In Bibbs, the Third Circuit ruled that in determining whether a credit report is inaccurate or misleading under the FCRA’s “maximum possible accuracy” requirement, a district court should apply a “reasonable reader” standard. After reviewing the background of Bibbs, we discuss the analysis that Bibbs’ requires a district court to perform in determining whether a credit report is inaccurate or misleading, how Bibbs broadly undercuts the claims of plaintiff’s lawyers in FCRA cases alleging pay status information is misleading, Bibbs’ implications for data furnishers that follow Metro 2 guidelines or other industry standards, and Bibbs’ impact on defendants’ litigation strategy and the threat of plaintiffs’ attorney fees.

Dan McKenna, Co-Chair of Ballard Spahr’s Consumer Financial Services Group, hosts the conversation, joined by Abigail Pressler, Of Counsel in the Group.

Joined by two experts on the BNPL industry, we first review the types of BNPL products currently available, how they are accessed by consumers, how they generate revenue for industry participants, and potential consumer risks. We then discuss the federal and state laws applicable to BNPL, expectations for CFPB rulemaking or other action, how the U.S. regulatory approach to BNPL compares to the UK approach, and the growing nexus between BNPL and social media platforms.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation.

In our discussion of regulatory challenges, we consider the continuing impact of “true lender” challenges on bank-nonbank partnerships, how regulators approach industry innovation, and whether regulators should face stronger challenges from industry (including what the SCOTUS EPA decision could mean for such challenges). In our discussion of economic challenges, we consider the impact of inflation and recession fears on bank activity. Other topics include the role of bank mergers in the marketplace for banking services and issues faced by regulators in addressing crypto assets.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation.

The FTC’s proposal would impose a number of new substantive and disclosure requirements on motor vehicle dealers in connection with the car buying or leasing process. The topics we cover include: the FTC’s statutory authority for the proposal and the proposal’s coverage (including buy-here-pay-here dealers); the specific new requirements the proposal would impose; how the proposal interacts with existing federal and state laws; the proposal’s impact on auto finance companies; potential remedies for violations; and timing of next rulemaking steps.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation.

We first review the views expressed by Director Chopra and CFPB actions taken under his leadership that led the Chamber to launch its campaign. We then discuss the campaign’s specific components, which consist of digital ads, Freedom of Information Act requests, and letters to Director Chopra. Our discussion includes an in-depth look at the basis for the Chamber’s view that the CFPB has acted unlawfully in connection with changes to its UDAAP examination procedures, revisions to its rules for administrative proceedings, rule change to make public a decision establishing risk-based supervision of a company, and its interpretive rule on enforcement of federal consumer financial protection laws by state attorney generals. We also discuss the litigation challenging the constitutionality of the CFPB’s funding.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation.

In a recent consent order with a national bank, the CFPB found that the bank committed UDAAP violations in its process for handling garnishment orders and by including certain waiver language in its deposit account agreements. We discuss the specific aspects of the bank’s process that the CFPB found to be improper and what banks should consider when reviewing their own garnishment procedures in light of the consent order. We also look at what the consent order means for how banks can address liability concerns arising out of the handling of garnishment orders in deposit account agreements.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation, joined by Mike Gordon, a partner in the firm’s Consumer Financial Services Group, and Jessica Simon, Of Counsel in the firm’s Bankruptcy and Restructuring Group.

We first discuss the practicalities and potential impact of implementing Director Chopra’s call in a recent blog post for simplification of consumer finance regulations and simple bright-line rules. We then examine the role and objectives of regulation such as predictability and responsiveness to stakeholder input and consider whether the CFPB’s current approach to regulation, including its abandonment of official staff commentary updates, furthers those objectives. We also discuss the recent SCOTUS decision in EPA v. West Virginia and consider its implications for future challenges to CFPB actions. 

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation.

After reviewing the developments leading up to the settlement, we examine the aspects of Facebook’s advertising delivery system that were alleged to be discriminatory. We then discuss the terms of the settlement, including the variance reduction system that Facebook must develop to address disparities for race, ethnicity and sex between advertisers’ targeted audiences and the group of Facebook users to whom Facebook’s personalization algorithms actually deliver the advertisements, how variances will be measured, the role of an independent third-party reviewer, and the timetable for implementation.

Alan Kaplinsky, Ballard Spahr Senior Counsel, hosts the conversation, joined by Richard Andreano, Practice Leader of the firm's Mortgage Banking Group.

Together with our special guest whose company provides software enabling lenders to use AI to underwrite loans, we explore a wide range of issues of importance to lenders using AI to underwrite loans. Our discussion topics include: the CFPB’s position on how ECOA adverse action notice requirements apply to credit decisions based on the use of AI; what is meant by explainability and interpretability of AI; fair lending and other compliance risks and steps to reduce risk; preparing for CFPB exams; and the CFPB’s call for tech workers to act as whistleblowers to report potential discrimination arising from the use of AI.

Alan Kaplinsky, Ballard Spahr Senior Counsel hosts the conversation, joined by John Culhane and Michael Gordon, partners in the firm's Consumer Financial Services Group.

We discuss key regulatory issues for innovative products such as buy-now-pay later, longer term installment loans, delay pay, and card-based products (such as “virtual cards.”) We look at the different ways these products can be structured and the impact of  these differences on applicable legal requirements, such as disclosures and licensing. We also look at secondary market considerations, legal issues arising from the offering of products through non-bank/bank partnerships including enforcement trends, and recent CFPB developments impacting innovative products.

Participating in the podcast are Michael Guerrero, Lisa Lanham, and Michael Gordon, partners in Ballard Spahr’s Consumer Financial Services Group, and Rinaldo Martinez, Of Counsel in the Group.