The Roundup: Another Fed Rate Cut, Disciplinary Actions from the FTC, and The Future of the CFPB
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: The Fed cuts rates by 0.25%, the FTC takes action against an online cash advance app for deceiving consumers and charging undisclosed fees, the FCC sets April 11 as the effective date for new robocall rules, the FTC sends more than $17 million to consumers harmed by deceptive claims, junk fees, and confusing cancellation process, the CFPB in 2025: what to expect following the election, and the 2025 state of marketing compliance survey.
Do you want to be the first to know when the Regulatory Roundup is released? Subscribe to never miss an email and follow us on LinkedIn for even more updates on marketing compliance.
The Fed Cuts Rates by 0.25%
The FOMC unanimously lowered the federal funds rate by 25 basis points to a 4.50%-4.75% range, signaling a more measured approach to rate cuts after the previous 50-point reduction in September. The Fed emphasized a balanced focus on both employment and price stability, acknowledging uncertainties in the economic outlook. Notably, the committee removed language about achieving confidence in inflation moving toward 2%, attributing changes partly to post-election economic uncertainties.
FTC Takes Action Against Online Cash Advance App for Deceiving Consumers, Charging Undisclosed Fees
The FTC has taken action against an online cash advance app for allegedly deceiving consumers by charging undisclosed fees and presenting misleading information regarding its services. The complaint highlights that users were led to believe the app was free or only involved voluntary payments, while hidden fees were actually applied, impacting those who used its cash advance features. This move by the FTC underscores its ongoing commitment to holding financial service providers accountable and ensuring transparency, especially for digital financial products that impact consumer finances.
Significant Stat: 1.6 Million: As of September 2024, the total number of complaints in the CFPB complaint database—already a 40% increase from all of 2023. Read more
FCC Sets April 11 as Effective Date for New Robocall Rules
The FCC has announced that new robocall rules will take effect on April 11, 2025. These rules aim to make it easier for consumers to revoke consent for robocalls and texts under the Telephone Consumer Protection Act, mandating that companies must honor opt-out requests within 10 business days. Additionally, the rules clarify that consumers can revoke consent through any reasonable method, reinforcing the consumer’s right to control unwanted communications.
FTC Sends More Than $17 Million to Consumers Harmed by Deceptive Claims, Junk Fees, and Confusing Cancellation Process
The FTC has distributed over $17 million in refunds to consumers who were misled by a company’s deceptive practices, including undisclosed fees and a confusing cancellation process. This enforcement action underscores the FTC’s commitment to protecting consumers from financial harm and promoting transparency in business practices. Refunds were issued to address complaints that the service involved hidden charges and a challenging cancellation experience, reflecting ongoing regulatory scrutiny to prevent similar issues in the future.
The CFPB in 2025: What to Expect Following the Election
Following the recent election, the CFPB is poised for significant changes in 2025. With Donald Trump’s return to the presidency and a shift to Republican control in the Senate, current CFPB Director Rohit Chopra is expected to resign or be replaced, leading to a leadership transition. This change is anticipated to halt the CFPB’s existing regulatory agenda and alter its approach to consumer financial protection. Historically, such transitions have resulted in shifts in policy direction and enforcement priorities within the agency.
2025 State of Marketing Compliance Survey
We’re conducting our annual State of Marketing Compliance survey, and we’re interested in hearing what’s on your radar for 2025.
Share your expertise and insights on marketing compliance trends and expectations, and in return, you’ll be the first to receive a copy of our State of Marketing Compliance Report early next year. Take the survey.
