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Tag Archives: CFPB

Another study raises questions about possible CFPB payday loan limits

Posted in Payday Lending

We recently wrote about two studies, one by Professor Ronald Mann and the other by Professor Jennifer Lewis Priestley, that cast serious doubt on the benefit to payday loan borrowers of an ability-to-repay requirement and limits on rollovers for payday loans, two elements that the CFPB is expected to include in its payday loan proposal. Another recent… More >

Director Cordray speaks to the National Association of Attorneys General

Posted in CFPB Exams, CFPB Rulemaking

As he has done in prior years, Director Cordray spoke earlier this week to the National Association of Attorneys General.  His prepared remarks focused on the familiar theme of “the four Ds” that create obstacles for consumers in the financial services marketplace–deceptive marketing, debt traps, dead ends, and discrimination. Director Cordray’s remarks included the following noteworthy… More >

CFPB proposes temporary suspension of TILA requirement for credit card issuers to submit card agreements quarterly

Posted in Credit Cards

The CFPB has issued a proposal to suspend for one year the Truth in Lending Act/ Regulation Z requirement for issuers of open-end credit cards to send their credit card agreements to the CFPB quarterly for posting in a public database on the CFPB’s website.  The suspension would not affect the TILA/Reg Z requirement for such… More >

CFPB to hold field hearing on arbitration

Posted in Arbitration

The CFPB has announced that on Tuesday, March 10, 2015, it will hold a field hearing in Newark, N.J. on arbitration. The hearing will feature remarks from Director Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. Our expectation that the CFPB would issue its arbitration study in early… More >

Supervisory or enforcement action: Deputy Director Antonakes explains how the CFPB decides

Posted in CFPB Enforcement, CFPB Exams

In his prepared remarks for an appearance last week at the Exchequer Club, CFPB Deputy Director Steven Antonakes discussed the CFPB’s risk-based approach to supervision.  (The Exchequer Club’s members include senior professionals from trade associations, federal regulatory agencies, law firms, congressional committees and national press.) Mr. Antonakes commented on why “the traditional approach to supervision… More >

Trade groups urge CFPB to respond to AFSA vehicle sales finance study

Posted in Auto Finance, Fair Credit

Five prominent industry trade groups sent a letter to the CFPB yesterday seeking “to engage the CFPB in a constructive dialogue” on the study of indirect auto financing commissioned by the American Financial Services Association.  The study, which was conducted by Charles River Associates, found that the CFPB’s proxy methodology for measuring disparities in auto dealer… More >

Payday loan rulemaking prediction: CFPB will issue proposal this summer

Posted in Payday Lending

Isaac Boltansky of Compass Point has issued an estimated timeline for the CFPB’s payday loan rulemaking that includes a July 2015 expected date for the CFPB’s release of a proposed rule. Mr. Boltansky estimates that the CFPB will  initiate a small business panel pursuant to the Small Business Regulatory Enforcement Fairness Act (SBREFA) this month, conclude… More >

Candid remarks from Director Cordray

Posted in CFPB People, Richard Cordray

Last week, Director Cordray spoke at a National Credit Union Administration town hall webinar. While his prepared remarks were not particularly revealing, the American Banker reported that Director Cordray was unusually candid during the Q&A part of the program. In discussing the CFPB’s work on a proposed rule for overdraft products, Director Cordray indicated that… More >

CFPB representatives to be featured at 20th Annual PLI Consumer Financial Services Institute

Posted in CFPB General

The 20th Annual Consumer Financial Services Institute, sponsored by the Practising Law Institute, will take place on April 6-7, 2015 in New York City (and by live webcast and groupcast in Cleveland, Philadelphia, Pittsburgh, Mechanicsburg, PA and New Brunswick, NJ) and on April 27-28, 2015 in Chicago. As I have done for the past 19… More >

Studies question value of expected CFPB payday loan limits

Posted in Payday Lending

The CFPB’s payday loan rulemaking was the subject of a NY Times article this past Sunday which has received considerable attention. According to the article, the CFPB will “soon release” its proposal which is expected to include an ability-to-repay requirement and limits on rollovers. Two recent studies cast serious doubt on the rationale typically offered… More >

FTC touts partnership with CFPB in annual debt collection report

Posted in Debt Collection

In the FTC’s 2014 annual letter to the CFPB summarizing the FTC’s debt collection activities, the FTC describes the CFPB as a “valuable partner” with whom the FTC anticipates an “even stronger [partnership] in the future.”  The letter includes a discussion of the FTC’s collaboration with the CFPB on several amicus briefs in cases involving FDCPA issues,… More >

CFPB issues report on reverse mortgage complaints

Posted in Mortgages

The CFPB has issued a “Snapshot of reverse mortgage complaints” covering complaints submitted to the CFPB from December 2011 (when the CFPB began accepting consumer complaints on reverse mortgages) through December 2014. According to the report, the CFPB handled approximately 1200 reverse mortgage complaints during that period.  The issues those complaints involved and the percentage… More >

NY Regulator and House Republicans weigh in on CFPB payday loan rulemaking

Posted in Payday Lending

Not surprisingly, letters sent to the CFPB this week by New York Financial Services Superintendent Benjamin Lawsky and by 12 House Republicans urge the CFPB to take very different approaches as it considers payday and short-term loan rulemaking. In their letter, the House Republicans set forth the following five principles which they believe the CFPB should… More >

CFPB Orders Subprime Credit Card Company to Pay Estimated $2.7 Million in Refunds for Alleged Illegal Credit Card Fees

Posted in CFPB Enforcement

Today, the CFPB entered a consent order that requires subprime credit card company, Continental Finance Company, LLC (“Continental”), to refund an estimated $2.7 million to consumers who were charged alleged illegal credit card fees. The consent order also imposes a civil penalty on Continental in the amount of $250,000. In the consent order, the CFPB… More >

CFPB seeks information from industry on student loan modification options and issues guidance on private student loans with graduated repayment terms

Posted in Student Loans

As a follow up to a January 2014 meeting with private student loan lenders and servicers convened by Director Cordray and Education Secretary Arne Duncan, the CFPB sent letters last week to certain “market participants” requesting information about current and planned loan modification options.  The letters reference guidance on private student loans with graduated repayment terms… More >

CFPB issues report on financial well-being

Posted in Financial Literacy

A new CFPB report entitled “Financial well-being: The goal of financial education” describes the CFPB’s initial research into how people acquire financial capability.  The CFPB states in the report that it undertook the research specifically to inform financial education and improve consumer outcomes.  According to the CFPB, its “overarching objective” was to determine how to define and measure the… More >

Financial Services Roundtable and CFPB join forces in financial education initiative

Posted in Elder Financial Abuse, Financial Literacy

The Financial Services Roundtable and CFPB are joining forces in a nationwide public-private initiative to promote effective financial education.  According to an announcement posted on the Roundtable’s website, the CFPB and Roundtable plan to work together to facilitate the gathering and sharing of information about effective financial education strategies, to encourage adoption of financial education… More >

CFPB issues compliance bulletin on treatment of confidential supervisory information

Posted in CFPB Exams

In a new compliance bulletin (2015-01), the CFPB reminds supervised financial institutions, including nonbanks, of their obligations regarding the disclosure of confidential supervisory information (CSI). The bulletin is intended to assist supervised entities in complying with the CFPB’s regulations governing the use and disclosure of CSI (12 CFR Part 1070).  In the bulletin, the CFPB… More >

CFPB announces leadership additions and changes

Posted in CFPB People

Last Friday, the CFPB announced the following additions to its senior leadership team: Leandra English will serve as the CFPB’s Deputy Chief Operating Officer.  Ms. English previously served as a senior advisor and chief of staff to the Office of Management and Budget’s Deputy Director of Management.  Before joining the OMB, Ms. English helped to… More >

CFPB finalizes amendments to TILA/RESPA integrated disclosures rule and loan originator rule

Posted in CFPB Rulemaking, Mortgages, TILA / RESPA

On Tuesday, January 20, the CFPB promulgated its first final rule of 2015, a series of minor amendments to the TILA/RESPA integrated disclosures (TRID) rule.  The substantive changes to the TRID rule are (1) an extension of the time period to issue a revised Loan Estimate when an interest rate moves from floating to locked,… More >

FTC continues to press concerns about credit report accuracy in follow-up report

Posted in Credit Reports

A follow-up report on credit report accuracy issued this week by the Federal Trade Commission is likely to be cited by the CFPB as additional support for the CFPB’s concerns about inaccurate credit reporting.  In December 2014, that concern resulted in the CFPB’s imposition of a new requirement on major consumer reporting  agencies to provide… More >

House Financial Services Committee approves oversight plan; Committee chair gets new subpoena authority

Posted in CFPB General

The House Financial Services Committee voted unanimously today to approve the Committee’s oversight plan for the 114th Congress. The plan provides that the Committee intends to continue its close examination of the implementation of Dodd-Frank by the financial regulators.  With regard to the CFPB in particular, the Committee intends to oversee the CFPB’s regulatory, supervisory,… More >