Latest news with #TruthinLendingAct
Business Journals
14-08-2025
- Business
- Business Journals
The CFPB isn't the only cop on the beat
In recent months, there has been growing concern that federal oversight of banks is eroding. Some critics point to legal challenges against the Consumer Financial Protection Bureau (CFPB) and suggest that consumers will be left unprotected as a result. These arguments have prompted calls for sweeping new state laws aimed at filling the so-called regulatory void. However, these calls rest on a false premise: that banks are no longer regulated. The reality is very different. Banks remain among the most heavily regulated industries in the country, subject to a rigorous framework of federal and state oversight that governs nearly every aspect of their operations. Even without an empowered CFPB, banks are still held accountable by other federal regulators, including the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve Board. These agencies conduct regular safety, soundness, and consumer compliance exams—and have full authority to investigate and enforce violations of law. Importantly, the underlying consumer protection statutes that define fair lending, accurate credit reporting, data privacy, and responsible disclosures remain intact. Laws like the Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), Fair Credit Reporting Act (FCRA), and Gramm-Leach-Bliley Act (GLBA) are still the law of the land. And those laws don't go away when political winds shift. They are enforced through multiple channels: federal prudential regulators, state attorneys general, and even private litigation. And while the CFPB may be downsized under the current administration, that is far from permanent. A future president could restore the agency's rulemaking and enforcement agenda, just as quickly as it was paused. In fact, the CFPB has proven to be highly responsive to shifts in political leadership. That means any state laws designed to 'fill a gap' in federal oversight could soon become duplicative, inconsistent, or even counterproductive—especially if federal enforcement ramps up again under new leadership. Put simply, a diminished CFPB does not dismantle the rulebook. Banks continue to follow these rules, and regulators continue to enforce them. Nevertheless, some state lawmakers are using the CFPB's challenges as justification for imposing expansive new compliance obligations at the state level. These efforts are often well-intentioned—but they frequently overlook the complex, layered regulatory regime that banks already operate within. Applying a one-size-fits-all set of rules to all industries—regardless of whether they are already federally supervised—risks doing more harm than good. Unlike unregulated tech platforms or data brokers, banks are subject to mandatory, periodic examinations and must demonstrate compliance with federal standards year-round. New state-level rules that duplicate or conflict with federal mandates not only create confusion, but can also drive up compliance costs, discourage innovation, and impact the cost of credit. The real risk is not under-regulation, but misregulation: creating an unstable patchwork of conflicting state and federal rules that impose new burdens without materially improving consumer outcomes. Banks don't fear oversight—they expect it. But they do value clarity and consistency. While the CFPB's future may be uncertain in the short term, the rest of the regulatory system is not. State policymakers should keep that in mind before rushing to fill a gap that doesn't actually exist—and that could soon close on its own.
The Star
15-07-2025
- The Star
Cops raid online lending company in Pasig City, nab 168 employees
Authorities raiding the offices of an online lending company in Pasig City on July 15, 2025. - Photo from the Presidential Anti-Organized Crime Commission MANILA: Authorities raided the offices of an online lending company for allegedly harassing borrowers, apprehending 168 employees in Pasig City on Tuesday (July 15) afternoon, the Presidential Anti-Organized Crime Commission (PAOCC) announced. This was the result of an operation stemming from a warrant to search, seize, and examine computer data issued by the Regional Trial Court Branch 46 in Manila. Operatives confiscated 'hundreds of pre-registered SIM (subscriber identity module) cards, text blasters and harassment scripts' from the offices, the PAOCC detailed in a statement on Tuesday evening. 'The supervisor there mentioned a certain Chinese individual, alias Jason… We already got one of his travel documents,' PAOCC Executive Director Gilbert Cruz said in a phone interview with According to the task force, the foreigner most recently arrived in the Philippines last June 8 and left the country last July 10 on a 9G visa, or a pre-arranged employment visa. 'The raid follows months of surveillance and investigation, aided by the testimony of a former employee who came forward to expose how the company misled and harassed borrowers,' the PAOCC further explained. 'Some victims were directed to send payments to personal GCash or bank accounts under the guise of clearing their loans, only to be contacted again by collectors despite having paid,' it added. The task force further cited a July 4 incident in which a Valenzuela City man 'took his own life after suffering ongoing harassment' from individuals connected to the online lending application. PAOCC said the company was now being reviewed by the Securities and Exchange Commission since 'its operations appear to have exploited the system while falsely claiming legitimacy.' According to the PAOCC, the individuals apprehended may face charges in connection with Republic Act 3765 or the Truth in Lending Act; RA 10173 or the Data Privacy Act; and RA 11765 or the Financial Products and Services Consumer Protection Act. - Philippine Daily Inquirer/ANN
Yahoo
08-05-2025
- Business
- Yahoo
US CFPB spurns BNPL rule enforcement
The Consumer Financial Protection Bureau (CFPB) has ceased enforcement of a rule that classifies buy now, pay later (BNPL) firms as credit card issuers. In May 2024, the agency, under the Biden-era, issued an interpretive rule, declaring BNPL lenders as credit card providers and requiring them to offer consumers certain legal protections and rights similar to those of conventional credit cards. These include a right to dispute charges. However, the agency has now said it will not focus on enforcement actions related to the Truth in Lending Act (Regulation Z) regarding the use of digital user accounts for accessing BNPL loans. Instead, the CFPB will direct its enforcement and supervisory efforts towards addressing more 'pressing threats' to consumers, with particular attention to servicemen, veterans, and small businesses. It said that this decision is aimed at optimising resources to better support American taxpayers and those who serve in the military. Additionally, the Bureau is considering potential actions to rescind the BNPL framework. Affirm and other BNPL companies opposed the billing statement requirement, claiming it would confuse users and create unnecessary friction, reported CNBC. In a formal comment letter, Affirm said: 'Requiring BNPL providers to comply with rules designed for open-end credit cards creates compliance challenges and confusing outcomes for consumers.' In January this year, CFPB announced that it conducted a study on BNPL borrowers, revealing that over 20% of consumers with credit records utilised BNPL loans in 2022, primarily those with subprime or deep subprime credit scores. The study indicated that more than 60% of BNPL borrowers had multiple BNPL loans simultaneously, with one-third borrowing from various providers. Additionally, BNPL borrowers tended to have higher balances on other unsecured credit lines, such as credit cards. The agency has scaled back several other enforcement actions in recent months, under President Donald Trump. In March this year, the CFPB reportedly notified an Arizona federal court of its decision to dismiss the December lawsuit against three banks over their handling of the Zelle payment service. "US CFPB spurns BNPL rule enforcement" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
CNBC
06-05-2025
- Business
- CNBC
Trump's CFPB drops enforcement of buy now, pay later rule in latest rollback of consumer protections
The entrance to the Consumer Financial Protection Bureau (CFPB) headquarters is seen during a protest on Feb. 10, 2025 in Washington, DC. For the third time under President Donald Trump, the Consumer Financial Protection Bureau has pulled back from enforcing a key rule, this time targeting buy now, pay later services. The CFPB said in a notice on Tuesday that it will not prioritize enforcement of a rule, established during Joe Biden's presidency, that classified BNPL providers as credit card issuers subject to the Truth in Lending Act. Fintech lenders had been required to comply with more stringent consumer protections, including standardized disclosures, refund processing and formal dispute investigations. Affirm and other BNPL firms had voiced opposition to the billing statement requirement, arguing that it would confuse users and add unnecessary friction. "Requiring BNPL providers to comply with rules designed for open-end credit cards creates compliance challenges and confusing outcomes for consumers," Affirm wrote in a formal comment letter, urging the CFPB to adopt rules that reflect how consumers actually use BNPL products. The CFPB is looking to go even further as it's considering rescinding the rule entirely, citing a need to focus resources on "pressing threats to consumers," especially service members, veterans, and small businesses. In October, the Financial Technology Association, which represents major BNPL players, sued the CFPB, claiming the agency overstepped by imposing credit card-like restrictions through an interpretive rule rather than a formal one. The CFPB notice comes as new consumer data shows mounting pressures in the market. A Bankrate survey released Monday found that nearly half of BNPL users have faced financial problems tied to these services. As usage rises, particularly for essentials like groceries, missed payments are increasing as well. Affirm is scheduled to report quarterly results on Thursday. Rival Klarna is on file to go public, but delayed its IPO last month after President Trump's announcement of sweeping new tariffs roiled financial markets. WATCH: Block shares plummet 20% as Q1 earnings miss rattles Wall Street
Yahoo
28-04-2025
- Business
- Yahoo
How long does it take for my credit card payment to post?
The exact time your credit card payment will post to your account depends on your payment method and your issuer's payment rules, as well as the rules outlined by the Truth in Lending Act. If you pay electronically, your credit card payment should generally post within a few business days, but if you pay by mail, it might take a little longer. If you're curious about a pending payment on your account, your best bet is to contact your issuer for a more exact timeline. When it comes to your credit card bill, you likely have a variety of payment methods available to use — all of which have varying processing speeds. These can create a bit of confusion and leave you wondering when your credit card payment will actually post. If you're near your credit limit, you might even be waiting on your payment to post so you have additional credit freed up for your use. So, how long does it actually take for a credit card payment to post? Let's break down that answer here. When a payment is posted to your account, that means your issuer has acknowledged the payment and finished processing it. The exact time that your credit card bill payment posts to your account depends on your card issuer and your payment method — but also on the Truth in Lending Act. What about purchases made with your credit card? If you used a credit card to pay an online merchant and are wondering when that payment will switch from pending to posted, that depends largely on the merchant. Some online merchants might wait until your product has shipped before they ask your issuer for payment, while others might charge your card immediately, resulting in your payment posting the same day or within a few business days. The Truth in Lending Act (TILA) protects consumers when it comes to predatory lending practices and makes it illegal for lenders to mislead consumers. As a lender, your card issuer has to follow the rules stated in this act in regards to when it should post your card payment. This includes: Sending out your card statement in a timely manner. You're required to get your card statement at least 21 days before your payment is due. Your due date should also be the same each month. Your issuer could set it for the same date each month, such as the seventh day of the month, or set it as the last day of each month. Setting the cutoff time to receive your payment as 5 p.m. or later. This means that you'll have at least a full business day to submit your payment if you want it to count for that day. If you make an in-person payment at a branch that has an earlier closing time than 5 p.m., however, you would have to pay before that branch closes for the day for the payment to be considered on time. Having clear exemptions for federal holidays and weekends. If your payment due date falls on a federal holiday or over the weekend and your issuer receives your mailed payment the following business day, the issuer should consider it a timely payment that does not incur a fine. However, if you choose to make an electronic or phone payment and your bank accepts such payments on the due date, you would have to get it in by the due date's cutoff time. If your card issuer receives your bill payment in a timely manner, it should be credited on the same business day. If you make your payment after the cutoff time, the bank should credit it the next business day. However, if the bank does not charge you a finance fee or other charge as a result, it could delay crediting your payment. Card issuers also tend to set their own requirements for making bill payments. For instance, they could say that you should include your account number with your payment, or specify that payments be made to a certain address. Your issuer can also flag a specific payment method as their preferred method, meaning that any payment done using that method would have to be credited on the day the issuer receives the payment. If you don't follow the issuer's specific requirements but it still accepts your payment, the issuer would still have to post your payment within five days of receiving it. If your bill payment has been delayed, it could be for the following reasons: You made your payment on a weekend or holiday. You made an error when submitting your payment. Your issuer is dealing with a processing error. Your issuer made payment process changes. If the delay is on the issuer's side and you still made your payment on time, then you shouldn't have to worry about late fees. For example, let's say that your bank makes changes to the way it processes your payment, or to the address you typically mail your payment to. If these changes cause the bank to delay crediting your payment to your account in the 60-day period following the change, the bank isn't supposed to charge you a late fee or any other fine. To make sure your payment posts in a timely manner, follow these tips: Make sure you have the right address. If you're paying by mail, make sure you're using the issuer's included payment envelope, and doublecheck the address you're sending your payment to. If you don't have a payment envelope, find the payment address on your billing statement, or contact your issuer to get the right address. Doublecheck your autopay settings. If your account is set on autopay, make sure you know whether your autopay is set to pay off your bill in full or just for the minimum payment due. Make sure you also have enough in your account to cover the payment. Watch your credit Even though a bank is required to post your payment, following the Truth in Lending Act, it doesn't have to free up your credit immediately. It could delay making the credit available to you in some circumstances. However, if the bank does decide to delay your payment credit, it can't charge you a fee for going over your credit limit, even if you have opted into this feature. If you're waiting for a payment from a merchant to finish processing, your wait time will be influenced by the merchant and when it chooses to collect payment. Precise processing times for credit card bill payments, on the other hand, vary by issuer, so it's best to call your card company if you're curious about a pending credit card bill payment. In general, it is safe to assume that most credit card companies process electronic payments in one to two business days. However, don't fret if it is taking a bit longer, especially if you've submitted your payment on time and you have sufficient funds in your checking account. Sign in to access your portfolio
