Passed by the House Energy and Commerce Committee on May 13, the amendment would block states from enforcing any laws or regulations related to artificial intelligence for a full decade.
The controversial language reads: “[N]o state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of enactment of this Act.”
In a decisive move to protect borrowers, the Federal Trade Commission (FTC) has permanently banned a deceptive student loan debt relief operation and its owners from participating in the industry. The scheme, led by Panda Benefit Services and several affiliated companies, is accused of defrauding consumers of more than $16.7 million through false promises and impersonation tactics.
The operation specifically targeted individuals struggling with student loan debt. According to the FTC, the defendants posed as representatives of the U.S. Department of Education, luring borrowers with promises of guaranteed loan forgiveness and reduced monthly payments. In reality, these services were nonexistent, and consumers were charged illegal upfront fees, often amounting to hundreds or even thousands of dollars.
New York Gov. Kathy Hochul has signed legislation that, among other things, imposes new licensing requirements on Buy Now, Pay Later services.
In touting the FY26 budget bill that contained the consumer protection provisions, Hochul commented, “Our tax cuts, credits, and rebates won’t be much help if bad actors are able to scam or mislead New Yorkers. These new laws are about fairness, transparency, and accountability and will help consumers save money and spend it wisely.”
In this crossover episode of The Consumer Finance Podcast and Regulatory Oversight, Chris Willis, Kim Phan, and Stephen Piepgrass provide insights on a new joint privacy task force among several state AGs, known as the Consortium of Privacy Regulators. The consortium recently outlined goals to share state resources and align enforcement priorities regarding consumer harm and privacy rights.
The operators of an alleged transnational student loan debt relief scam have agreed to be permanently banned from the debt relief industry and to turn over more than $1 million in assets to resolve Federal Trade Commission charges that the operation bilked millions out of struggling student loan borrowers.
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