The CFPB has filed a complaint against Synapse Financial Technologies Inc, alleging that the company engaged in unfair acts and practices in violation of the Section 1036(a)(1)(B) of the CFPA by failing to maintain sufficient records of the location of consumers’ funds, failing to ensure the records matched the records maintained by its partnering banks, and causing consumers to lose access to their funds.
Effective September 1, 2025, Texas Senate Bill 140 (SB 140) will enact several significant changes to the state’s telemarketing laws (Business and Commercial Code, Chapters 301-305 (TX Mini-TCPA)) that, collectively, increase the potential legal exposure for companies that use phone calls and text messages to market to customers and the public in Texas. These state level regulations add to the complexity of compliance, especially to the extent they deviate from the federal Telephone Consumer Protection Act (TCPA), so any companies that engage in calling or texting Texas residents, as well as companies that call or text from within Texas, should be aware of the new requirements.
The Consumer Financial Protection Bureau (CFPB or Bureau) is taking a significant step to modify its supervisory approach to nonbanks by publishing a proposed rule advancing a more stringent definition of “risks to consumers” in the context of § 1024(a)(1)(C) of the Consumer Financial Protection Act (CFPA) when designating nonbanks for supervision. This move aims to limit the Bureau’s oversight of nonbanks to cases where there is a high likelihood of significant harm to consumers, thereby narrowing the scope of its supervisory authority.
Last week, Illinois Governor JB Pritzker signed two landmark pieces of legislation aimed at protecting consumers from cryptocurrency scams and fraud. The Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) establish comprehensive regulatory frameworks for digital asset businesses operating in Illinois.
Contending that the Biden Administration’s investigation of Credova Financial LLC was an instance of politically motivated debanking, the CFPB is dropping its probe of the company.
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