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Tag Archives: CFPB

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 >

CFPB’s proposal for collection of decedent debt: a misguided approach (Part II)

Posted in Debt Collection

In my blog post yesterday, I shared my concerns regarding the potential consequences of the CFPB’s proposed 30-day hold on all collection contacts after the date of a consumer’s death.  A 30-day holding period in which collectors are prohibited from contacting a surviving spouse about a debt would, standing alone, have little impact on the way that decedent… More >

CFPB report on community networks to combat elder financial abuse and resource guide highlight role of financial institutions

Posted in Elder Financial Abuse

The CFPB has issued a new elder financial abuse report, “Report and Recommendations: Fighting Elder Financial Exploitation through Community Networks,” and a related resource guide, “A Resource Guide for Elder Financial Exploitation Prevention and Response Networks.” While the CFPB found that hundreds of counties around the country have developed strong, collaborative elder financial exploitation prevention and… More >

CFPB proposes rule expanding disclosure of confidential supervisory information to state AGs

Posted in CFPB Supervision

Without an announcement, the CFPB has proposed a rule that would expand its discretion to share confidential supervisory information (CSI) with state attorneys general and other agencies that do not have supervisory authority over companies. The proposed rule, published yesterday in the Federal Register, would amend the CFPB’s information disclosure rules under 12 CFR 1070.43 to:… More >

CFPB’s proposal for collection of decedent debt: a misguided approach (Part I)

Posted in Debt Collection

This blog post is the first of two on the proposals being considered by the CFPB regarding the collection of decedent debt.  In tomorrow’s blog post, I will share my thoughts on the CFPB’s proposal to prohibit debt collector contact with informal representatives. Some background.  The CFPB has been sending signals for quite some time that… More >

Student loan complaint update highlights IDR plan application issues

Posted in Student Loans

The CFPB’s Student Loan Ombudsman has released a new “Mid-year update on student loan complaints” that highlights issues related to income-driven repayment plan (IDR) application issues. The update covers complaints submitted from October 1, 2015 through May 31, 2016.  During that period, the CFPB handled approximately 3,500 private student loan complaints and approximately 1,500 debt… 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 >

Trade groups comment on CFPB arbitration proposal

Posted in Arbitration

The American Bankers Association, the Consumer Bankers Association and The Financial Services Roundtable (Associations) have filed a joint letter commenting on the CFPB’s proposed rule regulating consumer arbitration agreements in financial services contracts. Ballard Spahr served as counsel to the Associations in preparing the comment letter.  The firm also served as counsel to the Associations… 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 >

Director Cordray responds to letter from Senators seeking tailored rulemaking for community banks and credit unions

Posted in CFPB Rulemaking

Last month, a bipartisan group of 70 Senators were signatories to a letter sent to Director Cordray urging the CFPB to “carefully tailor its regulations to match the unique nature of community banks and credit unions.”  In their letter, the Senators referenced Dodd Frank Section 1022(b)(3)(A) which allows the CFPB to create exemptions from its… More >

Pew’s issue brief in support of the CFPB’s proposed arbitration rule: a flawed presentation

Posted in Arbitration

The Pew Charitable Trusts has released an issue brief, “Consumers Want the Right to Resolve Bank Disputes in Court,” in which it urges the CFPB to “expeditiously finalize” its proposed arbitration rule.  The CFPB’s proposal would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides… More >

GAO issues report on CFPB SBREFA panels

Posted in CFPB Rulemaking

The Government Accountability Office has issued a report on the CFPB’s use of Small Business Regulatory Enforcement Fairness Act (SBREFA) panels in its rulemaking process.  The report, “Observations from Small Business Review Panels,” addresses the extent to which the CFPB solicited, considered, and incorporated small entity inputs into rulemakings, and the views of small entity… More >

House defeats amendment to 2017 appropriations bill striking requirements for CFPB arbitration rule

Posted in Arbitration

By a vote of 236-181, the House of Representatives rejected an amendment offered by two Democratic Congressman to H.R. 5485, the Financial Services and General Government Appropriations Act, which covers appropriations for the fiscal year ending September 30, 2017.  (The bill was approved by the full House last month by a vote of 239-185.)  The… More >

CFPB revises methodology statement for calculating average prime offer rates

Posted in Mortgages

The CFPB has published a notice in the Federal Register announcing that it has revised its methodology statement for calculating the average prime offer rates (APORs) under Regulations C and Z. Regulation C requires covered financial institutions to report, for certain transactions, the difference between a loan’s annual percentage rate (APR) and the APOR for… 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 >

CFPB solicits information on registration system for nonbanks

Posted in CFPB General

In a Request for Information (RFI) posted on the Federal Business Opportunity website last month, the CFPB solicited information from vendors so the CFPB can “better understand current, state-of-the-art capabilities and strategies to aid its consideration on whether to propose a registration system for nonbank financial institutions.”  Pursuant to Dodd-Frank Section 1022, the CFPB is… More >

Fed to host conference on financial innovation

Posted in Marketplace Lending

While the CFPB has indicated it will be monitoring FinTech innovations, it has not yet held a public event devoted to FinTech or financial innovation.  Both the FTC and OCC have already held such events this year and now the Federal Reserve’s Board of Governors has announced that it will be hosting a research and… More >

CFPB issues final rule amending mortgage servicing regulations

Posted in CFPB General, CFPB Rulemaking

The CFPB issued its final rule amending the mortgage servicing rules under Regulations X and Z.  The proposal for these amendments was issued in November 2014.  The amended provisions cover a wide range of topics, including the following: Tailored periodic statements and early intervention notices for borrowers in bankruptcy; Additional procedures for communicating with, and… More >

Democratic lawmakers urge adoption of CFPB arbitration proposal

Posted in Arbitration

A total of 102 Democratic lawmakers, consisting of 37 Democratic Senators joined by Independent Senator Bernie Sanders and 65 House members, have signed on to letters sent to Director Cordray expressing support for the CFPB’s proposed arbitration rule.  The proposal would prohibit covered providers of certain consumer financial products and services from using an agreement with a… More >

CFPB issues 2016 Plain Writing Act Compliance Report

Posted in CFPB General

The CFPB has issued its 2016 Plain Writing Act Compliance Report.  Under the PWA, federal “executive agencies,” including the CFPB, are required to use plain language in documents that: are necessary for obtaining information about a federal government benefit or service or filing taxes; provide information about a federal government benefit or service; or explain… 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 >