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Category Archives: Hot Issues

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CFPB issues consumer advisory on virtual currencies and begins taking virtual currency complaints

Posted in Hot Issues

In conjunction with issuing a consumer advisory today on virtual currencies, the CFPB announced that it is now taking complaints about virtual currency products and services.  The CFPB’s actions follows the issuance of a report by the Government Accountability Office in June 2014 in which the GAO recommended increased CFPB participation in interagency efforts related to such currencies. In… More >

CFPB extends comment period on proposal to publicly disclose consumer complaint narratives

Posted in CFPB General, CFPB Rulemaking, Hot Issues

The CFPB is extending the comment period on its proposed policy statement that would expand the complaint data that it publicly discloses in its Consumer Complaint Database to include “unstructured” complaint narratives.  In a statement released on July 29, 2014, the CFPB states that it is extending the deadline for comments to be filed from… More >

GAO report recommends increased CFPB participation in virtual currency efforts

Posted in Hot Issues

In a report issued last week on virtual currencies, the Government Accountability Office recommended increased CFPB participation in interagency efforts related to such currencies. The report, entitled “Virtual Currencies: Emerging Regulatory, Law Enforcement, and Consumer Protections Challenges,” reviews various actions that federal financial regulators and law enforcement agencies have taken related to the emergence of virtual… More >

CFPB Provides Guidance on the TILA-RESPA Integrated Disclosures Rule

Posted in CFPB General, CFPB Rulemaking, Federal Agencies, Hot Issues

On June 17, 2014, the CFPB staff and Federal Reserve co-hosted a webinar on the final TILA-RESPA Integrated Disclosures Rule that will be effective for applications received by creditors or mortgage brokers on or after August 1, 2015.  The webinar is the first in a planned series intended to help creditors, mortgage brokers, settlement agents,… More >

ABA and CBA Express Concern That The CFPB’s Consumer Debt Collection Survey Falls Short

Posted in CFPB Enforcement, CFPB Rulemaking, Debt Collection, Hot Issues, Research

On May 6, 2014, the American Bankers Association (“ABA”) and Consumer Bankers Association (“CBA”) submitted comments to the CFPB’s “Debt Collection Survey from the Consumer Credit Panel” (the “Survey”). While the ABA and CBA applauded the CFPB’s collection of information regarding actual consumer experiences with the collection industry, both expressed concern that as currently formatted,… More >

Breaking News! Insurers sue HUD regarding disparate impact

Posted in CFPB Enforcement, CFPB Exams, CFPB General, Fair Lending, Hot Issues, Mortgages

We just heard that a lawsuit was filed today in Federal District Court in DC challenging HUD’s final rule stating that the disparate impact theory will apply in assessing whether a company has complied with the Fair Housing Act. Here is the complaint. The outcome of this case could result in a court holding that… More >

Lost in translation? Ensuring appropriate documentation in the pre-litigation debt collection process

Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

At yesterday’s joint FTC-CFPB roundtable on the debt collection industry, industry representatives advocated for a uniform, national standard for the documentation to be provided to debtors in the pre-litigation phase of the process. (Local court rules govern required documentation during litigation, making it unlikely that a national standard could be adopted for the litigation phase)…. More >

Debt collection litigation: More documents or more face-to-face?

Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

Industry representatives and consumer advocates collectively lamented the high non-appearance rate of debtors in court in debt collection cases at yesterday’s joint FTC-CFPB roundtable on the debt collection industry. The non-appearance rate is around 90% according to most observers, as reported in the FTC’s report on debt collection litigation, Repairing A Broken System. To debt… More >

Does the FDCPA need to get with the times?

Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

At yesterday’s joint FTC-CFPB roundtable on the debt collection industry, the Fair Debt Collection Practices Act (“FDCPA”) was referenced together with the “1970s” a number of times. Commissioner Julie Brill, in an unscripted moment in her opening remarks, smiled at the thought that the FDCPA was enacted the same year she graduated from high school… More >

How the CFPB’s stance on ECOA in auto finance will raise consumer prices

Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Ever since the CFPB’s release of its bulletin relating to disparate impact analysis of dealer rate participation last week, the press and consumer advocacy groups have been buzzing about the Bureau’s stance and its potential impact on the industry and consumers.  Alan Kaplinsky and I previously blogged about the bulletin and its associated issues here, here… More >

The CFPB previews its coming auto finance fair lending enforcement actions

Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Earlier today, the CFPB released its guidance bulletin with respect to automobile indirect finance fair lending issues.  The bulletin’s intent is unmistakably clear from the accompanying press release’s tag line: “CONSUMER FINANCIAL PROTECTION BUREAU TO HOLD AUTO LENDERS ACCOUNTABLE FOR ILLEGAL DISCRIMINATORY MARKUP.”  The bulletin is, in my view, a prelude to the fair lending… More >

The Senate Republicans officially weigh in on Cordray’s nomination

Posted in CFPB General, CFPB People, CFPB Rulemaking, Hot Issues

Whatever hope President Obama may have had that his nomination of Richard Cordray to serve a five-year term as Director of the CFPB vanished today when 43 Republican Senators joined in a letter to the President saying that they will oppose Mr. Cordray or any other nominee until major structural changes are made to the… More >

CFPB proposes policy to allow trial disclosure programs

Posted in Hot Issues, Mobile Payments, Technology

The CFPB has issued a proposed policy under which it would exempt individual companies, on a case-by-case basis, from current federal disclosure requirements to allow those companies to test trial disclosures.  The proposal, which is directed at “banks, thrifts, credit unions, and other financial services companies,” contemplates that participating companies would share test result data with… More >

Before presenting your idea . . .

Posted in CFPB General, Hot Issues, Mobile Payments, Technology

I regularly work with technology innovators to help them get their ideas cleaned up for financial institutions and to give them a headstart in understanding the types of risk concerns and controls that financial institutions are going to have and want.  To technology innovators who may be intrigued by the CFPB’s request for dialogue, I… More >

Waste not, want not

Posted in CFPB General, Hot Issues, Mobile Payments, Technology

The CFPB publicly acknowledged yesterday their interest in innovation in consumer financial services by launching Project Catalyst, as already reported in this blog.  It is quite the departure from precedent for a banking regulator to actually express interest in being supportive of new technologies and how they could improve consumer financial services.  For practitioners like… More >

Mobile payments: CFPB suggests new regulations may be needed

Posted in Hot Issues, Mobile Payments

We frequently hear that regulations take a long time to catch up with the technology.  On June 29, the House Subcommittee on Financial Institutions and Consumer Credit held a hearing to determine whether regulations need to catch up to cover consumer payments made using mobile devices. According to written testimony submitted by the CFPB’s Marla… 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 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 >

Reader of CFPB Monitor reports on April 13 Richard Cordray Q&A with SD community bankers and credit unions

Posted in CFPB General, Hot Issues, Mortgages, Payday Lending

We received an email from one of our readers, reporting on a recent meeting between CFPB Director Cordray and representatives of the South Dakota banking and credit union industries. We very much appreciate the report and encourage other readers to share their observations with us. Topics addressed in the meeting included the impact of consumer… More >