Podcasts about Ballard Spahr

On a recent episode of the Consumer Finance Monitor Podcast, Alan Kaplinsky, host of the podcast, had the opportunity to interview Amelia O'Rourke-Owens, a legal scholar and former CFPB policy fellow, about her article, "Tearing Holes in Consumer Protection: Democracy's Safety Net." Amelia is the founder and CEO of Resilience Solutions, which provides subject matter expertise and consulting services around policy solutions and strategic planning. The services enhance strategic objectives of their clients and build resilience in their enterprise and efforts.  The discussion explored the role of consumer financial protection law, the evolving mission of the CFPB, and the broader implications for democracy, innovation, and financial regulation. Amelia advances a bold thesis in her article: that consumer protection law, and particularly consumer financial protection law, may be the most impactful body of law in the United States. She further argues that the strength of consumer protection laws may serve as a barometer for the health of American democracy. To support this thesis, Amelia proposes a three-part framework for evaluating the "impact" of a body of law: 1.         The number of individuals protected 2.         The breadth of entities governed 3.         The available avenues for enforcement Under this framework, Amelia contends that consumer financial protection law stands apart because it affects virtually every American, governs a broad range of financial institutions and market participants, and relies on overlapping enforcement mechanisms that include federal regulators, state attorneys general, and private litigation. Alan and Amelia's discussion examined these themes in detail and highlighted several important points of disagreement. The CFPB's Role and Regulatory Philosophy A substantial portion of their conversation focused on the CFPB itself and how different administrations have approached the Bureau's authority. Amelia defended an expansive view of consumer protection oversight, arguing that robust regulation is necessary to prevent harmful market conduct and systemic instability. She pointed to the 2008 financial crisis as evidence that insufficient oversight can have devastating consequences not only for consumers but for the financial system as a whole. Alan expressed concern that, during the tenure of former CFPB Director Rohit Chopra, the Bureau frequently pushed beyond clear statutory boundaries through aggressive enforcement theories, expansive interpretations of UDAAP authority, and attempts to regulate emerging products and practices through guidance and supervisory pressure rather than formal rulemaking. As Alan noted during the discussion, many industry participants viewed the CFPB's approach under Chopra as creating significant uncertainty. Financial institutions often struggled to determine whether innovative products that complied with existing statutes and regulations would nevertheless become targets of CFPB criticism or enforcement. That uncertainty, in Alan's view, can have real-world consequences. Institutions may become more risk-averse, innovation may slow, and access to credit, particularly for low- and moderate-income consumers, may be reduced. Amelia strongly disagreed with the premise that regulatory oversight itself discourages innovation or access to credit. Instead, she argued that effective regulation can create guardrails that protect responsible market participants from competitors willing to cut corners or exploit consumers. The Importance of Multiple Enforcement Mechanisms Another key theme of the discussion was the importance of overlapping enforcement authority. Amelia emphasized the value of allowing state attorneys general to enforce consumer protection laws and argued that Dodd-Frank appropriately preserved state authority by limiting federal preemption in many contexts. She suggested that state regulators are often better positioned to identify emerging harms before they become national problems. Alan acknowledged that state enforcement can play an important role, particularly given the prevalence of arbitration clauses and class action waivers that have limited certain forms of private litigation. At the same time, Alan noted that overlapping federal and state enforcement can create inconsistent standards and compliance uncertainty for financial institutions operating nationwide. This tension between national uniformity and decentralized enforcement remains one of the central unresolved issues in consumer financial regulation. Areas of Agreement Despite their disagreements, there were several areas where Alan and Amelia found substantial common ground. Most notably, they agreed that one of the CFPB's most successful accomplishments has been the creation of its consumer complaint portal. The complaint database has provided consumers with an accessible mechanism for obtaining responses from financial institutions while also generating valuable market-wide data about recurring problems and trends. They also agreed on the growing threat posed by scams and fraud, particularly involving digital payment platforms and other rapidly evolving technologies. Amelia highlighted the enormous financial harm consumers suffer from fraud schemes, while Alan noted the increasing concern among policymakers and researchers regarding scams originating overseas and the need for a coordinated national response. Consumer Protection and Democratic Governance Perhaps the most provocative aspect of Amelia's article is her argument that consumer financial protection serves as a "bellwether" for the health of democracy itself. Amelia contends that strong consumer protection reflects a government responsive to the needs of its constituents, while weakening such protections signals an elevation of other interests over those of ordinary consumers. Alan expressed skepticism about tying consumer financial regulation so directly to democratic legitimacy. In Alan's view, there are also serious democratic concerns raised when an independent agency led by a single director exercises broad policymaking authority without clear congressional authorization. This debate reflects a larger national conversation about the proper role of administrative agencies, the balance between accountability and independence, and the limits of regulatory power. Looking Ahead The future direction of consumer financial protection remains uncertain. The CFPB under Acting Director Russell Vought has moved aggressively to scale back many of the initiatives pursued during the Chopra era, prompting intense debate about the agency's long-term mission and structure. At the same time, emerging technologies, digital payment systems, fraud risks, and evolving financial products will continue to challenge regulators, lawmakers, and industry participants alike. Alan's discussion with Amelia O'Rourke-Owens highlighted the sharp disagreements that exist regarding the CFPB and consumer financial regulation more broadly. But it also underscored the importance of continuing thoughtful and substantive dialogue about these issues as the financial services industry and regulatory landscape continue to evolve. Amelia's article was presented at the Loyola Consumer Law Symposium back in March. The article can be found in the Loyola Consumer Law Review Vol. 38:2. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Artificial intelligence is rapidly transforming consumer financial services and countless other industries. As AI systems become more autonomous, adaptive, and deeply integrated into commercial decision-making, courts, regulators, and industry participants are increasingly confronting a critical question: when AI causes harm, who should be held responsible? In our latest episode of our award-winning, weekly Consumer Finance Monitor Podcast, our host Alan Kaplinsky (the founder, Chair for 25 years, and now Senior Counsel of our Consumer Financial Services at Ballard Spahr LLP)  had the pleasure of speaking with Mark Geistfeld, the Sheila Lubetsky Birnbaum Professor of Civil Litigation at New York University School of Law and the reporter for the American Law Institute's groundbreaking new project, Principles of the Law, Civil Liability for Artificial Intelligence.  The discussion explored one of the most consequential emerging legal issues in the AI era: how traditional tort law doctrines, including duty, reasonable care, causation, foreseeability, product liability, and allocation of responsibility, should apply to AI systems. Professor Geistfeld explained why the ALI chose to pursue a "principles" project rather than a traditional restatement. Because there is still relatively little AI-specific case law, the project is intended to provide a forward-looking framework that adapts existing tort doctrines to emerging AI technologies. As Mark noted during the discussion, the project seeks to determine "what existing law, properly adapted to this new technology, would require." Their conversation covered a wide range of timely and challenging issues, including: Whether AI systems should be treated as "products" or "services" for purposes of tort liability; How liability may be allocated among foundation model developers, deployers, integrators, and end users; The role of reasonable care obligations in AI development and deployment, including testing, monitoring, and guardrails; The growing importance of transparency and industry best practices; The "black box" problem and the difficulty of proving causation when even developers may not fully understand AI outputs; The tension between fostering innovation and ensuring accountability; and How tort liability and regulatory frameworks can operate together in a complementary manner.   How rapidly advancing AI capabilities, including developments involving autonomous agents and cybersecurity vulnerabilities, are accelerating the urgency of creating coherent legal frameworks. One particularly interesting aspect of the discussion involved Professor Geistfeld's explanation of how AI liability differs from traditional product liability analysis because AI systems evolve, adapt, and operate probabilistically. He emphasized that many of the challenges courts will face resemble issues already encountered in pharmaceutical litigation, toxic torts, and medical malpractice cases involving probabilistic causation. The ALI project remains in development, but preliminary drafts are already beginning to shape legal and academic discussions. Given the pace of AI advancement, courts and policymakers are likely to confront these issues long before a final completed volume is published. This podcast continues our ongoing intensive coverage of artificial intelligence and consumer financial services, including our recent programs discussing the White House AI Action Plan (listen to part 1 here and part 2 here), the White House AI Framework (listen here) and other AI regulatory developments. The episode provides valuable insights for financial institutions, fintech companies, AI developers, compliance professionals, litigators, and anyone interested in the future legal framework governing artificial intelligence. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode of the Consumer Finance Monitor Podcast features a wide-ranging and timely discussion about one of the most consequential fair lending developments in years: the CFPB's final rule fundamentally reshaping enforcement under the Equal Credit Opportunity Act (ECOA) and Regulation B. Hosted by Alan Kaplinsky (the Founder, Chair for 25 years and now Senior Counsel of the Consumer Financial Services Group at Ballard Spahr, LLP), the episode brings together an exceptional panel of fair lending authorities: our special guest Bradley Blower (the Principal and Founder of Inclusive-Partners LLC) along with John Culhane, Jr., and Richard Andreano, Jr., Senior Counsel in the Consumer Financial Services Group at Ballard Spahr LLP. The discussion revisits a proposal first examined on the podcast last year when the CFPB under Acting Director Russell Vought proposed sweeping revisions to ECOA enforcement principles (you can find more on that episode here). Now, the Bureau has finalized the rule largely as proposed, marking a dramatic shift in federal fair lending policy. The CFPB's Three Major Changes As discussed during the podcast, the final rule makes three major changes from the former Regulation B: ·        Eliminates the use of disparate impact analysis under ECOA and Regulation B. ·        Narrows discouragement liability by focusing primarily on spoken, written, or visual statements rather than broader conduct. ·        Revises the framework governing Special Purpose Credit Programs (SPCPs), particularly for for-profit lenders. The Bureau's stated rationale is that ECOA does not authorize disparate impact liability and that fair lending enforcement should focus on intentional discrimination rather than statistical disparities alone. Supporters of the rule argue that the changes provide lenders with clearer standards, reduce regulatory uncertainty, and create a more predictable environment for innovation, including AI-driven underwriting and algorithmic decision-making. Critics, however, contend that the rule ignores the historical role disparate impact analysis has played in uncovering systemic discrimination and could make it substantially more difficult to identify discriminatory outcomes embedded in facially neutral policies or automated systems. Disparate Impact: A Sea Change, But Not the End of Fair Lending The panel devoted significant attention to the CFPB's elimination of disparate impact liability under ECOA. John Culhane described the move as a "dramatic shift" for non-mortgage lending, noting that disparate impact theories historically drove many federal fair lending actions involving indirect auto finance, student lending, and other consumer credit products. At the same time, Rich Andreano emphasized that the mortgage industry remains subject to disparate impact claims under the federal Fair Housing Act because of the Supreme Court's decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project. As a result, mortgage lenders still face substantial fair lending exposure notwithstanding the CFPB's new ECOA position. The panelists also stressed that disparate impact is far from dead at the state level. Several states, including Massachusetts, New Jersey, and New York, are expected to continue aggressive fair lending enforcement using disparate impact theories under state statutes, regulations, and consumer protection laws. Indeed, the panel highlighted the growing role of state attorneys general and state regulators as federal enforcement narrows. Discouragement Liability and the "Townstone Effect" Another focal point of the discussion was the CFPB's narrowing of discouragement liability. The panel explored how the Bureau's revisions appear heavily influenced by the CFPB's controversial enforcement action against Townstone Financial, where the Bureau alleged that comments made during radio broadcasts and podcasts discouraged minority borrowers from applying for loans. Rich Andreano characterized the final rule's discouragement provisions as effectively "the Townstone rule," reflecting the current CFPB leadership's strong opposition to the prior Bureau's enforcement theory in that case. Nevertheless, both Brad Blower and John Culhane cautioned that courts and state regulators may continue to consider broader conduct, including branch placement, marketing strategies, and community engagement, when evaluating potential redlining or discouragement claims. SPCPs Face New Uncertainty The podcast also examined the CFPB's revisions to Special Purpose Credit Programs. Brad Blower explained that while SPCPs remain permissible, the new rule substantially complicates the use of race-conscious programs by for-profit lenders. Many institutions may now seek to redesign programs around race-neutral criteria such as first-generation homeownership, low- and moderate-income geographies, or majority-minority census tracts. Rich Andreano warned that many financial institutions, especially banks, may scale back SPCPs due to litigation and regulatory uncertainty, particularly given the broader political and legal environment surrounding diversity, equity, and inclusion initiatives. The Practical Message: "Stay the Course" Despite the significance of the CFPB's rule changes, the clearest takeaway from the discussion was remarkably consistent: lenders should not dismantle their fair lending compliance programs. All three panelists emphasized that institutions should continue: ·                 Monitoring for disparate impact. ·                 Reviewing underwriting and pricing models. ·                 Evaluating marketing and branch strategies. ·                 Testing AI and algorithmic systems for bias. ·                 Maintaining robust fair lending compliance management systems. As Brad Blower observed, institutions that "take their foot off the gas" risk state enforcement actions, private litigation, reputational harm, and future regulatory scrutiny under a different federal administration. Rich Andreano summarized the prevailing industry guidance succinctly: "Stay the course." AI, Algorithmic Underwriting, and Future Litigation The panel also explored how the rule intersects with AI-driven lending. Although federal ECOA disparate impact enforcement may narrow, the panelists noted that state laws and private litigation could continue targeting algorithmic discrimination. Several states already are pursuing or considering laws specifically addressing AI bias and automated decision-making. The panel further predicted that legal challenges to the CFPB's final rule are highly likely. Potential claims could include: ·        Administrative Procedure Act challenges. ·        Arguments that the CFPB disregarded congressional intent underlying ECOA. ·        Challenges arising under the Supreme Court's decision in Loper Bright Enterprises v. Raimondo, which eliminated Chevron deference to agency rules. The panel suggested that litigation over the final rule could ultimately reach the Supreme Court, particularly on the unresolved question of whether ECOA itself authorizes disparate impact liability. Conclusion This episode provides an exceptionally practical and nuanced examination of one of the most important fair lending developments in recent memory. While the CFPB has dramatically narrowed federal ECOA enforcement theories, the broader fair lending landscape remains highly active due to state enforcement, private litigation risk, the Fair Housing Act, and ongoing scrutiny of AI-based underwriting systems. For lenders, the message from the panel was unmistakable: despite the CFPB's final rule, fair lending compliance remains as important as ever. You can listen to the full podcast on the Consumer Finance Monitor Podcast available through Ballard Spahr and major podcast platforms. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today, we released a new episode of the award-winning Consumer Finance Monitor Podcast examining one of the most significant recent federal developments in the fight against scams and fraud: Executive Order 14390. Hosted by Alan Kaplinsky (the founder, chair for 25 years and now Senior Counsel in the Consumer Financial Services Group), the episode features returning guests Kate Griffin and Nick Bourke of the Aspen Institute, who previously joined the podcast to discuss Aspen's landmark report, United We Stand: A National Strategy to Prevent Scams.   Why This Episode Matters Scams and fraud continue to impose staggering losses on American households, businesses, and financial institutions. As discussed in the episode, the Aspen report framed scams as a "whole-of-society" problem requiring coordination across government, financial institutions, technology companies, telecom providers, and civil society. The new Executive Order appears to respond directly to that challenge by calling for: A coordinated federal anti-scam strategy Greater inter-agency cooperation Enhanced public-private information sharing Increased disruption of transnational scam networks Stronger victim restitution and recovery efforts More aggressive international enforcement tools, including sanctions and diplomatic pressure In many respects, the Executive Order may represent the first serious federal attempt to build a national strategy to combat scams. Key Themes Explored in the Episode During the discussion, Kate Griffin described the Executive Order as the "starting gun" in the race against scams—an important signal that the federal government is now treating scams as a national priority. Nick Bourke emphasized that success will require more than enforcement alone. He noted that regulators, financial institutions, telecom carriers, and digital platforms must be empowered to share information and intervene more effectively when suspicious activity is detected. The conversation also examined: Coordination Across Government The Executive Order relies heavily on the federal government's National Coordination Center framework to align agencies such as the Departments of Treasury, State, Justice, and Defense. Whether that coordination translates into meaningful operational change remains to be seen. 2. Information Sharing and Safe Harbors The guests explained that one of the largest barriers to scam prevention is the inability of private-sector participants to share threat intelligence quickly because of privacy, litigation, or antitrust concerns. Legislative or regulatory safe harbors may ultimately be necessary. 3. Targeting the Scam Business Model Rather than focusing solely on individual fraudsters, the discussion stressed the need to undermine the economics of scams—making them harder, riskier, and less profitable for criminal enterprises to operate. 4. Victim Restoration A particularly notable feature of the Executive Order is its call for a victim restoration program, which could help return seized assets to scam victims more efficiently. 5. Modernizing Law Enforcement Tools The guests also highlighted the need to modernize legacy federal databases such as FBI and FinCEN reporting systems, many of which were designed before today's high-speed digital scam environment. What Comes Next? While the Executive Order is an important milestone, the guests agreed that additional action will be needed from Congress, regulators, and the private sector. A successful anti-scam strategy will likely require: Clearer legal pathways for data sharing Better consumer reporting systems Greater use of AI and analytics International cooperation Faster prosecutions and asset recovery Ongoing public education efforts Bottom Line This episode makes clear that scams are no longer simply a consumer-protection issue, they are now a national economic security issue. The White House has taken an important first step, but whether the Executive Order produces meaningful results will depend on execution, follow-through, and sustained cross-sector collaboration. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In the episode of Consumer Finance Monitor Podcast being released today, we explore the White House's National Policy Framework for Artificial Intelligence published on March 20, 2026. This new framework represents the Administration's most concrete attempt yet to shape the future of AI governance in the United States. While it does not carry the force of law, it offers a revealing look at the policy direction the Administration hopes Congress will take. Joining our host, Alan Kaplinsky (founder, chair for 25 years and now Senior Counsel of the Consumer Financial Services Group), for this discussion were Charlie Bullock (Senior Research Fellow at The Institute for Law and AI), Kristian Stout (Director of Innovation Policy at the International Center for Law & Economics), and Greg Szewczyk, head of Ballard Spahr's Privacy and Data Security Group. Below are the key takeaways from the conversation. From Principles to Policy: A Clear Shift One of the most striking aspects of the new framework is how sharply it departs from last year's more principles-based "White House AI Action Plan." That earlier effort emphasized risk awareness, governance principles, and a balanced approach to innovation and regulation. On October 30, 2025, we produced a webinar entitled: "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out", which featured the same speakers as the podcast being released today, plus Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan. This webinar was then re-purposed into a two-part podcast series released on December 4 and 10, 2025. By contrast, the new framework is short, just a few pages, light on detailed policy prescriptions, and heavily focused on limiting regulation, particularly at the state level. As Charlie Bullock observed, the document is notable as much for what it doesn't include as for what it does. Rather than proposing robust federal oversight, it largely outlines areas where the government should refrain from acting. Federal Preemption Takes Center Stage The framework's most consequential and controversial feature is its strong endorsement of federal preemption of state AI laws. It proposes broad preemption in areas such as: ·        AI development ·        Liability for third-party misuse of AI systems ·        Restrictions on AI-enabled activities that would otherwise be lawful At the same time, it preserves certain state authorities, including: ·        Zoning and infrastructure decisions ·        State use of AI ·        "Generally applicable" laws (e.g., fraud, consumer protection, and child safety) This raises a critical question: How meaningful are these carve-outs? As we discussed, broadly worded exceptions, particularly for state "police powers", could significantly limit the practical reach of federal preemption and potentially preserve a patchwork of state regulation. The Patchwork Problem Isn't Going Away Even with federal action, the reality is that state-level AI regulation is already underway. Laws like Colorado's AI Act and emerging chatbot regulations illustrate how quickly states are moving. Greg Szewczyk noted that, unlike privacy law, where states have largely converged around similar frameworks, AI regulation could diverge in more fundamental ways. Without a consistent federal baseline, companies may face: ·        Increased compliance costs ·        Operational complexity ·        Uncertainty in deploying AI tools across jurisdictions Interestingly, some state regulators (including Democrats) may ultimately favor a well-crafted federal preemption regime if it provides clarity without sacrificing core protections. Innovation First—But Who Benefits? The framework strongly emphasizes: ·        AI infrastructure buildout ·        Faster permitting ·        Regulatory sandboxes ·        Access to federal datasets Kristian Stout highlighted that these priorities could accelerate innovation but they are not automatically startup-friendly. Large incumbents may benefit disproportionately due to: ·        Greater access to compute resources ·        Established compliance capabilities ·        Ability to absorb regulatory costs This tension between promoting innovation and preserving competition remains unresolved. Child Safety, IP, and Free Speech: More Questions Than Answers The framework touches on several critical areas but leaves key details unsettled: Child Protection It endorses tools like age verification and parental controls but offers little guidance on implementation. Compared to proposals like the Kids Online Safety Act (KOSA), the framework appears less aggressive and more preemptive of state innovation. Intellectual Property Rather than legislating, the framework defers to the courts on issues like: ·        Fair use in AI training ·        Output infringement This "wait and see" approach avoids premature policymaking but prolongs uncertainty. Free Speech A novel component aims to prevent government "jawboning" of AI providers; i.e., informal pressure to shape outputs. While rooted in legitimate First Amendment concerns, its ultimate scope and constitutionality remain unclear. No New AI Regulator—For Now The framework rejects the creation of a centralized AI regulator, instead relying on existing agencies. This approach has clear advantages: ·        Agencies already understand their sectors ·        Avoids bureaucratic duplication But it also raises concerns: ·        Limited technical expertise ·        Resource constraints ·        Inconsistent oversight across agencies As discussed, a hybrid model, combining agency expertise with centralized technical guidance, may ultimately emerge. Will Anything Actually Pass? Perhaps the most sobering takeaway: major AI legislation is unlikely in the near term. As Charlie Bullock put it bluntly, companies should not invest significant resources preparing for this specific framework. The political reality is: ·        Deep divisions within and between parties ·        Limited legislative bandwidth before the midterms ·        Competing proposals with very different philosophies That said, elements of the framework may still surface incrementally in future bills. The Anthropic "Mythos" Moment: A Glimpse of What's Coming While not covered by the White House framework, our discussion closed with a timely real-world example: reports about Anthropic's advanced AI model, "Claude Mythos," capable of identifying and exploiting software vulnerabilities at scale. Whether somewhat overstated or not, the episode highlights a broader truth: ·        AI is accelerating existing capabilities, not inventing entirely new ones ·        The pace of advancement is increasing rapidly ·        Both risks and defensive tools are evolving simultaneously As Kristian Stout noted, this is less a radical break than a compression of time and accessibility, making powerful capabilities available faster and to more people. Final Thoughts The White House AI Framework signals an important shift in U.S. policy thinking: ·        Away from abstract principles ·        Toward concrete (if still incomplete) legislative direction It prioritizes innovation, federal uniformity, and limited regulation but leaves fundamental questions unresolved. For industry participants, the key takeaway is not immediate compliance but continued vigilance. The direction of travel is becoming clearer, even if the destination remains uncertain. We will closely continue to monitor developments closely on our blog, webinars and podcast shows. We will soon be releasing podcast shows with (1) Professor Mark Geistfeld of NYU Law School about ALI's relatively new project entitled "Principles of the Law Pertaining to Civil Liability for Artificial Intelligence" and (2) with Professor David Hoffman of the University of Pennsylvania Law School about an article he co-authored with the CEO of the American Arbitration Association entitled "Agentic Commerce Needs Legal Infrastructure, and the Courts are Coming." Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

This is Derek Miller, Speaking on Business. Ballard Spahr is a national law firm with 19 offices and 750 attorneys across the country, and it has been serving Salt Lake City since 1987. Litigation Partner in the Salt Lake City office, Melanie Vartabedian, joins us with more. Melanie Vartabedian: At Ballard Spahr, we partner closely with our clients as trusted business advisers. For example, our Utah Employment Law Update and Economic Outlook has, for 14 years, been a valued resource for Utah employers. It helps employers understand what to watch and how to stay ahead. In 2025, we had the pleasure of hosting more than 100 attendees. As Salt Lake City's business community has grown, so have we. We represent manufacturers, technology companies, start-ups, financial institutions, developers and other regional and national businesses. Our Utah lawyers handle business-critical matters related to intellectual property, real estate and construction. My work often involves complex commercial and consumer financial services litigation, securities litigation and real estate disputes. From the Great Salt Lake to the Silicon Slopes, we have our clients' interests in mind. Learn more about us at BallardSpahr.com. Derek Miller: Now in its fourth decade of serving clients in Utah and beyond, Ballard Spahr's Salt Lake City office plays a key role in supporting the state's economic growth. Its work with businesses helps strengthen Utah's economy. I'm Derek Miller, with the Salt Lake Chamber, Speaking on Business. Originally aired: 4/30/26

A recent court ruling requiring continued funding of CFPB gives the organization room to keep carrying out its mission despite ongoing pressure from the White House and Congress. We'll examine how the decision affects the bureau's day‑to‑day operations and longer‑term outlook, with Senior Counsel at Ballard Spahr, Alan Kaplinsky.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this episode of the Consumer Finance Monitor Podcast, host Alan Kaplinsky (founder, former chair for 25 years and now Senior Counsel) had the pleasure of speaking with Sam Levine, Commissioner of the New York City Department of Consumer and Worker Protection (DCWP), about the agency's evolving role as one of the most active local consumer protection regulators in the country. Important note: This podcast was recorded prior to DCWP's April 8, 2026 release of its proposed "click-to-cancel" rule addressing subscription practices. Alan recorded a description of the proposed rule which is at the end of the recording. We also wrote a separate blog about that significant development. A Local Regulator with National Influence From the outset, Commissioner Levine emphasized that DCWP is not simply a municipal agency focused on traditional licensing and enforcement, but rather a modern regulator tackling complex consumer protection issues that increasingly mirror those addressed at the federal level. "Local enforcement can be incredibly impactful—we're often closest to consumers and can move quickly to address emerging harms." He noted that New York City's scale and diversity make it a uniquely important testing ground for innovative consumer protection strategies. Executive Orders Driving Enforcement Priorities A key backdrop to DCWP's current activity is a pair of mayoral directives—Executive Order 9 and Executive Order 10—issued by New York City Mayor Zohran Mamdani on January 5, 2026 (shortly after he took office) which we have discussed in a prior blog post. These Executive Orders signal a clear policy direction to fulfill his campaign promise to make life more affordable for everyday New Yorkers: an intensified focus on consumer protection, particularly in areas involving deceptive practices, hidden or "junk" fees, and recurring payment models. Executive Order 10, in particular, directs DCWP to prioritize enforcement against "subscription traps" and misleading recurring charge practices—laying the groundwork for the Department's subsequent proposed "click-to-cancel" rule published on April 8, 2026. Commissioner Levine made clear that these directives are not merely aspirational, but are actively shaping the agency's enforcement and rulemaking agenda: "We're aligning our work with the Mayor's directive to go after practices that frustrate consumers and undermine fair competition." Enforcement Priorities: Targeting Deceptive Practices A central theme of our discussion was DCWP's aggressive focus on deceptive and unconscionable trade practices, particularly in areas where consumers are most vulnerable. Commissioner Levine highlighted the agency's work in combatting: 1.     Hidden fees and misleading pricing practices 2.     Predatory lending and financial services abuses 3.     Worker exploitation in the gig economy 4.     Emerging digital marketplace risks "We're focused on conduct that distorts consumer choice—where people think they're getting one thing but end up locked into something very different." He underscored that transparency and fairness are guiding principles behind DCWP's enforcement agenda. Final Debt Collection Rules: A Significant Regulatory Development We also discussed DCWP's recently finalized debt collection regulations, which we have analyzed in prior blog coverage. These rules represent one of the most significant updates to New York City's debt collection framework in years. Commissioner Levine emphasized that the rules are designed to modernize existing requirements and address evolving industry practices, including the increased use of digital communications. "The goal is to ensure that debt collection practices keep pace with how consumers actually communicate today, while maintaining strong protections against harassment and abuse." Among other things, the rules clarify permissible communications, reinforce substantiation and disclosure requirements, and strengthen consumer protections in line with broader trends seen at the federal level. These rules, which go effective later this year, apply not only to third-party collectors and buyers of consumer debt, but also to creditors of consumers whenever the debtor resides or is located in New York City. Collaboration with Federal and State Regulators Drawing on his prior experience at the Federal Trade Commission as Director of the Bureau of Consumer Protection, Levine discussed the importance of coordination across jurisdictions. "There's a real opportunity for federal, state, and local regulators to work together and reinforce one another's efforts." He explained that DCWP frequently collaborates with the FTC, the New York State Attorney General's Office, and other enforcement bodies, particularly in cases involving multi-state or national conduct. At the same time, he made clear that local regulators can lead: "We don't have to wait. If we see harm affecting New Yorkers, we're going to act." Rulemaking as a Strategic Tool In addition to enforcement, Levine emphasized DCWP's increasing use of rulemaking to shape market behavior proactively. "Rules give clarity to businesses and protections to consumers—they're an important complement to case-by-case enforcement." He noted that clear rules can help level the playing field for companies that are already trying to do the right thing. Focus on Financial Services and Marketplace Innovation The conversation also explored DCWP's interest in financial services, particularly as new products and delivery models emerge. Levine pointed to risks associated with: 1.     Fintech innovations that may outpace regulatory frameworks 2.     Online platforms that obscure key terms or pricing 3.     Products that rely heavily on consumer inertia or behavioral biases "Innovation can be a good thing—but it can't come at the expense of transparency or fairness." Practical Takeaways for Industry For companies operating in or serving New York City, the message from DCWP is clear: 1.     Expect active enforcement of deceptive practices 2.     Monitor local regulatory developments, including mayoral directives and rulemaking initiatives 3.     Prioritize clear disclosures and consumer-friendly processes 4.     Anticipate continued focus on digital and subscription-based business models "Our goal is straightforward: markets should work for consumers, not against them." Looking Ahead Although our discussion did not cover it because it happened after our podcast was recorded, DCWP has since proposed a significant new rule targeting subscription practices—further underscoring the agency's commitment to addressing modern consumer risks and reflecting the policy direction set by Executive Order 10. Given Commissioner Levine's leadership and experience, including his prior role at the FTC, DCWP is likely to remain at the forefront of consumer protection innovation. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

The latest episode of the Consumer Finance Monitor Podcast being released today tackles one of the most consequential developments in bank–fintech litigation in recent years: the Los Angeles Superior Court's tentative decision in Opportunity Financial, LLC v. Hewlett (read more here). This case squarely addresses the long-debated "true lender" doctrine which has for decades bedeviled banks and Fintechs and "bricks and mortar" non-banks that have entered into joint ventures with one another to engage in interstate lending programs which take advantage of interest rate exportation rights afforded to banks. After applying application California and federal law, the Court granted summary judgment to OppFi and against the California Department of Financial Protection and Innovation (DFPI) which unsuccessfully maintained that OppFi is the true lender and not OppFi's partner, FinWise Bank. In this episode, host Alan Kaplinsky, founder and former chair of the Consumer Financial Services Group and now Senior Counsel, is joined by two leading voices with sharply contrasting perspectives: Professor Emeritus Arthur Wilmarth, a prominent critic of bank–fintech partnerships, and Ballard Spahr Senior Counsel Ron Vaske, who regularly advises banks and fintech companies on structuring such programs. Their discussion offers a deep and balanced exploration of the court's reasoning and its broader implications.   A Tentative Decision with Significant Implications At the center of the case is a partnership between OppFi, a fintech platform, and FinWise Bank, a Utah-chartered, FDIC-insured institution. The program allowed FinWise to originate consumer loans at interest rates permissible under Utah law and export those rates nationwide under Section 27 of the Federal Deposit Insurance Act. The DFPI challenged the arrangement, arguing that OppFi—not FinWise—was the "true lender," which would subject the loans to California's 36% interest rate cap. In a tentative ruling, the court rejected the DFPI's position and granted summary judgment in favor of OppFi. The court emphasized traditional indicia of lending authority, including: •           FinWise's role in funding the loans •           Its control over underwriting criteria •           Its retention of a 5% ownership interest •           Its ongoing oversight of compliance and marketing Critically, the court also relied on the longstanding California law principle that usury is determined at the inception of the loan. (See the discussion below.) Because FinWise originated the loans, the court concluded they were not rendered unlawful by OppFi's subsequent purchase of a 95% participation interest giving which gave it a predominant economic interest.   Competing Views on "True Lender" The podcast highlights a fundamental divide in how courts and commentators approach the true lender doctrine. Professor Wilmarth argues that the court failed to meaningfully engage with the "predominant economic interest" test, which focuses on who bears the majority of the economic risk and reward. In his view, OppFi's 95% participation interest suggests that it—not the bank—is the real lender in substance. He also raises broader concerns about whether such arrangements undermine state usury laws and expose consumers to excessively high-cost credit. Ron Vaske, by contrast, emphasizes the legal and structural realities of the transaction. He underscores that FinWise is the named lender, funds the loans, and remains legally responsible to borrowers. From this perspective, the allocation of economic interests after origination should not redefine the identity of the lender or override federal law permitting rate exportation.   The Role of "Valid When Made" Another key related theme explored in the episode is the "valid when made" doctrine—the principle that a loan that is lawful at origination remains lawful after assignment. The court's reliance on this concept reinforces the importance of determining lender status at the moment the loan is made, rather than based on subsequent transfers or participations. The discussion also touches on the interplay between state and federal law, as well as the continuing relevance of regulatory interpretations following the Supreme Court's decision in Loper Bright, which curtailed Chevron deference.   What Comes Next? It is important to note that the court's ruling is still tentative. In accordance with California procedure, OppFi must submit a proposed final opinion and order to the Court. If adopted, an appeal by the DFPI appears likely—potentially setting the stage for further appellate guidance on the true lender doctrine in California and beyond.   Why This Matters This case is part of a broader and ongoing policy debate: ·                 Supporters of bank–fintech partnerships argue they expand access to credit and operate within well-established federal banking frameworks. ·                 Critics contend they can be used to circumvent state consumer protection laws, particularly interest rate caps. As the regulatory and judicial landscape continues to evolve, OppFi v. Hewlett represents a significant—and closely watched—development. It may be significant to note that, unlike several other states, California does not have a statute stating that the holding of a "predominant economic interest" in a loan makes the holder the true lender  Be sure to listen to the full podcast episode for a deeper dive into the case and the competing legal and policy perspectives shaping the future of bank–fintech partnerships. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

We're pleased to announce that our latest episode of the Consumer Finance Monitor Podcast is now live and it's one you won't want to miss. In this episode, our host Alan Kaplinsky, founder, Chair for 25 years, and now Senior Counsel of our Consumer Financial Services Group, is joined by Max Dubin, Chief of Staff to the Acting Superintendent of Banking at the New York Department of Financial Services (DFS). As a senior leader at one of the most influential state financial regulators in the country, Max offers a rare and insightful look into how DFS is approaching some of the most important issues facing the consumer financial services industry today. A central focus of the conversation is the Department's proposed framework for regulating the rapidly evolving "buy-now, pay-later" (BNPL) market (read more about BNPL on our Consumer Finance Monitor blog here.) Max provides valuable context on what DFS is aiming to accomplish and how it is thinking about balancing innovation with consumer protection. Among other points, he explains that the DFS is seeking to craft a regulatory approach that reflects how BNPL products actually function in today's marketplace, while also ensuring that consumers receive clear disclosures and are adequately protected from potential risks. We also cover a wide range of additional "hot" topics at DFS, including DFS regulatory, supervisory and enforcement priorities, emerging consumer protection concerns, the DFS' approach to fintech innovation and partnerships, crypto licensure and regulation, New York Governor Hochul's budget priorities, which includes reforms of the insurance industry to make it more affordable, coordination with other state and federal regulators, and what industry participants should expect from DFS in the months ahead. This episode offers practical insights for banks, nonbanks, fintech companies, and their counsel, particularly those focused on compliance, product development, and regulatory strategy. Max's candid and thoughtful perspectives provide a valuable window into the thinking of DFS at a time when state-level regulation is playing an increasingly prominent role. We hope you enjoy the conversation.  This is the second of our 3-part series focused on agencies in New York City and State which have a major impact on banks and non-banks who do business with New York City and State residents. On February 12, we released a podcast show, hosted by Alan Kaplinsky, featuring Jane Azia, Chief of the Bureau of Consumer Frauds and Protection and Alec Webley, Assistant Attorney General of the New York Attorney General's Office. Among other things, Jane and Alec discussed the New York FAIR Business Practices Act which expanded the scope of New York's consumer protection law to cover unfair and abusive acts and practices as well as deceptive acts and practices. Very soon, we will be releasing Part 3 of the series which will be a conversation between Alan and Commissioner Sam Levine, the head of the New York City Department of Consumer and Worker Protection.   Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In today's episode of the Consumer Finance Monitor Podcast Show, our host, Ballard Spahr's Alan Kaplinsky, was joined by colleagues Steven Burt and Melanie Vartabedian to explore a rapidly evolving and increasingly complex area of consumer financial services: residential solar finance. Building on prior discussions of the broader solar finance landscape, this episode zeroes in on the regulatory and litigation developments that are reshaping the residential solar market in real time. The discussion highlights how an industry that experienced explosive growth over the past decade is now facing heightened scrutiny from regulators, enforcement agencies, and private litigants alike. From Rapid Growth to Market Headwinds As Steven explained, the residential solar industry expanded dramatically between 2015 and 2022, driven by: Federal and state tax incentives Declining equipment costs Innovative financing models Aggressive direct-to-consumer sales strategies Growth peaked around 2023, but the market began to slow in 2024 and beyond due to several converging factors: Changes to net energy metering policies (particularly in California) Rising interest rates impacting financing affordability Supply chain constraints Increased emphasis on battery storage solutions Federal policy shifts, including reduced support for renewable energy and changes to tax credits These developments have forced industry participants to adapt quickly—often while still operating under legacy business models that are now attracting scrutiny. A Surge in Government Investigations and Enforcement One of the most significant themes discussed in the podcast is the sharp rise in government scrutiny. State attorneys general and consumer protection agencies across the country have launched investigations and enforcement actions targeting: Direct-to-consumer sales practices Marketing representations about energy savings and tax benefits Long-term financing structures, particularly loan-related fees A notable inflection point came in 2024, when the Consumer Financial Protection Bureau (CFPB) issued a spotlight on solar financing, identifying risks such as: Alleged "hidden" dealer or platform fees Misleading claims regarding tax credits Misrepresentations about system performance and savings Since then, enforcement activity has expanded across numerous states, with additional investigations ongoing. Notably, even local regulators—such as New York City's Department of Consumer and Worker Protection—have begun to assert jurisdiction, signaling a broader and more aggressive enforcement landscape. Private Litigation: Class Actions and the "Dealer Fee" Controversy Parallel to government activity, private litigation has surged. Melanie Vartabedian highlighted two major waves of litigation: 1. Earlier Cases: Sales Practices Initial lawsuits focused on: Unauthorized credit checks (FCRA claims) High-pressure or deceptive sales tactics Misrepresentations about tax savings and energy production 2. Current Wave: Financing Structures More recent cases center on dealer fees (also called platform or financing fees), with plaintiffs alleging that: ·        These fees are effectively hidden finance charges ·        They should be disclosed under the Truth in Lending Act (TILA) Courts in Minnesota have allowed these claims to proceed past motions to dismiss, rejecting arguments—at least at the early stage—that such fees are merely "seller's points" exempt from disclosure. While these rulings are preliminary, they have: ·        Opened the door to costly discovery ·        Encouraged additional class actions and enforcement cases ·        Created significant uncertainty regarding how courts will ultimately resolve the issue The Expanding Role of the FTC Holder Rule Another important litigation risk involves the FTC Holder Rule, which allows consumers to assert claims against loan holders that they could assert against installers. This creates potential exposure for: ·        Lenders ·        Secondary market participants ·        Securitization investors Although liability is generally capped at the amount of the loan, the rule can still create substantial risk, especially where plaintiffs seek rescission of contracts. Practical Guidance for Industry Participants The speakers emphasized that companies operating in the residential solar space must take proactive steps to manage risk. Key recommendations include: 1. Strengthen Compliance and Oversight Conduct comprehensive reviews of sales and marketing practices Ensure clear, accurate, and compliant disclosures Align legal and compliance teams with customer service functions to identify emerging issues early 2. Enhance Dealer and Partner Management Perform rigorous upfront diligence on third-party installers and sales organizations Implement ongoing monitoring and auditing Act quickly to address complaints or misconduct 3. Improve Transactional Transparency Reassess how pricing and fees—particularly dealer fees—are structured and disclosed Evaluate potential exposure under TILA and state consumer protection laws 4. Conduct Portfolio-Level Risk Assessments Carefully diligence solar loan portfolios prior to acquisition Consider litigation and regulatory risks embedded in originated assets 5. Stay Ahead of Policy and Enforcement Trends Monitor federal, state, and local regulatory developments Engage with industry groups and legal advisors Anticipate—not react to—regulatory changes What Lies Ahead: The Next 18–24 Months Looking forward, the panelists expect: Continued and expanding enforcement activity, particularly at the state level More class actions and private litigation, fueled by early court rulings Greater clarity regarding dealer fee treatment, as courts begin to rule on the merits Increased scrutiny of sales practices, especially those involving third-party dealers Importantly, the regulatory and litigation environment is unlikely to ease in the near term. Instead, companies should expect more investigations converting into enforcement actions and greater coordination among regulators. Key Takeaways As Alan Kaplinsky summarized, the message for industry participants is clear: ·        The residential solar market is entering a more challenging and regulated phase ·        Government scrutiny and private litigation are rising in tandem ·        Compliance, transparency, and oversight are no longer optional, they are essential Companies that proactively adapt to this new environment will be far better positioned than those that wait to respond under the pressure of an investigation or lawsuit. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.  

On today's episode of the Consumer Finance Monitor Podcast our host, Alan Kaplinsky, discusses the rapidly evolving landscape of federal financial supervision with Sherra Brown, Head of Regulatory Research and Analysis for the Americas at Vixio Regulatory Intelligence. Our conversation focuses on what may be a fundamental shift in supervisory practices at the Consumer Financial Protection Bureau and the implications of parallel changes at the federal banking agencies. Recent reports suggest that the CFPB may dramatically scale back its supervisory program—potentially reducing the number of examinations from roughly 600 annually to about 70, conducting examinations entirely virtually, narrowing the scope of reviews, and even Introducing a so-called "humility pledge" for examiners. If implemented, these developments would represent a significant departure from the Bureau's prior supervisory posture. At the same time, the federal prudential banking regulators—the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board—are moving toward a more risk-focused examination model, eliminating "reputation risk" as a supervisory category and signaling a broader effort to reduce regulatory burden. Below are several key themes from our discussion. Possible Structural Changes to CFPB Supervision Sherra and Alan discussed reports that the CFPB could significantly reduce the scope and frequency of its supervisory examinations. The Bureau may move toward a model involving: 1.     Fully virtual examinations 2.     A dramatically smaller number of exams each year 3.     Narrower, risk-focused review areas 4.     Greater reliance on institutions' internal compliance testing The shift could also reflect staffing reductions and broader policy priorities under the current administration. While virtual examinations are not new, as they were widely used during the COVID-19 pandemic, the potential reduction in exam scope and volume would mark a major change. As Sherra noted, a narrower supervisory footprint raises an important question: is the Bureau fundamentally redesigning its supervisory model or simply doing the minimum necessary while its future remains uncertain? What a Virtual Examination Looks Like For institutions that have not experienced a virtual exam, the process is procedurally similar to traditional on-site supervision. Institutions typically receive a document request list and must provide materials electronically. Interviews and meetings with examiners occur via videoconference. However, the key difference is relational. Virtual supervision makes it harder for examiners and institutions to build the working relationships that often facilitate dialogue and clarification during an on-site review. Data integrity, document accessibility, and centralized record management become even more important in a virtual environment. Likely Areas of CFPB Focus Although the Bureau has not yet clearly identified which institutions will be examined, Sherra suggested that the focus will likely be on large banks rather than non-bank entities. She also noted that several areas historically emphasized by the CFPB appear unlikely to receive the same attention going forward. For example, the Bureau has backed away from certain fair-lending theories such as disparate impact. One area that appears likely to remain a priority is protections for service members, including compliance with the Military Lending Act. Prudential Regulators: A Parallel Shift While the CFPB's future direction remains uncertain, the prudential regulators have continued their examination programs. One of the most notable developments is the elimination of "reputation risk" as a supervisory category. The OCC has already removed it from examination practices, and both the FDIC and Federal Reserve have indicated similar intentions. Historically, reputation risk sometimes served as a catch-all category allowing regulators to pressure institutions even when no specific legal violation was identified. Its removal is part of a broader effort to focus supervision on clearly defined financial, operational, and compliance risks. At the same time, regulators appear to be tailoring examination intensity more carefully based on institutional size and risk profile, potentially reducing the burden on community banks. Compliance Should Not Be Relaxed Despite the apparent reduction in federal supervisory activity, Sherra emphasized that institutions should not weaken their compliance management systems. Several factors make continued vigilance essential: 1.     State attorneys general remain active in consumer protection enforcement. 2.     Private litigation risk persists. 3.     Future administrations could revive aggressive federal supervision, potentially accompanied by look-back reviews. Strong documentation, robust complaint management processes, and clear audit trails remain essential. The Growing Role of States Another important theme from our discussion is the expanding role of state enforcement. Several states, including New York, California, and Massachusetts, have signaled their intention to fill any perceived gaps left by reduced federal oversight. State regulators and attorneys general continue to focus on issues such as fair lending, consumer protection violations, and deceptive practices. Accordingly, institutions operating nationally must consider not only federal expectations but also evolving state regulatory priorities. Five Practical Takeaways Five key takeaways for financial institutions navigating this changing supervisory environment are: 1.     Fewer examinations do not mean less regulatory risk. 2.     Complaint management and data analytics will become increasingly important. 3.     Documentation discipline is even more critical in a virtual examination environment. 4.     Institutions should not weaken their compliance management systems. 5.     Board and senior management oversight remain essential. In short, while federal supervision may be evolving, the fundamental expectations for sound compliance and risk management remain unchanged. Listeners can access the full discussion on the Consumer Finance Monitor Podcast, where Sherra Brown provides valuable insight into what may be one of the most significant shifts in federal financial supervision in recent years. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

So, you're thinking about entering the M&A arena as a buyer? Join Kenny Haglund and Beau Hurtig from Ballard Spahr, LLP, as they walk through a practical checklist of considerations every prospective community bank buyer should evaluate to ensure a smooth acquisition process.Send a textPresented by Remedy ConsultingFor more information on BankTalk:BankTalk WebsiteSubscribe to BankTalk NewsRemedy Consulting WebsiteRemedy LinkedInTo speak on the BankTalk Podcast, please email us.

Artificial intelligence is rapidly transforming the consumer financial services industry. From underwriting and fraud detection to customer engagement and collections, financial institutions are increasingly deploying advanced AI tools to automate processes, personalize services, and improve operational efficiency. We are releasing today, on our Consumer Finance Monitor Podcast show, a discussion of what may be the next major technological shift for the industry: Agentic AI in Consumer Financial Services — AI systems capable of acting autonomously, making decisions, and interacting directly with consumers. The discussion featured Professor Oren Bar-Gill of New York University School of Law, along with Ballard Spahr partners Joseph Schuster and Adam Maarec.  The discussion was hosted by Alan Kaplinsky, the founder and practice group leader for 25 years of the Consumer Financial Services Group and now Senior Counsel. The panel examined how agentic AI differs from earlier forms of automation, the benefits it offers financial institutions and consumers, and the significant legal and regulatory risks it may create. Below are the key takeaways from the discussion. What Is Agentic AI? Agentic AI refers to AI systems that can independently take actions on behalf of users or organizations. Unlike traditional automation, which performs predefined tasks, or generative AI, which primarily produces content, agentic AI systems can: ·                 Make autonomous decisions ·                 Interact directly with consumers ·                 Initiate actions such as transactions or communications ·                 Learn from prior interactions In financial services, these systems may soon conduct customer service interactions, initiate collections calls, execute payments, or manage purchasing tasks for consumers. While these capabilities promise major efficiencies, they also raise complex legal questions regarding accountability, fairness, and consumer protection. Understanding AI-Driven Consumer Harm Professor Bar-Gill framed the discussion by examining potential consumer harms associated with AI-powered decision-making. Drawing on his recent book with Cass Sunstein, Algorithmic Harm: Protecting People in the Age of Artificial Intelligence, he explained that the impact of AI depends largely on the type of market in which it operates.  The book is available on Amazon here. Sophisticated vs. Unsophisticated Markets Bar-Gill distinguishes between: ·                 Sophisticated markets, where consumers are generally able to make informed decisions ·                 Unsophisticated markets, where consumers are more likely to misunderstand complex products In sophisticated markets, AI-driven personalization, such as individualized pricing, can increase efficiency and expand access to products by offering lower prices to consumers with lower willingness to pay. In contrast, in markets involving complex financial products, such as credit cards, mortgages, or insurance, AI-powered personalization may harm consumers who misjudge product costs or benefits. For example, if a consumer mistakenly overestimates the value of a financial product, an AI system may set the price just below that mistaken valuation, leading the consumer to pay more than the product is actually worth. Algorithmic Price Discrimination One area of growing concern is AI-enabled price discrimination, where algorithms tailor prices to each consumer's willingness to pay. Examples cited during the discussion included: ·                 Airlines experimenting with AI-based pricing strategies ·                 Online retail platforms offering individualized prices for identical products ·                 Insurance companies using algorithms to optimize premiums While pricing based on individual risk, such as in insurance underwriting, is widely accepted, pricing based on willingness to pay raises significant consumer protection concerns. As these practices expand, they are likely to attract increased attention from regulators and lawmakers, particularly at the state level. AI Use Cases in Consumer Finance The panel also highlighted several areas where AI is already being deployed across the consumer financial services lifecycle. Marketing and Customer Acquisition Financial institutions are using AI to analyze large data sets and create highly personalized marketing campaigns. Large language models can generate customized messaging tailored to specific demographic groups or individual consumers. While this personalization improves targeting and engagement, it also creates compliance challenges related to: ·                 Misleading advertising ·                 Disclosure requirements ·                 Potential discriminatory targeting Underwriting and Credit Decisions AI-driven underwriting tools allow lenders to analyze alternative data, such as cash-flow information, to assess creditworthiness. These tools may expand access to credit for consumers who previously lacked traditional credit histories. However, they also raise fair lending concerns under laws such as the Equal Credit Opportunity Act and its implementing regulation, Regulation B. Because many AI models operate as "black boxes," institutions may struggle to explain how decisions are made, an issue that can complicate discrimination analyses and regulatory oversight. Fraud Detection AI is particularly powerful in fraud detection, where pattern recognition is essential. Advanced models can analyze transaction behavior in real time to identify suspicious activity while minimizing unnecessary transaction declines. These tools also allow financial institutions to communicate with customers instantly, confirming transactions or investigating suspicious activity through automated interactions. Servicing and Collections Agentic AI may soon conduct both inbound and outbound customer interactions, including: ·                 Customer service conversations ·                 Dispute resolution ·                 Collections calls In some cases, AI-driven voice systems can conduct conversations that are indistinguishable from human interactions. While this technology may improve efficiency and reduce costs, it raises legal concerns about consumer deception, harassment, and compliance with debt collection laws. Core Legal Risks Despite the novelty of the technology, many of the key legal risks arise from existing laws, not new AI-specific statutes. Liability for AI Actions As Joseph Schuster emphasized, AI is a tool, not a liability shield. Institutions remain responsible for the actions of AI systems just as they would for the actions of employees or third-party vendors. Traditional legal doctrines, including agency law, vicarious liability, and unfair or deceptive acts or practices, continue to apply. UDAP Risks AI systems interacting with consumers may create risks under federal and state UDAP laws if they: ·                 Provide inaccurate information ("hallucinations") ·                 Fail to deliver required disclosures ·                 Exhibit overconfidence in uncertain responses ·                 Engage in manipulative behavioral targeting. Fair Lending and Discrimination AI models can unintentionally produce discriminatory outcomes, even when protected characteristics are not used as inputs. As Professor Bar-Gill noted, future litigation may increasingly focus on disparate impact analysis, which examines whether outcomes disproportionately affect protected classes regardless of the model's internal logic. Governance and Risk Management Given these risks, institutions are increasingly adopting governance frameworks for AI deployment. Common practices include: ·                 AI governance committees with cross-functional participation ·                 Model inventories and risk-tiering systems ·                 Vendor due diligence for AI providers ·                 Data mapping and validation processes ·                 Continuous monitoring of AI outputs. Financial regulators are already asking supervised institutions detailed questions about how AI is being used. Institutions that implement structured governance processes are better positioned to respond to these inquiries. The Rise of Agentic Commerce One emerging application of agentic AI involves autonomous purchasing. For example, a consumer might instruct an AI assistant to plan and purchase supplies for a birthday party. The AI would then select vendors, place orders, and initiate payments using the consumer's stored payment credentials. But what happens if AI makes a mistake, such as ordering supplies for 1,000 guests instead of 10? Such scenarios raise difficult questions involving: ·                 consumer authorization ·                 merchant liability ·                 payment network rules ·                 dispute resolution These issues are only beginning to receive attention from regulators and industry participants. Key Takeaways for Financial Institutions The panel concluded with several recommendations for institutions exploring AI deployment. First, distinguish beneficial uses from harmful ones. AI can deliver significant consumer benefits, but firms must remain vigilant about potential misuse or unintended harm. Second, prioritize governance. Robust policies, oversight structures, and risk management processes are essential. Third, remember that existing laws still apply. AI systems must comply with the same consumer protection, fair lending, and disclosure requirements that govern traditional processes. Finally, institutions must recognize that failing to adopt AI also carries risks. As fraudsters increasingly deploy advanced technology, financial institutions may need AI tools simply to keep pace. As AI technology continues to evolve, the legal framework governing its use in financial services will also develop. For now, however, the most important lesson is that innovation must proceed hand-in-hand with careful legal and compliance oversight. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

We are releasing today on our Consumer Finance Monitor podcast our host Alan Kaplinsky's discussion with Marisa Calderon, President and CEO of Prosperity Now, about two high-profile policy proposals raised or embraced by President Trump as part of a broader populist affordability agenda: 1.         A nationwide 10% cap on credit card interest rates for one year. 2.         The Credit Card Competition Act (CCCA), long championed by Senator Dick Durbin which would require large credit card issuers to enable at least two unaffiliated payment networks (only one of which could be MasterCard or VISA) on their cards. Each proposal is framed as pro-consumer. Each has generated significant pushback from banks, card issuers, and trade associations. However, even consumer advocacy groups have raised serious questions about the wisdom of such initiatives. Prosperity Now is a non-profit organization dedicated to advancing economic mobility, with a focus on those facing economic barriers. Each raises fundamental questions about how to balance affordability and access in the consumer credit market. Our discussion focused on a central theme: affordability is a real and pressing concern, but policy design matters enormously. Credit Card APRs: A Real Affordability Pressure As Calderon emphasized, policymakers are not wrong to focus on credit card interest rates. Average credit card APRs now hover around 22%, up sharply from roughly 13% a decade ago. Approximately half of cardholders carry a balance, and many rely on credit cards not for discretionary spending, but as liquidity bridges, covering emergency medical bills, car repairs, groceries, and other essentials. For lower and moderate-income households, credit cards are often the only readily available, regulated source of short-term liquidity. That makes rising APRs particularly painful. Calderon's formulation is apt: policymakers have identified the right problem. The harder question is whether they have identified the right solution. The 10% Interest Rate Cap: Lessons from History The proposal to impose a flat 10% nationwide cap on credit card interest rates for one year would represent an unprecedented federal intervention into unsecured revolving credit markets. Credit cards are unsecured and priced for risk. Interest margins help issuers cover expected charge-offs, volatility, and operational costs. If pricing flexibility is removed, lenders cannot simply absorb the loss, they adjust. Historically, those adjustments take predictable forms: •                 Tighter underwriting standards •                 Higher minimum credit scores •                 Lower credit limits •                 Reduced rewards programs •                 Increased non-interest fees •                 Exit from higher-risk market segments The likely result, as Calderon noted, is credit contraction, particularly affecting marginal and lower-income borrowers. The most relevant historical example may be the 1980 credit controls imposed during the Carter Administration, which were rescinded within months after causing severe market disruption. A more targeted example is the 36% APR cap under the Military Lending Act, which illustrates both the importance of bipartisan legislative design and the reality that even well-intentioned caps can reduce access at the margins. Recent Federal Reserve research on state usury caps reinforces this concern: when interest rate ceilings are imposed, credit to higher-risk borrowers contracts, credit to lower-risk borrowers expands, and delinquency rates do not meaningfully improve. In other words, credit is reallocated, not necessarily improved. Even a "temporary" cap may have durable consequences. Issuers that exit certain segments or reduce credit lines are not obligated, and may not be economically inclined, to restore them once the cap expires. Credit score impacts and reduced access can linger well beyond the formal life of the policy. As Calderon put it, blunt price controls are a chainsaw when what is needed is a scalpel. Affordability in Context: What Drives Household Budgets? An additional consideration is scale. Research recently highlighted by the Consumer Bankers Association shows that the fastest-growing household expenses from 2013–2024 were healthcare, shelter, food, and vehicles. Credit card interest represents a relatively small share of average household expenditures. This does not minimize the pain of high APRs, especially for households carrying persistent balances, but it does raise an important structural question: can credit card rate caps meaningfully solve broader affordability challenges rooted in housing, medical costs, food inflation, and transportation? Credit cards are often the mechanism households use to cope with those rising costs. Constraining access to that liquidity may exacerbate, rather than relieve, financial stress. The Credit Card Competition Act: Structural Reform or Indirect Price Control? The second proposal we discussed, the Credit Card Competition Act (the "CCCA"), takes a different approach. Rather than capping interest rates, the CCCA would require large issuers to offer merchants at least two unaffiliated network routing options (only one of which could be Visa or Mastercard). The theory is that routing competition would reduce interchange fees ("swipe fees"), lowering merchant costs and ultimately consumer prices. Merchants have generally supported the proposal. Banks and card issuers have strongly opposed it. The consumer-facing promise is straightforward: lower merchant fees should translate into lower retail prices, but history complicates that assumption. The Durbin Amendment to the Dodd-Frank Act imposed caps on debit card interchange fees for large issuers and included routing requirements. While interchange revenue declined, Calderon pointed out that empirical evidence suggests that cost savings were not consistently passed through to consumers in the form of lower prices. At the same time, banks offset lost revenue through higher account fees and reduced benefits. A similar dynamic could unfold in the credit card market. Interchange revenue helps fund: •           Rewards programs •           Fraud detection and prevention •           Customer service infrastructure •           Risk management If that revenue is compressed, issuers may respond with tighter underwriting, reduced rewards, or new fee structures. As Calderon observed, although the CCCA operates through indirect price pressure rather than a direct APR ceiling, downstream effects could look similar. Distinguishing Populist Framing From Durable Reform Both the rate cap and the CCCA are framed as pro-consumer, populist reforms. The political appeal is clear, but distinguishing headline appeal from durable consumer benefit requires careful analysis. Calderon suggested several guideposts policymakers should consider: •                 Access – Does the reform preserve or expand access for low- and moderate-income borrowers? •                 Incidence – Who actually captures the gains? Consumers, merchants, intermediaries, or some combination? •                 Substitution effects – Does the policy push consumers toward higher-cost, less-regulated alternatives such as payday or fringe products? •                 Durability – What happens after implementation? Do markets rebound, or do credit line reductions and underwriting changes persist? These questions are not ideological. They are structural. Affordability and access are not opposing values. The policy challenge is designing reforms that alleviate financial strain without narrowing the regulated credit tools families rely on when emergencies arise. The Bottom Line Affordability concerns are real. Rising APRs are real. Financial stress among many households is real. But blunt price caps may reduce rates on paper while reducing access in practice. Structural competition mandates may promise savings that do not materialize at the checkout counter. Durable consumer protection requires careful calibration — the scalpel, not the chainsaw. For industry participants, policymakers, and advocates alike, the takeaway is straightforward: evidence and market mechanics matter. Populist framing may win headlines, but long-term financial stability depends on policy design that accounts for how credit markets actually function. As always, we will continue to monitor these proposals and their evolution in Congress and the Administration.  It may be noteworthy that President Trump did not mention either proposal during his almost two-hour State of the Union Address on January 24th. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In a recent episode of the award-winning Consumer Finance Monitor podcast, Alan Kaplinsky was joined by Nick Bourke, Kate Griffin, and Ballard Spahr partner Joseph Schuster to discuss a groundbreaking new report from the Aspen Institute Financial Security Program: United We Stand: A National Strategy to Prevent Scams. The episode builds on Nick and Kate's prior appearance on the podcast last July, when the report was still in development. Now finalized, the report offers one of the most comprehensive frameworks to date for addressing what has become a systemic threat to American households and the broader financial system. The Scope of the Problem: A Systemic Threat Frauds and scams are no longer isolated consumer protection issues. According to the report, U.S. households are losing an estimated $196 billion annually to scams — roughly $1 billion every couple of days. One in five American adults reports having lost money to an online scam. As Nick Bourke explained, today's scams are: ·                 Technology-enabled ·                 Highly organized and industrialized ·                 Often operated by transnational criminal organizations ·                 Accelerating due to AI and faster payment systems The so-called scam "lifecycle" includes four stages: 1.     Lead – Hooking the victim 2.     Deceive – Building trust (often through impersonation or relationship-building) 3.     Bleed – Extracting funds 4.     Clean – Laundering proceeds, often through cryptocurrency or offshore channels Different sectors see only fragments of this lifecycle; social media platforms may see the "lead," financial institutions the "bleed," and law enforcement the "clean." That fragmentation allows criminals to scale operations while defenders remain siloed. Why Scams Are Rising Despite Heavy Investment As Kate Griffin noted, industry and government are investing heavily in prevention. Yet scams continue to grow. Why? ·                 Fragmentation across sectors: No single actor sees the entire attack sequence. ·                 Outdated reporting infrastructure: Federal systems at agencies like the FBI and FTC remain manual and technologically antiquated. ·                 Regulatory uncertainty: Financial institutions and technology platforms face unclear expectations about what data they can use and share. ·                 Speed of modern payments: Faster money movement means faster losses. Joseph Schuster emphasized that many financial institutions are strongly incentivized to prevent fraud as they often bear reputational and financial risk when scams succeed. But legal ambiguity, especially under statutes like the Fair Credit Reporting Act, can chill data-sharing and innovation. Core Recommendations from the Aspen Report The report outlines both high-level national reforms and granular operational improvements with more than 180 specific ideas. 1. Elevate Scam Prevention to a National Priority The report calls for: ·                 A designated federal lead (or "czar") to coordinate strategy ·                 A whole-of-government approach ·                 Clear national goals and metrics Without centralized leadership, enforcement and regulatory actions remain fragmented.  2. Modernize Law Enforcement Reporting Systems Federal reporting portals, including Suspicious Activity Reports (SARs), the FBI's complaint systems, and the FTC's databases, require modernization. The report recommends: ·                 Streamlined, automated reporting ·                 Backend data interoperability across agencies ·                 Advanced analytics and AI tools for enforcement 3. Establish Clear Duties to Act Paired with Safe Harbors One of the most important themes discussed was the need for: ·                 Clear expectations for banks, telecom companies, and digital platforms ·                 Safe harbors that protect companies when sharing scam intelligence in good faith Countries like Australia have already codified such frameworks. The U.S. has yet to establish similarly coordinated standards. 4. Build a Cross-Sector Information-Sharing Ecosystem Effective scam prevention requires: ·                 Exchange of scam indicators (malicious URLs, compromised phone numbers, device patterns) ·                 Interoperable information-sharing platforms ·                 Privacy-preserving architecture ·                 Legal clarity to mitigate antitrust and consumer reporting concerns Joseph noted that industry appetite for collaboration is strong but clarity and guardrails are essential. 5. Consider a U.S. National Anti-Scam Center The report explores the idea of a centralized "front door", potentially something like stopscams.gov, that would: ·                 Serve as a national reporting hub ·                 Provide victim resources ·                 Facilitate coordination among law enforcement ·                 Support public education campaigns Social Media and Platform Responsibility The discussion also addressed the evolving role of digital platforms. Scam activity frequently originates through: ·                 Paid advertisements ·                 Dating applications ·                 Direct messaging ·                 Fake investment websites Compared to banks, social media companies operate within a less clearly defined regulatory structure. Courts are increasingly developing theories of "platform liability," but statutory clarity is lacking. The report urges policymakers to define reasonable expectations for platforms — paired with safe harbors and practical tools that empower prevention rather than merely assign blame. What Happens Next? The key question: who implements this strategy? Kate Griffin emphasized that this is a whole-of-society problem requiring coordinated action by: ·                 Federal leadership ·                 Congress ·                 Financial institutions ·                 Telecom and digital platforms ·                 Law enforcement ·                 Civil society There have been encouraging developments, including: ·                 Treasury and State Department sanctions targeting transnational scam networks ·                 A joint DOJ–FBI–Secret Service initiative targeting Southeast Asian scam operations o   But much more remains to be done. Nick Bourke suggested that, one year from now, real success would include: ·                 A designated federal anti-scam lead ·                 A congressional commission ·                 Measurable national prevention goals ·                 Corporate adoption of formalized anti-scam strategies Joseph Schuster added that industry innovation is ongoing, particularly in artificial intelligence, biometrics, and authentication, but warned that fragmented state-level regulation could complicate progress. Key Takeaways Alan Kaplinsky closed the episode with several important observations: ·                 Fraud and scams are now a systemic threat, not a niche compliance issue. ·                 Prevention, not just reimbursement, must be the organizing principle. ·                 Coordination matters as much as authority. ·                 Good-faith companies need regulatory clarity, not just enforcement pressure. ·                 Reducing scams strengthens trust in the U.S. financial system and digital economy. The Aspen report reframes the debate. Rather than assigning blame, it calls for aligned incentives, shared responsibility, and coordinated national action. If the title of the report, United We Stand, becomes reality, the United States may finally begin to bend the curve on one of the most costly and fast-growing threats facing consumers today. For more insights on consumer financial services developments, visit Ballard Spahr's Consumer Finance Monitor blog and explore the full Aspen Institute report here. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

On today's Consumer Finance Monitor podcast, we are releasing an episode about a timely and wide-ranging discussion on one of the most significant and fastest-evolving developments in commercial finance: the rapid "consumerization" of small business lending law. In this episode, host Alan Kaplinsky welcomes Louis Caditz-Peck, Executive Director of the Responsible Business Lending Coalition (RBLC), for an in-depth conversation about the proliferation of state small business lending protection statutes, the policy debates driving them, and what they mean for lenders, fintechs, banks, and small business borrowers. From Self-Regulation to State Law: How We Got Here For decades, commercial lending operated under a fundamentally different regulatory framework than consumer credit. The prevailing assumption was that business borrowers were sophisticated, negotiated their transactions, and did not need standardized disclosures or suitability-type protections. That assumption has eroded. As Louis explains, since the financial crisis, and particularly with the growth of online and fintech lending, small business financing has changed dramatically. Community banks have pulled back. Non-bank online platforms have expanded. New products, including merchant cash advances and other revenue-based financing arrangements, have proliferated. At the same time, concerns have grown about: Opaque pricing structures Misleading "interest rate" representations Broker incentives that steer borrowers into higher-cost products Repeated refinancing of unaffordable obligations These concerns led to the development of the Small Business Borrower's Bill of Rights, a set of industry standards first launched in 2015 at the Aspen Institute by a coalition of lenders, small business groups, and nonprofit advocates. What began as a voluntary, self-regulatory effort quickly became a blueprint for legislation. California's SB 1235 in 2018 marked the first major small business truth-in-lending law. Since then, according to Louis, 19 small business financial protection laws have been enacted across multiple states, with California and New York leading the way. The "Consumerization" of Small Business Lending A central theme of the episode is whether we are witnessing the "consumerization" of small business lending. Many of the new state laws borrow heavily from consumer credit concepts, including: APR-style cost disclosures Total cost of financing disclosures Payment schedule requirements Prepayment and fee transparency Restrictions on certain contractual provisions Some states have layered on licensing or registration requirements for small business finance providers. Others incorporate or supplement state UDAP (unfair and deceptive acts and practices) standards, which may apply to certain business-to-business transactions as well as consumer transactions. The policy rationale is straightforward: many "Main Street" businesses are effectively sole proprietorships or closely-held operations without in-house finance or legal teams. Legislators increasingly view these borrowers as closer to consumers than to large corporations with treasury departments and inside or outside counsel. As Alan and Louis discuss, the regulatory shift raises serious operational and compliance challenges, particularly given the state-by-state patchwork of requirements. The Compliance Conundrum: Patchwork and Harmonization A recurring concern is whether the proliferation of state laws imposes disproportionate burdens on smaller lenders and startups, especially compared to large institutions with robust legal and compliance infrastructures. Louis emphasizes that RBLC has actively worked to promote interstate harmonization, particularly between California and New York. For example: Advocating for standardized disclosure forms that can be used in multiple states Aligning definitions and disclosure triggers Encouraging estimated APR calculations for revenue-based financing However, not all states have followed a harmonized approach. Some laws, particularly those focused narrowly on merchant cash advances, have created divergent requirements, complicating multi-state compliance. As Alan notes, the trend presents both risk and opportunity for lenders and their counsel. The regulatory environment is no longer static. Companies offering small business financing must assume that: Cost disclosures will likely be required in more states Registration or licensing may apply Enforcement risk—particularly under state UDAP statutes—will increase Section 1071 and Federal Uncertainty The episode also explores the role of the CFPB under Section 1071 of the Dodd-Frank Act, which requires data collection on small business lending to: 1.     Identify potential discrimination, and 2.     Assess whether certain markets are underserved. The CFPB finalized its 1071 rule in 2023 under then Director Rohit Chopra. Multiple legal challenges followed. Under the current administration, a notice of proposed rulemaking has sought to scale back and slow implementation. At the same time, the Federal Trade Commission has signaled an interest in using its enforcement authority to address unfair or deceptive acts or practices affecting small businesses—underscoring an intriguing tension within federal regulatory policy. As Louis observes, the debate is not simply about reducing or expanding government. It is about how government authority will be used and whether transparency and enforcement will be advanced through rulemaking, litigation, or state initiatives. Merchant Cash Advances and Revenue-Based Financing A particularly nuanced part of the discussion focuses on merchant cash advances (MCAs) and other sales-based financing products. These arrangements typically involve: An advance of funds in exchange for a fixed repayment amount Payments tied to a percentage of daily or periodic sales Variable duration depending on business performance RBLC's position, as Louis explains, is product neutral. The coalition does not advocate banning product categories or imposing rate caps. Instead, it focuses on responsible practices, including transparent pricing and assessment of ability to repay. Importantly, none of the major state lending protection laws impose interest rate caps. The emphasis is on disclosure and market transparency rather than price regulation. Who Is Covered—and Who Is Not? Most state small business truth-in-lending statutes apply to financing of $500,000 or less (with some variation, such as New York's $2.5 million threshold following gubernatorial revision). Coverage often includes: Closed-end loans Open-end lines of credit Sales-based financing/MCAs Factoring (in some states) Banks are generally exempt from these statutes, though non-bank "providers" presenting the offer of credit may still have disclosure obligations even in bank partnership models. As Alan highlights, this raises interesting competitive and policy questions about level playing fields across banks and non-banks. Looking Ahead to 2026 Both speakers agree: this trend is not going away. With significant percentages of small business owners reporting difficulty accessing affordable capital—and a substantial minority reporting harm from predatory practices—state legislators remain motivated to act. The key policy question is not whether regulation will expand, but how. Well-designed transparency frameworks can: Promote price competition Reward responsible innovation Improve borrower decision-making Poorly harmonized or overly rigid frameworks, however, risk increasing compliance costs and reducing credit availability. As Alan notes in his closing remarks, small business finance regulation is becoming a core area of growth for law firms and compliance professionals historically focused on consumer financial services. The line between consumer and commercial finance continues to blur.  Alan noted that the Consumer Financial Services Group which he founded and chaired for 25 years has counseled and represented small business lenders for decades. For lenders, fintechs, banks, and their advisors, understanding these developments is no longer optional—it is essential. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In the episode of the Consumer Finance Monitor podcast we are releasing today, we examine what may be the most consequential development in New York consumer protection law in nearly half a century: the enactment of the New York State Fair Business Practices Act (the FAIR Act). Signed into law in December 2025 and taking effect on February 17, 2026, the FAIR Act represents the first comprehensive overhaul of New York General Business Law § 349 in almost 50 years. Long focused primarily on deceptive acts and practices, Section 349 has now been expanded to expressly prohibit unfair and abusive business practices as well—bringing New York law far closer to the federal UDAAP framework under the Consumer Financial Protection Act. To explore what changed, why it matters, and how the law will be enforced in practice, Alan Kaplinsky (founder and former leader of the Consumer Financial Services Group at Ballard Spahr LLP and now Senior Counsel and host of Consumer Finance Monitor) is joined by two senior officials from the New York Attorney General's Bureau of Consumer Frauds and Protection who were directly involved in shaping and implementing the statute: ·        Jane Azia, Chief of the Bureau of Consumer Frauds and Protection ·        Alec Webley, Assistant Attorney General and one of the attorneys who helped shepherd the FAIR Act through the legislative process What followed was a wide-ranging and unusually candid discussion of the statute's origins, scope, enforcement implications, and practical lessons for businesses operating in, or affecting, New York. From Deception to Unfairness and Abusiveness For decades, New York's consumer protection regime lagged behind most other states and federal regulators by focusing almost exclusively on deception. As Jane Azia explained, deception alone often fails to capture conduct that is plainly harmful to consumers, particularly where disclosures technically exist but are obscured, consumers are subjected to high-pressure tactics, or businesses exploit significant informational or power asymmetries. The FAIR Act closes those gaps by expressly prohibiting: ·        Unfair practices, modeled closely on the FTC's longstanding unfairness framework ·        Abusive practices, drawing heavily on more than a decade of CFPB enforcement experience Importantly, while the statute borrows from federal concepts of unfairness and abusiveness, New York is not bound to follow future CFPB reinterpretations. As Alec Webley emphasized, the legislature carefully chose its language, expressly incorporating only certain federal elements (such as the FTC's "substantial injury" concept) while deliberately declining to tether New York law to future federal regulatory shifts. Broader Scope Than Federal Law One of the most significant differences between the FAIR Act and federal consumer protection law is scope. Jane Azia pointed out that unlike the federal Consumer Financial Protection Act, which applies primarily to financial services, the FAIR Act applies to all business activity occurring in, or affecting consumers in, New York. That means unfair or abusive conduct by non-financial businesses now squarely falls within the Attorney General's enforcement authority. The statute also avoids many of the preemption constraints that can limit state enforcement against national banks under federal law, because it is a law of general application rather than a banking regulation. No Rulemaking—But Clear Signals The FAIR Act does not grant the Attorney General rulemaking authority, and the AG's office does not currently plan to issue formal regulations or written guidance. Instead, businesses should expect the meaning of "unfair" and "abusive" to be fleshed out through enforcement actions, settlements, and existing federal precedent. That said, the Attorney General has already identified categories of conduct likely to draw scrutiny, including: ·        Steering borrowers into unnecessarily costly repayment options ·        High-pressure sales tactics ·        Obscured or misleading pricing ·        Exploitation of consumers with limited English proficiency ·        Misleading marketing in health care, auto sales, and emerging financial products Several examples discussed on the podcast, including enforcement actions involving e-cigarettes, earned wage access products, and savings account practices, illustrate how the AG's office has already been applying unfairness and abusiveness theories under existing authority, and how the FAIR Act now allows those claims to be brought directly under state law. Remedies and Enforcement Tools The FAIR Act does not dramatically alter the remedies available to the Attorney General, but it reinforces a powerful enforcement arsenal, including: ·        Injunctive relief ·        Restitution ·        Civil penalties ·        Disgorgement ·        Expedited "special proceedings" that can allow the AG to move quickly in court to halt unlawful conduct As a reminder, recent amendments to Article 22-a of the general business law also significantly increased civil penalties for violations of section 349 occurring during disasters or abnormal market disruptions, an issue businesses should not overlook. Extraterritorial Reach and Coordination with Other Regulators The discussion also addresses a recurring compliance question: when New York law applies beyond New York's borders. In general, the statute applies where conduct occurs in New York or where New York consumers are harmed. It can also apply to out-of-state consumers harmed by New York-based businesses. By contrast, purely out-of-state conduct with no meaningful New York nexus typically falls outside the statute's reach. The episode also explores how the Attorney General coordinates with: ·        Other state attorneys general in multi-state investigations, ·        The New York Department of Financial Services, ·        The New York City Department of Consumer and Worker Protection, and ·        Federal agencies such as the FTC. Even as federal consumer protection enforcement ebbs and flows, the states, and New York in particular, remain active and increasingly influential. Practical Takeaways for Businesses A central theme of the discussion was that the FAIR Act is not a reason to relax compliance efforts—quite the opposite. As Alec Webley noted, statutes like this create an opportunity for companies and their counsel to step back, reassess business practices, and ask hard questions: ·        Are consumers complaining about this practice? ·        Is it genuinely necessary to the business? ·        Does it obscure costs or risks? ·        Would the company be comfortable seeing it described on the front page of a major newspaper? Practices that may have survived under a narrow deception standard could now pose real enforcement risk under broader unfairness and abusiveness principles. Looking Ahead Both guests emphasize that the FAIR Act was drafted with care and restraint, and that early enforcement actions are likely to fall squarely within the statute's text and intent. At the same time, emerging technologies, particularly digital marketing, fine-print disclosures on mobile devices, and the use of AI, are clearly on the Attorney General's radar. The bottom line is clear: the FAIR Act marks a fundamental shift in New York consumer protection law. With its February 17, 2026 effective date now here, businesses operating in or affecting New York should be taking this development seriously by reviewing practices, strengthening compliance frameworks, and preparing for a more expansive and assertive enforcement environment. We will continue to track developments under the FAIR Act and report on key enforcement actions and interpretations as they unfold. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

On this episode of the Ballard Spahr Consumer Finance Monitor Podcast, we examine consumer debt and bankruptcy through the lens of Debt's Grip: Risk and Consumer Bankruptcy (University of California Press, 2025), by Pamela Foohey, Robert M. Lawless, and Deborah Thorne. Based on decades of research from the Consumer Bankruptcy Project, the nation's most comprehensive study of bankruptcy filers, Debt's Grip goes beyond aggregate data to document the lived experience of financial distress. The book shows how illness, job loss, aging, family structure, debt collection, and racial inequality converge to push households toward bankruptcy and what that reveals about how financial risk is allocated in the U.S. economy. Rather than treating bankruptcy as a personal failure, the authors demonstrate how policy choices over time shifted economic risk from institutions to individuals, leaving many households one unexpected expense away from crisis. Those risks fall unevenly, with Black families, single mothers, and older Americans disproportionately affected. The Authors Pamela Foohey, Allen Post Professor of Law, University of Georgia School of Law, is a principal investigator with the Consumer Bankruptcy Project and a leading scholar on bankruptcy and financial distress. Robert M. Lawless, Max L. Rowe Professor of Law, University of Illinois College of Law, is a nationally recognized empirical scholar of bankruptcy and consumer finance and a principal investigator of the Consumer Bankruptcy Project. Deborah Thorne, Professor of Sociology at the University of Idaho, brings a critical sociological lens, foregrounding the voices and experiences of bankruptcy filers. She also is a principal investigator of the Consumer Bankruptcy Project. Podcast Highlights In the episode, we discuss: ·        Why people actually file for bankruptcy ·        The debts most likely to lead to financial collapse ·        How households struggle to stay afloat before filing ·        The role of debt collection and litigation ·        How people come to see bankruptcy as a solution ·        Policy reforms that could reduce reliance on credit during hardship Key Takeaways ·        Bankruptcy is rarely about irresponsibility. It is often the endpoint of systemic risk-shifting. ·        Financial distress is structurally unequal. Race, age, gender, and health matter. ·        Filers exhaust alternatives before filing. Bankruptcy reflects resilience under pressure, not moral hazard. ·        Policy choices matter. Stronger safety nets and a more humane bankruptcy system can reduce financial harm. Conclusion Debt's Grip offers a rigorous, data-driven, and deeply human account of consumer bankruptcy in America. It challenges entrenched myths and provides valuable insight for policymakers, regulators, and industry participants alike. We thank Professors Foohey, Lawless, and Thorne for joining the podcast and for their important contribution to the field. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In this episode of the Consumer Finance Monitor Podcast, we examine one of the most closely watched and increasingly controversial developments in consumer finance: earned wage access (EWA) products. EWA products allow workers to access a portion of wages they have already earned before their scheduled payday. Proponents describe these products as a valuable financial tool that helps consumers manage cash-flow shortfalls without resorting to traditional payday loans. Critics, including the Center for Responsible Lending (CRL), argue that EWA products function as high-cost credit, often involving opaque fees that can trap consumers in cycles of debt. Our panel brings together industry and advocacy perspectives to explore the research, legal arguments, and regulatory uncertainty surrounding EWA, a market that has grown rapidly but remains unevenly regulated. Meet the Speakers ·        Alan Kaplinsky – Host and moderator. Founder and former Practice Group Leader of Ballard Spahr's Consumer Financial Services Group; now Senior Counsel. ·        Lucia Constantine – Senior Researcher at the Center for Responsible Lending, focusing on mortgage lending and predatory debt practices. ·        Yasmin Farahi – Deputy Director of State Policy and Senior Policy Counsel at CRL, specializing in small-dollar lending and state consumer protection initiatives. ·        Joseph Schuster – Partner in Consumer Financial Services Group at Ballard Spahr, with extensive experience advising on earned wage access products and their legal and regulatory treatment. Key Topics Covered in the Episode ·        What Is Earned Wage Access? An overview of EWA products, how they operate, and why they have become a focal point for regulators and consumer advocates. ·        Consumer Protection vs. Industry InnovationCRL presents research suggesting that EWA products operate as high-cost credit and may contribute to debt accumulation, while industry participants argue the products provide needed liquidity and differ fundamentally from traditional loans. ·        Fees, Tips, and Consumer Understanding A discussion of common pricing models, including expedited access fees and voluntary "tips," and whether consumers fully understand the true cost of using EWA services. ·        Research Findings CRL reviews studies conducted by it based on anonymized transaction data indicating frequent repeat usage, escalating fees, and increased overdraft activity among some users. ·        The Regulatory and Legal Landscape An examination of ongoing litigation, divergent state approaches, and federal regulatory ambiguity. While some states regulate EWA as credit, others have carved out exemptions. Courts are increasingly being asked to determine whether EWA products constitute "loans" under existing law. ·        Industry Responses and SafeguardsDiscussion of non-recourse structures, voluntary fee models, and industry-led efforts to mitigate consumer harm. ·        Policy Outlook Consideration of congressional interest, state-level reform efforts, and the likelihood of future regulatory intervention. Why This Episode Matters The debate over earned wage access is still in its early stages, but the outcome will have significant implications for fintech providers, employers, consumers, and regulators. This episode provides essential context and analysis for financial services professionals seeking to understand how EWA fits within existing consumer credit frameworks, and how that framework may change. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder and former chair of the firm's Consumer Financial Services Group. We invite you to subscribe on your preferred podcast platform for weekly insights into key developments in consumer financial services law and regulation. Since its recording, there have been a few developments relevant to this episode. For instance, on December 22, 2025, the Consumer Financial Protection Bureau issued an advisory opinion that states the Truth In Lending Act (TILA) does not apply to certain "earned wage access (EWA) products," and it rescinds a proposed interpretive rule issued under former CFPB Director Chopra that classified these products as credit subject to TILA with their fees considered finance charges. The Center for Responsible Lending expressed opposition to this latest advisory opinion. On January 13, 2025, the House Financial Services Committee held a hearing on financial technology that included consideration of draft legislation on "Earned Wage Access," which CRL refers to as "payday loan apps." Around 200 nonprofits have written to Congress about their opposition to the version of this bill as introduced last session of congress.

Our podcast show this week consists of a webinar we produced on November 10, 2025, titled, "Breaking Developments in National Bank Act Preemption." Join our panel of top legal experts as they break down how landmark court rulings are changing the rules for national banks, examine the growing application of state law, and discuss what these changes mean for compliance, risk, and the future of consumer financial services. Meet the Panelists: ·                 Alan Kaplinsky (Host & Moderator): Senior Counsel and former Practice Group Leader and Founder of the Consumer Financial Services Group at Ballard Spahr ·                 Professor Arthur Wilmarth: Professor Emeritus at George Washington University Law School, widely recognized for his scholarship on National Bank Act preemption. ·                 John Culhane, Jr.: Senior Counsel of the Consumer Financial Services Group at Ballard Spahr specializing in national bank compliance and regulatory strategy. ·                 Ronald Vaske: Senior Counsel of the Consumer Financial Services Group at Ballard Spahr advising financial institutions on regulatory and compliance matters. ·                 Joseph Schuster: Partner of the Consumer Financial Services Group at Ballard Spahr guiding national banks on state law adaptation and implementation. Key Points Covered: ·                 Landmark Court Decisions: Recent cases like Cantero in the Supreme Court and Conti in the First Circuit Court of Appeals have moved National Bank Act preemption away from blanket coverage, requiring courts to carefully assess each state law's impact on national banks. ·                 Dodd-Frank's Transformative Impact: The Dodd-Frank Act codified the legal standard established by the Supreme Court in the Barnett Bank Case that state laws are only preempted if they "prevent or significantly interfere" with national bank authority, and curtailed the OCC's sweeping preemption powers. ·                 Erosion of Uniform Federal Standards: National banks now face the reality of complying with an increasing patchwork of state laws, which challenges the traditional advantage of a federal charter. ·                 Compliance Strategies in Practice: Banks are proactively reviewing and updating their products, disclosures, and processes to ensure compliance with varying state requirements using robust legislative tracking methods. ·                 What's Next - Regulatory and Litigation Outlook: The panel anticipates ongoing legal and regulatory developments and urges institutions to prepare for further changes by starting comprehensive compliance reviews now. This episode delivers vital updates and practical guidance on the evolving landscape of national bank preemption, making it essential listening for anyone involved in consumer financial services, banking compliance, or regulatory strategy.  Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Join us for a timely and insightful conversation on the evolving landscape of anti-money laundering (AML) compliance in consumer financial services. In this episode of the Consumer Finance Monitor Podcast, Alan Kaplinsky, founder and senior counsel of Ballard Spahr's Consumer Financial Services Group, hosts Terence Grugan, co-chair of Ballard Spahr's AML team and a recognized authority in financial crimes compliance. Together, they deliver a comprehensive discussion on the latest regulatory developments, enforcement trends, and strategic implications for institutions across the industry. Episode Overview and Key Takeaways: 1.     Regulatory Streamlining: Explore how AML and Bank Secrecy Act (BSA) compliance requirements are being recalibrated, with a focus on reducing unnecessary burdens, modernizing supervisory practices, and emphasizing substance over form. 2.     Bank Examination Modernization: Learn how recent policy changes are promoting risk-based, targeted examinations for community banks, enabling institutions to allocate resources more effectively while maintaining compliance. 3.     Non-Bank Financial Institution Developments: Gain insights into emerging proposals from FinCEN and the Treasury aimed at gathering industry feedback and potentially scaling back AML obligations for non-bank entities such as casinos, money services businesses, and others. 4.     SAR Reporting Reforms: Hear about FinCEN's clarifications that are refining suspicious activity reporting (SAR) requirements, streamlining documentation, and reducing operational complexity for financial institutions. 5.     Evolving Crypto Regulation: Assess the regulatory retreat within the cryptocurrency sector, implications for AML risk, and anticipated impact of new regulatory initiatives including upcoming Stablecoin rules. 6.     Enforcement Trends: Review notable shifts in enforcement priorities, with fewer high-profile AML fines this year and an increased focus on targeting substantive violations rather than technical compliance failures. 7.     National Security and Economic Policy Alignment: Understand how AML and financial crime policies are aligning with broader national security priorities, including sanctions compliance, immigration enforcement, and efforts to disrupt international cartels. 8.     Future Outlook: Preview possible future developments, including greater centralization of AML enforcement within the Treasury Department and continuing modernization of compliance obligations. This episode equips financial institutions, compliance professionals, and industry leaders with expert perspectives on the regulatory, operational, and strategic changes transforming AML compliance. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

This week on the award-winning Consumer Finance Monitor Podcast, host Alan Kaplinsky is joined by Senior Counsel Mark Levin and special guest Professor Mohsen Manesh for a powerful roundtable on one of today's most consequential topics: the SEC's new position on mandatory arbitration in corporate governance documents and how state law and market realities are shaping the future for consumer financial services companies, investors, and legal counsel. Meet the Speakers: Alan Kaplinsky - Host and Senior Counsel at Ballard Spahr's Consumer Financial Services Group, Alan brings decades of expertise in arbitration and class action waivers to the table. Mark Levin - A leading authority on arbitration provisions and regulatory compliance, Mark (now retired) was a seasoned attorney at Ballard Spahr and long-time collaborator with Alan. Mohsen Manesh - The L.L. Stewart Professor of Business Law at the University of Oregon, Mohsen is a nationally recognized legal scholar and co-author of a widely cited NYU Law Review article on shareholder arbitration clauses. In This Episode, the Panel Explores: The SEC's Policy Shift: Why the SEC now allows mandatory arbitration provisions in registration statements, and how the focus has moved to disclosure, not the substance, of arbitration clauses. State Law Challenges: How Delaware's SB 95 (DGCL 115(c)) bans arbitration provisions for federal securities law claims in corporate charters, and the legislative backstory behind this move. Federal vs. State Authority: The panel debates whether states like Delaware can lawfully prohibit shareholder arbitration in corporate charters without being preempted by the Federal Arbitration Act (FAA). Practical Guidance for Issuers: The importance for issuers of providing clear, plain-language disclosures about arbitration clauses and drafting these provisions conservatively while preserving statutory remedies to address current legal and regulatory challenges. Market Realities and Investor Response: Despite ongoing legal debates, public companies thus far have shown little interest in reincorporating elsewhere to enable arbitration provisions, as both shareholder demand for mandatory arbitration and management support for such proposals remain limited. Issuer and Investor Impact: While arbitration can offer faster, more efficient, and confidential dispute resolution and reduce costly class actions, it may also limit options for class-wide remedies and restrict investor recourse. What's Next? With the SEC's new stance and ongoing uncertainty about the interplay with state laws, the landscape for shareholder arbitration is in flux—and this episode breaks down the key issues you need to watch. Whether you're a legal professional, corporate executive, or investor, this episode delivers sharp insight and practical takeaways on regulatory trends that could reshape the field of consumer financial services. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry. Following this episode, Professor Mohsen Manesh released a new article, The Past, Present, and Likely Future of Shareholder Arbitration, which builds directly on the insights he shared on the podcast. The full paper is available here.

Join host Alan Kaplinsky, founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group and one of the foremost thought leaders in the industry, as he welcomes two special guests for a timely and insightful conversation about the most significant deregulatory developments in banking law during 2025. Alan is joined by his Ballard Spahr colleague Scott Coleman, a partner with more than 30 years of experience guiding banks and bank holding companies through mergers, acquisitions, and all facets of regulatory compliance, especially in the community banking sector. They're also joined by Dr. Sean Campbell, Chief Economist and Head of Policy Research at the Financial Services Forum, where he represents the eight U.S. global systemically important banks. Dr. Campbell is a distinguished economist, former senior Federal Reserve official, and published academic. In this episode, Alan, Scott, and Sean break down the latest developments and ongoing trends in bank regulation and supervision, and digital innovation. You'll get expert analysis and practical takeaways on: ·                 The Deregulatory Wave: How the Trump administration's aggressive deregulatory agenda is streamlining exams, reducing supervisory burdens, and shifting the focus toward core financial risk-while eliminating reputational risk as a part of President Trump's Debanking Executive Order. ·                 Supervision and Stress Testing Reform: Why new Federal Reserve proposals to increase transparency in stress testing mark a turning point for large banks, moving away from a "check-the-box" approach to a laser focus on tangible risks like capital, liquidity, and asset quality. ·                 Deposit Insurance Debate: The pros, cons, and historical lessons of raising FDIC insurance limits-especially in the wake of recent bank failures and how the right balance can preserve market discipline. ·                 Community Reinvestment Act in the Digital Age: Why the CRA's geography-based model is due for an overhaul as banking goes mobile and regulatory priorities shift. ·                 Crypto, Stablecoins, and Regulatory Parity: What the Bipartisan Enactment of the GENIUS Act (regulating stablecoins) means for banks and fintechs, and why applying anti-money laundering rules across the board could level the playing field. ·                 Eliminating Reputational Risk: How regulators are eliminating the use of "reputational risk" as a catch-all supervisory and enforcement tool and what this means for fair access and bank governance. ·                 Looking to the Future: The group reflects on what's next for the bank regulatory landscape, Wall Street's view on the industry, and the practical impacts on banks and consumers. Whether you're a banker, regulator, or just want to understand how Washington and Wall Street are shaping the future of finance, this episode delivers the highlights of 2025 and insights you need going into 2026. Tune in for expert opinions, real-world examples, and a roadmap to what's ahead! Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the banking and the consumer finance industry.

Today's episode features Part 2 of our November 4 webinar, "The CFPB's Most Ambitious Regulatory Agenda Ever."  (Part 1 of this series was released on December 18. We encourage you to listen to that episode as well). In Part 2, we continue to unpack the far-reaching implications of the Consumer Financial Protection Bureau's (CFPB) regulatory ambitions. The CFPB has published a sweeping agenda that promises to reshape the landscape for consumer financial services, and our panel of seasoned attorneys offers vital context and actionable insights for industry professionals, regulators, and informed consumers alike.   Key Topics Discussed:  ·        CFPB's Pre-Rule and Long-Term Actions - What's on the regulatory horizon, including advance notices and rulemaking targets that could reshape consumer finance. ·        Clarifying "Unfair, Deceptive, and Abusive" Practices - Will the CFPB issue new rules or guidance to define these critical terms? The panel reviews statutory definitions and industry implications. ·        Identity Theft and Coerced Debt Regulation - Proposed amendments to Regulation V including new protections for survivors of identity theft and economic abuse. ·        Redefining Large Market Participants - Examination of thresholds for CFPB supervision in areas like auto financing, debt collection, consumer reporting, and international money transfers, aiming to target the largest market players. ·        Qualified Mortgage Rules & Loan Originator Compensation - What changes might be coming to mortgage rules and compensation methods, especially for small-dollar loans? The industry's wishlist and regulatory challenges are explored. ·        The Equal Credit Opportunity Act (ECOA) & Disparate Impact - Is the CFPB shifting its stance on disparate impact liability in lending? Hear the latest on the Trump administration's influence and evolving regulatory language. ·        CFPB's Withdrawal of Guidance Documents- A look at the Bureau's move away from guidance towards formal rulemaking and the impact on regulated entities. ·        Industry Feedback and Uncertainty - Lively discussion about compliance burdens, regulatory rescissions, and the ongoing uncertainty surrounding the CFPB's future funding and priorities. Meet Your Speakers from Ballard Spahr:   ·        Alan Kaplinsky (Host & Moderator): Senior Counsel and Founder and former leader of Ballard Spahr's Consumer Financial Services Group  ·        Rich Andreano, Jr.: Partner and head of the firm's Mortgage Banking Group  ·        John Culhane, Jr.: Partner in the Consumer Financial Services Group  ·        Kristen Larson: Of Counsel, Consumer Financial Services Group   ·        Daniel Wilkinson: Associate, Consumer Financial Services Group   ·        Rob Lieber: Associate, Consumer Financial Services Group   ·        Aja Finger: Associate, Consumer Financial Services Group   Tune in as our expert panel breaks down the complexities, anticipated impacts, and the road ahead under the CFPB's ambitious agenda. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode features Part 1 of our November 4 webinar, "The CFPB's Most Ambitious Regulatory Agenda Ever." In this packed episode, our expert panel breaks down the Consumer Financial Protection Bureau's largest and boldest regulatory agenda to date. Discussing an unprecedented lineup of 24 rulemaking items that could reshape the consumer financial services industry. What's Included: Unprecedented Regulatory Activity: We unpack why this semi-annual agenda stands out, the record number of proposed rules, and what this means for financial institutions, FinTechs, and consumers alike. Hot Topics Covered: From sweeping changes in mortgage servicing to open banking (1033 of Dodd-Frank/personal financial data rights), small business lending rules (1071 of Dodd-Frank), and the rollout of the Financial Data Transparency Act, we cover all the major initiatives and legal battles on the horizon. Industry Insight: Hear why certain rules are stirring up controversy, what compliance challenges lie ahead, and how litigation and funding woes at the CFPB might impact the pace of change. Practical Impact: Learn about technical corrections in remittance transfer rules, new standards for data sharing, and what these changes mean for day-to-day business operations. Meet Your Speakers from Ballard Spahr: Alan Kaplinsky (Host & Moderator): Senior Counsel, founder and former leader of Ballard Spahr's Consumer Financial Services Group  Rich Andreano, Jr.: Partner and head of the firm's Mortgage Banking Group  John Culhane, Jr.: Partner in the Consumer Financial Services Group  Greg Szewczyk: Chair of the firm's Privacy and Data Security Group  Mudasar Pham-Khan: Associate, Consumer Financial Services Group  Kristen Larson: Of Counsel, Consumer Financial Services Group  Daniel Wilkerson: Associate, Consumer Financial Services Group  Rob Lieber: Associate, Consumer Financial Services Group  Aja Finger: Associate, Consumer Financial Services Group  Tune in for strategic insights and practical tips to help you prepare for the CFPB's evolving rulebook. Whether you're a compliance leader, financial executive, or simply interested in how Washington's boldest moves will impact your world, this episode is your essential guide to what's next in consumer financial services. Don't miss Part 2, coming next week with even more updates and expert perspectives! Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's podcast brings listeners a timely and insightful discussion as our panel examines the CFPB's proposed amendments to Regulation B under the Equal Credit Opportunity Act (ECOA). As our regular listeners know, we released an episode yesterday, and we are providing this additional special episode in light of a development we consider both time-sensitive and exceptionally important. The discussion is hosted by Alan Kaplinsky, Senior Counsel, founder and former chair for 25 years of Ballard Spahr's Consumer Financial Services Group, and features these distinguished experts in the field: ·       Bradley Blower, Founder of Inclusive Partners LLC. ·       John Culhane, Jr., Senior Partner and charter member of Ballard Spahr's fair lending team. ·       Richard Andreano, Jr., Practice Group Leader for Ballard Spahr's Mortgage Banking Group and the head of Ballard Spahr's fair lending team.  Together, the panel takes listeners through the sweeping changes proposed to Reg B, including the elimination of the longstanding disparate impact provisions, significant revisions to discouragement standards, and new limitations on special purpose credit programs for for-profit entities. The conversation covers the legal and political motivations behind the proposal, references to recent Supreme Court decisions, and the implications for lenders, regulators, and consumers. The group also addresses the unusually short 30-day comment period and speculates on why the CFPB may be moving quickly to finalize the rule. Tune in for expert analysis, must-know takeaways, and predictions about industry impact and possible legal challenges. This episode is essential listening for anyone invested in the future of consumer financial services and fair lending. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode features Part 2 of our October 30, 2025 webinar, "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out." In this installment, our panel dives deeper into the evolving intersection of artificial intelligence, regulation, and innovation in financial services. Moderated by Alan Kaplinsky, Senior Counsel, founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group, and Greg Szewczyk, chair of the firm's Privacy and Data Security Group, the discussion cuts through hype and uncertainty to provide clear, practical insights. Alan and Greg lead a lively discussion exploring the practical and policy-driven challenges posed by AI, particularly how existing legal frameworks often struggle to keep pace with rapid technological advancement. Our panel includes: Charley Brown, leader of Ballard Spahr's technology and patents teams, who explains how institutions can protect and capitalize on AI-enabled technologies; Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan, who provides a rare inside look at the policy landscape; Kristian Stout, Director of Innovation Policy at the International Center for Law and Economics, who examines the intersections of AI, regulation, and competition; and Charlie Bullock, Senior Research Fellow at the Institute for Law and AI, who outlines practical frameworks for responsible, compliant AI governance. Throughout the episode, the panel addresses crucial topics including privacy challenges, explainability requirements for AI-driven decisions, and the potential for AI to level the playing field for smaller institutions. Whether you're in the C-suite, a compliance officer, or simply interested in how Washington's decisions shape the future of finance, this episode delivers a clear-eyed look at what the White House action plan covers and what crucial issues still need attention. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder of the firm's Consumer Financial Services Group. We encourage listeners to subscribe on their preferred podcast platform for weekly insights into the consumer finance industry.

Today's episode features Part 1 of our October 30, 2025 webinar, "AI in Financial Services: Understanding the White House Action Plan – and What It Leaves Out." In this installment, a panel of leading experts breaks down the rapidly evolving role of artificial intelligence in financial services—from foundational concepts to the latest regulatory developments. Moderated by Alan Kaplinsky, Senior Counsel,  founder and former longtime leader of Ballard Spahr's Consumer Financial Services Group, and Greg Szewczyk, chair of the firm's Privacy and Data Security Group, the discussion cuts through hype and uncertainty to provide clear, practical insights. Alan and Greg guide an energetic conversation about how AI has become a strategic priority for banks, credit unions, payments companies, and fintechs. Our panel includes: Charley Brown, leader of Ballard Spahr's technology and patents teams, who explains how institutions can protect and capitalize on AI-enabled technologies; Dean Ball, former White House senior advisor and one of the architects of the White House AI Action Plan, who provides a rare inside look at the policy landscape; Kristian Stout, Director of Innovation Policy at the International Center for Law and Economics, who examines the intersections of AI, regulation, and competition; and Charlie Bullock, Senior Research Fellow at the Institute for Law and AI, who outlines practical frameworks for responsible, compliant AI governance. Together, they unpack the complex patchwork of state, federal, and international rules now shaping AI deployment in financial services. The discussion highlights how automated decision-making laws, privacy requirements, and emerging definitions of "artificial intelligence" are forcing institutions to rethink compliance programs, manage risk differently, and anticipate new regulatory expectations. You'll also hear real-world examples of how organizations are grappling with these challenges in practice. This episode provides an essential foundation for understanding where AI and financial services intersect, and where the regulatory environment is headed. Be sure to tune in next Thursday for Part 2, where our experts delve even deeper into the future of AI, innovation, and legal risk in the financial sector. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr and founder of the firm's Consumer Financial Services Group. We encourage listeners to subscribe on their preferred podcast platform for weekly insights into the consumer finance industry.

Step into the intersection of consumer finance law and the solar energy industry with host Alan Kaplinsky, senior counsel at Ballard Spahr, and special guest Steven Burt, attorney and former public policy leader at major residential solar companies. In this episode, listeners will get an insider's look at today's solar landscape. Discover the key market segments, from utility-scale projects to commercial installations, community solar, and residential rooftop systems. Explore how recent shifts in federal policy under the Trump administration have changed energy priorities, from cancelling critical programs and phasing out residential solar tax credits, to redirecting support toward fossil fuels. Learn why understanding new requirements around foreign entities of concern (FEOC) is now urgent for companies relying on global supply chains. Benefit from practical legal insights covering consumer financial services law, such as FICO checks, leasing regulations, and credit disclosures, and see how these shape the way solar powers American homes. Despite evolving policy headwinds, the outlook for solar remains strong. Hear expert perspectives on state-level hotspots like California and Texas, emerging trends such as net metering reforms and battery storage, and the growing role of "virtual power plant" models that are reshaping residential solar's future. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode marks the second of a two-part series, with Part One having been released on November 13th. In this installment, we continue our conversation on the many changes in fair lending policy and enforcement under the second Trump administration. The discussion is moderated by Alan Kaplinsky, Senior Counsel, founder and former chair for 25 years of Ballard Spahr's Consumer Financial Services Group, and features these distinguished experts in the field: Bradley Blower, Founder of Inclusive Partners LLC. John Culhane, Jr., Senior Partner and charter member of Ballard Spahr's fair lending team. Richard Andreano, Jr., Practice Group Leader for Ballard Spahr's Mortgage Banking Group and the head of Ballard Spahr's fair lending team. In this week's episode our expert panel unpacks the fast-changing landscape of fair lending in consumer finance. With candid discussion from leading attorneys and industry insiders, we cover how federal policy swings, especially between recent administrations, have left lenders and businesses searching for direction on compliance, risk management, and best practices. Hear insights on the evolving standards for disparate impact claims, the high stakes of Supreme Court challenges, and how regulatory shifts are changing the rules of the road for everyone. Learn why the future of lending is increasingly tied to artificial intelligence, what it means for fairness and oversight, and why receiving clear guidance is more vital than ever. Our hosts tackle the challenges posed by executive orders on 'de-banking' and fair access, ongoing delays and debates surrounding the small business lending data rule, and the persistent struggle to address appraisal bias. Find out how states are stepping up where federal agencies may leave gaps and get practical advice for keeping your compliance management systems strong in uncertain times, particularly in view of how a future Presidential Administration may seek to reverse Trump Administration initiatives. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode marks the first of a two-part series, with Part Two scheduled for release on November 20th. In this installment, we examine the sweeping changes in fair lending policy and enforcement under the second Trump administration. The discussion is moderated by Alan Kaplinsky, Senior Counsel, founder and former chair for 25 years of Ballard Spahr's Consumer Financial Services Group, and features these distinguished experts in the field: Bradley Blower, Founder of Inclusive Partners LLC. John Culhane, Jr., Senior Partner and charter member of Ballard Spahr's fair lending team. Richard Andreano, Jr., Practice Group Leader for Ballard Spahr's Mortgage Banking Group and the head of Ballard Spahr's fair lending team. Listeners will gain essential insights on how federal agencies are scaling back oversight, phasing out the use of statistical disparities and disparate impact theory in fair lending cases. The conversation illuminates how redlining investigations are now driven by clearly expressed intent rather than just the numbers, and why states are stepping in as the federal role diminishes. The episode also tackles potential regulatory changes, the move back to the 1995 Community Reinvestment Act rule, and what these shifts mean for institutions and the communities they serve. In addition, the hosts unpack high-profile cases like Townstone Financial, diving into the ongoing debate about whether discouraging would-be applicants is covered under the Equal Credit Opportunity Act. They also address the intersection of AI and the economy, examining the Trump administration's focus on rapid innovation over regulatory restrictions and its implications for consumer protection. With actionable information for professionals in consumer financial services, banking, compliance, and advocacy, this episode keeps you informed on the latest policies shaping fair lending in 2025 and beyond. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's podcast features the second part of a repurposed webinar produced on September 3, 2025, which dives into the legal risks, compliance challenges, and emerging constitutional questions stemming from the GENIUS Act. The conversation examines the strict prohibition of deceptive claims regarding federal backing or insurance for stablecoins, highlighting the significant civil liabilities and penalty provisions attached to violations. Art Wilmarth delves deeply into areas such as federal preemption of state laws, consumer protections, and the power dynamics introduced by big tech and non-bank entities in the stablecoin market. Richard Rosenthal outlines the importance of building cross-functional teams, updating risk taxonomies, and adapting existing safety and soundness frameworks to the new environment presented by stablecoins. Peter Jaslow highlights legal risks for stablecoin issuers, such as the lack of explicit federal insurance, the reliance on monthly attestations of reserves, complex issues surrounding redemption policies, and significant civil and criminal penalties for non-compliance. The speakers articulate the importance of rigorous compliance frameworks and the critical role finance teams will play in adapting to the new regulatory demands. Additionally, there is emphasis on the GENIUS Act's consumer protection priorities and its alignment with administration policy objectives. This episode also explores the business model impact of the GENIUS Act, discussing the growing demand for stablecoin and tokenized deposit solutions, and how institutions might leverage these technologies for treasury management and cross-border payments. Panelists provide perspectives on how innovation is being fostered, the implications for privately-held stablecoins, and the ways the GENIUS Act reflects the desires of the crypto industry. This session offers a holistic look at both the challenges and opportunities that financial institutions must consider as regulatory and market landscapes evolve. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

As we continue our dive into the minutia of ways government shutdowns hinder agency operations, we turn now to the ongoing lawsuit over the mass firings at the Consumer Financial Protection Bureau earlier this year. Perhaps no other agency faced as large of a percentage of workforce and budget cuts from the Department of Government Efficiency. Now the government attorneys who have been assigned to defend the moves in court are forced to ask for a delay since they're not allowed to work right now. To get an update on this case and the effect shutdowns have on federal lawsuits overall, we welcome Rich Andreano, a partner at Ballard Spahr.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Today's podcast features the first part of a recent webinar produced on September 3, 2025, which examined the key provisions of the GENIUS Act (“The Guiding and Establishing National Innovation for U.S. Stablecoins Act”) and its regulatory impact on banks, fintechs and the future of stablecoins. The discussion covers critical definitions, licensing, oversight and enforcement requirements, the relationship to state stablecoin laws. Panelists offer insights into the role of federal banking regulators such as the Comptroller of the Currency, the Federal Reserve, and the Financial Stability Oversight Council (“FSOC”), highlighting the Act's efforts to establish a uniform regulatory framework and how financial institutions are responding to the new rules. The webinar features three expert speakers: Art Wilmarth, Professor Emeritus at George Washington University Law School, Richard Rosenthal, Principal in Deloitte's Risk and Financial Advisory practice and Peter Jaslow, Practice Co-Leader of Ballard Spahr's Blockchain Technology and Cryptocurrency group Listeners will gain an understanding of how the GENIUS Act may reshape business stablecoin models.  The episode touches on compliance timelines, emphasizing the rapid pace of regulation, and previews issues of consumer protection and its ban on making interest payments. This dialogue sets the foundation for deeper analysis of legal risks and constitutional challenges, which will be explored in the upcoming second part of the series. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

We are pleased to share a new podcast episode, which was taken from our September 9, 2025, webinar featuring Malini Mithal, Associate Director of the Federal Trade Commission's Division of Financial Practices. Malini has been a valued guest on our podcast in past years, and this session provided another timely and insightful discussion. In today's episode she gives her thoughts on the FTC's recent non-antitrust consumer protection initiatives. Major Key Topics Discussed 1.     Fintech oversight – Malini began with FTC activity involving fintechs, particularly companies promoting faster access to cash, and addressed related lending and payments cases. 2.     Subscription practices under ROSCA – She highlighted the FTC's enforcement of the Restore Online Confidence Shoppers Act, including lawsuits against Uber and LA Fitness and a settlement with Match. 3.     Unfair and Deceptive Fees Rule – Effective May 12, 2025, this rule bans bait-and-switch pricing and hidden fees in industries such as live-event ticketing and short-term lodging. Malini explained how these practices harm consumers and distort competition. 4.     Auto finance transparency – Another area of focus for the FTC, reflecting the agency's broader emphasis on price transparency. 5.     Debt collection, debt relief, and credit repair – Malini reviewed recent FTC enforcement activity in these high-risk sectors. 6.     Crypto platforms – She concluded with a discussion of the FTC's work addressing crypto platforms that market banking-like services to consumers. After Malini left the webinar, John Culhane, a partner in our Consumer Financial Services Group, provided an update on developments at the FTC in terms of budget and staffing and the ongoing litigation challenging the Trump Administration's removal of two Democratic FTC Commissioners without cause and then discussed areas where we expect to see more FTC “regulation by enforcement” activity. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

The podcast show we are releasing today is a repurposing of part 2 of a webinar we produced on August 13, 2025, which explored the U.S. Supreme Court's pivotal 6-3 decision in Trump v. CASA, Inc., a ruling that significantly curtails the use of nationwide or “universal” injunctions. A universal injunction is one which confers benefits on non-parties to the lawsuit. This case marks a turning point in federal court jurisprudence, with profound implications for equitable relief, national policy, and governance. Our distinguished panel of legal scholars, Suzette Malveaux (Roger D. Groot Professor of Law, Washington and Lee University School of Law), Portia Pedro (Associate Professor of Law, Boston University School of Law), and Alan Trammell (Professor of Law, Washington and Lee University School of Law) are joined by experienced litigators Alan Kaplinsky, Carter G. Phillips (Former Assistant to the Solicitor General of the United States & Partner, Sidley Austin LLP), and Burt M. Rublin (Senior Counsel and Appellate Group Practice Leader, Ballard Spahr LLP). These panelists dive deep into the Court's decision, unpacking its historical foundation, analyzing the majority, concurring, and dissenting opinions, and evaluating its far-reaching effects on all stakeholders, including industry groups, trade associations, federal agencies, the judiciary, the executive branch, and everyday citizens. This podcast show and the one we released last Thursday, September 25, cover these critical topics: ·        The originalist and historical reasoning behind the Court's rejection of universal injunctions ·        A detailed analysis of the majority, concurring, and dissenting opinions ·        The ruling's impact on legal challenges to federal statutes, regulations, and executive orders ·        The potential role of Federal Rule of Civil Procedure 23(a) and 23(b)(2) class actions as alternatives to universal injunctions, including the status of the CASA case and other cases where plaintiffs have pursued class actions ·        The use of Section 706 of the Administrative Procedure Act (the “APA”) to “set aside” or “vacate” unlawful regulations and Section 705 of the APA to seek stays of regulation effective dates ·        The viability of associational standing for trade groups challenging regulations on behalf of their members ·        The ruling's influence on forum selection and judicial assignment strategies, including “judge-shopping” ·        The Supreme Court's increasing use of its emergency or “shadow” docket, rather than its conventional certiorari docket, to render extraordinarily important opinions  This is a unique opportunity to hear from leading experts as they break down one of the most consequential and controversial Supreme Court decisions of this Supreme Court Term. These podcast shows will provide you with valuable insights into how this ruling reshapes the legal landscape. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

The podcast show we are releasing today is a repurposing of part 1 of a webinar we produced on August 13, 2025, which explored the U.S. Supreme Court's pivotal 6-3 decision in Trump v. CASA, Inc., a ruling that significantly curtails the use of nationwide or “universal” injunctions. A universal injunction is one which confers benefits on non-parties to the lawsuit. This case marks a turning point in federal court jurisprudence, with profound implications for equitable relief, national policy, and governance. Our distinguished panel of legal scholars, Suzette Malveaux (Roger D. Groot Professor of Law, Washington and Lee University School of Law), Portia Pedro (Associate Professor of Law, Boston University School of Law), and Alan Trammell (Professor of Law, Washington and Lee University School of Law) are joined by experienced litigators Alan Kaplinsky, Carter G. Phillips (Former Assistant to the Solicitor General of the United States & Partner, Sidley Austin LLP), and Burt M. Rublin (Senior Counsel and Appellate Group Practice Leader, Ballard Spahr LLP). These panelists dive deep into the Court's decision, unpacking its historical foundation, analyzing the majority, concurring, and dissenting opinions, and evaluating its far-reaching effects on all stakeholders, including industry groups, trade associations, federal agencies, the judiciary, the executive branch, and everyday citizens. This podcast show and the one we release one week from today cover these critical topics: ·         The originalist and historical reasoning behind the Court's rejection of universal injunctions ·         A detailed analysis of the majority, concurring, and dissenting opinions ·         The ruling's impact on legal challenges to federal statutes, regulations, and executive orders ·         The potential role of Federal Rule of Civil Procedure 23(a) and 23(b)(2) class actions as alternatives to universal injunctions, including the status of the CASA case and other cases where plaintiffs have pursued class actions ·         The use of Section 706 of the Administrative Procedure Act (the “APA”) to “set aside” or “vacate” unlawful regulations and Section 705 of the APA to seek stays of regulation effective dates ·         The viability of associational standing for trade groups challenging regulations on behalf of their members ·         The ruling's influence on forum selection and judicial assignment strategies, including “judge-shopping” ·         The Supreme Court's increasing use of its emergency or “shadow” docket, rather than its conventional certiorari docket, to render extraordinarily important opinions  This is a unique opportunity to hear from leading experts as they break down one of the most consequential and controversial Supreme Court decisions of this Supreme Court Term. These podcast shows will provide you with valuable insights into how this ruling reshapes the legal landscape. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In this episode of the Consumer Finance Monitor podcast, host Alan Kaplinsky welcomes Pat Utz, CEO and co-founder of Abstract, a venture capital-backed AI company headquartered in New York. Pat brings extensive expertise on artificial intelligence. The podcast focuses on current developments in AI regulation and implementation, first covering President Trump's recent "Winning the Race: America's AI Action Plan" and its potential impact on federal policy. Alan and Pat discuss the evolving landscape of AI statutes, and developments at the state-level in places like Utah and Colorado. Pat and Alan Kaplinsky provide insights into bipartisan efforts at both state and federal levels to address issues ranging from consumer safety to business innovation. They highlight the practical challenges and opportunities for businesses leveraging AI, such as the need for transparency when AI is used in customer interactions and compliance with state-level enforcement. Pat explains how open-source models are increasingly being promoted, pointing to Trump's executive order and shifts in the industry. He also underscores the importance for businesses to track where data is processed—whether with major vendors or proprietary systems—and adapt to varying regulatory frameworks, notably those set by states like California that tend to influence national practice. The episode concludes by focusing on the wide array of AI usage in financial services, specifically credit scoring and underwriting; lending; and fraud detection. Pat provides key lessons institutions should be mindful of as AI adoption continues to grow in the industry Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's podcast episode is a continuation of a previous repurposed webinar held on August 12th, focusing on emerging opportunities in the consumer financial services sector under the Trump administration. The session aims to provide insights into the evolving regulatory landscape and its implications for businesses and consumers. The first part of the webinar, released last Thursday, September 4, covered  the recently-passed GENIUS Act (which creates a federal infrastructure for Stablecoin); developments in crypto-backed lending and credit builder loans; the mortgage industry; developments in earned wage access and rent-to-own and lease-to-own financing products; and insights on income share agreements. Joining the podcast today are the following members of Ballard Spahr's Consumer Financial Services Group: Kristen Larson, of counsel, provides insights into the open banking rule; John Socknat, co-leader of the Group, speaks on home equity investment products; John Culhane, a partner in the group, relays insights on large installment loans at point of sale; and Dan Wilkinson, an associate, provides an overview of digital wallets. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group for 25 years.  We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

In the latest episode of our podcast, we explore the significant shifts in the regulatory landscape under the second Trump administration and how these recent deregulatory actions have opened new pathways for banks and FinTech companies by reducing barriers to entry and compliance costs. This evolving environment presents opportunities for innovation and market expansion, although state law oversight, including licensing and regulatory requirements. Today's episode is part one of a two-part series. Joining the podcast today are the following members of Ballard Spahr's Consumer Financial Services Group: Kristen Larson, of counsel, provides insights into the recently-passed GENIUS Act (which creates a federal infrastructure for Stablecoin); Ron Vaske, a partner, covers developments in crypto-backed lending and credit builder loans; John Socknat, co-leader of the Group, speaks on crypto and the mortgage industry; Dan Wilkinson, an associate, provides an overview of developments in earned wage access and rent-to-own and lease-to-own financing products; and John Culhane, a partner in the group, relays insights on income share agreements. Part two of this webinar will be released next Thursday, September 11.  In that episode, Kristen Larson, John Socknat, John Culhane, and Dan Wilkinson, return to continue the conversation, discussing open banking; home equity investment products; home equity loans; buy now, pay later; large installment loans at point of sale; payday loans; and digital wallets to access credit-like features. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group for 25 years.  We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode of the Consumer Finance Monitor podcast is centered around a novel and thought-provoking article by David Horton, a professor of law at the University of California, Davis. The article, titled "Do Arbitrators Follow the Law? Evidence from Clause Construction," dives into the intriguing question of whether arbitrators render decisions that align with judicial rulings. Horton explores the longstanding debate on arbitration's adherence to legal standards, focusing on whether arbitrators have followed the Supreme Court's 2019 decision in Lamps Plus, Inc. v. Varela (2019) that class-wide arbitration is not permitted when an arbitration clause is silent or ambiguous on the matter.  The podcast episode explores the ramifications of Horton's finding that in about 27% of the arbitrations studied, the arbitrators did not follow Lamps Plus.  Horton interprets that finding as suggesting that a significant minority of arbitrators may be motivated by financial considerations in allowing a class arbitration to proceed, notwithstanding Lamps Plus, because it is more lucrative for them than an individual arbitration.    Mark Levin, Senior Counsel at Ballard Spahr, also joins the program. Mark interprets Horton's findings differently, emphasizing that in his view Horton's data strongly supports the conclusion that arbitration is not lawless since an overwhelming majority of the arbitrators (73%) did follow Lamps Plus.  Mark also dismisses Horton's suggestion that some arbitrators' rulings may be swayed by financial considerations as pure speculation.  On the contrary, he observes, the fact that some arbitrators have not strictly followed Lamps Plus does not show they were not following the law since the issue of clause construction has a lengthy complex history and prominent courts such as the Second Circuit have themselves found reasons for distinguishing Lamps Plus.    Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today on our podcast, we're releasing a repurposed recording of our July 23, 2025 webinar titled “Student Lending Legislation and Litigation: 2025 Mid-Year Review.” The webinar features esteemed partners John Culhane and Tom Burke, who dive into the intricacies of student lending litigation and regulatory developments. As a senior partner in the Consumer Financial Services Group, John Culhane shares his extensive knowledge on higher education finance, focusing on state legislation and private student loan litigation. Tom Burke, also a partner in the same group, brings his expertise in private class actions and state enforcement actions, providing insights into the One Big Beautiful Bill Act and its significant impact on federal loan servicers and discussing federal student loan litigation. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

Today's episode of the Consumer Finance Monitor podcast offers an in-depth analysis of the unitary executive theory and its implications for terminations by President Trump of the Democratic members/commissioners of several so-called independent Federal agencies.  The episode features Lev Menand, an associate professor of law at Columbia Law School, who provides expert insights into financial institutions and administrative law and the validity of the Trump terminations. Professor Menand discusses the theory that President Trump may exercise complete control over independent federal agencies (which includes such terminations), despite statutes which permit terminations only for cause and a 1935 Supreme Court opinion in Humphries Executor which upheld the constitutionality of the “for cause” limitation on such terminations.  Professor Menand also discusses (i) the stay orders issued by the Supreme Court which have frozen preliminary injunctions issued by lower courts in litigation initiated by the terminated individuals which required the reinstatement of Democratic members of two agencies who had been fired by Trump and (ii) the dictum in such stay orders saying that the reasoning behind the stay orders  does not apply to the members of the Federal Reserve Board. This episode builds on another podcast released by Consumer Finance Monitor on July 10 featuring Patrick Sobkowski of Marquette University. Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

We are releasing today on our podcast show a repurposed webinar which we produced on May 13, 2025 entitled “What is happening at the federal agencies (other than the CFPB) that is relevant to the consumer financial services industry.” During this podcast, we will inform you about recent developments at those other agencies, including the FTC, OCC, FDIC, FRB and DOJ (collectively, the “Agencies”) and the White House (through the issuance of Executive Orders). Some of the issues we consider are: •        What are the strategic priorities of the Agencies, including cryptocurrency (OCC, FRB and DOJ); reducing regulatory burden, promoting financial inclusion, embracing bank-fintech partnerships and expanding responsible bank activities involving digital assets (OCC); adopt a more open-minded approach to innovation and technology adoption (FDIC); public inquiry into anti-competitive regulations (FTC and DOJ); and regulation of AI technology, boosting protections for children and teens online and strengthening enforcement against companies that sell, transfer, or disclose Americans' geolocation information and other sensitive data to foreign adversaries, more emphasis on antitrust enforcement and less on consumer protection (FTC). •        What is the status of proposed or final regulations of the Agencies? (e.g., FTC CARS Rule, Click-to-Cancel Rule, Junk Fees Rule, and Rule banning Noncompetes; FDIC advertisement and brokered-deposit rules, OCC rule on bank mergers; and the Community Reinvestment Act final rule)? •        What is the status of enforcement investigations and litigation of the Agencies? •        What impact will staff cuts have on supervisory examinations? •        What is the impact of President Trump's executive order requiring the Agencies to obtain approval from the White House of all proposed and final regulations? •        Will the Supreme Court approve of President Donald Trump's firing of the Democratic members of the FTC and NCUA and other federal agencies (who have subsequently sued Trump to challenge the firings) and, if so, what are its implications? •        What is the significance of the FDIC and OCC agreeing to eliminate “reputation risk” as a basis for evaluating risks to banks? •        Will the OCC adopt a regulation or other guidance, or will Congress enact legislation pertaining to debanking/fair access? •        Will the OCC and/or FDIC issue any guidance or regulations pertaining to federal preemption of state law in light of the Supreme Court's opinion last term in Cantero and the impending Courts of Appeal decisions in Cantero, Kivett and Conti? •        What is the significance of the FDIC withdrawing its amicus brief in support of the Colorado Attorney General in the 10th Circuit in the lawsuit brought by industry against him challenging a Colorado statute which purported to opt out of Section 521 of DIDMCA? •        Will there continue to be fair lending and disparate impact enforcement at any of the Agencies? Alan Kaplinsky, former chair and now senior counsel of Ballard Spahr's Consumer Financial Services Group, moderated the presentations of the following other members of the Consumer Financial Services Group:  Scott Coleman, Ronald Vaske and Kristen Larson.

In this podcast interview, the speaker will provide a key overview of the build vs buy decision in uncovering Ballard Spahr's new AI tool "Ask Ellis." In addition, we will discuss what initial work they had to do with clients if they are using any of their client documents for fine tuning or RAG style solutions. Finally, we will highlight the various three assistants, which are chat, draft and analyze features.  Moderator: Chris Hockey, Manager, Information Risk & Governance, Alvarez & Marsal Speaker: Lisa Mayo Haynes, Director of Technology Innovation, Ballard Spahr LLP

Our podcast show being released today is part 2 of a repurposed interactive webinar that we presented on March 24 featuring two of the leading journalists who cover the CFPB - Jon Hill from Law360 and Evan Weinberger from Bloomberg. Our show begins with Tom Burke, a Ballard Spahr consumer financial services litigator, describing in general terms the status of the 38 CFPB enforcement lawsuits that were pending when Rohit Chopra was terminated. The cases fall into four categories: (a) those which have already been voluntarily dismissed with prejudice by the CFPB; (b) those which the CFPB has notified the courts that it intends to continue to prosecute; (c) those in which the CFPB has sought a stay for a period of time in order for it to evaluate whether or not to continue to prosecute them where the stay has been granted by the courts; and (d) those in which the CFPB's motion for a stay has been denied by the courts or not yet acted upon. Alan Kaplinsky then gave a short report describing a number of bills introduced this term related to the CFPB. Alan remarked that the only legislative effort which might bear fruit for the Republicans is to attempt to add to the budget reconciliation bill a provision subjecting the CFPB to funding through Congressional appropriations. Such an effort would need to be approved by the Senate Parliamentarian. Finally, Alan expressed surprise that the Republicans, in seeking to shut down the CFPB, have not relied on the argument that the CFPB has been unlawfully funded by the Federal Reserve Board since September 2022 because there has been no “combined earnings of the Federal Reserve Banks” beginning then through the present. (Dodd-Frank stipulates that the CFPB may be funded only out of such “combined earnings”). For more information about that funding issue, listen to Alan's recent interview of Professor Hal Scott of Harvard Law School who has written prolifically about it. On Monday of this week, Professor Scott published his third op-ed in the Wall Street Journal, in which he concluded: “Since the bureau is operating illegally, the president can halt its work immediately by executive order. The order should declare that all work at the CFPB will stop, that all rules enacted since funding became illegal in September 2022 are void, and that no new rules will be enforced.” Joseph Schuster then briefly described what has been happening at other federal agencies with respect to consumer financial services matters. Joseph and Alan reported on the fact that President Trump recently fired without cause the two Democratic members of the Federal Trade Commission leaving only two Republican members on the Commission. He took that action despite an old Supreme Court case holding that the language in the FTC Act stating that the President may remove an FTC member only for cause does not run afoul of the separation of powers clause in the Constitution.  The two Democratic commissioners have sued the Administration for violating the FTC Act provision, stating that the President may only remove an FTC commissioner for cause. The President had previously fired Democratic members at the Merit Systems Selection Board and National Labor Relations Board. President Trump based his firings on the belief that the Supreme Court will overrule the old Supreme Court case on the basis that the “termination for cause” language in the relevant statutes is unconstitutional. After the recording of this webinar, the DC Circuit Court of Appeals stayed, by a 2-1 vote, a District Court order holding that Trump's firing of the Democratic members of the NLRB and Merit Systems Selection Board was unlawful. That order was subsequently overturned by the court of appeals acting en banc. Subsequently, Chief Justice Roberts stayed that order. In light of these developments, it seems unlikely that the two FTC commissioners will be reinstated, if at all, until the Supreme Court decides the case. Also, after the recording of this webinar, the Senate confirmed a third Republican to be an FTC commissioner. For those of you who want a deeper dive into post-election developments at federal agencies other than the CFPB, please register for our webinar titled “What Is Happening at the Federal Agencies (Other Than the CFPB) That is Relevant to the Consumer Financial Services Industry?” which will occur on May 13, 2025. Joseph then discussed developments at the FDIC where the FDIC withdrew the very controversial brokered deposits proposal, the 2023 corporate governance proposal, the Change-in-Bank- Control Act proposal and the incentive-based compensation proposal. He also reported that the FDIC rescinded its 2024 Statement of Policy on Bank Merger Transactions and delayed the compliance date for certain provisions in the sign and advertising rule.  Joseph then discussed developments at the OCC where it (and the FDIC) announced that it would no longer use “reputation risk” as a basis for evaluating the safety and soundness of state-chartered banks that it supervises. The OCC, also, conditionally approved a charter for a Fintech business model to be a national bank and withdrew statements relating to crypto currency risk. Finally, Joseph discussed how state AGs and departments of banking have significantly ramped up their enforcement activities in response to what is happening at the CFPB. The podcast ended with each participant expressing his view on what the CFPB will look like when the dust settles. The broad consensus is that the CFPB will continue to operate with a greatly reduced staff and will only perform duties that are statutorily required. It is anticipated that there will be very little rulemaking except for rules that the CFPB is required to issue - namely, the small business data collection rule under 1071 of Dodd-Frank and the open banking rule under 1033 of Dodd-Frank. The panel also felt that the number of enforcement lawsuits and investigations will measurably decline with the focus being on companies engaged in blatant fraud or violations of the Military Lending Act. This podcast show was hosted by Alan Kaplinsky, the former practice group leader for 25 years and now senior counsel of the Consumer Financial Services Group. If you missed part 1 of our repurposed webinar produced on March 24, click here for a blog describing its content and a link to the podcast itself. In short, part 1 featured Jon Hill from Law360 and Evan Weinberger from Bloomberg, who chronicle the initiatives of CFPB Acting Directors Scott Bessent and Russell Vought and DOGE to dismantle the CFPB and the status of the two lawsuits brought to enjoin those initiatives. Ballard Spahr partners John Culhane and Rich Andreano give a status report on the effort of Acting Director Vought to nullify most of the final and proposed rules and other written guidance issued by Rohit Chopra. The podcast concludes with John and Rich describing the fact that supervision and examinations of banks and non-banks is non-existent.

Our podcast show being released today is Part 1 of a repurposed interactive webinar that we presented on March 24, featuring two of the leading journalists who cover the CFPB - Jon Hill from Law360 and Evan Weinberger from Bloomberg. Our show began with Jon and Evan chronicling the initiatives beginning on February 3 by CFPB Acting Directors Scott Bessent, Russell Vought and DOGE to shut down or at least minimize the CFPB. These initiatives were met with two federal district court lawsuits (one in DC brought by the labor unions who represents CFPB employees who were terminated and the other brought in Baltimore, MD by the CFPB and others) challenging one or more of these initiatives. Jon and Evan described the lawsuits in detail. While the Baltimore lawsuit was dismissed on the basis of lack of ripeness under the Administrative Procedure Act, Judge Amy Berman Jackson issued a TRO freezing the CFPB from terminating more CFPB employees through the end of March while she decides whether to enter a further injunction with respect to the CFPB's initiatives. Ballard Spahr partners, Rich Andreano and John Culhane, then gave an up-to-date status report on CFPB (a) final rules being challenged in litigation and/or eligible to be challenged under the Congressional Review Act; (b) final rules not being challenged in litigation which may be repealed or amended or whose effective or compliance dates may be extended under the Administrative Procedure Act; (c) proposed rules; and (d) non-rule written guidance. Rich and John paid particular attention to the following final rules: 1.  The Small Business Loan Data Collection and Reporting Rule under Section 1071 of      Dodd-Frank 2.  The Non-bank enforcement order Registry Rule 3.  The Fair Credit Reporting Act “Data Broker” Rule 4.  The Residential Property Assessed Clean Energy (PACE) Financing Rule 5.  The Residential Mortgage Servicing Proposed Rule 6.  Credit Card Penalty fees under Reg Z (Late Fee Rule) 7. Personal Financial Data Rights (Open Banking) Rule under Section 1033 of Dodd-Frank 8.  Overdraft Lending Rule Applicable to very large financial institutions 9. Prohibition on creditors and consumer reporting agencies reporting medical debt under Reg V Part 1 of our podcast concludes with Rich and John describing the fact that supervision and examination of banks and non-banks is apparently on hold. This podcast show was hosted by Alan Kaplinsky, the former practice group leader for 25 years of the Consumer Financial Services Group and now Senior Counsel.

Our special podcast show today deals primarily with a 112-page opinion and 3-page order issued on March 28 by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia in a lawsuit brought, among others, by two labor unions representing CFPB employees against Acting Director Russell Vought. The complaint alleged that Acting Director Vought and others were in the process of dismantling the CFPB through various actions taken since Rohit Chopra was fired and replaced by Acting Director Scott Bessent and then Acting Director Russell Vought. This process included, among other things, the termination of probationary and term employees and possibly another 1,300 or so employees through a reduction-in-force , the issuance of a stop work order, the closure of the CFPB's main office in DC and branch offices throughout the country, the termination of most third-party contracts, the decision not to request any additional funding from the Federal Reserve Board for the balance of the fiscal year and the voluntary dismissal of several enforcement lawsuits. Alan Kaplinsky, Senior Counsel and former chair of Ballard Spahr's Consumer Financial Services Group, and Joseph Schuster, a Partner in the Consumer Financial Services Group, discuss each part of the preliminary injunction issued by Judge Jackson which, among other things, required the CFPB to re-hire all probationary and term employees who had been terminated, prohibited the CFPB from terminating any CFPB employee except for just cause (which apparently does not include lack of work because of the change in focus and direction of the CFPB), required the CFPB not to enforce a previous “stop work” order or reduction-in-force.  We observed that Judge Jackson's order has required the CFPB to maintain for now a work force that is not needed for the “new” CFPB. We also discuss that the preliminary injunction order does not require the CFPB to maintain any of the regulations promulgated or proposed by Rohit Chopra or to continue to prosecute any of the enforcement lawsuits brought by Director Chopra. DOJ filed a notice of appeal on March 29 and on March 31 filed a motion in the DC Court of Appeals to stay Judge Jackson's order. (After the recording of this podcast, the DOJ filed in the Court of Appeals a motion seeking a stay of Judge Jackson's order. Pending a hearing on April 9th, the Court issued an administrative stay of Judge Jackson's order. The 3-Judge panel is composed of two Trump appointees and one Obama appointee.) A copy of the blog co-authored by Alan and Joseph is linked here. We also discuss another lawsuit initiated by the City of Baltimore and one other plaintiff against Acting Director Vought in Federal District Court for the District of Maryland seeking to enjoin him from returning to the Federal Reserve Board or the Treasury funds held by the CFPB. The Court denied the motion for preliminary injunction on the basis that it was not ripe for adjudication under the Administrative Procedure Act because the CFPB never actually returned any funds. Finally, Alan expresses surprise that the Acting Director has not relied on the argument that all funds received by the CFPB after September, 2022 were unlawfully obtained because the Dodd-Frank Act stipulates that the CFPB can be funded only out of “combined earnings of the Federal Reserve Banks” and the fact that there have only been huge combined losses of the Federal Reserve Banks since Sept 2022 which continue through today and are likely to continue through the foreseeable future.

In this episode of the Consumer Finance Monitor Podcast, Ballard Spahr partners Mike Kilgarriff and Joseph Schuster break down the seismic shifts in consumer financial regulation following the dramatic changes at the CFPB. With the Bureau's enforcement and supervisory activities on hold, state attorneys general are stepping in to fill the regulatory void. Mike and Joseph explore what this means for financial institutions, how businesses should navigate the evolving landscape, and the increasing role of state AGs in consumer protection enforcement. Tune in for insights on what's next in the world of financial regulation.