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Category Archives: CFPB General

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CFPB’s Ombudsman’s Office issues fifth annual report

Posted in CFPB General

The CFPB’s Ombudsman’s Office has issued its fifth annual report covering the Office’s activities during fiscal year 2016 (October 1, 2015 through September 30, 2016).  The role of the Ombudsman’s Office is to assist in the resolution of individual and systemic issues that a depository entity, non-depository entity, or consumer has with the CFPB. The… More >

Central District of California Subjects CFPB Telemarketing Sales Rule Claims to Rule 9(b)’s Heightened Pleading Standards

Posted in CFPB General

In a recent case, the Central District of California held that the CFPB’s claims against a credit repair service under the Telemarketing Sales Rule (“TSR”) must meet Federal Rule of Civil Procedure 9(b)’s heightened pleading requirement. CFPB v. Prime Marketing Holdings, LLC, CV 16-07111-BRO, Dkt. No. 32 (C.D. Cal. Nov. 15, 2016). Applicable to cases… More >

How does the PHH case impact presidential authority to remove Director Cordray?

Posted in CFPB General

A blog post entitled “The President’s Removal Power and the PHH Litigation” by Aditya Bamzai, an Associate Professor of Law at the University of Virginia School of Law, challenges the assumption of many observers that the new President would have to let the PHH litigation run its course before acting to remove Director Cordray. As we… More >

CFPB November 2016 complaint report highlights other financial services complaints, complaints from Oklahoma consumers

Posted in CFPB General

The CFPB has issued its November 2016 complaint report which highlights complaints about “other financial services,” a category that includes debt settlement, credit repair, check cashing, and money orders.  The report also highlights complaints from consumers in Oklahoma and the Oklahoma City metro area. General findings include the following: As of November 1, 2016, the CFPB… More >

Petition for writ of certiorari filed in case asserting recess appointment defense to CFPB enforcement action

Posted in CFPB General

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… More >

The CFPB’s Latest LEP Guidance: A Step in the Right Direction

Posted in CFPB General

Serving consumers with limited English proficiency (“LEP Consumers”) is one of the most challenging issues facing financial institutions today. The logistical challenges of ensuring accurate translations, dealing with dialects, and having non-English compliance and monitoring resources have been coupled with a great deal of uncertainty about regulatory risks from serving LEP consumers. In the past,… More >

CFPB Consumer Advisory Board to meet on Oct. 27

Posted in CFPB General

The CFPB has published a notice in the Federal Register announcing that a meeting of its Consumer Advisory Board (CAB) will be held on October 27, 2016. The notice indicates that the CAB will discuss “student loan servicing issues and trends and themes in debt collection.”  Presumably, the student loan servicing issues will include servicers’… More >

CFPB Publishes Updated Versions of Small Entity Compliance Guide and Guide To Forms

Posted in CFPB General, Mortgages, TILA / RESPA

The CFPB has posted on its TILA-RESPA implementation webpage updated versions of its Small Entity Compliance Guide and Guide to Loan Estimate and Closing Disclosure Forms.  The updates focus on various guidance provided in recent TILA/RESPA Integrated Disclosure (TRID) rule webinars provided by the Bureau.  We have previously addressed the content of the March 1,… More >

Breaking News: In PHH v. CFPB, D.C. Circuit Holds that CFPB Structure is Unconstitutional

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

The D.C. Circuit issued its long-awaited decision in PHH Corporation v. CFPB. In reversing the decision of Consumer Financial Protection Bureau (CFPB) Director Cordray to impose an enhanced penalty of $109 million on PHH for its use of a captive (wholly-owned) mortgage reinsurer, the court made several landmark rulings. First, it held that the CFPB’s… More >

Trade groups oppose CFPB’s proposed expansion of consumer complaint feedback

Posted in CFPB General

The Consumer Bankers Association and the American Bankers Association have submitted a comment letter setting forth their opposition to the CFPB’s proposed addition of a survey to the current complaint intake form. In a notice published in the Federal Register in August 2016, the CFPB proposed to add a survey that consumers may choose to respond… More >

CFPB and FFIEC Release Updated MLA Exam Procedures; NCUA Will Accept Reasonable and Good Faith Efforts to Comply

Posted in CFPB General

On September 30, the CFPB released updated examination procedures for Military Lending Act (MLA) compliance. Compliance with the final rule amending the MLA, issued by the Department of Defense (DoD) in July 2015, was required for creditors of most consumer credit products as of this past Monday, October 3. The final rule applies to all… More >

CFPB Management Challenges Include Information Security

Posted in CFPB General, Cybersecurity

On September 29th, the Office of the Inspector General (OIG) that oversees the CFPB released a memorandum detailing the major management challenges facing the CFPB.  The memo identified four areas of improvement that, unless addressed, would otherwise hamper the CFPB’s ability to accomplish its strategic objectives: Ensuring an Effective Information Security Program Ensuring Comprehensive Policies… More >

CFPB participates in FTC workshop on disclosure

Posted in CFPB General

The FTC recently held a workshop, “Putting Disclosures to the Test,” to explore the question of what should be done to make disclosures effective.  The workshop included reports on numerous studies related to consumer understanding of disclosures, and the efficacy of different methods and timing of consumer disclosures. Among the panelists at the workshop was… More >

FTC staff paper on lead generation likely to inform CFPB

Posted in CFPB General, Hot Issues, Lead Generation

Almost a year ago, on October 30, 2015, the FTC conducted a workshop on lead generation entitled to “Follow the Lead.” We published a three-part series on the workshop highlighting the key takeaways. On September 15, 2016, the FTC published its own staff paper discussing the workshop and providing its own analysis. The paper appears… More >

House Committee approves Dodd-Frank replacement bill

Posted in CFPB General

By a vote of 30-26 earlier this week, the House Financial Services Committee approved the “The Financial CHOICE Act of 2016” (H.R. 5983), the bill released in July 2016 by Committee Chairman Jeb Hensarling to replace the Dodd-Frank Act.  All Democrats on the Committee voted against the bill as did one Republican member.  No amendments… More >

CFPB Community Bank Advisory Council to meet Sept. 29

Posted in CFPB General

The CFPB has published a notice in the Federal Register announcing that a meeting of its Community Bank Advisory Council (CBAC) will be held on September 29, 2016. The notice indicates that the CBAC will discuss youth financial capability and debt collection.  Presumably, the CFPB will discuss the report it issued last week on achieving… More >

CBA President lists “Five Things the CFPB Should Do To Be More Widely Respected”

Posted in CFPB General

Richard Hunt, the President and CEO of the Consumer Bankers Association, recently published on his blog a list of “Five Things the CFPB Should Do To Be More Widely Respected.”   Mr. Hunt’s list consists of the following: Appoint a Permanent Deputy Director – The CFPB has still not permanently filled the position of Deputy Director… More >

CFPB to Participate in FTC Workshop on Consumer Disclosures

Posted in CFPB General, Financial Literacy, FTC, Privacy, Research, UDAAP

On September 15th, the FTC will hold a workshop to examine the testing and evaluation of disclosures that companies make to consumers about advertising claims, privacy practices, and other information.  The FTC’s workshop will explore how to test the effectiveness of these disclosures to ensure consumers notice them, understand them, and can use them in… More >

CFPB announces new appointments to advisory groups

Posted in CFPB General

The CFPB has announced the appointment of new members to its Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council.  In January 2016, the CFPB published a notice in the Federal Register soliciting applications from individuals interested in becoming members. According to the CFPB, the new members “include experts… More >