United States: Consumer Credit

Colorado's Attorney General has filed a lawsuit against an earned wage access provider, alleging its cash advance product violates state payday lending and consumer credit laws. The case centers on whether the provider's direct-to-consumer advances constitute high-cost loans subject to licensing requirements and rate limitations, with the state claiming an average APR of approximately 388% through tips and fees. This enforcement action underscores the ongoing regulatory debate over how EWA products should b

Colorado's Attorney General has filed a lawsuit against a fintech company offering earned wage access products, claiming the service operates as an unlicensed high-cost lending program. The complaint alleges violations of state consumer credit laws and deceptive practices related to mandatory "tips" that function as finance charges. State regulators are seeking injunctive relief, restitution, and civil penalties.

A state senator in New York introduced a bill that, if adopted, would exercise New York’s right under Section 525 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”) to opt-out of DIDMCA preemption. However, there is virtually no chance that this bill will be enacted this year.

Illinois has enacted comprehensive legislation establishing a new regulatory framework for buy-now-pay-later lending products, introducing licensing requirements, consumer protection standards, and rate caps that will fundamentally reshape how BNPL providers operate in the state. The Act, which takes effect January 1, 2028, extends credit card-like dispute protections to BNPL transactions while imposing strict underwriting and disclosure obligations on lenders.

Advocacy groups and private companies have filed a lawsuit challenging the CFPB's elimination of disparate-impact liability under the Equal Credit Opportunity Act. The case raises fundamental questions about whether federal regulators exceeded their statutory authority in removing longstanding fair lending protections. With the amended regulations now in effect and a lengthy briefing schedule extending into 2027, the legal battle could ultimately reach the Supreme Court.

Explore the latest developments in consumer finance regulation, including CFPB leadership transitions, federal banking agency guidance on sensitive information handling, state-level DIDMCA opt-out challenges, and emerging trends in bank-fintech partnerships. This comprehensive analysis examines regulatory shifts, enforcement priorities, and the evolving landscape of financial services compliance.

Former Iowa Attorney General Thomas J. Miller filed an amicus brief supporting Colorado in a federal appeals case concerning DIDMCA's interest-rate exportation provisions, arguing that Iowa's 46-year history of opting out and enforcing usury laws against out-of-state banks provides unique insight into congressional intent. The brief contends that Iowa's continuous interpretation since 1980 demonstrates that states can apply their consumer credit laws to loans made to residents by out-of-state state-chartere

Federal banking regulators have issued new guidance addressing credit risks when lending to individuals not legally authorized to work in the United States, following a presidential executive order directing agencies to examine financial services extended to undocumented immigrants. The guidance emphasizes existing safety-and-soundness obligations while raising questions about how institutions should balance risk management with fair lending principles and access to mainstream credit.

As CFPB Acting Director Russell Vought prepares to testify before Congress, industry experts weigh in on the anticipated direction of the agency under new leadership. Senior Counsel Alan S. Kaplinsky, a veteran of consumer financial services law, provides his analysis on what stakeholders can expect from the hearing and its implications for enforcement priorities.