The Consumer Financial Protection Bureau’s (CFPB) April 2025 webinar brought together a group of experts to share their insights on key topics affecting consumers and the financial industry.

CFPB Publishes Research on Credit Sharing and “Piggybacking”

On March 25, 2025, the CFPB published a new research paper on credit sharing and a term called “piggybacking.” The CFPB said that “piggybacking” occurs when individuals with no responsibility for paying an account are made authorized users for the purpose of boosting their apparent creditworthiness. The paper identified two types of piggybacking: “family sharing,” in which parents add their young adult children to their credit cards; and “renting” credit card tradelines to strangers.

• The CFPB found that authorized user status significantly increases access to credit.
• The research found broad evidence that consumers who obtain credit in their own names while piggybacking are more likely to default on the credit in their name.
• The research also found that with respect to auto loans, a family-shared authorized user account significantly increased the success rate of an auto loan application, and that successful applications were less likely to end in delinquency.
• The paper also discussed the implications of piggybacking for credit inequality in the United States.

CFPB Publishes HMDA Data on Mortgage Lending

On March 31, 2025, the CFPB announced that the Home Mortgage Disclosure Act’s (the “HMDA”) Modified Loan Application Register data for 2024 are now available on the Federal Financial Institutions Examination Council’s platform.

House Subcommittee Examines CFPB Structure

On March 26, 2025, the House Subcommittee on Financial Institutions held a hearing called, “A New Era for the CFPB: Balancing Power and Reprioritizing Consumer Protections.” Panelists examined the current regulatory and legal landscape for federal consumer financial protection and the structure of the CFPB. Chairman Andy Barr (KY-06) led the hearing. Several witnesses testified, including Hudson Cook partner, Becki Kuehn.

Congress Votes to Overturn CFPB Overdraft Fees Rule

On March 27, 2025, the Senate voted to overturn the CFPB’s rule that limits overdraft fees at large banks to $5. The measure to block the rule was brought under the Congressional Review Act and cleared the Senate on a 52-48 vote that largely fell along party lines, with Senator Josh Hawley (R-Missouri) being the only lawmaker to cross the aisle. The Senate passed a similar legislative effort earlier in March to block the CFPB rule establishing supervisory authority over larger digital payment providers.

Congress Votes to Overturn CFPB Payment Rule

On March 5, 2025, the Senate voted (51-47) to approve the joint resolution (S.J. Res. 28) disapproving the CFPB’s rule, “Defining Participants of a Market for General-Use Digital Consumer Payments Applications.” On April 9, the House of Representatives passed a Congressional Review Act resolution (H.J. 64) that disapproves the rule. The House vote was along party lines with 219 Republicans voting in favor and 211 Democrats voting against.

CFPB Announces Regulatory Relief for Small Loan Providers

On April 11, 2025, the CFPB announced that it will not prioritize either enforcement or supervision of the future deadlines to submit registration information for its Rule titled “Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders.” The CFPB said it will instead focus its enforcement and supervision activities on “pressing threats to consumers.”

CFPB’s Payday, Vehicle Title, and Certain High-Cost Loans Rule Becomes Operative

On March 28, 2025, the CFPB announced that on March 30, 2025, the Consumer Financial Protection Bureau’s Payday, Vehicle Title, and Certain High-Cost Installment Loans rule would “become operative.” The rule requires specific disclosures, limits withdrawal attempts, requires lenders to maintain a specific compliance program, and requires lenders to follow detailed record keeping requirements for covered loans.

Senate Confirms New FTC Commissioner

On April 10, 2025, the Senate confirmed Mark Meador as the newest Republican FTC commissioner with a 50-46 vote along party lines. President Trump nominated Meador on January 20, for a term that will expire on September 25, 2031. FTC Chairman Ferguson issued a press release welcoming Commissioner Meador by saying, “Mark is a brilliant antitrust lawyer who will be a great asset to the Trump-Vance FTC.”

CFPB Requests Withdrawal in Case Against Money Transfer Company

On April 7, 2025, it was reported that the CFPB filed a motion to withdraw from its case against a nonbank remittance transfer company, but that the New York Attorney General intends to continue pursuing the litigation. The CFPB and the Attorney General of New York filed a lawsuit in the U.S. District Court for the Southern District of New York against a nonbank remittance transfer company in 2022. The lawsuit alleged that the company failed to promptly send payments or make refunds.

CFPB Dismisses Lawsuit Against Large Bank

On April 11, 2025, media outlets reported that the CFPB dismissed a lawsuit against a large bank. Specifically, the CFPB filed a notice of dismissal without prejudice in its lawsuit against this large bank. The bank had filed a motion to dismiss in March, and the CFPB did not file a response to the motion. The CFPB had filed the lawsuit back in December 2024, alleging the bank unfairly managed a prepaid debit card program that delivers various government benefits to consumers.

FTC Takes Action Against Online Cash Advance Company

On March 26, 2025, the CFPB disclosed its decision to rescind guidance that asserted buy-now, pay-later or BNPL products were subject to some of the same federal requirements as credit cards. The CFPB issued the interpretive rule in May 2024, and it laid out the CFPB’s view that BNPL firms qualified as credit card providers under the Truth in Lending Act. The Financial Technology Association filed a lawsuit in October 2024 to strike down the rule, arguing that it violated the Administrative Procedure Act and that it was arbitrary and capricious.

CFPB Seeks to Vacate Settlement with Mortgage Lender

On March 26, 2025, the CFPB and a mortgage lender jointly moved to vacate the Stipulated Final Judgment and Order previously entered against the company. The CFPB sued the mortgage lender in 2020, alleging that the company discouraged potential applicants on a radio program because of their race and the racial composition of the neighborhood where they lived or sought to live.

Judge Orders CFPB to Reinstate Fired Employees, but…

On March 28, 2025, Judge Amy Berman Jackson issued a preliminary injunction that orders CFPB Acting Director Vought to reinstate all fired probationary and term employees. Judge Berman Jackson issued a 112-page memorandum opinion that started with quotes from Elon Musk, Acting Director Vought, and President Trump. The order strikes down Acting Director Vought’s February stop work order, requires the CFPB to ensure its consumer complaint portal works and respond to complaints, and orders the CFPB to reverse contract terminations.

CFPB Issues Memo Regarding Use of Regulatory Guidance

On March 28, 2025, the CFPB issued a memo regarding the use of regulatory guidance. The memo clarifies the use of regulatory guidance by the CFPB and outlines the procedures for requesting and obtaining regulatory guidance. The memo also provides information on the process for providing and responding to comments on proposed and final rules.

Other Key Developments

• The CFPB announced that it will not prioritize enforcement or supervision of the future deadlines to submit registration information for its Rule titled “Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders.”
• The CFPB and the FTC are working together to address consumer complaints about nonbank lenders.
• The CFPB and the Department of Justice are working together to address consumer complaints about nonbank lenders.

Conclusion

In conclusion, the CFPB’s April 2025 webinar brought together a group of experts to share their insights on key topics affecting consumers and the financial industry. The CFPB published research on credit sharing and “piggybacking,” published HMDA data on mortgage lending, and announced regulatory relief for small loan providers. The CFPB also announced that its Payday, Vehicle Title, and Certain High-Cost Loans rule would become operative on March 30, 2025, and that it will not prioritize enforcement or supervision of the future deadlines to submit registration information for its Rule titled “Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders.” Additionally, the CFPB announced that it will rescind BNPL guidance, seek to vacate a settlement with a mortgage lender, and dismiss a lawsuit against a large bank. The CFPB also took action against an online cash advance company and confirmed a new FTC commissioner. Overall, the CFPB has been active in addressing consumer complaints and enforcing regulations in the financial industry.