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Moorari Shah is a partner in the Finance and Bankruptcy Practice Group in the firm's Los Angeles and San Francisco offices.

The CFPB recently published a circular clarifying liability under consumer financial protection law for financial companies that fail to safeguard consumer data. The circular describes how firms may be violating the CFPA’s prohibition on unfair acts or practices with respect to the handling of consumer data by not implementing adequate measures to protect against data security incidents. According to the CFPB. in the event of large scale, customer-base-wide breaches, consumers may become victims of targeted identify theft.

Continue Reading CFPB: Safeguard Consumer Data or Face Liability

Last month, the CFPB utilized its market monitoring authority to issue a series of orders to five companies offering “buy now, pay later” credit.  Buy now, pay later, or BNPL, is a deferred payment option that allows consumers to split a purchase into smaller installments, typically four or less, often with a down payment of 25 percent due at checkout.

Continue Reading CFPB’s Latest Orders Place Data Practices Front and Center for 2022

The FTC recently announced a final rule updating its GLBA Safeguards Rule to “strengthen the data security safeguards” of consumer financial information. The FTC reported that it was making these changes in response to widespread data breaches and cyberattacks.  As we reported in our sister blog, the changes will mean that a broad range of non-banking financial institutions may need to make updates to their data security policies and procedures. The new requirements go into effect in November 2022.

Continue Reading Non-Banking Institutions Will Want to Review Security Measures in Light of Update to Safeguards Rule