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Tag Archives: CFPB

CFPB and DOJ announce redlining settlement

Posted in CFPB Enforcement, Fair Lending, Mortgages

Consistent with recent indications from CFPB and Department of Justice officials that more redlining cases would soon be coming, the CFPB and DOJ have announced a proposed consent order with Hudson City Savings Bank to settle allegations that the bank had engaged in a pattern or practice of redlining predominantly Black and Hispanic neighborhoods in its… More >

CFPB issues final rule expanding definition of “small creditor” and “rural areas” under TILA

Posted in CFPB General, CFPB Rulemaking, Mortgages, TILA / RESPA

The CFPB has issued a final rule that revises the definitions of “small creditor” and “rural areas” under Regulation Z of the Truth in Lending Act (TILA). The final rule is effective January 1, 2016. We previously reported on the CFPB proposal to adopt these amendments. The CFPB believes that small creditors play an important… More >

CFPB schedules October 7 field hearing on arbitration; Alan Kaplinsky to represent industry

Posted in Arbitration

The CFPB has announced that it will hold a field hearing about arbitration in Denver, Colorado on October 7, 2015 and has asked Alan Kaplinsky, Practice Leader of Ballard Spahr’s Consumer Financial Services Group, to represent industry at the hearing. As the CFPB typically uses field hearings as the venue for announcing new developments, we… More >

CFPB highlight mortgage complaints in third monthly complaint report

Posted in CFPB General, Mortgages

The CFPB has issued its September 2015 complaint report, the third in its new series of monthly complaint reports.  The new report spotlights mortgage complaints and complaints from consumers in the Denver, Colorado metro area. General findings include the following: As of September 1, 2015 the CFPB has handled 702,900 complaints nationally, including 25,732 complaints… More >

Setting the Record Straighter

Posted in Arbitration

Recently, Professor Jeff Sovern sent an email to the editor of the Consumer Financial Services Law Report commenting on an article we published in the August 9, 2015 issue of the Report titled, “CFPB Makes Consumer Arbitration a Numbers Game – and the Numbers Overwhelmingly Support Consumer Arbitration.” In that article (as well as in… More >

CFPB announces new appointments to advisory groups

Posted in CFPB General

The CFPB announced the appointment of new members to its Consumer Advisory Board, Community Bank Advisory Council, and Credit Union Advisory Council.  New members to the Consumer Advisory Board will serve three-year terms and new members to the Community Bank and Credit Union Advisory Councils will serve two-year terms. New Consumer Advisory Board members are:… More >

CFPB use of behavioral economics validated by Executive Order

Posted in CFPB Rulemaking

Since opening its doors for business, behavioral economics has played a central role in the CFPB’s regulatory agenda.  Behavioral economists posit that consumers are not rational decision makers and instead have certain frailties or weaknesses that lead them to make decisions that they would later recognize as not in their own best interest. The CFPB’s… More >

CFPB Community Bank Advisory Council to meet on Sept. 30

Posted in Electronic Payments

The CFPB has announced that a meeting of its Community Bank Advisory Council is scheduled for September 30, 2015 in Washington, D.C.  Director Cordray will be in attendance and there will be a discussion of consumer challenges in payments. In July 2015, the CFPB released a list of nine “Consumer Protection Principles” that were intended to express the CFPB’s… More >

Atlanta federal district court interprets CFPA standard for “substantial assistance” liability

Posted in CFPB Enforcement, Debt Collection, UDAAP

Earlier this year, the CFPB filed a complaint in Atlanta federal district court targeting an alleged debt collection scam in which not only were the debt collectors named as defendants (Debt Collectors) but three companies involved in providing payment processing services to the Debt Collectors were also named as defendants.  One of those companies processed… More >

CFPB obtains preliminary injunction against debt relief companies

Posted in CFPB Enforcement, UDAAP

A Florida federal district court has entered a preliminary injunction against several companies and an individual who were named as defendants in a complaint filed by the CFPB in August 2015 charging them with violations of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR). The complaint alleges that the defendants operated debt relief… More >

FTC provides guidance on FCRA requirements for employer background checks

Posted in Credit Reports

When examining banks and companies subject to CFPB supervisory authority for FCRA compliance, CFPB examiners will look at whether the bank or company has followed FCRA requirements for use of background checks on employees and job applicants. Those requirements were the subject of a recent letter by FTC staff to a California company.  The FCRA requirements… More >

ABA comments on normalization of CFPB consumer complaint data

Posted in CFPB General

In response to the CFPB’s Request for Information seeking “best practices for normalizing relevant data” in the CFPB’s Consumer Complaint Database, the American Bankers Association has submitted a comment letter in which it asserts that normalization will not remedy the significant flaws inherent in the CFPB’s public disclosure of consumer complaint data.  The ABA takes the… More >

Interagency task force issues recommendations on federal student loan servicing contracts

Posted in Student Loans

Pursuant to a March 2015 Presidential directive, an interagency task force consisting of the Department of the Treasury, Department of Education, Office of Management and Budget, and Domestic Policy Council has issued recommendations on best practices in performance-based contracting intended to ensure that federal student loan servicers “help borrowers responsibly make monthly payments on their… More >

OIG report finds deficiencies in CFPB hiring processes

Posted in CFPB General

In a new report on the CFPB’s hiring processes, the Office of Inspector General (OIG) for the Fed and CFPB found that the CFPB’s Office of Human Capital (OHC) did not always follow established hiring controls.  For example, the OIG found that not all job analysis forms had evidence of managerial  approval.  According to the… More >

Federal appeals court confirms FTC authority to regulate cybersecurity policies and procedures

Posted in Cybersecurity

Banks and other companies subject to the CFPB’s jurisdiction face the possibility that the CFPB could begin using its authority under Sections 1031 and 1036 of the Dodd-Frank Act (which proscribe unfair, deceptive or abusive acts or practices) to regulate cybersecurity policies and procedures.  For companies also subject to the FTC’s jurisdiction, however, the threat… More >

84 House members urge expedited CFPB action on small business lending data collection rules

Posted in Fair Lending

84 House members recently wrote to the CFPB to urge it to expedite rulemaking to implement the small business lending data requirements of Dodd-Frank Section 1071.  Section 1071 amended the ECOA to require financial institutions to collect and maintain certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. … More >

No deference for CFPB amicus brief from Ninth Circuit

Posted in Mortgages

Many readers probably remember Edwards v. First American Financial Corp. for its ill-fated journey to the U.S. Supreme Court.  The Supreme Court had granted certiorari to decide the issue of whether a plaintiff who brings a RESPA claim has Article III standing to recover statutory damages in the absence of any actual damages caused by the… More >

CFPB issues second monthly complaint report

Posted in CFPB General, Credit Reports

The CFPB has issued its August 2015 complaint report, the second in its new series of monthly complaint reports.  When it announced the launch of the new reports last month, the CFPB stated that each report would spotlight a particular product and geographic location.  The August 2015 spotlights credit reporting complaints and complaints from consumers… More >

Noted Scholars Critique the CFPB’s Arbitration Study and Find It Lacking

Posted in Arbitration

We have previously blogged about the comment letter concerning the CFPB’s March 10, 2015 Study on consumer arbitration that we submitted to the CFPB on behalf of the American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable. That comment letter was highly critical of the conclusions drawn by the CFPB from its own… More >