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aRTiCLeS

The ruling did not reach a decision on the merits in Corner Post’s struck down that test, saying it violated the Administrative
lawsuit, which is now expected to return to the trial court for Procedure Act. Chevron “requires a court to ignore, not follow,
further proceedings. In 2014, the D.C. Circuit Court of Appeals ‘the reading the court would have reached’ had it exercised its
rejected retailers’ arguments that Reg II’s fee caps were too high, independent judgment as required by the APA,” said Chief
and in 2015 the Supreme Court declined to hear an appeal of the Justice John Roberts, writing for the majority.
circuit court’s decision.
Chevron has been cited in numerous legal cases involving

CFPB Extends Compliance Dates questions of agencies’ statutory authority. The majority ruled
that those previous cases still stand. “The holdings of those
for Small-Business Lending Rule cases that specific agency actions are lawful… are still subject to
statutory stare decisis despite the court’s change in interpretive
The CFPB has issued an interim final rule to formalize its methodology,” Roberts wrote.
previous announcement that it had extended by 290 days
the compliance dates for its Section 1071 small-business data Read more: https://www.supremecourt.gov/opinions/23pdf/22-
collection rule. Under the change, lenders with the highest 451_7m58.pdf
volume of small-business loans must begin collecting data by
July 18, 2025; moderate-volume lenders by Jan. 16, 2026; and Bank Customers Want
the smallest-volume lenders by Oct. 18, 2026. The deadline for Personalized Financial Advice
reporting small-business lending data to the CFPB remains June
1 following the calendar year for which data is collected. Personalized financial advice has emerged as a key to a meaningful
bank customer experience, according to the findings of a recent J.D.
The CFPB also announced that it does not intend to assess Power study. Financial advice is “resonating more than ever” with
penalties for reporting errors for the first 12 months of collection. retail bank customers, but only 42% indicated recalling that their
It intends to conduct examinations only to assist lenders in bank provides guidance.
diagnosing compliance weaknesses, “so long as lenders engage in
good faith compliance efforts.” The survey showed that for those who receive guidance, 76% act
on it. “Customers who act on the financial advice and guidance
A federal court in Texas last year stayed the rule in a lawsuit filed provided by their bank are getting not only help on how to save time
by the Texas Bankers Association, ABA and others challenging or money, but also these services result in increased satisfaction and
the regulation, ruling that the CFPB could not enforce it until strong engagement and brand advocacy,” said a J.D. Power banking
the U.S. Supreme Court decided on the constitutionality of the and payments analyst, noting that as banks get more “savvy” about
bureau’s funding structure in a separate case. The high court how to personalize content through AI and staff training, “recall and
upheld the CFPB’s funding earlier this year. The Texas court also usage of financial advice is increasing, which is a very positive step
ruled that the CFPB must extend the rule’s compliance deadlines forward for the industry.”
to compensate for the period stayed.
Recall of financial advice among younger customers exceeds the
Read more: https://www.consumerfinance.gov/about-us/newsroom/ industry average, according to the study. Overall, 42% of retail bank
cfpb-extends-compliance-dates-for-small-business-lending-rule/
customers recall receiving financial advice from their bank. Among
Supreme Court Overturns Legal customers under the age of 40, the average recall rate for financial
advice jumps to 60%.
Test for Deferring to Agency The most frequent actions taken in response to advice include
Interpretations updating account settings (25%), shifting money between accounts
(22%) and downloading the bank’s mobile app (22%). Overall
In a 6-3 decision, the U.S. Supreme Court overturned the satisfaction with retail banking advice increases 163 points (on a
longstanding “Chevron deference,” which instructs courts 1,000-point scale) when customers act based on specific advice
to defer to a federal agency’s reasonable interpretation of an provided by their bank, though many banks “miss the mark” on
ambiguous statute. The majority ruled that courts must instead consistent personalization, the study noted. One key variable with a
rely on their independent judgment when deciding whether an “significant effect” on satisfaction is “received personalized banking
agency has acted within its statutory authority. advice/guidance.” When this is met, overall satisfaction increases 195

The 1984 Supreme Court decision Chevron v. Natural Resources points and banks are moderately successful at achieving this goal
Defense Council established a legal test for when courts should with 63% receiving personalized content.
consider deferring to federal agencies. However, in their decision Read more: https://www.jdpower.com/business/financial-health-and-
for Loper Bright Enterprises v. Raimondo, the majority of justices advice-satisfaction-study

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