New Consumer Law Rights Taking Effect in 2025

This article lists federal and state consumer law rights scheduled to go into effect or expire during the period from December 1, 2024, through January 1, 2026. Other consumer law changes will be enacted in 2025 and will go into effect in 2025; this article lists changes whose effective dates have already been scheduled as of December 31, 2024.

Of special importance are eleven FCC, CFPB, FTC, and bankruptcy rules that go into effect during this period.  Also, of note are changed dollar amounts throughout the Bankruptcy Code and a number of changes concerning mortgage loans. California has been particularly active in enacting legislation that will go into effect in 2025—seventeen items are listed.  Changes in state law are noted in thirty-one states.

NCLC encourages readers to submit (to [email protected]) additional consumer law changes effective in 2025, especially changes found in state consumer legislation. NCLC will add appropriate submissions to this article.

December 1, 2024: Bankruptcy Rules; Federal Lifeline

Bankruptcy Rules: Effective December 1, 2024, the bankruptcy rules are restyled using the same style guidelines that were used for other federal rules.  In some cases, the restyling changes the location and numbering of provisions within a rule, but the style changes are not intended to change substantive meaning.  In addition, Bankruptcy Rule 1007(b)(7) will no longer require that debtors file an official form to establish that they completed the postpetition financial management course.  Rule 7001(a) is amended to permit an individual debtor to proceed by motion when seeking turnover under § 542(a) of tangible personal property such as an automobile.  This is intended to create a simpler process for debtors to recover property that has been repossessed.  See generally John Rao, NCLC, Extensive Bankruptcy Rules Changes Now In Effect (Dec. 3, 2024).

Minimum Service Standards for Lifeline Devices:  Effective December 1, 2024, telecommunications carriers must ensure that at least 75% of the devices under the lifeline program are capable of being used as a hotspot (up from 60%).  See 47 C.F.R. § 54.408(f)(3).

December 18, 2024:  Credit Card Rewards Programs

Credit Card Rewards Programs: The CFPB on December 18 issued a circular titled, ‘‘Design, marketing, and administration of credit card rewards programs,” dealing with whether credit card issuers violate the law if they or their rewards partners devalue earned rewards or otherwise inhibit consumers from obtaining or redeeming promised rewards. See 89 Fed. Reg. 10,6277 (Dec. 30, 2024).

December 31, 2024: Direct Express Card

U.S. Treasury’s Direct Express Card: The federal Direct Express Card, operated under contract with Comerica Bank, offers an important option for people without bank accounts:  Social Security, SSI, and other federal benefits can be loaded to a federal Direct Express Card.  Treasury’s contract with Comerica expires at the end of 2024, and reportedly the new contract will go to Bank of New York.  Nevertheless, Comerica will continue to administer the program as part of a transition plan for some time.

January 1, 2025: Incarcerated Communications; TILA; FCRA; CLA; HMDA; FHA, HECM, VA, and GSE Mortgages; CRA; Minimum Wage and Wage Garnishment in 20 States; Cal.; Conn.; Del.; Idaho; Ill.; Iowa; Kan.; Minn.; N.H.; Or.; R.I.; Tenn.; Va.; Wash.; Wis.

Incarcerated People’s Communications Services (IPCS): An FCC Report and Order eases the financial burdens imposed on incarcerated people and their loved ones in communicating with each other. The rules reduce existing rate caps for audio communication and establish interim rate caps for video communication, both applicable to federal, state, and county correctional facilities, and to communications within and across state lines. The rules also strengthen access to communications by incarcerated people with disabilities and adopt stronger consumer protection rules. For all prisons and jails with average daily populations of 1,000 or more, compliance is required by January 1, 2025. Smaller jails must comply by April 1, 2025. Special provisions allow compliance as late as April 1, 2026, if certain preexisting contract terms and conditions were in place.  See also NCLC’s Access to Utility Service § 10.4.4.

Truth in Lending Act Exemption: On January 1, the TILA threshold exempting certain credit with an amount financed over a specific dollar amount increases from $69,500 to $71,900. See 89 Fed. Reg. 82,938 (Oct. 15, 2024). This exemption does not apply to home-secured credit or student loans. See NCLC’s Truth in Lending § 2.7.4.

Truth in Lending Act HOEPA Loans: On January 1, the adjusted total loan amount threshold for high-cost mortgages increases from $26,092, to $26,968, and the adjusted points and fees dollar trigger for high-cost mortgages increases from $1,305 to $1,348. 89 Fed. Reg. 95,080 (Dec. 2, 2024).

Truth in Lending Act Ability-to-Repay and QM Adjustments: To determine whether a covered transaction is a qualified mortgage (QM), the total points and fees charged may not exceed the threshold set for the size of the loan. Effective January 1, 2025, these thresholds increase. For qualified mortgages (QMs) under the general QM loan definition in § 1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) in 2025 will be: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $ 134,841; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $80,905 but less than $134,841; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $80,905; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $134,841; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $80,905; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $80,905. For all categories of QMs, the thresholds for total points and fees in 2025 will be 3% of the total loan amount for a loan greater than or equal to $134,841; $4,045 for a loan amount greater than or equal to $80,905 but less than $134,841; 5% of the total loan amount for a loan greater than or equal to $26,968 but less than $80,905; $1,348 for a loan amount greater than or equal to $16,855 but less than $26,968; and 8% of the total loan amount for a loan amount less than $16,855.  89 Fed. Reg. 95,080 (Dec. 2, 2024). See generally NCLC’s Truth in Lending § 9.3.3.

Truth in Lending Act Appraisal Requirements: Effective January 1, the exemption threshold for special appraisal requirements for “higher-risk mortgages “ increases from $32,400 to $33,500. See 89 Fed. Reg. 82,931 (Oct. 15, 2024).  See also NCLC’s Truth in Lending § 9.3.3.

Truth in Lending Exemption for Mortgage Loans: Effective January 1, creditors with assets under $2.717 billion (formerly $2.640 billion) do not have to establish escrow accounts and do not have to comply with the prohibition on balloon payments for certain higher-priced mortgage loans. For certain insured depository institutions and insured credit unions meeting certain conditions, the exemption threshold is increased to $12.179 billion from $11.835 billion.  89 Fed. Reg. 10,4398 (Dec. 23, 2024).

Fair Credit Reporting Act (FCRA) File Disclosure: Effective January 1, the maximum charge to a consumer under the FCRA for file disclosure is $15.50, up from $14.50.  89 Fed. Reg. 94,599 (Nov. 29, 2024). Consumers are also entitled to certain free disclosures, including free weekly file disclosures from Equifax, Experian, and TransUnion.  See NCLC’s Fair Credit Reporting Act § 3.3.

Consumer Leasing Act Exemption: On January 1, the Consumer Leasing Act exemption for consumer leases exceeding a total contractual obligation amount is increased from $69,500 to $71,900. See 89 Fed. Reg. 82,934 (Oct. 15, 2024).  See also NCLC’s Truth in Lending § 13.2.2.

HMDA Exemption:  Effective January 1, banks, savings associations, and credit unions with assets of $58 million or less as of Dec. 31, 2024, are exempt from collecting data in 2025 (the old threshold was $56 million). 89 Fed. Reg 10,5429 (Dec. 27, 2024).

FHA Loan Limits: FHA has announced new loan limits for 2025.  The single-family, low-cost-area ceiling increases to $524,225 and the high-cost-area ceiling increases to $1,209,750.  See HUD Mortgagee Letter 2024-21(Nov. 26, 2024). 

FHA Foreclosure Moratorium: The FHA foreclosure moratorium for Maui County, Hawaii ends January 1, 2025.  See HUD Mortgagee Letter 2024-15. 

HECM Loan Limits: For HECM reverse mortgages the maximum claim amount increases on January 1 to $1,209,750. See HUD Mortgagee Letter 2024-22(Nov. 26, 2024). 

VA, Fannie Mae, and Freddie Mac Loan Limits: The FHFA announced conforming loan limits for 2025 for Fannie Mae and Freddie Mac mortgages.  VA mortgages follow these numbers as well. In most of the United States, the 2025 value for 1-unit properties will be $806,500, an increase of $39,950. For areas in which 115% of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit for 1-unit properties will be $1,209,750.

Community Reinvestment Act (CRA):  The CRA asset thresholds for certain exemptions are increased as of January 1 so that ‘‘small bank’’ means a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.609 billion. “Intermediate small bank’’ will mean a small bank with assets of at least $402 million as of December 31 of both of the prior two calendar years and less than $1.609 billion as of December 31 of either of the prior two calendar years. See 89 Fed. Reg. 106480 (Dec. 30, 2024).

Minimum Wage and Wage Garnishment in 20 States: In addition to federal wage garnishment protections that utilize the federal minimum wage in calculating protected earnings, many states set limits on wage garnishment utilizing the state’s own regulation of the minimum wage. Twenty states are raising the minimum wage on January 1: Alaska ($11.91), Arizona ($14.70), California ($16.50), Connecticut ($16.35), Delaware ($15), Illinois ($15), Maine ($14.65), Michigan ($10.56), Minnesota ($11.13), Missouri ($13.75), Montana ($10.55), Nebraska ($13.50), New Jersey ($15.49), New York ($16.50/15.50 depending on location), Ohio ($10.70), Rhode Island ($15), South Dakota ($11.50), Vermont ($14.01), Virginia ($12.41), and Washington State ($16.66). See this report from the National Employment Law Project.  For more on state formulas for protecting wages from garnishment, see NCLC’s No Fresh Start 2024: Will States Protect Families from Debt Collectors Seizing Wages and Bank Balances? (Dec. 18, 2024).  See also NCLC’s Collection Actions § 15.2, Appx. H. 

California Medical Debt: Cal. S.B. 1061 amends several California statutes, so that, effective January 1, California prohibits a consumer credit reporting agency or an investigative consumer reporting agency from making a consumer credit report or an investigative consumer report containing information about medical debt. The bill prohibits users of a consumer credit report from using medical debt listed on a report as a negative factor when making a credit decision.

California Imprisonment for Debt: Effective January 1, Cal. A.B. 1119 prohibits a court from issuing a warrant for the arrest of a judgment debtor in a case concerning consumer debt based on the judgment debtor’s failure to appear or failure to file a judgment debtor’s financial affidavit. Instead, it authorizes the court to issue an order to show cause to determine whether a warrant to compel the judgment debtor’s attendance should be issued. The bill extends the notice of the examination required to be given to the judgment debtor to not less than 30 days before the examination and authorizes a judgment debtor in a case involving consumer debt to serve a financial affidavit signed under penalty of perjury, and file with the court a notice of financial affidavit and proof of service in lieu of appearing for the examination. The court would then cancel the financial examination unless the judgment creditor files, under oath, a motion regarding the need for the debtor to appear for a debtor’s examination, and the court determines there is such a need. 

California Criminal Justice Debt: Effective January 1, Cal. A.B. 1186 amends California law regarding criminal restitution fines (fines issued to anyone found guilty of a crime, even if that person doesn’t have to pay restitution). Courts no longer can issue restitution fines in juvenile court, and any unpaid restitution fines—both youth and adult—that are 10 years or older are canceled. The law does not affect victim restitution, which is money owed to a victim. In addition, the law ends wage and trust account garnishment for youth restitution.

California Overdraft Fees: Cal. A.B. 2017 prohibits certain banks and credit unions from charging a consumer a nonsufficient funds fee when the consumer’s attempt to initiate a transaction is declined instantaneously or near instantaneously due to nonsufficient funds.

California Exemptions: Cal. A.B. 2837 amends Cal. Code Civ. Proc. § 684.130 and expands the types of retirement plans exempt from money judgments. It requires a judgment creditor to take additional steps to verify a judgment debtor’s address and provide notice of enforcement to a judgment debtor, by requiring a court to order the return of exempt property that has been levied upon and by limiting the time period during which an earnings withholding order may be enforced and the frequency with which such an order may be sought. 

California Mortgage Foreclosures: Cal. A.B. 2424, effective January 1, amends Cal. Civ. Code § 2923.5 and requires a notice be provided to specified parties that a third party, such as a family member, HUD-certified housing counselor, or attorney, may record a request to receive copies of any notice of default and notice of sale in the loan and foreclosure process.

California Credit Reporting:  Cal. A.B. 2935 amends Cal. Civ. Code §§ 1785.11.11 and 1785.12, and restricts a county welfare department or county probation department from requesting a security freeze for a protected consumer placed in foster care that continues beyond the protected consumer’s 18th birthday. If the child placed in a foster care setting has a consumer credit history, the bill would require any information that appears on the protected consumer’s credit report to be blocked and not reported, as if the credit reporting agency had received a police report pursuant to a specified provision relating to identity theft.

California Tenant Screening:  Cal. A.B. 2493 amends Cal. Civ. Code § 1950.6 to prohibit a landlord or its agent from charging an application screening fee if no application screening process is used or if the landlord or agent knows or should have known that no rental unit is available at that time or will be available within a reasonable period of time. 

California Mortgage Fraud:  Cal. A.B. 3108 amends Cal. Fin. Code § 4973 to eliminate the intent requirement and makes it a criminal offense to file with the recorder of any county any document that the person filing knows to contain a material misstatement, misrepresentation, or omission.

California Consumer Refunds:  Effective January 1, Cal. A.B. 1900 makes void and unenforceable and contrary to public policy any provision in a contract that prohibits a consumer from publishing or making statements about the business as a condition of receiving a refund or other consideration or thing of value. 

California Subscription Services: Cal. A.B. 2863 amends Cal. Bus. & Prof. Code § 17601, effective January 1, so that the statute regulating subscription services now covers free-to-paid transactions.

Connecticut Data Privacy:  A Connecticut data privacy statute provision, effective January 1, requires recognition of a universal opt-out mechanism as a valid consumer request. See Conn. Gen. Stat. § 42-515.

Delaware Foreclosure Mediation:  Delaware’s automatic foreclosure mediation program expires on January 1, where all residential foreclosures had been assigned to mediation. See Del. Code Ann. tit. 10, § 5062.

Delaware Reverse Mortgage Foreclosures: Delaware protections against foreclosure sunset January 1, including rights to apply for federal loss mitigation programs prior to foreclosure. See Del. Code Ann. tit. 10, § 5062A.

Delaware Consumer Data Privacy Statute: Effective January 1, the Delaware consumer data privacy statute goes into effect.  See Del. Code Ann. tit. 6, §§ 12D-101 to 12D-110. 

Idaho Tenant Screening: For eviction cases taking place on or after January 1, 2025, tenants may be eligible to have their eviction record automatically sealed under certain circumstances. Idaho S.B. 1327.

Illinois Medical Debt Financial Assistance: The Illinois Medical Debt Relief Act provides for the establishment of a pilot program—by no later than January 1, 2025—to discharge medical debt for residents whose household income is at or below 400% of the federal poverty level or who have medical debt amounting to 5% or more of their annual income. See 305 Ill. Comp. Stat. §§ 85/10 to 85/999. 

Illinois Credit Reporting of Medical Debt: Effective January 1, it is a UDAP violation to furnish any consumer report containing adverse information that a consumer reporting agency knows or should know relates to medical debt. It is also a UDAP violation to maintain in a consumer’s file any information relating to medical debt. 815 Ill. Comp. Stat. § 505/2EEEE. 

Illinois Tenant Screening:  Effective January 1, the Illinois Tenant Screening Statute, 735 Ill. Comp. Stat. § 705/25 is amended so that if a prospective tenant provides a reusable tenant screening report that meets certain criteria, the landlord may not charge either a fee to access the report or an application screening fee. 

Illinois Financing of Dental Costs:  Effective January 1, 225 Ill. Comp. Stat. § 25/45.5 prohibits dental offices from completing or submitting applications for third-party financing, including providing the patient with an electronic device to apply; prohibits promoting third-party financing products while a patient is in a treatment area, undergoing treatment, or under the influence of general anesthesia or sedation; and requires a mandatory notice including a disclosure that the financing option is not a direct payment plan with the dental office.

Illinois Shared Appreciation Loans: Effective January 1, Ill. 205 Ill. Comp. Stat. § 635/1-4(f) defines the terms “mortgage loan,” “residential mortgage loan,” and “home mortgage loan” to include a loan in which funds are advanced through a shared appreciation agreement.

Iowa Data Privacy: Effective January 1, Iowa’s consumer data privacy statute, Iowa Code §§ 715D.1 to 715D.9, goes into effect. 

Kansas Payday Lending:  Effective January 1, the Kansas payday lending statute is amended to provide that a borrower who is unable to repay a payday loan may elect, once every twelve months, to repay the loan through an extended payment plan.  See 2024 Kansas Laws ch. 6 (H.B. 2247); Kan. Stat. Ann. § 16a-2-404(7).

Kansas Installment Loans:  Effective January 1, Kan. Stat. Ann. § 16a-1-301(15) is renumbered as § 16a-1-301(19), and the definition of “consumer loan” excludes any loan secured by a mortgage. § 16a-1-301(21)(b)(i).  Loans are now excluded if the amount, instead of $25,000, is greater than a “threshold amount” that is defined to align with the annual increase in the consumer price index, which is at least $69,500 as of July 1, 2024. A closed-end loan of $1,000 or less that is payable in more than a single payment must be paid over a period of no more than twenty-five months, meaning that the thirty-seven-month restriction for other loans is eliminated. The maximum finance charge for a consumer loan by a supervised lender changes from a blended rate to a flat 36% rate. 

Kansas Repossessions: Effective January 1, Kansas repealed for contracts involving consumer goods the right to cure and the provision prohibiting repossessions involving entry into a dwelling, use of force, or breach of the peace.  See Kan Stat. Ann. §§ 16a-5-110, 16a-5-112.

Minnesota Coerced Debt:  Effective January 1, Minn. Sen. File 4097, 93d Leg. Sess., codified at Minn. Stat. §§ 332.71 to 332.74, provides that before seeking affirmative relief in court, a person who has incurred debt through force, intimidation, undue influence, fraud, deception, coercion, or economic abuse must notify the creditor that “the debt or a portion of a debt on which the creditor demands payment is coerced debt and request that the creditor cease all collection activity on the coerced debt.” 

New Hampshire Data Privacy:  New Hampshire Expectation of Privacy Act, 2024 S.B. 255-FN, becomes effective January 1. It provides the right to confirm whether the “controller” is processing personal data and the right to access such data, unless confirmation or access would reveal trade secret. It also provides a right to delete personal data about the consumer and a right to opt out of the processing of the consumer’s data for targeted advertising, sale of the data, or profiling of consumer for automated decisions that produce legal effects or similarly significant effects. The controller may not discriminate against a consumer for exercising a right. It also provides a right to correct inaccuracies in the consumer’s personal data. The controller shall establish an appeals process for denial of consumer rights request.

Oregon Wage and Property Exemptions: Effective January 1, the wages protected from seizure increase from $254 per week to $305 per week.  The motor vehicle exemption increases from $3,000 to $10,000, Or. Rev. Stat. § 18.345(l)(d), 18.345(3).

Oregon Homestead Exemption:  Effective January 1, $150,000 equity in a residence is protected. The protection explicitly covers purchaser’s interest in a land sale contract, and a manufactured or floating home. Or. Rev. Stat. § 18.395(1), 18.395(9), 18-395(10). If two members of a household are debtors whose interests in homestead are subject to execution, the homestead may not exceed $300,000. Limited to $40,000 for an individual, $50,000 for two debtors if the debt is for family support or restitution. Or. Rev. Stat. § 18.395(1).

Oregon Exemption for Funds in Bank Account: Effective January 1, a self-executing $2,500 exemption applies, except for garnishments for family support or restitution. Or. Rev. Stat. §§ 18.348, 18.785.

Rhode Island Medical Debt: Effective January 1, 23 R.I. Gen. Laws § 23-17-6 requires that hospitals screen each uninsured patient for eligibility under public health insurance programs or the hospital’s financial assistance program and provide application information to eligible patients.  If approved, the hospital must bill the insuring entity and not charge the patient except for any required co-pay, co-insurance, or other similar payment. 

Rhode Island Credit Reporting of Medical Debt: R.I. S. 2709, 6 R.I. Gen. Laws § 6-60, effective January 1, prohibits a health care provider or emergency ambulance service from furnishing information regarding medical debt to a consumer reporting agency. No credit reporting agency shall acquire, record, or report any medical debt in any manner nor make a consumer report containing any adverse information that the agency knows or should know is related to a consumer’s medical debt.  Remedies are provided. 

Rhode Island Rental Fees: Effective January 1, a lease must disclose fees beyond rent in the same section as the rent disclosure. If there is no written lease, the landlord must list in writing all fees. Landlords must disclose utility costs that are tenant’s responsibility. Landlords cannot charge a convenience fee on top of the rent payment. R.I. H.B. 7647 (to be codified at 34 R.I. Gen. Laws §§ 34-18-15, 34-18-61).

Tennessee Data Privacy: Effective January 1, Tennessee’s consumer data privacy statute, Tenn. Code Ann. §§ 47-18-3301 to 47-18-3315, goes into effect. 

Virginia Rental Fees: Landlords are prohibited from charging tenants any transaction or processing fee for use of electronic fund transfers to pay security deposits, rent, or any other amounts payable, effective January 1. Va. H.B. 1519 (to be codified at Va. Code Ann. § 55.1-1208).

Washington Homeowner Association Foreclosures: Effective January 1, the amount owed before a homeowner association can foreclosure increases from $200 to $2,000, the notice requirements are amended, and the statutory citations are changed to Wash. Rev. Code §§ 64.34.364(18)(a), 64.90.485(22)(a).

Wisconsin Closed-End Installment Loans: Effective January 1, Wis. Stat. § 138.09 is extensively amended to exclude various small loans and to include certain assignees of excluded creditors; there is a new definition of installment loans.  The licensure requirement is amended and allows for certain prepaid finance charges. 

January 2, 2025:  CFPB Advisory on Medical Debt

CFPB Advisory Opinion on Deceptive and Unfair Collection of Medical Debt: A CFPB advisory opinion focusing on unfair or unconscionable means to collect medical debts goes into effect on January 2.  See 89 Fed. Reg. 80,715 (Oct. 4, 2024).  See also 89 Fed. Reg. 94,599 (Nov. 29, 2024) (revised effective date). The CFPB notes that “the advisory opinion is an interpretive rule in part and a general statement of policy in part.” 89 Fed. Reg. 80,715, 80,723 (Oct. 4, 2024). The debt collection industry has challenged the advisory opinion in ACA International, L.L.C. v. Consumer Financial Protection Bureau, 1:24-cv-03118 (D.D.C. filed Nov 1, 2024). On December 16, 2024, the court denied the industry’s request for a TRO and a preliminary injunction so that the advisory is now in effect.  A Congressional Review Act (CRA) challenge to the advisory opinion was introduced on November 13, 2024, as H.J. Res. 220 and was referred to the House Committee on Financial Service. 

January 8, 2025: New Jersey Consumer Data Privacy

New Jersey Consumer Data Privacy Statute: Effective January 8, the New Jersey Disclosure and Accountability Transparency Act, goes into effect.  N.J. S. 2052. 

January 9, 2025:  FTC Telemarketing Sales Rule

FTC Telemarketing Sales Rule: FTC amendments to the Telemarketing Sales Rule, effective January 9, extend the Rule’s applicability to inbound telemarketing calls in response to an advertisement through any medium or direct mail solicitation in which technical support products or services are offered for sale.  See 89 Fed. Reg. 99,069 (Dec. 10, 2024).

January 14, 2025: CFPB Registry of Nonbank Law Violators

Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders.  For certain lenders, including payday lenders, private education lenders, mortgage originators, brokers, or servicers, loan modification and foreclosure relief servicers, that are not larger participants in the market, compliance is required with a CFPB rule requiring those subject to certain final public orders obtained or issued by a government agency in connection with the offering or provision of a consumer financial product or service to report the existence of the orders and related information to a Bureau registry.  89 Fed. Reg. 56,028 (July 8, 2024).

January 27, 2025: TCPA Rules on Consent to Telemarketing

FCC Order on Robocalls and Telephone Consumer Protection Act (TCPA): Significant provisions of an FCC order will be effective on January 27, 2025.  See FCC DA 24-1154 (Nov. 19, 2024).  The order clarifies that prior express written consent to receive prerecorded telemarketing calls to a cell phone or residential line can only be given to one identified seller at a time. A consumer’s single click on a lead generator’s website cannot authorize prerecorded telemarketing calls on behalf of multiple sellers. The order also emphasizes that this one-to-one consent through agreements between the consumer and the seller is currently required for calls to DNC-registered lines, and it reiterates the requirements that electronic transactions in which consent is obtained must comply with the federal E-Sign Act.  A challenge to the rule is presently before the Eleventh Circuit with oral argument held in December 2024. See DNC, Will the Courts Step in Before the New One-to-One Consent Rule Comes Into Effect? (Nov. 19, 2024). 

February 15, 2025: California Small Loans and “Tips”; California Student Loan Income Sharing Agreements; California Debt Settlement and Student Debt Relief

California Small Loans and “Tips”: California’s small loan regulator adopted a new regulation under the state’s Financing Law, effective February 15, providing that “[a] voluntary or optional payment, including, without limitation, a tip or gratuity, paid by a borrower to a licensee or any other person in connection with the investigating, arranging, negotiating, procuring, guaranteeing, making, servicing, collecting, and enforcing of a loan, is a charge under [the state small loan law].” Cal. Code Regs. tit. 10 § 4.1465, adopted by Cal. Dep’t of Fin. Prot. & Innovation PRO 01-21.  

California Student Loan Income Sharing Agreements: The California Department of Financial Protection and Innovation adopted final rules, effective February 15, confirming that income sharing agreements are loans for the purpose of the state’s student loan servicing law.  Cal. Code Regs. tit. 10 §§ 1003(b), 1010, 1461, 1462.5, adopted by Cal. Dep’t of Fin. Prot. & Innovation PRO 01-21.

California Debt Settlement and Student Debt Relief: The California Department of Financial Protection and Innovation adopted final rules, effective February 15, 2025, establishing registration fees and registration requirements for persons engaged in debt settlement and student debt relief services. Cal. Dep’t of Fin. Prot. & Innovation, PRO 01-21.

February 21, 2025: Michigan Minimum Wage

Michigan Minimum Wage and Wage Garnishment:  On February 21, Michigan increases its minimum wage to $12.48, with corresponding changes to the amount of wages protected by garnishment.

Unknown Date:  Defaulted Federal Student Loans

Defaulted Federal Student Loans: Two temporary federal student loan relief programs that limited default and its consequences expired in the fall of 2024: the Fresh Start program, which paused collection of defaulted federal student loans and offered borrowers a more accessible path to remove their loans from default, and the On Ramp program, which prevented loans from becoming delinquent or defaulting when borrowers missed payments during the year after the payment pause ended.  As a result, millions of borrowers with loans in default for the first time since 2020 are expected to face collection in 2025, including negative credit reporting, wage garnishment, and offset of Social Security benefits and federal tax refunds. The Department of Education has not announced a specific date when collection will resume. For options to avoid default or to remove loans from default, see NCLC’s Student Loan Law Chapter 3, Chapter 4, and Chapter 7.

March 17, 2025:  CFPB Rule on Reporting of Medical Debt

CFPB Rule on Reporting of Medical Debt: On January 7, 2025, the CFPB announced that it had finalized a rule amending its Regulation V on the Fair Credit Reporting Act, titled "Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information." The new rule in most cases prohibits creditors from obtaining and using information on medical debts and consumer reporting agencies from reporting that information. The rule is set to be effective 60 days from its publication in the Federal Register.  The CFPB web page indicates Federal Register publication will be on January 14, with an effective date of March 17, 2025.

March 30, 2025: CFPB Payday Lending Rule

The Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (Payday Lending Rule):  After a complicated history of litigation and CFPB actions concerning the rule, a pared back version of the original rule, 12 C.F.R. part 1041, is now scheduled to go into effect on March 30, 2025.  See Order, Cmty. Fin. Serv. Ass’n of Am. v. Consumer Fin. Prot. Bur., No. 21-50826 (5th Cir. Oct. 14, 2021) (staying compliance date for rule “until 286 days after resolution of the appeal”); Cmty. Fin. Servs. Ass’n of Am., Ltd. v. Consumer Fin. Prot. Bur., 104 F.4th 930 (5th Cir. 2024) (final order resolving appeal). 

The rule limits attempted consumer payment transfers after two consecutive failed payments, specifies authorization requirements for collecting late and returned-item fees as well as for consumer re-authorization after failed payments, and requires certain disclosures. 

April 1, 2025:  Bankruptcy Code; Minnesota Wage Garnishment

Bankruptcy Code Dollar Amounts:  Numerous dollar amounts set out in the Bankruptcy Code will be adjusted to reflect three years of inflation. The actual dollar amounts will be announce most likely in later February.

Minnesota Wage Garnishment:  The maximum wage garnishment, effective April 1, becomes the lesser of: (1) 25% of disposable earnings if the debtor’s weekly income exceeds 80 times the greater of the state or federal minimum wage; or (2) 15% of the debtor’s disposable earnings, if the debtor’s weekly income exceeds 60 times, but is less than or equal to 80 times, the greater of the state or federal minimum wage; or (3) 10% of the debtor’s disposable earnings, if the debtor’s weekly income exceeds 40 times, but is less than or equal to 60 times, the greater of the state or federal minimum wage. Minn. Stat. § 571.922.

April 11, 2025: FCC Rule on TCPA Revocation of Consent

An FCC report and order interpreting the Telephone Consumer Protection Act (TCPA), effective April 11, clarifies that consumers can revoke consent through any reasonable means, and providing examples of some ways that clearly would meet that standard, such as by saying or texting the words “stop,” “quit,” ​“end,” “revoke,” “opt out,” “cancel,” or “unsubscribe.”

April 12, 2025: FHA Foreclosure Moratorium 

FHA Foreclosure Moratorium for Disasters: The FHA foreclosure moratorium in connection with hurricanes Helene and Milton is extended only through April 11, 2025. See HUD Mortgagee Letter 2024-25 (Dec. 6, 2024). 

April 14, 2025: CFPB Registry of Nonbank Violators

Registry of Nonbank Covered Persons Subject to Certain Agency and Court Orders:  For nonbanks covered by CFPB authority that are not listed in the January 14 compliance date, supra, and also are not larger participants in the market, compliance is required with a CFPB rule requiring those subject to certain final public orders obtained or issued by a government agency in connection with the offering or provision of a consumer financial product or service to report the existence of the orders and related information to a Bureau registry.  89 Fed. Reg. 56,028 (July 8, 2024).

April 30, 2025: FHA Mortgage Loan Modifications

FHA Mortgage Loan Modifications:  The time to take advantage of FHA’s COVID-19 waterfall expires April 30, 2025.  See HUD Mortgagee Letter 2024-02. 

May 1, 2025: Fannie and Freddie Flex Modifications

Fannie Mae COVID-19 Flex Modification:  The deadline for certain borrowers to be reviewed under standard Flex Modification guidelines is that the evaluation must be completed prior to November 1, 2024, and the effective date of the modification must be on or before May 1, 2025.  See Fannie Mae Lender Letter 2023-07 (updated Dec. 12, 2023), available at https://singlefamily.fanniemae.com/.

Freddie Mac COVID-19 Flex Modification: To access any benefit from the COVID-19 interest rate policy and any other pandemic-specific eligibility guidelines, borrowers will need to have their Flex Modification evaluation completed before November 1, 2024, and their modification effective date on or before May 1, 2025. Freddie Mac Bulletin 2023-17 (Aug. 9, 2023), available at https://guide.freddiemac.com/.

May 5, 2025; Massachusetts Sealing of Eviction Records

Massachusetts Sealing of Eviction Records:  Mass. Gen. Laws. ch. 239, § 16, effective May 5, 2025, allows tenants to petition the courts to seal certain eviction records.

May 12, 2025: FTC Junk Fee Rule

FTC Rule on Junk Fees for Live Events and Hotels:  On December 17, 2024, the FTC finalized a trade regulation rule on junk fees for live events and hotels, that will be effective May 12, 2025.  See 90 Fed. Reg. 2066 (Jan. 10, 2025). The rule’s official title is the Rule on Unfair or Deceptive Fees and regulates fees or charges for live-event tickets and short-term lodging including bait-and-switch pricing that hides the total price by omitting mandatory fees and charges from advertised prices, as well as misrepresenting the nature, purpose, amount, and refundability of fees or charges.

June 30, 2025:  Washington Criminal Justice Debt; State Exemptions

Washington Criminal Justice Debt: As of June 30, any criminal justice debts owed by a juvenile resulting from cases later than June 30, 2018, are null and void and considered paid.  This includes fines, attorney fees, court costs, and penalty assessments, but does not include restitution debts. Wash. S.B. 5974.

Washington State Exemptions:  Washington law providing personal property exemptions will sunset on June 30, 2025. See Wash. Rev. Code § 6.15.010.

July 1, 2025:  Deposit Funds Availability; FHA Servicing Regs; Federal Student Loans; Alaska; California; Colorado; Minnesota; Mississippi; Oregon; Texas

Availability of Funds and Collection of Checks (Regulation CC) Threshold Adjustments: For the first time in five years, the FRB and CFPB are amending Regulation CC, which implements the Expedited Funds Availability Act (EFA Act), to adjust for inflation dollar amounts relating to availability of funds. 89 Fed. Reg. 43,737 (May 20, 2024). The minimum amount is $275 (12 C.F.R. § 229.10(c)(1)(vii)); cash withdrawal amount is $550 (12 C.F.R. § 229.12(d)); civil liability minimum and maximum for individual actions is $125 and $1,350 (12 C.F.R. § 229.21(a)(2)(i)); civil liability maximum for class actions is $672,950 (12 C.F.R. § 229.21(a)(2)(ii)(B)).

FHA Servicing Regs: Effective July 1, new FHA standards are effective requiring lenders to “conduct a meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid and at least 30 days before foreclosure is commenced ... .” 89 Fed. Reg. 63,082, 63,098 (Aug. 2, 2024), amending 24 C.F.R. § 203.604.  Unlike the previous version of the rule, the meeting may not necessarily be conducted face-to-face but instead “must be conducted in a manner as determined by the Secretary.”  The revision eliminates the exemption to the meeting requirement for lenders who do not have a branch office within 200 miles of the borrower’s home. See also HUD Mortgagee Letter 2024-24 (Dec. 4, 2024). The effective date of FHA’s new rules was to be January 1, 2025, but has been extended to July 1, 2025. See 89 Fed. Reg. 92,033 (Nov. 21, 2024) (extending the compliance date). 

Federal Student Loans: Federal student loan income-driven repayment regulations promulgated in 2023 (and currently subject to multiple legal challenges) state that the so-called “Double Consolidation Loophole” will close effective July 1, 2025. The regulations state that while borrowers with Parent PLUS loans who “double consolidate” those loans by consolidating them first with a limited set of loans and then consolidating the resulting consolidation loan with additional student loans into a new Direct Consolidation have historically been able to enroll the resulting twice-consolidated loan into a choice of income-driven repayment plans, the Department will preclude Parent PLUS borrowers who complete a double-consolidation on or after July 1, 2025 from enrolling that loan in any income-driven plans other than the income-contingent repayment (ICR) plan. See NCLC’s Student Loan Law § 3.5.3.3.   

California Debt Collection:  Cal. S.B. 1286 expands the scope of debts covered under the California Rosenthal Fair Debt Collection Practices Act.

California Crypto Assets:  Effective July 1, Cal. A.B. 39 (to be codified at Cal. Fin. Code § 3101) imposes licensing requirements on broad categories of digital financial asset business activity and Cal. S.B. 401 (to be codified at Cal. Fin. Code § 3101) regulates digital financial asset transaction kiosks (commonly referred to as “crypto kiosks”). Crypto kiosks are prohibited from accepting or dispensing more than $1,000 per day per consumer, cannot charge more than the greater of $5 or 15% of the value of the crypto-asset, and must provide various disclosures. 

Colorado Phone Charges for Incarcerated Individuals:  Beginning July 1, phone communications will be free for all people incarcerated in Colorado’s state and private prisons. (Calls were already free for incarcerated youth.) Colo. H.B. 23-1133.

Minnesota Automobile Doc Fees:  Effective July 1, the maximum allowed dealer assessment of automobile documentary fees for sales or leases increases to the lesser of $350 or 10% of the value of the sale or lease.  See Minn. Stat. §168.27(31).

Mississippi Installment Loans: The maximum loan size under the Mississippi installment loan law adjusts annually for inflation on July 1 of every year, starting July 1, 2025. Miss. Code § 75-67-181.

Oregon Exemptions:  Effective July 1, Oregon increases wages protected from seizure to $338 per week.  It also increases its minimum wage on that date in an amount to be determined, which will impact the exemption amount.

Texas Installment Loans: The maximum administrative loan fee for Texas installment loans increases each year, starting with July 1, 2025.  Tex. Fin. Code Ann. § 342.201(f); 7 Tex. Admin. Code § 83.503.

July 31, 2025: Minnesota Consumer Data Privacy

Minnesota Consumer Data Privacy Statute:  The Minnesota consumer data privacy statute goes into effect on July 31, 2025.  See Minn. Stat. §§ 3250.03 to 3250.11. 

Sept. 1, 2025:  Texas Medical Debt

Texas Medical Debt:  On September 1, Texas provisions on medical debt will sunset, including provisions that nonprofit hospitals must provide charity care within certain minimum guidelines established by the state. 

October 1, 2025: CFPB Rule on Overdraft Lending; Federal Rule on Mortgage Appraisals; Massachusetts Medical Debt

Overdraft Lending: The CFPB amends Regulations E and Z to update regulatory exceptions for overdraft credit provided by very large financial institutions, thereby ensuring that these extensions of overdraft credit adhere to consumer protections required of similarly situated products, unless the overdraft fee is a small amount that only recovers estimated costs and losses.  See 89 Fed. Reg. 10,6768 (Dec. 30, 2024).

Automatic Property Valuation Models: The OCC, FRB, FDIC, NCUA, CFPB, and FHFA final rule, effective October 1, implements quality control standards for the use of automated valuation models by mortgage originators and secondary market issuers in determining the collateral worth of a mortgage secured by a consumer’s principal dwelling. 89 Fed. Reg. 64,538 (Aug 7, 2024).

Massachusetts Medical Debt:  Mass. H. 5033 adds Mass. Gen. Law ch. 197, § 35TTT, effective October 1, to limit MassHealth estate recovery for paid medical expenses to the federal minimum and waives estate recovery for CommonHealth members (a program for people with disabilities typically over-income for MassHealth) and for personal care attendant (PCA) services. 

December 1, 2025. Bankruptcy Rules

Bankruptcy Rules and Forms:  Proposed bankruptcy rule changes have been submitted to the Supreme Court and are expected to be effective December 1, 2025.  Rule 3002.1 will allow assessments of a mortgage claim’s status while a chapter 13 case is pending to give the debtor an opportunity to cure any postpetition defaults that may have occurred.  Rule 8006(g) will clarify that any party to an appeal may file a request that a court of appeals authorize a direct appeal. Bankruptcy Official Form changes are also expected to be effective on December 1, 2025.

January 1, 2026; Sunset of Protections from Taxability of Mortgage and Student Loan Forgiveness; California; Indiana; Michigan

Qualified Principal Residence Indebtedness Exclusion from Income: 26 U.S.C. § 108(a) provides that certain forgiveness on a mortgage loan is not considered income for income tax purposes, but that exclusion is scheduled to expire at the end of 2025.  It has been extended for many years, but as of now, there is no further extension.

Taxability of Federal Student Loan Discharges and Cancellations:  The American Rescue Plan Act temporarily removes federal income tax consequences for all federal student loan discharges and cancellations that occur between January 1, 2021 and December 31, 2025.  26 U.S.C. § 108(f)(5). Unless extended, the amounts discharged or cancelled starting on January 1, 2026, may count toward taxable income. 

California Overdraft Fees: Cal. A.B. 1075, effective January 1, 2026, prohibits a California state credit union from charging an overdraft fee or a nonsufficient funds fee exceeding $14, or the amount set by the federal Consumer Financial Protection Bureau for the fee, whichever is lower.

Indiana Data Privacy, effective January 1, 2026, the Indiana data privacy statute goes into effect.  2023 Ind. S.B. 5 (May 1, 2023).

Michigan Installment Loans:  On January 1, 2026, the maximum loan processing fee on installment loans will change from the current $400. See In re CPI-Adjusted Regulatory Loan Act Loan Processing Fee, Bulletin 2024-05-CF (Mich. Dep’t of Ins. & Fin. Servs. Jan. 17, 2024), available at www.michigan.gov.