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Monthly Archives: June 2012

Bold lawsuit challenging the constitutionality of the CFPB, the FSOC, and the appointment of Director Cordray suffers from standing problems

Posted in CFPB General

I have previously blogged about the constitutional issues raised by the recess appointment of Richard Cordray as CFPB Director, both on their own, here and here, and, in connection with lawsuits that have challenged President Obama’s contemporaneous NLRB recess appointments, here, here, and here.  One of the issues flagged in those earlier blogs was that,… More >

Initial analyses of CFPB complaint data show misleading nature of data

Posted in CFPB General, Credit Cards, Hot Issues

Recall that when the CFPB launched the Consumer Complaint Database, its expressed hope that “the marketplace of ideas” – i.e., the public – would study and analyze the information disclosed in the database in order to “determine what the data show[s].” 77 FR 37559. The CFPB also stated that the purpose of the database is… More >

CFPB releases comments on arbitration study

Posted in Arbitration

Earlier this week, we shared the comment letter that was filed jointly by the American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable in response to the CFPB’s Request for Information Regarding Scope, Methods, and Data Sources for Conducting Study of Pre-Dispute Arbitration Agreements.  Ballard Spahr was engaged by the trade groups to… More >

Tunstall to Address American Bankers Association on UDAAP Issues

Posted in CFPB General

The American Bankers Association has invited me to speak at their series of telephone briefings on Unfair, Deceptive or Abusive Acts or Practices, or UDAAP. I will be a panelist for two of the briefings—”UDAAP Issues in Operations and Product Design” on July 10, 2012, and “Social Media and the UDAAP Impact” on July 24, 2012…. More >

Trade groups comment on CFPB arbitration study

Posted in Arbitration

The American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable have filed a joint comment letter responding to the CFPB’s Request for Information Regarding Scope, Methods, and Data Sources for Conducting Study of Pre-Dispute Arbitration Agreements.  Ballard Spahr served as counsel to the trade groups in preparing the comment letter.  The Dodd-Frank… More >

CFPB announces leadership changes

Posted in CFPB People

With the first anniversary of when it officially opened its doors for business only a month away, the CFPB has made several changes in its leadership.  The changes announced this week include new positions for four existing senior staff members and the addition of two new senior staff members from outside the CFPB.  Among the… More >

U.S. Supreme Court labor law decision carries message for CFPB amicus filings

Posted in CFPB General

Although it dealt with the Department of Labor’s (DOL) interpretation of a Fair Labor Standards Act (FLSA) regulation, the U.S. Supreme Court’s decision issued earlier this week in Christopher v. Smithkline Beecham Corp. has significant implications for the CFPB’s approach to amicus brief filings.  In announcing in March that it had filed an amicus brief in… More >

CFPB launches consumer complaint database

Posted in CFPB General, Credit Cards, Hot Issues

Today, the Consumer Financial Protection Bureau launched its Consumer Complaint Database, which allows the public to view consumer complaints filed against credit card issuers. The Bureau also announced that it is submitting a request to the Federal Register seeking comments on extending the database to include other financial products in addition to credit cards –… More >

CFPB seeks information on senior financial abuse

Posted in CFPB General

One of the CFPB’s most worthwhile Dodd-Frank mandates is to help older Americans avoid financial exploitation.  In addition to developing programs to provide financial literacy and counseling to seniors, the CFPB is taking steps to protect seniors from unethical financial advisors. Those steps include (1) monitoring certifications that designate financial advisors as specially qualified to… More >

Student loans: lots of comments and another request for information

Posted in Student Loans

The CFPB has finally published the nearly 2,000 comments it received from individual borrowers, parents, and others as a result of the request for information in which it asked a series of questions to assist it in preparing a report about private student loans and set January 17, 2012 as the deadline for responses.  (We wrote about that request in an… More >

Trade groups urge SBREFA review for ability-to-pay mortgage rule

Posted in CFPB Rulemaking, Mortgages

Sixteen industry trade groups, including the American Bankers Association, the American Financial Services Association and the Mortgage Bankers Association, have written to Director Cordray urging the CFPB to convene a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel on the proposed ability-to-repay/qualified mortgage rule.  As we reported, on May 31, the CFPB reopened the comment period… More >

10th Circuit rescission decision rejects CFPB position

Posted in Mortgages

Another federal appellate court has now weighed in on the question of whether a lawsuit seeking rescission is timely where the consumer provided notice of rescission within three years of closing but did not file suit until after the three-year period had passed. In its decision issued on June 11 in Rosenfield v. HSBC Bank,USA, the… More >

CFPB seeks comments on more plans to collect compliance cost information

Posted in CFPB Rulemaking

The CFPB has published another notice in the Federal Register regarding its plans for collecting information on compliance costs.  Last month, we reported on the notice published by the CFPB about its collection of information on the compliance costs associated with the mortgage servicing proposals under development.  Now, the CFPB seeks comments on its overall… More >

CFPB’s final investigations rules still disfavor extensions for challenging CIDs

Posted in CFPB Enforcement

We were disappointed to see that the CFPB’s final Rules Relating to Investigations still include the statement that “requests for extensions of time [to petition for an order modifying or setting aside civil investigative demands (CIDs)] are disfavored.”  The CFPB says that its policy of disfavoring extensions “means to prompt recipients to decide within 20… More >

Lawmakers want CFPB input on use of college debit cards to disburse financial aid

Posted in Debit Cards, Student Loans

In addition to a flurry of news reports, the U.S. Public Interest Research Group Education Fund’s report on the use of debit cards to disburse federal financial aid to college students has also triggered a letter to the CFPB and the U.S. Department of Education by two Democrat lawmakers.  Issued last month, the report found… More >

CFPB suggests possible interim fix for credit card ability-to-pay rule concerns

Posted in CFPB Rulemaking, Credit Cards

Testimony to Congress earlier this week from Gail Hillebrand, CFPB Associate Director for Consumer Education and Engagement, seems to suggest a way for card issuers to deal with concerns about the Reg. Z rule that the Fed adopted to implement the CARD Act’s ability-to-pay requirement, at least while the CFPB considers whether to change the rule. As… More >

CFPB’s information security systems worry Senators

Posted in CFPB General

Five U.S. Senators have sent a letter to CFPB Director Cordray asking how the CFPB plans to address the problems with the CFPB’s internal controls and accounting systems identified in the Government Accountability Office’s report issued on May 21.  One of those problems was the absence of an agency-wide information security program for the information and… More >

CFPB wants to hear about consumer mistakes

Posted in CFPB Rulemaking

In a new blog post, the CFPB is asking consumers to tell it about “common money mistakes.”   The CFPB wants to know about mistakes a consumer has made,  mistakes a consumer has seen others make,  ”habits and practices that make good choices more difficult,” and  what the consumer wishes he or she “had known sooner or… More >

CFPB finalizes rules on procedures for investigations, enforcement and state official notifications

Posted in CFPB Rulemaking

The CFPB has finalized the following three rules which were issued as interim final rules in July 2011: Rules Relating to Investigations which set forth the CFPB’s policies and procedures for conducting investigations Rules of Practice for Adjudication Proceedings  which set forth procedures for administrative enforcement actions initiated by the CFPB State Official Notification Rule which sets… More >