b'requirements, as well as very detailed requirementsnon-bank vendors hold themselves out to the public as for the presentation of the required disclosures, whichactual banks or providers of regulated money services must be presented in a table consisting of a certainwithout complying with applicable laws on banking number of rows and columns, with specified contentand money services, and confirmed that such activity in each row and column. The standardized disclosuresis illegal. This enforcement trend may well continue in are intended to improve transparency for small2022, in California and elsewhere. Fintech companies businesses seeking commercial financing and to helpshould be aware of this issue and take action to ensure businesses and individuals understand and comparecompliance with applicable law.the terms of different commercial financing offers.Further, in December 2021 the CFPB announced it Earlier in 2021, the New York state legislature passedopened an inquiry into buy now, pay later (BNPL) a law, codified at Article 8 of the New York Financialservices. In connection with this inquiry, the CFPB Services Law, mandating disclosures for commercialintends to collect information on the risks and benefits financing effective January 1, 2022. NYDFSs proposedof these fast-growing loans from several leading regulation implements the Commercial FinanceBNPL companies, including prominent fintech entities. Disclosure Law (CFDL). The CFDL requires providersAccordingly, it has already ordered BNPL companies of commercial financing to provide disclosures toto submit certain information pursuant to the CFPA potential recipients commercial financing at the timeregarding consumer debt accumulation, regulatory a specific offer of financing is extended to a recipient.arbitrage, and consumer data harvesting. After the Section 600.05 of the regulation sets forth generalCFPBs announcement, Goodwin hosted a BNPL formatting requirements for such disclosures in greatwebinar that discussed what companies with BNPL detail. The requirements are strenuous, and subjectproducts and services should expect. Goodwin will entities, including fintech companies, should prepare tocontinue to monitor the CFPBs actions in the BNPL comply with the CFDL in advance of its January 2022space in 2022.implementation. Looking Ahead to 2022 What to Watch As noted above, in 2021 the DFPI paid close attentionContinued enforcement activity by federal and to fintech companies that used the term bankingstate agencies, with the DFPI likely to maintain a such that customers could be deceived into thinkinghigh level of scrutiny on fintechs; andthat a non-bank fintech is actually a licensed bank.Additional state-initiated challenges to the OCCs California was not the first state to take action onFinal Lender Rule, as well as challenges by other this issue. In December 2020, the Texas Departmentindustry players. of Banking issued a supervisory memorandum regarding permissible uses of bank and related terms in marketing and other limits related to marketing regulated financial services. In general, the supervisory memorandum addressed the recent trend [] where [] 22'