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Tag Archives: enforcement

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 >

CFPB Issues First Enforcement Action for Servicing Rules Violations

Posted in CFPB Enforcement, CFPB General

The Consumer Financial Protection Bureau recently announced a consent order with Flagstar Bank, F.S.B., alleging unfair acts and practices under the Consumer Financial Protection Act (CFPA) and violations of the CFPB’s Mortgage Servicing Rules. The penalties include $27.5 million in damages for harmed borrowers, a $10 million civil money penalty, a temporary restriction on the… More >

CFPB enforcement head underscores CFPB’s limited use of “abusive ” prong of UDAAP

Posted in CFPB Enforcement, UDAAP

Tony Alexis, the head of enforcement at the CFPB, spoke today in Chicago at a program sponsored by the Committee on Consumer Financial Services at the American Bar Association Section of Business Law’s Annual Meeting. The topic was the “Use of UDAP/UDAAP by Federal and State Regulators.” Mr. Alexis emphasized that the Bureau has very… More >

“Operation Mis-Modification” Targets Foreclosure Relief Companies

Posted in CFPB Enforcement

The CFPB continues to ramp up its enforcement actions and its collaboration with state AG offices as part of the new “Operation Mis-Modification.” The CFPB, the FTC and fifteen states announced a series of lawsuits against what they characterize as “foreclosure relief scammers.” The CFPB filed three lawsuits against individuals and companies – all law… More >

CFPB obtains $10 million of relief for payday lender’s collection calls

Posted in CFPB Enforcement, Payday Lending

Yesterday, the CFPB and ACE Cash Express issued press releases announcing that ACE has entered into a consent order with the CFPB. The consent order addresses ACE’s collection practices and requires ACE to pay $5 million in restitution and another $5 million in civil monetary penalties. In its consent order, the CFPB criticized ACE for:… More >

The NY DFS, the NY Attorney General and the CFPB: What’s in store for the CFS industry

Posted in CFPB Enforcement, Debt Collection, Federal Agencies

Wednesday night , Joy Feigenbaum , the New York Department of Financial Services’ (“DFS”) executive deputy superintendent, and Jane Aziza, the Chief of the Bureau of Consumer Frauds and Protection at the New York Attorney General, spoke at the monthly meeting of the Consumer Affairs Committee for the New York City Bar Association. Not only did… More >

Cordray stresses individual accountability and service provider oversight in remarks to Chicago Fed

Posted in CFPB Enforcement, Richard Cordray

In remarks to the Chicago Federal Reserve Bank on May 9, Director Cordray outlined the past and future of the Bureau’s enforcement efforts. Director Cordray’s theme was to outline Bureau expectations in what he calls a “new era of accountability.” Director Cordray highlighted the Bureau’s efforts to hold individual decision makers responsible for violations of… More >

For-profit education company sued by CFPB seeks dismissal of complaint

Posted in CFPB Enforcement, Student Loans

ITT Educational Services, the defendant in the CFPB’s first enforcement action against a for-profit education company, has filed a motion seeking dismissal of the CFPB’s complaint.  Filed this past February in an Indiana federal court, the CFPB’s complaint accused ITT of violating the Dodd-Frank ban on unfair, deceptive, or abusive practices (UDAAP) by misleading borrowers… More >

CFPB general counsel gives glimpse into CFPB’s upcoming agenda

Posted in CFPB General, Debt Collection

On Monday, April 7, CFPB General Counsel Meredith Fuchs warned that debt collection, payday lending, prepaid cards and privacy notices are priorities for the Bureau in the coming months. Appearing before the Practicing Law Institute’s 19th Annual Consumer Financial Services Institute in New York City, Ms. Fuchs noted that the CFPB has already received in… More >

The CFPB’s Debt Collection Complaint Report: Lots of Fury Signifying Nothing

Posted in CFPB General, Debt Collection

Yesterday, the CFPB released its annual report on debt collection, along with a press release. The headline, according to the Bureau, is that “Consumers Report Being Hounded About Debts Not Owed,” and the Bureau reported that more than one-third of the complaints it received were about collection efforts with respect to debts the consumer did… More >

Did the CFPB Run a Stop Sign?

Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

As we previously reported, last Friday House Financial Services Committee Chairman Jeb Hensarling (R-TX) sent a letter to CFPB Director Richard Cordray asking for a response by March 13 to specific questions about the methodology and analyses employed by the CFPB in determining whether dealer finance charge participations violate the Equal Credit Opportunity Act and… More >

House Financial Services Committee Chairman to CFPB on Indirect Auto Investigations: Slow Down. Pull Over. And Show Us Some ID.

Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

Since last March, when the CFPB issued Bulletin No. 2013-02, its highly controversial release warning banks and finance companies that purchase motor vehicle installment sales contracts that, under existing law, any dealer finance charge participation may violate the Equal Credit Opportunity Act and Regulation B, numerous members of Congress have been unsuccessful in seeking clear… More >

CFPB supervisory report highlights exam report changes, non-public supervisory actions and mortgage servicing deficiencies

Posted in CFPB Enforcement, CFPB Exams, Mortgages

Last month, the CFPB began using new templates for its examination reports and supervisory letters (collectively, “reports’).  The template changes were announced in the CFPB’s Winter 2013 Supervisory Report, which highlights supervision work completed between July and October 2013.  CFPB examiners (who numbered approximately 320 as of January 2, 2014) began using the new templates for… More >

OIG issues report criticizing CFPB’s practice of bringing enforcement attorneys to exams

Posted in CFPB Enforcement, CFPB Exams

Effective this past November 1, the CFPB ended its controversial practice of having enforcement attorneys regularly participate in examinations of supervised entities.  Since first learning of the CFPB’s practice, we had expressed our deep concern about the practice’s inhibiting effect on free and open communications between the CFPB and supervised entities and urged the CFPB… More >

Cordray reaffirms CFPB regulatory approach

Posted in CFPB General

As a follow-up to our recent post on Director Cordray’s plans on whether to pursue political office, we offer the highlights below from last week’s Politico Morning Money Breakfast Briefing.  During the event, Politico Chief Economic Correspondent Ben White discussed a variety of issues with Director Cordray.  Consumer protection: Mr. Cordray provided three examples of… More >

CFPB files RESPA suit for alleged kickbacks to affiliated businesses

Posted in CFPB Enforcement, Mortgages

Last week, the CFPB announced that it had filed a lawsuit against a Kentucky law firm and its principals, alleging that the defendants violated Section 8 of the Real Estate Settlement Procedures Act (RESPA) by creating a network of Affiliated Business Arrangements (ABAs) to pay illegal kickbacks for mortgage settlement referrals. The complaint was filed… More >

CFPB ramps up enforcement of HMDA

Posted in CFPB Enforcement, CFPB General, Fair Lending

The CFPB announced on October 9, 2013 that they entered into consent orders with two financial institutions that allegedly misreported HMDA data.  The CFPB also issued Bulletin 2013-11, which provides guidance on compliance with HMDA, when the CFPB will pursue HMDA enforcement actions, and resubmission of HMDA data. According to the consent orders and the… More >

CFPB will stop bringing enforcement attorneys to exams

Posted in CFPB Enforcement, CFPB Exams

Politico has reported that, effective November 1, the CFPB will end its practice of having enforcement attorneys regularly participate in examinations of supervised entities. According to the report, Director Cordray announced the change on a conference call with CFPB examiners. The report indicated that a CFPB spokeswoman attributed the change to an internal review that… More >

OIG provides update on CFPB projects

Posted in CFPB Enforcement, CFPB Exams

The updated work plan as of August 30, 2013 of the Office of Inspector General (OIG) for the Fed and CFPB describes various CFPB projects that are “in progress” or “planned.”  The projects listed as “work in progress” items include: Evaluation of the CFPB’s integration of enforcement attorneys into examinations.  The CFPB’s practice of bringing… More >

D.C. Bar hosts presentation on CFPB enforcement priorities

Posted in CFPB Enforcement, CFPB General

The District of Columbia Bar recently hosted a presentation on CFPB enforcement priorities. The sole speaker was Mr. Hunter Wiggins, Deputy Enforcement Director of Policy and Strategy of the CFPB’s Supervision, Enforcement & Fair Lending Division. Mr. Wiggins outlined the structure of the enforcement policy and strategy group, and offered some insight into the factors… More >

Peggy Twohig of CFPB clarifies its expectations about self-reporting violations of law

Posted in CFPB Enforcement

My colleagues, Chris Willis and Barbara Mishkin, have previously blogged here and here about the CFPB’s recent guidance advising banks and non-banks subject to its jurisdiction to investigate and self-report to the Bureau violations of federal consumer financial services laws and UDAAP discovered by them. The Bureau has told them that if they do so,… More >

The CFPB’s response to June 20, 2013 Congressional letter regarding the indirect auto lending bulletin: raises more questions than it answers

Posted in CFPB Enforcement, CFPB General, Fair Lending

On August 2, 2013, the CFPB responded to the June 20, 2013 letter from 35 Republican members of the U.S. House of Representatives, questioning the manner in which the CFPB developed recent guidance regarding indirect auto finance and requesting details concerning the Bureau’s methodology for analyzing potential fair lending violations. Specifically, Congress’ letter took issue with… More >

New CFPB Enforcement Action Involving Alleged ILSA Violations

Posted in CFPB Enforcement

As we reported earlier this year, the CFPB was actively investigating a company called 3D Resorts-Bluegrass, LLC for possible violations of the Interstate Land Sales Full Disclosure Act (ILSA). While the CFPB did not publicly announce this investigation, which is the first involving potential ILSA violations, the investigation was disclosed in a proof of claim… More >