The Office of the Comptroller of the Currency (OCC) recently issued two bulletins aimed at preventing banks from engaging in “politicized or unlawful debanking,” aligning with a recent executive order (EO) from President Donald Trump. The OCC warns banks that debanking practices may negatively impact their Community Reinvestment Act (CRA) reviews and licensing applications, and reiterates their legal obligations under the Right to Financial Privacy …
Fed Signals Fraud a Top Priority in Special Compliance Outlook Issue
The Federal Reserve focused its latest Consumer Compliance Outlook on fraud, shining a light on a significant issue impacting consumers and financial institutions alike. The issue details a surge in check fraud and mail-related scams, emphasizing that traditional payment methods remain highly vulnerable, and encourages banks to strengthen fraud prevention efforts and increase consumer education initiatives. As further exemplified by the banking agencies’ recent joint …
To Carry Out EO, SBA Orders Its Lenders to Review and End Debanking Practices
The US Small Business Administration (SBA) has sent letters to its network of more than 5,000 lenders to stop “politicized or unlawful debanking” practices. The directive follows President Donald Trump’s recent executive order to cease debanking based on political, religious or ideological beliefs. Lenders must take specific actions to ensure compliance with the new federal mandate and avoid discriminatory banking practices. Read more ›
Executive Order Guarantees Efforts Against Debanking Will Continue
The White House recently issued an executive order (EO) aimed at combatting “politicized or unlawful” debanking. Among other requirements, the EO requires “Federal banking regulators” and the Small Business Administration (SBA) to eliminate from their guidance and other materials the use of reputation risk that could result in debanking and take remedial action against past instances of debanking. This EO is the latest in a …
US DOJ Memo Clarifies DEI Compliance for Federal Funding Recipients
The US Department of Justice (DOJ) released a memo directed at all federal agencies, setting forth the department’s view on how federal antidiscrimination laws apply to programs or initiatives, including diversity, equity and inclusion (DEI) programs. The memo provides a nonexhaustive list of unlawful DEI practices that could result in revocation of federal grant funding, and it offers best practices for organizations to minimize the …
CFPB Issues Interim Final Rule Extending Small Business Lending Rule Compliance Deadlines
The Consumer Financial Protection Bureau (CFPB) recently issued an interim final rule delaying compliance deadlines for a second time for its small business lending data collection rule, which amended Regulation B pursuant to Section 1071 of the Dodd-Frank Act. The interim final rule extends compliance deadlines for the small business lending rule by roughly one year across all origination tiers. The CFPB states in the …
Click to Cancel Just Got Cancelled: Eighth Circuit Vacates Entirety of FTC’s Negative Option Rule
On July 8, 2025, the US Court of Appeals for the Eighth Circuit vacated the entirety of the Federal Trade Commission’s new Negative Option Rule – popularly known as the Click-to-Cancel Rule – just days before it was scheduled to take full effect. While the rule has been vacated, the FTC can still police unfair and deceptive subscription practices under existing statutory authority. Companies also must continue …
CFPB Withdraws Guidance Documents in Shift From Nonbinding Policymaking
The Consumer Financial Protection Bureau (CFPB) withdrew nearly 70 interpretive rules, policy statements and advisory opinions as part of its shift away from “regulation by guidance.” The rescinded documents impact nearly all consumer protection laws, including the Fair Credit Reporting Act, the Truth in Lending Act, the Consumer Financial Protection Act’s prohibition on unfair, deceptive, or abusive acts or practices, and the Electronic Fund Transfer …
California DFPI Issues Annual Report Detailing Key Consumer Protection Accomplishments
On May 29, 2025, the California Department of Financial Protection and Innovation (DFPI) issued its annual report highlighting its activities and accomplishments in 2024 under the California Consumer Financial Protection Law (CCFPL). The DFPI reported that it issued regulations with new registration requirements for providers of earned wage access products, private postsecondary education financing, debt settlement services and student debt relief services – all of …
Executive Order Seeks to Eliminate Federal Deployment of Disparate Impact Theory of Discrimination
The Trump administration issued an executive order declaring that federal agencies are to discontinue use of disparate impact liability to administer antidiscrimination statutes. The executive order directs agencies to conduct a review of regulations and other guidance that contemplate disparate impact liability. Notably, the directive applies across the entire government – meaning that this order will significantly impact litigation, compliance and enforcement priorities for federal …