Government Bans Banks From Silencing Customers Who Complain Online
Published Date: 1/14/2025
Proposed Rule
Summary
The Consumer Financial Protection Bureau wants to stop companies from sneaky contract tricks that take away your legal rights or punish you for speaking up. This rule affects anyone offering consumer financial products, like loans or credit cards, and aims to keep contracts fair and clear. You’ve got until April 1, 2025, to share your thoughts before these changes could save you money and hassle down the road!
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
Ban on Confessions and Harsh Remedies
The rule would re-codify the FTC Credit Practices Rule and bar certain creditor remedies in consumer credit contracts. Specifically, lenders could not use confessions of judgment (cognovits), waivers of exemption, assignments of wages, security interests in household goods, misrepresent cosigner liability, obligate a cosigner without prior notice, or collect certain delinquency charges described by the Credit Practices Rule.
No Waiving Your Legal Rights
Covered providers would be banned from including contract terms that ask you to waive substantive legal rights or remedies given by Federal or State law. The CFPB proposes that contracts may not purport to waive statutory protections or the remedies those laws provide.
Limits on Gag Clauses and Speech Rules
The proposal would forbid contract clauses that restrain lawful free expression, including terms that limit negative reviews, certain political speech, or that threaten account closure, fines, or breach-of-contract claims to silence consumers. Companies could not use such terms in agreements for consumer financial products or services.
Blocks Unilateral Contract Changes
The CFPB would prohibit terms that give a company the unilateral right to amend a material contract term without notice and consumer consent. Contracts could not reserve to the covered person the power to change core terms on its own.
State AGs Get New Enforcement Power
If finalized, the rule would give State attorneys general new authority to enforce the Credit Practices Rule and the additional prohibitions against national banks under section 1042(a) of the CFPA. The CFPA allows civil money penalties of up to $5,000 per violation per day, $25,000 per violation per day if 'recklessly' committed, and $1,000,000 per violation per day if 'knowingly' committed.
Who the Rule Covers
The proposed rule would apply to 'covered persons' that offer or provide consumer financial products or services and their affiliates acting as service providers. Covered products include credit, leases, real estate settlement services, deposits, payment processing, and credit reporting. Subpart B (the Credit Practices provisions) applies to credit transactions; subpart C (waivers, unilateral amendments, and free expression) applies across consumer financial products and services.
Small Entities Exempted from Some Rules
Section 1027.102(b) would exempt 'small business,' 'small organization,' and 'small governmental jurisdiction' (as defined in 5 U.S.C. 601 and SBA rules) from subpart C. That means the prohibitions on waiving law, unilateral amendments, and restraints on free expression would not apply to those small entities.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-20735, Extensions of Credit to Insiders
The FDIC is giving banks and insiders more time to share their thoughts on new rules about loans to insiders by extending the comment deadline to November 4, 2026. These rules aim to keep lending fair and safe, especially when insiders like executives or board members borrow money. If you’re involved with banks or interested in fair lending, now’s your chance to speak up before the final rules are set!
2026-20790, Application of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to the Refunded Portion of Certain Federal Refundable Tax Credits; Hearing Cancellation
The IRS canceled a public hearing set for October 14, 2026, about new rules on how certain refunded tax credits count as federal benefits under a 1996 law. This affects individuals who get refundable tax credits, clarifying how those refunds are treated but with no immediate money changes. Since no one signed up to speak, the hearing won’t happen, but the proposed rules are still out for public comment.
2026-20721, Requirements for Additional Traceability Records for Certain Foods: Enforcement Policy for Certain Retail Food Establishments and Restaurants; Draft Guidance for Industry; Availability
The FDA is sharing a draft plan about new food tracking rules that mostly won’t apply to certain stores and restaurants right now. If you run a retail food place or restaurant, you don’t have to worry about extra paperwork just yet, but the FDA wants your feedback by November 23, 2026. This helps them decide the final rules without causing extra costs or hassle for small businesses.
2026-20650, Low-Value Shipments
The U.S. Customs and Border Protection is proposing new rules to make importing low-value goods (under $2,500) easier and more electronic, especially for mail shipments. They want to add new data requirements for carriers and require bonds for some shipments to keep things safe and smooth. If you’re involved in shipping or receiving small packages, get ready to adapt by December 7, 2026, when comments on these changes close.
2026-20660, Optional Practical Training Fees
Starting soon, international students using Optional Practical Training (OPT) will face new fees: $70,000 for their first OPT and $30,000 for any extra OPT periods. This change aims to stop fraud and protect U.S. workers. If you want to share your thoughts, make sure to comment by November 9, 2026!
2026-20677, Airworthiness Directives; Various Helicopters
The FAA wants to update rules for helicopters with radio altimeters because 5G signals in Canada can mess with their readings. Pilots will need to follow new flight manual limits when flying in Canadian airspace to keep things safe. Comments on this change are open until November 23, 2026, and it mainly affects helicopter operators flying near Canada.
Previous / Next Documents
Previous: 2025-00588, Airworthiness Directives; Siam Hiller Holdings, Inc, Helicopters
If you own or work with Siam Hiller UH-12E helicopters, listen up! The FAA wants you to check the main rotor drive shafts for cracks and stop using certain paint removers to keep your choppers safe. You’ve got until February 28, 2025, to share your thoughts, and these changes could save you from costly repairs down the road.
Next: 2024-29641, Endangered and Threatened Wildlife and Plants; Designation of Critical Habitat for the San Francisco Bay-Delta Distinct Population Segment of the Longfin Smelt
The U.S. Fish and Wildlife Service wants to protect the longfin smelt, a special fish living in the San Francisco Bay-Delta, by marking about 91,630 acres as critical habitat. This means certain activities in these areas might change to help the fish survive. People can share their thoughts by March 17, 2025, and an economic report is available to show how this might affect local businesses.