In an important September 22 decision, the U.S. District Court for the Northern District of Illinois expanded its prior rulings concerning the Illinois Interchange Fee Prohibition Act (“IFPA”) to federal credit unions. The court granted the Illinois Bankers Association’s motion for partial reconsideration and held that the IFPA’s limitation on interchange fees (Interchange Fee Limitation) charged on the tax and gratuities portions of payment card transactions is preempted under the Federal Credit Union Act (FCUA) as applied to federal credit unions.… Continue Reading

When Rohit Chopra left the Consumer Financial Protection Bureau earlier this year, there was considerable speculation about what he would do next. In May, Governor Gavin Newsom provided the answer: Chopra would become the inaugural Secretary of California’s newly created Business & Consumer Services Agency (BCSA).

Chopra was sworn in on July 1.… Continue Reading

The FDIC has proposed a rule interpreting Section 24(j) of the Federal Deposit Insurance Act, enacted as part of The Riegle-Neal Interstate Branching and Banking Efficiency Act of 1994, to provide parity between out-of-State state and national banks insofar as preempting host state laws even when the out-of-state, state bank provides services in a host State without maintaining a physical branch.… Continue Reading

Artificial intelligence is rapidly transforming consumer financial services, and consumer debt collection is no exception. AI already is being used in a variety of first-party and third-party consumer debt collection activities, ranging from account scoring and communication strategies to payment-plan optimization and compliance monitoring.

In our Consumer Finance Monitor podcast show being released today, our special guest John McNamara, Chief Growth Officer at Avtal (a fintech and software as a service (SAS) company that provides an AI-powered, white-labeled digital engagement platform to help third-party consumer debt collection agencies automate communication and process self-service payments) and  a former CFPB senior official who played a significant role in developing Regulation F promulgated under the Federal Debt Collection Practices Act explained that the debt collection industry needs to distinguish genuine AI applications from the marketing hype surrounding the technology.… Continue Reading

The House Financial Services Committee on September 16 approved H.R. 10184, the Consumer Financial Protection Accountability and Reform Act of 2026, by a 28-21 vote. The legislation, sponsored by Rep. Andy Barr (R-Ky.), would make significant changes to the structure, funding, rulemaking, supervision, enforcement, and other authorities of the Consumer Financial Protection Bureau (CFPB). … Continue Reading

On September 16, 2026, the House Financial Services Committee (Committee) approved H.R. 7866, the American Lending Fairness Act of 2026, legislation introduced by Rep. Warren Davidson (R-Ohio) and Rep. Andy Barr (R-KY) that would address the effect of state opt-outs under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) on interest-rate exportation by state-chartered banks and credit unions located outside an opt-out state and making loans to a resident of the opt-out state.… Continue Reading

The Conference of State Bank Supervisors (CSBS) on September 16, 2026 released an Artificial Intelligence Supervisory Framework designed to help state financial examiners identify and understand how the bank and non-bank institutions they regulate are using artificial intelligence, assess the associated risks, and determine when a more in-depth review may be appropriate.… Continue Reading

The Senate Banking, Housing, and Urban Affairs Committee voted 13-11 along strict party lines on September 17 to advance Brian Johnson’s nomination to become Director of the Consumer Financial Protection Bureau (CFPB). The vote took place during an Executive Session at which the Committee also considered several other presidential nominations and legislation reauthorizing the Terrorism Risk Insurance Program. … Continue Reading

Artificial intelligence is rapidly moving from helping consumers make purchasing decisions to making those decisions for them. So-called “agentic AI” or “AI shopping agents” could search for financial products, compare prices and terms, negotiate with providers, open or close accounts, switch providers and complete transactions without the consumer participating in each step.… Continue Reading

Proposed guidance would require specific elements in bank policies and programs and could give added significance to FDIC’s proposed industry standard-setting organization

Executive Summary

The federal banking agencies have proposed new third-party risk management guidance that is more prescriptive than its emphasis on a “risk-based” approach might suggest. In addition to calling for risk-based oversight, the proposal identifies specific elements that banks should address in board-approved policies and throughout the life cycle of third-party relationships, including due diligence, contracting, ongoing monitoring, documentation, remediation, and termination.… Continue Reading