CFPB Circulars

CFPB Circular 2024-03: Unlawful contract terms violate deceptive practices prohibition

CFPB Circular 2024-03: Unlawful contract terms violate deceptive practices prohibition

CFPB Circular on Whistleblower Protections Under CFPA Section 1057

The CFPB issued a circular clarifying that broad confidentiality agreements may violate Section 1057 of the CFPA by chilling whistleblower activity. This guidance highlights potential violations and impacts CFPB enforcement efforts.

CFPB Circular on Improper Overdraft Opt-In Practices

The CFPB issued Circular 2024-05 clarifying that financial institutions can violate the Electronic Fund Transfer Act (EFTA) and Regulation E if they cannot prove consumers affirmatively consented to overdraft services for ATM and one-time debit card transactions. The circular emphasizes that the absence of proof of opt-in is sufficient to demonstrate a violation.

CFPB Circular: FCRA Compliance for Employment Background Dossiers and Scores

The CFPB issued a circular clarifying that employers using background dossiers and algorithmic scores for employment decisions must comply with the Fair Credit Reporting Act (FCRA). This includes obtaining consumer consent, providing adverse action notices, and ensuring data accuracy.

CFPB Circular on Credit Card Rewards Programs

The CFPB issued a circular clarifying that credit card issuers and their partners may violate UDAAP laws if they devalue earned rewards or inhibit consumers from redeeming them. The circular highlights scenarios such as devaluation of redemption values, revocation of rewards based on buried conditions, and deductions without corresponding benefits.