April 2015

Yesterday, I had the opportunity to participate as an advisor to a small entity representative (“SER”) at the small business review panel on payday, title and installment loans.  (Jeremy Rosenblum has four posts—here, herehere and here—that analyze the rules being reviewed in detail.)  The meeting was held in the Treasury Building’s Cash Room, an impressive, marble-walled room where President Grant held his inaugural reception. … Continue Reading

The CFPB announced yesterday that it had reached a settlement with Regions Bank regarding claims that the bank unlawfully charged overdraft fees to customers who had not opted-in for overdraft coverage.  The matter is the CFPB’s first enforcement action under the Regulation E rule that prohibits depository institutions from charging overdraft fees on ATM and one-time debit card transactions unless a consumer has affirmatively opted in. … Continue Reading

The CFPB has issued a fair lending report covering its fair lending activities during 2014.  The report states that in 2014, CFPB fair lending supervisory and public enforcement actions required institutions to provide approximately $224 million in remediation.

The report begins with a discussion of factors the CFPB considers in its risk-based prioritization approach for determining “what, where, and how fair lending risks to consumers should be addressed.” … Continue Reading

The CFPB has announced that on May 14, 2015, it will hold  a field hearing in Milwaukee on student debt.  Similar to other field hearings, Director Cordray will give remarks and witnesses will include members of consumer groups, industry representatives, and members of the public.

Since field hearings typically coincide with a related development, such as the issuance of a report, we expect this field hearing to be accompanied by a new development related to student loans. … Continue Reading

Key members of the CFPB’s enforcement, regulatory and supervision offices spoke yesterday at PLI’s 20th Annual Consumer Financial Services Institute in Chicago. As was the case during the New York City version which took place on April 6, the session addressed recent developments and upcoming initiatives at the CFPB, and took the form of a Q&A between the moderator and a panel of practitioners and CFPB personnel.… Continue Reading

The U.S. Supreme Court agreed yesterday to hear an important case that will decide whether a plaintiff who cannot show any actual harm from a violation of the Fair Credit Reporting Act nevertheless has standing under Article III of the U.S. Constitution to sue for statutory damages in federal court.  The consequences of the Supreme Court’s eventual decision will likely extend significantly beyond FCRA litigation, and affect numerous other statutes and the viability of class actions where alleged technical violations did not cause any actual harm.… Continue Reading

The CFPB has issued its third snapshot of complaints received from servicemembers, veterans and their families (“servicemember complaints”).  The report covers complaints received from July 21, 2011 through December 31, 2014.  In 2014, the CFPB received more than 17,000 complaints from such individuals (out of a total of approximately 29,500 complaints received over the entire period covered).… Continue Reading

Despite the CFPB’s efforts to build support for the Department of Defense’s proposal to significantly expand Military Loan Act coverage, it now appears that the proposal may be put on hold.

The DoD proposal would revise the scope of “consumer credit” subject to MLA restrictions to include, regardless of term or amount, all unsecured open-end lines of credit, credit cards, payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, and installment loans. … Continue Reading

The U.S. Department of Justice recently issued the Attorney General’s 2014 Annual Report to Congress Pursuant to the Equal Credit Opportunity Act Amendments of 1976.  The report discusses the DOJ’s 2014 ECOA enforcement activities as well as what the report describes as the DOJ’s “lending work” under the Fair Housing Act and the Servicemembers Civil Relief Act.… Continue Reading

Yesterday, the House of Representatives, by a vote of 235-183, passed H.R. 1195, titled the “Bureau of Consumer Financial Protection Advisory Boards Act.”  As originally proposed, the bill would codify the CFPB’s existing advisory councils for community banks and credit unions (and rename them “advisory boards”) and establish a new Small Business Advisory Board.… Continue Reading