Compliance

CFPB rule limits overdraft credit practices & fees at largest financial institutions

NEWS:  Today, the federal Consumer Financial Protection Bureau (CFPB) issued a new final rule on overdraft credit that is offered to consumers.

The rule, which is set to take effect Oct. 1, 2025, applies only to “very large financial institutions,” meaning insured credit unions and other depository institutions with total assets of more than $10 billion “and any affiliate thereof.”

State increases escrow interest rate to 0.20% for 2025

NEWS:  The Wisconsin Department of Financial Institutions has announced that for 2025, the mandatory interest rate on certain required escrow accounts originated before April 18, 2018 will be 0.20% (up from 0.18% in 2024).

Federal court puts "beneficial ownership" rule on hold

NEWS:  A federal court in Texas recently ruled that the Corporate Transparency Act (CTA) – which requires certain companies to report “beneficial ownership information” (BOI) to FinCEN – is likely unconstitutional. The court preliminarily “enjoined” (i.e., temporarily prevented) enforcement of the CTA nationwide. The government will likely appeal the decision and ask the trial court to “stay” (put a hold on) the injunction while the appeal is pending. The League will monitor events and let you know about developments.

CFPB proposal would treat data brokers like credit bureaus

COMMENT CALL:  The Consumer Financial Protection Bureau (CFPB) has published a proposed rule that would extend the reach of the Fair Credit Reporting Act (FCRA) and its implementing rules (Reg. V) to cover data brokers.

Under the proposal, data brokers that sell certain sensitive consumer information would be treated as “consumer reporting agencies” (commonly called credit bureaus) under the FCRA, requiring them to comply with accuracy requirements, give consumers access to their information, and maintain safeguards against misuse.