Jamie Heine

Jamie Heine

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CFPB Special Monthly Complaint Report Highlights Companies’ Reponses to Consumer Complaints

On August 1, 2017, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) released a “special edition” of its monthly complaint report. Rather than focus on particular financial products or markets like the Bureau’s standard monthly complaint reports, the special edition highlights how companies have responded to consumer complaints and consumers’ views of those responses and … Continue Reading

CFPB Seeks Contempt Order against Investigation Target

On June 21, 2017, a federal district court judge referred to a magistrate the Consumer Financial Protection Bureau’s (“CFPB”) first attempt to obtain a contempt finding against a subject who allegedly failed to comply with a civil investigative demand (“CID”). The matter arrived in district court in November 2016, when the CFPB first sought judicial … Continue Reading

FDIC Settles Unfair and Deceptive Practices Investigation with Bank and Institution-Affiliated Parties

On May 11, 2017, the Federal Deposit Insurance Corporation (“FDIC”) announced settlements with Bank of Lake Mills and two of its institution-affiliated parties, Freedom Stores, Inc. and Military Credit Services, LLC.  The settlements require the companies to pay restitution totaling $3 million to past and present borrowers who were harmed, impose civil monetary penalties totaling … Continue Reading

CFPB Issues Request for Information on the Small Business Lending Market

On May 10, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a request for information on small business lending. In a press release accompanying the request, the CFPB stated that its goal is to “learn more about how small businesses engage with financial institutions, with a particular focus on women-owned and minority-owned small business,” in … Continue Reading

Senate Banking Committee Holds Hearing on The Role of Financial Companies in Fostering Economic Growth

On March 28, 2017, the Senate Banking Committee held a hearing entitled “Fostering Economic Growth: The Role of Financial Companies.” Sen. Mike Crapo (R-Idaho), the Chairman of the Committee, delivered opening remarks emphasizing the contribution of financial companies to the economy. He noted that smaller financial companies are underperforming compared to larger companies in part … Continue Reading

CFPB Monthly Complaint Report Highlights Complaints about Credit Cards

On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released its monthly complaint report. For the month of February 2017, the products and services generating the most complaints were debt collection, credit reporting, and mortgages, collectively representing over 60% of all complaints received. This is a shift over January, where the three most complained … Continue Reading

Europe and American Financial Regulatory Outlooks Could Diverge

As reported by Law360, European Central Bank (“ECB”) Executive Board Member and Supervisory Board Vice-Chair Sabine Lautenschläger suggested in a February 19 interview that the ECB intends to keep “European [banking] institutions on a tighter rein” than the United States appears to intend to do with domestic banks. Ms. Lautenschläger noted “it is imperative that … Continue Reading

Regulators Release Guidance for Compliance with Variation Margin Requirements for Non-Cleared Swaps

Today, both the Federal Reserve and the Office of the Comptroller of the Currency (“OCC”) published guidance addressing the agencies’ “expectations for compliance” with minimum variation margin requirements for non-cleared swaps that become effective March 1, 2017. The guidance is relevant to any swap dealer registered with the Commodity Futures Trading Commission (“CFTC”) for which … Continue Reading

Congress Attempts to Counsel Trump Concerning Removal of CFPB Director Cordray, While PHH Petition for Rehearing Remains Undecided

Today Senators Chuck Schumer (D-NY), Sherrod Brown (D-OH), Elizabeth Warren (D-MA) and others voiced their opposition to any attempt by President-elect Donald Trump to oust Richard Cordray, the current Director of the Consumer Financial Protection Bureau (“CFPB”), before Cordray’s term ends in July 2018. They also sent a letter to Cordray outlining and praising his … Continue Reading

Senate Democrats Question OCC’s Proposed FinTech Charters

As discussed in our recent client alert, in a December 2, 2016 whitepaper, the Office of the Comptroller of the Currency (“OCC”) outlined its authority under the National Bank Act to grant special-purpose charters on a case-by-case basis to financial technology (“fintech”) companies that provide services equivalent to certain traditional banking activities. In the paper, … Continue Reading

Congress and Advocacy Organizations Weigh in on PHH Case, SG to Follow

As we noted in a recent post, the CFPB has sought reconsideration of the D.C. Circuit Court of Appeals’ decision in PHH Corp., et al. v. Consumer Financial Protection Bureau. In that decision, the D.C. Circuit ruled unconstitutional the provision of the Dodd-Frank Act establishing that the CFPB Director could be fired only “for cause,” … Continue Reading

New CFPB Compliance Bulletin Solidifies the CFPB’s Skepticism of Sales Incentive Practices

The CFPB issued a compliance bulletin on November 28, 2016 warning supervised companies about the potential compliance risks of production and sales incentives provided to employees and service providers. Although the CFPB “invite[d] further dialogue and discussion,” the bulletin highlights incentive practices as a continued area of scrutiny for the CFPB. In recent testimony to … Continue Reading

FTC Obtains Preliminary Injunction Against Companies For Allegedly Impersonating Government Agencies

On September 29, 2016, the FTC obtained a preliminary injunction against three companies and their principals for allegedly impersonating government transportation authorities (such as the U.S. Department of Transportation) to obtain payments for federal and state motor carrier registrations and required reports from commercial truckers and trucking companies.  The complaint in FTC v. DOTAuthority.com, Inc. … Continue Reading

New Senior Officials Take The Reins At The CFPB

On October 13, 2016, the CFPB announced the names of three new individuals who will be filling senior leadership positions at the CFPB.  As with the CFPB’s announcement of leadership positions in July, all three individuals currently serve in the CFPB. Stacy Canan will take over as the CFPB’s Assistant Director for the Office of … Continue Reading

The PHH Decision May Restrict CFPB Rule-Making

House Financial Services Committee Chairman Jeb Hensarling (R-TX) wrote a letter yesterday to CFPB Director Richard Cordray arguing that the D.C. Circuit’s recent opinion in PHH Corp. et al. v. CFPB requires the CFPB to abide by Executive Orders issued by the President.  As the letter notes, the PHH decision characterized the Bureau “as an … Continue Reading

Comments Due Soon on CFPB’s Proposed Amendments Relating to Disclosure of Records and Information

The October 24 deadline for commenting on the CFPB’s Proposed Amendments Relating to the Disclosure of Records and Information, CFPB-2016-0039, is fast approaching.  The current rule is 12 C.F.R. Part 1070.  The proposed amendments contain several troubling changes, the most notable of which are outlined below.  Those regulated by the CFPB should not let these … Continue Reading
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