In this special solo episode of The Consumer Finance Podcast, Chris Willis provides an important update on the Consumer Financial Protection Bureau's (CFPB) new small business lending data collection and reporting final rule — the Section 1071 Final Rule. In October, a Texas federal court entered a nationwide injunction covering all small business lenders, essentially saying that both the implementation and enforcement of the 1071 rule would be stayed pending the outcome of the Supreme Court's decision in the Community Financial Services Association case. Chris addresses the timing of the injunction, its impact on small business lenders, including the "free look" period for lender to voluntarily collect 1071 data, and what small business lenders can do to prepare for the potential lifting of the injunction after the Supreme Court's decision.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by Kim Phan, a partner in our firm's Privacy + Cyber practice, to discuss the Securities and Exchange Commission's new cyber risk management and incident disclosure rules for publicly traded companies. The rules, already in effect, detail the information a public company must report following a cybersecurity incident and the timeline for reporting. Chris and Kim also discuss the ongoing reporting obligations for a public company related to a cyber incident after the initial reporting phase, how the rules apply when cyber incidents involve a third party's system, and if the SEC has struck the right balance between informing investors versus the possibility of educating hackers on a company's cybersecurity defenses. They also address the rule's new requirement for annual disclosures about a company's cybersecurity risk management, strategy, and governance.

In this special crossover episode with Regulatory Oversight podcast, Ashley Taylor is joined by Kim Phan and Kristen Eastman to discuss the Consumer Financial Protection Bureau's (CFPB) 1033 proposed rule, also known as the Personal Financial Digital Rights rule. This rule, part of the Dodd-Frank Act, aims to place limits on the ability to access consumer data as well as any subsequent uses of such data. It focuses on entities subject to the Truth in Lending Act (TILA) and Regulation Z, such as depository institutions, credit card companies, and payment processors. The proposed rule requires these entities to make financial records available both to consumers and their authorized third parties.The group discusses the proposed rule's lack of specificity regarding the "qualified industry standard" that companies must meet. They also discuss the potential of state attorneys general and plaintiffs' lawyers using the proposed rule for enforcement actions and litigation.The CFPB has not yet issued guidance on the proposed rule's enforcement, and the group anticipates that the proposed rule could be finalized as early as next year. However, they also note that the proposed rule's timeline could be affected by litigation surrounding the CFPB's authority and funding.

In this special joint episode of Payments Pros and The Consumer Finance Podcast, Carlin McCrory, Keith Barnett, James Kim, and Chris Willis discuss the Consumer Financial Protection Bureau's (CFPB) proposed larger participant rule for consumer payments providers.The rule is designed to supervise general use digital consumer payment applications, defining a market for these applications and subjecting participants to CFPB supervision and examination under the Consumer Financial Protection Act. Proposed on November 7, the rule targets nonbanks that provide general use digital consumer payment applications with an annual volume of at least 5 million consumer payment transactions. The CFPB plans to aggregate transactions among affiliated companies, and any nonbank covered person will be considered a larger participant for two years from the first day of the tax year in which they last met the larger participant test.The group also discusses the implications of the rule, including the potential for increased enforcement activity and the broad scope of the rule. The rule is expected to be finalized and become effective around fall 2024, with examinations likely to begin in early 2025.

Please join us for a special cross-over episode of FCRA Focus and The Consumer Finance Podcast, where Troutman Pepper Partners Chris Willis, Dave Gettings, Kim Phan, and Ron Raether look at the latest developments in the CFPB's FCRA rulemaking process. Topics include:The anticipated timeline for public comment;The removal of medical debt from credit reports; The results of the Small Business Review Panels held in October, and potential reinstatement in the future; The CFPB's "interpretation" of various definitions in the FCRA, such as the meaning of a consumer reporting agency and a consumer report;New obligations imposed on furnishers and end-users regarding permissible purpose;The impact of these new rules on other industries;Anticipation for an uptick in FCRA litigation once the rules are finalized; and Next steps for businesses that will be impacted by the new rules.

Join Troutman Pepper Partner Chris Willis and Counsel Shannon Patterson as they discuss the top issues a company's board of directors needs to consider regarding the use of artificial intelligence (AI) in its business. Shannon specializes in advising companies on board and management governance issues, particularly publicly traded companies, to ensure that boards are well-informed of their responsibilities. In this episode, Shannon offers valuable insights on how a company's general counsel can support its board in integrating principles of good governance for the responsible and effective use of AI.

Join Troutman Pepper Partner Chris Willis as he discusses the New York Department of Financial Services’ (NYDFS) latest updates to its cybersecurity regulations with Troutman Pepper Privacy + Cyber Partner Kim Phan. With data breaches on the rise, the NYDFS has heightened its expectations for licensed entities in New York regarding data management. The finalized draft of these changes was released on November 1, following a year of public comment. Kim provides listeners with important background on these changes and discusses their potential impact on financial institutions of all sizes. Topics include data retention requirements, end-of-life management, enhancements to multifactor authentication, response plan execution, and of course, enforcement actions. 

Join Troutman Pepper Partner Chris Willis for a solo episode where he discusses a recent joint statement from the Consumer Financial Protection Bureau and the Department of Justice regarding the consideration of immigration status in credit underwriting — an issue that has plagued creditors for years. Chris provides listeners with important background on this matter, the history and impact of litigation on credit underwriting and immigration status, the content of the joint statement, and what strategies creditors can employ to stay ahead of the issue.

Join Troutman Pepper Partner Chris Willis and his colleagues Joe Reilly and Chris Capurso as they discuss the impact of state licensing laws on the consumer financial services industry. They tackle topics such as:When did licensing start and how did it grow into what it is today;Which entities are required to have a license and what happens if they engage in an activity that requires a license they do not have;What are the licensing requirements for various consumer lenders and nonlenders;Does the difficulty in obtaining licenses vary by state; andWhat services do our attorneys offer to clients to help them navigate the wild world of licensing requirements?

In this episode of The Consumer Finance Podcast, Troutman Pepper Partners Chris Willis and Matthew Orso discuss lessons learned from bank internal investigations. They explore the trigger points that give rise to these investigations, provide useful advice for banks regarding their investigations, discuss how to avoid common issues, and suggest remedial measures to prevent issues from repeating.