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Category Archives: CFPB Enforcement

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CFPB settles with consumer reporting agency for alleged UDAAP/FCRA violations

Posted in CFPB Enforcement, Credit Cards

The CFPB announced that it has entered into a consent order with Experian, a consumer reporting agency, for allegedly engaging in the deceptive marketing of credit scores in violation of the Consumer Financial Protection Act’s prohibition against unfair, deceptive, or abusive acts or practices.  The consent order also settles allegations that the company displayed advertisements… More >

PLI’s “The CFPB Speaks” panel discussion

Posted in CFPB Enforcement, CFPB Exams, CFPB Rulemaking

Earlier today, at the Practicing Law Institute’s (“PLI”) 22nd Annual Consumer Financial Services Institute in New York City, Alan Kaplinsky (who is co-chairing the event) moderated a panel entitled “The CFPB Speaks,” that featured three senior CFPB lawyers: Anthony (“Tony”) Alexis (Assistant Director for Enforcement), Diane Thompson (Deputy Assistant Director, Office of Regulations), and Peggy… More >

PHH files opening en banc brief; seven supporting amicus briefs filed

Posted in CFPB Enforcement

On Friday, PHH filed its opening en banc brief with the D.C. Circuit in the rehearing of its appeal of Director Cordray’s June 2015 decision that affirmed an administrative law judge’s (ALJ) recommended decision concluding PHH had violated RESPA and increased the ALJ’s disgorgement award from over $6.4 million to over $109 million.  The rehearing… More >

D.C. Circuit grants motion of U.S. for leave to file amicus brief in PHH by March 17; denies motions to intervene

Posted in CFPB Enforcement

The D.C. Circuit has entered an order granting the unopposed motion of the United States for leave to file an amicus brief in PHH by March 17, 2017.  As we previously observed, the motion appears to signal the DOJ’s intention to support PHH rather than the CFPB. In a second order, the D.C. Circuit denied… More >

Motion filed by U.S. seeking leave to file amicus brief by March 17 signals support for PHH

Posted in CFPB Enforcement

The United States, at the Solicitor General’s request, has filed an “unopposed motion” with the D.C. Circuit for leave to file an amicus brief in PHH by March 17, 2017.  The motion states that both PHH and the CFPB have consented to the motion. The D.C. Circuit’s order granting the CFPB’s petition for rehearing en banc… More >

Court declines to enjoin Dept. of Education termination of recognition status of college accrediting organization challenging CFPB CID

Posted in CFPB Enforcement

In December 2016, the Secretary of Education issued a decision adopting the decision of the Department of Education’s Senior Department Official terminating and withdrawing the Department’s recognition of the Accrediting Council for Independent Colleges and Schools (ACICS) as a nationally recognized accrediting agency.  Earlier this week, the D.C. federal district court denied ACICS’ motion for… More >

D.C. Circuit grants CFPB’s petition for rehearing en banc in PHH case

Posted in CFPB Enforcement

The D.C. Circuit has entered an order granting the CFPB’s petition for rehearing en banc in the PHH case.  Because the order was issued per curiam, it does not indicate which of the active judges voted to grant the petition but only indicates that Chief Judge Garland did not participate. The order vacates the panel’s October 2016 judgment,… More >

Democratic lawmakers/ Democratic state AGs/ consumer advocacy groups seek reconsideration en banc of motions to intervene in PHH case

Posted in CFPB Enforcement

After the D.C. Circuit panel issued a per curiam order on February 2 denying the three motions to intervene that were filed in the PHH case, we expected the next development in the case to be a decision by the D.C. Circuit on the CFPB’s petition for rehearing en banc.  Instead, the next development has… More >

CFPB/NY AG lawsuit against RD Legal Funding may signal greater scrutiny of non-loan financial products such as merchant cash advances

Posted in CFPB Enforcement, Small Business

The CFPB and the New York Attorney General this week filed an action against RD Legal Funding, LLC, two of its affiliates, and their principal (collectively, “RD”), alleging that a litigation settlement advance product offered by RD is a disguised usurious loan that is deceptively marketed and abusive.  In particular, the Complaint alleges that the transactions… More >

D.C. Circuit hears oral argument on CFPB authority to issue CID to college accrediting organization

Posted in CFPB Enforcement, Student Loans

Last week, the D. C. Circuit held oral argument in the CFPB’s appeal from the D.C. federal district court’s April 2016 ruling that the CFPB exceeded its statutory authority when it issued a CID to the Accrediting Council for Independent Colleges and Schools (ACICS) in August 2015. After denying ACICS’s petition to modify or set… More >

CFPB and Virginia AG settle claims against pawnbroker for alleged TILA/CFPA/VA law violations

Posted in CFPB Enforcement

The CFPB and the Virginia Attorney General announced that they had entered into a proposed consent order with  Woodbridge Coins and Jewelry Exchange, Inc., a Virginia-based pawnbroker, to settle a lawsuit filed in a Virginia federal court alleging the pawnbroker’s closed-end pawn contracts violated the TILA, the CFPA, and Virginia law. According to the complaint,… More >

PHH opposes motion to intervene filed by Democratic lawmakers

Posted in CFPB Enforcement

PHH has filed a response in opposition to the motion filed with the D.C. Circuit by Democratic lawmakers Senator Sherrod Brown and Representative Maxine Waters to intervene in the PHH appeal.  The lawmakers are, respectively, the Ranking Members of the Senate Banking Committee and the House Financial Services Committee. In opposing the motion, PHH makes… More >

Ninth Circuit affirms tribal lenders subject to CFPB investigative demands

Posted in CFPB Enforcement, Payday Lending

The Ninth Circuit recently issued its opinion in CFPB v. Great Plains Lending, LLC, et al., in which three tribal-affiliated, for-profit lending companies (“Tribal Lenders”) challenged the authority of the CFPB to issue civil investigative demands (CIDs) against Native American tribes. In 2012, the CFPB issued CIDs against the Tribal Lenders regarding their advertising, marketing,… More >

CFPB files complaint alleging defendants ran unlawful debt relief operation

Posted in CFPB Enforcement

The CFPB has filed a complaint in a California federal district court against three law firms and two individual attorneys alleging that they offered debt relief services to consumers in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). The CFPB’s complaint alleges that in offering debt relief services, the… More >

PHH files supplemental response to CFPB’s rehearing petition; opposes state AGs’ motion to intervene

Posted in CFPB Enforcement

This past Friday, PHH filed a supplemental response to the CFPB’s petition for en banc rehearing and a response opposing the motion filed by Democratic Attorneys General of 16 states and the District of Columbia to intervene in the PHH appeal. Supplemental Response.  The D.C. Circuit invited the Solicitor General to file a response to… More >

Democratic lawmakers, consumer advocacy groups seek to intervene in PHH appeal

Posted in CFPB Enforcement

This past Monday, the Democratic Attorneys General of 16 states and the District of Columbia filed a motion with the D.C. Circuit seeking to intervene in the PHH appeal.  Today, two more motions to intervene were filed.  One motion was filed by Democratic lawmakers Senator Sherrod Brown and Representative Maxine Waters who are, respectively, the… More >

Democratic state AGs seek to intervene in PHH appeal

Posted in CFPB Enforcement, State Enforcement

The Democratic Attorneys General of 16 states and the District of Columbia have filed a motion with the D.C. Circuit seeking to intervene in the PHH appeal.  The states are Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Mississippi, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, and Washington. According to the AGs,… More >

Republican members of House Financial Services Committee release new report on CFPB’s auto finance actions

Posted in Auto Finance, CFPB Enforcement, CFPB People, Fair Credit, Fair Lending

Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, titled “Unsafe at Any Bureaucracy, Part III: The CFPB’s Vitiated Legal Case Against Auto Lenders.”  This is the third Republican Staff report examining the automotive ECOA enforcement actions of the CFPB with respect to what… More >

Court reported to reject request of plaintiffs in another case challenging CFPB’s constitutionality for consolidation with PHH

Posted in CFPB Enforcement

According to a Law360 report, the D.C. federal district court has denied the request of the plaintiffs in State National Bank of Big Spring, Texas, et al. v. Lew, et al. to consolidate their case with PHH on appeal to the D.C. Circuit. In July 2016, the D.C. federal district court rejected the plaintiffs’ attempt… More >

Federal district court certifies interlocutory appeal in CFPB lawsuit against CashCall

Posted in CFPB Enforcement

The California federal district court judge who is presiding over the CFPB’s lawsuit against CashCall and several related companies that funded, purchased, serviced, and collected online installment loans has granted the defendants’ motion to certify an interlocutory appeal of the district court’s August 31, 2016 order to the Ninth Circuit.  That order granted the CFPB’s… More >