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Tag Archives: enforcement

CFPB and Conference of State Bank Supervisors sign framework for coordinating supervision and enforcement

By John D. Socknat on Posted in CFPB Enforcement, CFPB Exams

The CFPB announced earlier this week that it has established a “framework” with the Conference of State Bank Supervisors (CSBS)  for coordination among the CFPB and state regulators on supervision and enforcement matters.  The framework states that it is “intended to establish a process for coordinated federal/state consumer protection supervision and enforcement of entities providing consumer… More >

Notes from CFPB Education Conference for State Attorneys General

By Reid F. Herlihy on Posted in CFPB Enforcement, CFPB Exams, CFPB Rulemaking

The George Mason University School of Law, Law & Economics Center recently hosted a conference titled “Understanding the Consumer Financial Protection Bureau,” through GMU’s Attorneys General Education Program.  Founded in 2009, the program was created to provide economic and public policy educational programming to state attorneys general and their staff attorneys from across the country. … More >

What is the CFPB thinking? An update from PLI’s 18th Annual Consumer Financial Services Institute

By Stefanie Jackman on Posted in CFPB Enforcement, CFPB Exams

Last week, I had the opportunity to hear several high-ranking lawyers with the CFPB speak at PLI’s 18th Annual Consumer Financial Services Institute in Chicago.  As an initial matter, the attendees owe a debt of thanks to each of CFPB lawyers for taking the time to attend the seminar, which Alan Kaplinsky co-chaired.  I know… More >

The role of CFPB enforcement attorneys at exams: the picture is getting clearer

By Alan S. Kaplinsky on Posted in CFPB Enforcement, CFPB Exams

Remarks made by Ori Lev, the CFPB’s Deputy Enforcement Director for Litigation, at the ABA Consumer Financial Services Committee’s spring meeting last week further clarified the role of CFPB enforcement attorneys in CFPB exams. His remarks, coupled with comments made by another CFPB official at the Committee’s winter meeting, leave no doubt that the enforcement… More >

OIG to look at presence of CFPB enforcement attorneys in exams

By Alan S. Kaplinsky on Posted in CFPB Enforcement, CFPB Exams

The CFPB’s practice of bringing enforcement attorneys to examinations has been a continuing concern for industry.  In particular, supervised entities worry that the participation of enforcement attorneys in examinations inhibits free and open communication, and signals the CFPB’s intention to use the examination process as a development ground for enforcement actions.   We were pleased to… More >

The CFPB Stretches ECOA Past the Breaking Point with Auto Finance

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

 In a story released last night, Carter Dougherty at Bloomberg reports that the CFPB has warned “at least four banks” that it may take enforcement action against them under ECOA, alleging that a “policy” of “allowing” dealers to negotiate contract APRs with retail buyers had a disparate impact in the pricing of retail installment sale… More >

The CFPB and privilege: the fight isn’t over

By Steven D. Burt and Daniel JT McKenna on Posted in CFPB Enforcement, CFPB Exams

We blogged recently about H.R. 4014, which President Obama signed into law near the end of 2012.  The law identifies the CFPB as a regulator to whom a regulated entity may submit privileged information without waiving any state or federal law privilege and provides that the CFPB may share privileged information of a regulated entity with other… More >

CFPB reports new investigation

By Alan S. Kaplinsky on Posted in CFPB Enforcement

Yet another panel discussion at the ABA Consumer Financial Services Committee just held in Naples, Florida, entitled “Preparing for CFPB Exams and Enforcement” involved two speakers from the CFPB: Kristen Donaghue, a lawyer in the Office of Enforcement, and Calvin Hagins, Assistant Regional Director, Southwest Region. Ms. Donaghue described the CFPB enforcement actions and investigations… More >

More on enforcement attorneys and supervisory exams

By Trevor Salter on Posted in CFPB Enforcement, CFPB Exams

The discussions at the ABA Consumer Financial Services Winter Meeting have reached biblical proportions (literally).  The participants on yesterday’s CFPB Exams and Enforcement panel read from the New Testament on “ravening wolves in sheep’s clothing” (later clarified as NOT a reference to CFPB enforcement attorneys) and how the “wise man built his house upon a… More >

CFPB describes plans for coordinating with state regulators

By John D. Socknat on Posted in CFPB Enforcement, Mortgages

Last week, the CFPB issued a Statement of Intent that describes its plans for sharing information about nonbanks with state banking and financial service regulators (“State Regulators”)  and coordinating supervisory and enforcement activity.  In January 2011, the CFPB entered into a memorandum of understanding (MOU) with the Conference of State Bank Supervisors (CSBS) and various… More >

Is the CFPB listening on the issue of enforcement attorneys in examinations?

By Christopher J. Willis on Posted in CFPB Enforcement, CFPB General

As my colleague Barbara Mishkin indicated in her post earlier today, the 2012 CFPB Ombudsman’s Report, released last week, contains a section that indicates that the CFPB has heard, and is considering, the industry’s discomfort with the participation of enforcement attorneys in the examination process.  From the start, this issue has worried supervised entities, who… More >

CFPB’s Ombudsman’s Office issues first annual report

By Barbara S. Mishkin on Posted in CFPB Enforcement, CFPB General

Last December, the CFPB opened an Ombudsman’s Office to assist in the resolution of individual and systemic issues that a depository entity, non-depository entity or consumer has with the CFPB.  The Ombudsman Office has now issued its first annual report for fiscal year 2012.   The report indicates that, during FY 2012, the Ombudsman provided “informal… More >

Some observations on the CFPB’s $112.5 million settlement with American Express

By Barbara S. Mishkin on Posted in CFPB Enforcement, Credit Cards

In another demonstration of aggressive enforcement, the CFPB, on October 1, announced that it had settled its enforcement actions against various American Express entities alleging a wide range of compliance violations.   The settlement requires American Express Bank, FSB and American Express Centurion Bank to make restitution payments totaling $85 million.  In addition, the banks, their… More >

Could the CFPB’s first filed enforcement action result in a challenge to Director Cordray’s appointment?

By Alan S. Kaplinsky on Posted in CFPB Enforcement

The CFPB has filed its first enforcement action.  It did so in a sealed complaint filed on July 18 in federal court in California against a law firm that offered mortgage assistance relief services to consumers.  The complaint alleges that the law firm and various individuals and companies duped consumers by falsely promising loan modifications… More >

CFPB proposes procedures for supervising non-banks engaged in conduct deemed risky to consumers

By Stefanie Jackman on Posted in CFPB Exams, CFPB General, CFPB Rulemaking

Today, the CFPB proposed a rule setting up procedures for supervising non-banks that the CFPB believes are engaging in, or may have engaged in, activities that pose risks to consumers. Under the Dodd-Frank Act, the CFPB has authority to supervise any nonbank that it has reasonable cause to determine is engaging in, or has engaged,… More >

CFPB signals its intent to examine service providers to supervised institutions

By Stefanie Jackman on Posted in CFPB Exams, Hot Issues

On April 13, 2012, the Consumer Financial Protection Bureau (CFPB) released Bulletin 2012-03, which stated that the CFPB will expand its examination scope beyond supervised institutions themselves and examine their service providers as well.  If the CFPB believes that service providers are not complying with a consumer financial services law, or are committing a UDAAP… More >

CFPB enforcement lawyers attending exams: the latest twist

By Barbara S. Mishkin on Posted in CFPB Exams

Appearing before the House Financial Services Committee last week,  Director Cordray offered yet another explanation for why CFPB enforcement lawyers are accompanying CFPB examiners on CFPB exams. According to news reports, Mr. Cordray stated that the practice is intended to allow supervisory and enforcement staffs to learn more about how each other operates.  He was… More >

CFPB enforcement actions underway

By Barbara S. Mishkin on Posted in CFPB General

It has been reported that Director Cordray, in a briefing on March 22, stated that CFPB enforcement actions are “in process” but was unwilling to specify when the first cases might be filed. This is consistent with the CFPB’s statement in its first annual report  to Congress on federal enforcement of the Fair Debt Collection… More >

House urges Cordray not to request privileged material pending “legislative fix”

By Keith R. Fisher on Posted in CFPB General, Federal Agencies, Hot Issues

A hearing entitled “How will the CFPB Function under Richard Cordray?” was held on January 24 by the House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs. At that hearing, Mr. Cordray testified that Congress’s failure to amend 12 U.S.C. § 1828(x) to include the Bureau was an oversight and that… More >

$10 Billion and counting – up and down

By Keith R. Fisher on Posted in CFPB General

Section 1025 of Dodd-Frank gives the CFPB exclusive authority to examine insured banks, savings associations, and credit unions with total assets of more than $10 billion and their affiliates (“Large Institutions”) for compliance with federal consumer financial laws and primary authority to enforce those laws. For smaller institutions ($10 billion or less) and their affiliates, Section… More >

Office of Enforcement’s Early Warning Notice

By Daniel JT McKenna on Posted in CFPB General, CFPB Rulemaking, Hot Issues

The CFPB’s announcement that it will institute an “Early Warning Notice” process has generally been welcomed in the financial community as an opportunity for pre-litigation communications with the Office of Enforcement. The process, described in CFPB Bulletin 2011-08 [Enforcement] which includes a sample advance notice letter, appears to virtually mirror the SEC’s well-established Wells notice…. More >