April 2013

Last Friday, the CFPB simultaneously issued a final rule to govern the administration of the Bureau’s Civil Penalty Fund (CPF) and proposed revisions to that rule.  The final rule is effective immediately upon publication in the Federal Register, with the CFPB taking the position that the rule was exempt from the notice-and-comment requirements of the Administrative Procedure Act because it is “interpretative and procedural and relates to benefits.” … Continue Reading

Last Thursday, the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation proposed guidance on deposit advance loans.  The Federal Reserve Board declined to join the OCC and FDIC and instead provided a general warning that such loans need to be thoughtfully structured and lawfully provided.  Comments on the OCC and FDIC proposals must be submitted no later than 30 days after their publication in the Federal Register.… Continue Reading

Last week, the CFPB issued final determinations as to whether certain Maine and Tennessee laws relating to unclaimed gift cards are preempted by federal law on gift card expiration dates.  The rulings represent the CFPB’s first preemption determinations.  The Tennessee determination was requested by payment card industry representatives and the Maine determination was requested by Maine’s Office of the State Treasurer.   … Continue Reading

The CFPB has issued a “Policy for Consultation with Tribal Governments.”  The policy sets forth the principles that will guide such consultation, including the CFPB’s commitment “to regular and meaningful consultation and collaboration with tribal officials…on CFPB policies that would be expressly directed to tribal governments or tribal members or that would have direct implications for Indian tribes.” … Continue Reading

Earlier this week, the CFPB announced that it has created a new office intended to “enhance collaboration and communication” between the CFPB and bank and nonbank trade associations, financial institutions, and businesses. Named the “Office of Financial Institutions and Business Liaison,” the new office will be run by Dan Smith who will serve as the office’s Assistant Director.  … Continue Reading

A petition for certiorari seeking review of the D.C. Circuit’s January 2013 decision in Noel Canning vs. NLRB has been filed in the U.S. Supreme Court. That decision, which we have blogged about before, held that President Obama’s January 4, 2012 recess appointments of three members to the National Labor Relations Board were invalid under the Recess Appointments Clause of the Constitution.… Continue Reading

In keeping with its promise to provide further guidance to the industry on the recent mortgage loan rules, the CFPB recently issued proposed clarifications and changes to the ability to repay/qualified mortgage rule and the servicing rules. Comments on the proposal will be due 30 days after it is published in the Federal Register.… Continue Reading

Earlier today, the CFPB released a white paper reporting on its study of 15,000,000 storefront payday loans and 100,000 accounts eligible for deposit advances (of which approximately 15% involved a deposit advance during the study period). At the same time (and probably not coincidentally), “people familiar with the matter” leaked that the OCC and FDIC are “set to hand down tough new rules to govern” deposit advances.… Continue Reading

The only new item of information revealed by Director Cordray during his appearance yesterday before the Senate Banking Committee hearing (in response to a question from Senator Elizabeth Warren) was that he feels “quite sure” that  at least “some” of the results of the CFPB’s study of consumer arbitration will be publicly released this year.… Continue Reading

The CFPB, through its Office of Financial Protection for Older Americans, has issued a report to Congress and the SEC that makes recommendations for informing older consumers about the legitimacy of certifications of financial advisers to seniors, assisting older consumers in selecting the most appropriate financial adviser, and enabling older consumers to verify a financial adviser’s credentials. … Continue Reading