier for the 2025 annual adjustment is 1.02598, as determined by the Office of Management and Budget. For example, the maximum Consumer Financial Protection Act Tier 3 penalty for knowingly violating a federal consumer financial law will increase to $1,443,275 for each day the violation continues.