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Category Archives: CFPB Enforcement

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CFPB sues credit repair company

Posted in CFPB Enforcement

The CFPB announced that it has filed a lawsuit in a California federal district court against a credit repair company for alleged violations of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR).  The CFPB has previously brought enforcement actions against debt settlement companies, including its first criminal referral.  The announcement was accompanied… More >

CFPB announces enforcement actions against auto title lenders

Posted in Auto Title Loans, CFPB Enforcement

The CFPB announced that it has filed administrative enforcement actions against five Arizona auto title lenders for alleged violations of Truth in Lending Act advertising requirements.  According to the CFPB, the lenders violated TILA by advertising a periodic interest rate for their loans on their websites without advertising a corresponding annual percentage rate.  As examples,… More >

CFPB enters into consent order with for-profit college owner

Posted in CFPB Enforcement, Student Loans

The CFPB announced that it has entered into a consent order with Bridgepoint Education, Inc., the owner of two for-profit colleges, to settle charges that the company’s representatives engaged in deceptive acts or practices by misrepresenting the potential costs of loans offered directly by the company to students.  The consent order requires the company to… More >

CFPB and OCC settle claims of alleged unlawful practices for credit card add-on products

Posted in CFPB Enforcement, Credit Cards

The CFPB announced that it has entered into a consent order with First National Bank of Omaha to settle charges that the bank engaged in unfair or deceptive acts or practices in connection with the marketing and sale of credit card add-on products and the billing of consumers for such products.  The consent order requires… More >

Chamber files amicus brief in support of challenge to CFPB jurisdiction

Posted in CFPB Enforcement

The Chamber of Commerce of the United States of America (Chamber) has filed an amicus brief opposing the CFPB’s petition filed in the Eastern District of Pennsylvania to enforce its civil investigative demand (CID) issued to J.G. Wentworth, LLC (JGW).  In its brief, the Chamber challenges the CFPB’s attempt through the petition to expand its jurisdiction… More >

D.C Circuit rejects constitutional challenge to SEC’s use of administrative law judges

Posted in CFPB Enforcement

A challenge to the constitutionality of the SEC’s use of administrative law judges (ALJ) was rejected by the U.S. Court of Appeals for the D.C. Circuit.  In Raymond J. Lucia Companies, Inc. et al. v. Securities and Exchange Commission, the petitioners contended that the SEC’s decision imposing sanctions for violations of the Investment Advisors Act should… More >

Ballard attorneys author article on CFPB’s “regulation by enforcement” approach

Posted in CFPB Enforcement

Earlier this year, in his appearance before the Senate Banking Committee and in remarks to the Consumer Bankers Association, Director Cordray attempted to defend the CFPB’s “regulation by enforcement” approach that relies on enforcement in place of rulemaking.  That approach has been widely criticized by industry and we have shared our own criticism in prior… More >

CFPB and DOJ settle fair lending claims involving allegations of redlining, discretionary underwriting and pricing, and overt discrimination

Posted in CFPB Enforcement, Fair Lending

The CFPB and DOJ recently announced a proposed consent order with BancorpSouth Bank to settle charges that the bank’s mortgage lending practices violated the Fair Housing Act and the Equal Credit Opportunity Act.  In addition to allegations of redlining and discrimination resulting from discretionary underwriting and pricing, the agencies’ joint complaint filed in federal court… More >

High Court’s Encino Decision Means No Deference for CFPB View on RESPA, PHH Argues

Posted in CFPB Enforcement, CFPB General, Hot Issues, Mortgages, TILA / RESPA

On June 23, PHH filed a letter in the D.C. Circuit supplementing its appeal briefing in PHH Corp v. CFPB, No. 15-1177. For those of you who may have missed our prior posts on this, PHH is appealing a decision made by CFPB Director Richard Cordray while sitting as the CFPB’s administrative appellate judge. In that capacity,… More >

CFPB takes another challenge to its jurisdiction to court

Posted in CFPB Enforcement

The CFPB filed suit against J.G. Wentworth, LLC on June 7, 2016 after the company challenged the Bureau’s expansive view of its jurisdiction. The CFPB served a CID against J.G. Wentworth, LLC on September 11, 2015 to investigate alleged violations of consumer protection laws. J.G. Wentworth purchases structured settlements and annuities from consumers for lump sums. J.G…. More >

CFPB issues interim final rule to adjust civil penalties for inflation

Posted in CFPB Enforcement

The CFPB has published an interim final rule to adjust for inflation the civil penalties within its jurisdiction.  The adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990 which, pursuant to a 2015 amendment, requires federal agencies to adjust the civil penalties within their jurisdiction by July 1, 2016 and then… More >

CFPB Sues All American Check Cashing

Posted in CFPB Enforcement, CFPB People, Hot Issues, Payday Lending, UDAAP

On May 11, 2016, the CFPB sued All American Check Cashing, Mid-State Finance and their President and owner Michael E. Gray. It alleged that the Defendants engaged in abusive, deceptive, and unfair conduct in making certain payday loans, failing to refund overpayments on those loans, and cashing consumers’ checks. The CFPB’s claims are mundane. The… More >

CFPB enforcement lawyer tries to clarify when a state law violation is also a UDAAP

Posted in CFPB Enforcement, UDAAP

On Thursday, May 11, 2016 in Chicago, I moderated the “CFPB Speaks” panel which was the lead-off panel at the sold-out Practicing Law Institute  21st Annual Consumer Financial Services Institute. The CFPB speakers were:  Jeff Ehrlich, Deputy Assistant Director, Office of Enforcement, Paul Mondor, Managing Counsel, Office of Regulations and Chris Young, Senior Counsel and… More >

CFPB announces consent orders with debt collection law firm, two law firm partners, debt buyer

Posted in CFPB Enforcement, Debt Collection

The CFPB announced that it has entered into two consent orders involving debt collection litigation practices. A debt collection law firm and two of its partners are the subject of one consent order and a debt buyer is the subject of the other consent order.  The consent orders recite that the conduct of the law… More >

CFPB lacked authority to issue CID to college accrediting organization, D.C. federal district court rules

Posted in CFPB Enforcement

The D.C. federal district court has ruled 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. ACICS’s petition to modify or set aside the CID was denied by the CFPB on October 8, 2015, and the CFPB thereafter filed a… More >

Ninth Circuit rejects Director Cordray’s recess appointment as defense to CFPB enforcement action; dissenting judge disagrees

Posted in CFPB Enforcement

Since it was filed in a California federal court in July 2012, we have been following CFPB v. Chance Edward Gordon, a case in which the CFPB alleged that an attorney duped consumers by falsely promising loan modifications in exchange for advance fees and, in reality, did little or nothing to help consumers.  The CFPB charged… More >

Constitutionality of CFPB structure at issue in D.C. Circuit oral argument

Posted in CFPB Enforcement, CFPB General

The constitutionality of the CFPB’s structure was front and center at this past Tuesday’s oral argument in PHH Corporation et al. v. CFPB before the U.S. Court of Appeals for the D.C. Circuit.  The case involves PHH’s appeal from Director Cordray’s June 2015 decision  affirming an administrative law judge’s recommended decision that concluded PHH had… More >

Director Cordray defends CFPB positions in appearance before Senate Banking Committee; comments on small business lending and Fintech companies

Posted in Auto Finance, CFPB Enforcement, Fair Credit, Payday Lending, Small Business

Much of Director Cordray’s testimony in his appearance before the Senate Banking Committee yesterday consisted of his predictable defense of various CFPB positions.  While the hearing was much less contentious than last month’s hearing of the House Financial Services Committee at which Director Cordray appeared, the questions raised by Republican Senators focused on many of the… More >

PLI’s “The CFPB Speaks” Panel Discussion

Posted in Arbitration, Auto Finance, CFPB Enforcement, CFPB General, CFPB People, CFPB Rulemaking, Hot Issues

On April 4, at the Practicing Law Institute’s (“PLI”) 21st Annual Consumer Financial Services Institute in Manhattan, Alan Kaplinsky (a co-chair of the institute) moderated a panel entitled “The CFPB Speaks,” where CFPB officials shared their own insights on industry trends on their radar, priorities for the coming years, and views on certain hot-button issues…. More >

CFPB settles with another student debt relief company

Posted in CFPB Enforcement

The CFPB announced it has entered into a consent order with Student Aid Institute, Inc., a student debt relief company, and its chief executive officer.  The order settles charges that the company and CEO violated the Telemarketing Sales Rule, the Consumer Financial Protection Act prohibition of unfair, deceptive or abusive acts or practices, and Regulation… More >

CFPB announces settlement of lawsuit against student loan debt relief company

Posted in CFPB Enforcement, Student Loans

The CFPB announced the filing of a proposed stipulated final judgment and order in its December 2014 lawsuit against Student Loan Processing.US (a fictitious business name of Irvine Web Works, Inc.) and its individual owner.  Filed in a California federal district court, the CFPB’s lawsuit alleged that the defendants violated the Telemarketing Sales Rule (TSR)… More >

Director Cordray acknowledges industry-wide application of consent orders

Posted in CFPB Enforcement, UDAAP

In his prepared remarks to the Consumer Bankers Association yesterday, Director Cordray attempted to defend the CFPB’s “regulation by enforcement” approach that has been widely criticized by industry. Director Cordray’s remarks included the surprising acknowledgment that despite indications by his colleagues to the contrary, the reach of CFPB consent orders is not limited to the… More >