Weekly News Roundup: CFPB Finalizes Rule to Supervise Popular Digital Payment Apps

Regulatory Developments

CFPB Finalizes Rule to Supervise Popular Digital Payment Apps
On November 21, the CFPB finalized a rule granting the CFPB supervisory authority over large non-bank companies with payment transfer and digital wallet apps. Under the rule, the CFPB has authority to oversee companies offering services that facilitate payments for “personal, household, or family purposes” and conducting greater than 50 million transactions annually. The rule only applies to transactions made in US dollars and not foreign currencies or cryptocurrency. Such oversight is in line with the authority the CFPB already exercises over banks and credit unions and will allow the CFPB to conduct proactive examinations of payment companies. The CFPB has noted that it plans to focus on whether data collection by these entities complies with privacy laws, whether they facilitate resolution of incorrect or fraudulent transactions in compliance with the Electronic Fund Transfer Act, and whether consumers lose access to payment apps without notice or recourse.

“Digital payments have gone from novelty to necessity and our oversight must reflect this reality. The rule will help to protect consumer privacy, guard against fraud, and prevent illegal account closures.”
— Rohit Chopra, CFPB Director

CFPB Proposes Rule to Regulate the Sale of Sensitive Personal Data by Data Brokers
On December 3, the CFPB issued a notice of proposed rulemaking (Proposed Rule) and request for public comment concerning data brokers and the sale of sensitive personal and financial information. The Proposed Rule seeks to restrict the sale of personal information identifiers by data brokers, such as Social Security Numbers, phone numbers, and certain financial data, and require that such information be shared only for legitimate purposes. Additionally, the Proposed Rule specifies that data brokers who sell certain sensitive consumer information qualify as “consumer reporting agencies” subject to the FCRA’s requirements on accuracy, providing consumers access to their information, and implementing safeguards to prevent misuse. Comments on the Proposed Rule must be received on or before March 3, 2025.

FDIC Updates Guidance on Advertising and Use of FDIC Official Signs, Name, and Logo
On December 2, the FDIC announced additional questions and answers (Q&As) regarding its final rule governing FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo. The final rule was issued in December 2023 and became effective on April 1, 2024; however, full compliance with subpart A, related to FDIC Official Signs and Advertisement of Membership, of the final rule is not required until May 1, 2025. The FDIC previously updated the Q&As in July and August of 2024. The additional Q&As are intended to provide additional information regarding the use of the FDIC’s digital sign and placement of the official sign in bank branches.

OCC Increases 2025 Assessment Rates for National Banks and Federal Savings Associations
On November 27, the OCC announced an increase in assessment rates for 2025 to enhance staff recruitment, training, and technology systems, ensuring effective supervision of the federal banking system. Institutions with assets over $40 billion will see rates rise by 16%, reflecting higher supervisory costs for the largest institutions, while smaller institutions’ rates will increase by 2.65% to account for inflation. The OCC will continue imposing a surcharge on institutions that require more oversight, calculated based on asset levels and risk ratings, with an increase in the asset cap used in the surcharge calculation from $40 billion to $250 billion. The new rates will take effect on January 1, 2025 and apply to assessments due on March 31 and September 30, 2025.

CFPB Announces Annual Adjustments to TILA Thresholds for 2025
On November 20, the CFPB issued a final rule, effective January 1, 2025, amending the official interpretations for Regulation Z, which implements TILA, to adjust the dollar amounts of various thresholds that impact open-end consumer credit plans, HOEPA loans, and qualified mortgages.

CFPB Announces Maximum Allowable Charge Threshold Under FCRA for 2025
On November 21, the CFPB issued a final rule, effective January 1, 2025, amending an appendix for Regulation V, which implements the FCRA, to maintain at the 2024 ceiling of $15.50 the maximum amount that a consumer reporting agency may charge a consumer for disclosing to the consumer information in the consumer’s file.

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