Today, the Consumer Financial Protection Bureau (CFPB) took action against VyStar Credit Union for harming consumers through its botched rollout of a new online banking system. In May 2022, VyStar transitioned to a new, dysfunctional online banking platform that made it difficult for credit union members to perform basic banking functions for weeks, with some features unavailable for more than six months. Families incurred fees and costs as a result of these problems. The CFPB is ordering VyStar to ensure that all consumers are made whole.
The Federal Trade Commission is sending more than $2.5 million to consumers who were misled by deceptive claims from credit services company Credit Karma.
Our podcast listeners are very familiar with federal fair lending and anti-discrimination laws that apply in the consumer lending area: the Equal Credit Opportunity Act (ECOA) and Fair Housing Act (FHA). Those statutes prohibit discriminating against certain protected classes of consumer credit applicants.
On October 16, the New York State Department of Financial Services (NY DFS) issued an industry letter to entities regulated by NY DFS (covered entities) providing guidance addressing the cybersecurity risks associated with the use of artificial intelligence (AI). The guidance purportedly aims to assist covered entities in understanding and assessing cybersecurity risks associated with threats arising from the use of AI by cybercriminals and the controls that may be used to mitigate those risks.
On Oct. 29, the FCC's Privacy and Data Protection Task Force (Task Force) announced a Memorandum of Understanding (MOU) between the FCC's Enforcement Bureau and the California Privacy Protection Agency (CPPA). The purpose of this MOU is to “ensure both agencies can align their efforts to best protect consumer privacy, ensure businesses and consumers are well-informed about their rights and obligations, and enforce privacy laws.”
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