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Category Archives: CFPB Enforcement

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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 >

CFPB settles FDCPA claims against debt collection law firms

Posted in CFPB Enforcement, Debt Collection

The CFPB announced that it has entered into a consent order with two law firms specializing in the collection of medical debts and their president for alleged FDCPA violations.  The consent order also settles allegations that the respondents violated Regulation V (which implements the Fair Credit Reporting Act).  The consent order requires the respondents to… More >

Tenth Circuit ruling on constitutionality of SEC administrative judges: implications for CFPB

Posted in CFPB Enforcement

Just before year-end, the U.S. Court of Appeals for the Tenth Circuit, in Bandimere v. United States Securities and Exchange Commission, set aside an SEC decision finding the petitioner liable for violating various securities law on the grounds that the SEC’s administrative law judge (ALJ)  who conducted the proceeding was unconstitutionally appointed.  The Tenth Circuit held… More >

State AGs seek to intervene in CFPB enforcement action to modify settlement terms

Posted in CFPB Enforcement, State Enforcement

The Attorneys General for the states of Connecticut, Indiana, Kansas, and Vermont recently took the unusual step of filing a joint motion to intervene to modify the settlement terms of a CFPB enforcement action. The motion was filed in the CFPB’s action filed in a New York federal district court in December 2014 against Sprint… More >

PHH replies to CFPB’s opposition to PHH’s motion for leave to file supplemental response

Posted in CFPB Enforcement, Mortgages

PHH has filed a reply to the CFPB’s opposition to PHH’s motion for leave to file a supplemental response to the CFPB’s petition for rehearing en banc.  On December 22, PHH and the United States filed responses to the CFPB’s petition with the D.C. Circuit.  The D.C. Circuit had invited the Solicitor General to file… More >