WBK Industry News - Federal Regulatory Developments

FTC Issues 2023 Annual Financial Activities Report to CFPB

On May 20, 2024, the FTC issued its report to the CFPB regarding the FTC’s 2023 enforcement and other activities regarding Regulation Z, Regulation M (the regulation implementing the Consumer Leasing Act), and Regulation E.

Items that the FTC describes in the report include:

  • Enforcement actions under Regulation Z against auto dealers for distributing deceptive mailers;
  • Finalization of the CARS Rule to combat (in the FTC’s terms) “bait and switch” and “hidden fees” practices in the auto financing industry;
  • Proposal of a rule to prohibit so-called “junk fees”;
  • Release of an article to assist consumers with mortgage loans in navigating the default servicing process (including listing steps consumers should take, such as contacting free housing counselors and discussing options with their mortgage servicers);
  • Proposal for revisions to the Negative Options Rule, including the addition of a “click to cancel” provision that would require sellers to provide a simple mechanism to cancel a negative option and avoid charges for goods or services, and to immediately stop recurring charges.