Archives: Enforcement

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CFPB Issues Request for Information on Enforcement Processes

On February 7, 2018, the Consumer Financial Protection Bureau issued a Request for Information (“RFI”) seeking comments and information from the public regarding the Bureau’s enforcement processes. The RFI seeks public input on “how best to achieve meaningful burden reduction or other improvement” to the Bureau’s enforcement processes “while continuing to meet the Bureau’s statutory … Continue Reading

CFPB’s Fair Lending Office Stripped of Supervision and Enforcement Powers

The Consumer Financial Protection Bureau (the “Bureau” or “CFPB”) has made its first major organizational change under the leadership of Acting Director Mick Mulvaney. The Bureau moved the Office of Fair Lending and Equal Opportunity (the “Fair Lending Office”) inside the Office of the Director and stripped it of responsibility for enforcement and day-to-day oversight … Continue Reading

CFPB Issues Request for Information on Administrative Adjudications

On January 31, 2018, the Consumer Financial Protection Bureau (the “Bureau” or “CFPB”) issued a Request for Information (“RFI”) seeking comments and information from the public regarding the Bureau’s use of administrative adjudications.  The Bureau intends to use the comments received to inform deliberations as to whether and how to revise and update the Bureau’s … Continue Reading

CFPB Issues Request For Information on Civil Investigative Demands

On January 24, 2018, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) published a Request for Information (“RFI”) on its civil investigative demand (“CID”) process. This is the first in a series of planned RFIs on the Bureau’s activities. In the RFI, the CFPB recognizes that “responding to a CID can impose burdens on … Continue Reading

CFPB Dismisses Suit Against Tribal Lenders

In a surprising turn of events, the CFPB on Thursday dismissed its ongoing litigation against Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc.  The Bureau’s case was predicated on a controversial theory that turned alleged violations of state law into alleged violations of the Dodd-Frank Act, … Continue Reading

CFPB Requests Public Comment on Bureau Activities

The Consumer Financial Protection Bureau announced today a planned series of Requests for Information on the Bureau’s activities and how those activities impact consumers and covered entities. According to the press release, the goal of issuing these Requests for Information is to “ensure the Bureau is fulfilling its proper and appropriate functions to best protect … Continue Reading

CFPB Acting Director Institutes Suspension of Data Collection, Reveals Plans to Bring in More Political Appointees, and Announces Review of Pending Enforcement Matters

Acting CFPB Director Mick Mulvaney made three important announcements this week.  First, on December 4, he announced a suspension of the agency’s collection of consumers’ personal information due to concerns about cybersecurity. Mulvaney, who said he is taking data security “very, very seriously” according to The Wall Street Journal report (paywall), explained that the Bureau … Continue Reading

UK Regulator Extracts Compensation from Fund Operator and Parent

On November 10, the FCA issued a Final Notice relating that Capita Financial Managers Limited (“CFM”) had agreed to pay investors £66m over the collapse of a circa £110m unregulated collective investment scheme called the Connaught Income fund. The decision has garnered interest because the FCA faced political pressure to speed up its investigation into … Continue Reading

Kenneth Blanco Named FinCEN Director

According to a press release issued by the U.S. Department of the Treasury earlier today, Kenneth A. Blanco has been named Director of the Financial Crimes Enforcement Network (FinCEN).  Mr. Blanco will join FinCEN after serving as the Acting Assistant Attorney General of the DOJ Criminal Division.  He has significant expertise in money laundering and terrorist … Continue Reading

CFPB Head of Enforcement to Step Down

On October 13, 2017, the Consumer Financial Protection Bureau announced the upcoming departure of its enforcement chief, Assistant Director of Enforcement Anthony “Tony” Alexis. Assistant Director Alexis has been with the CFPB since 2012, and in a statement (paywall) to The Wall Street Journal, CFPB Director Richard Cordray described him as “my strong right arm.” … Continue Reading

OCC Issues Guidance on CRA Ratings Downgrades for Consumer Compliance Violations

On October 12, 2017, the Office of the Comptroller of the Currency (“OCC”) issued a Policies and Procedures Manual (“PPM”) outlining the framework to be used by examiners to determine whether an OCC-regulated bank should receive a downgrade of its Community Reinvestment Act (“CRA”) performance rating based on evidence of discriminatory or other illegal credit … Continue Reading

SEC Brings Enforcement Action Against Two Companies Related to Initial Coin Offerings

On September 29, 2017, the U.S. Securities and Exchange Commission filed a complaint in federal court against REcoin Group Foundation, LLC (“REcoin”); DRC World, Inc., also known as Diamond Reserve Club (“DRC”); and their principal, Maksim Zaslavskiy. The complaint alleges false and misleading statements and violations of securities laws in connection with initial coin offerings … Continue Reading

UK Financial Conduct Authority Makes First Market Investigation Reference

On September 14, the UK’s Financial Conduct Authority (FCA) confirmed that it was making a Market Investigation Reference (MIR) to the Competition and Markets Authority (CMA) in relation to services for investment consultancy and fiduciary management.  This is the first time the FCA, which has significant numbers of competition lawyers within its ranks, has exercised … Continue Reading

Federal Court Takes Expansive View of CFPB Statute of Limitations, Limits Restitution

On September 8, 2017, the U.S. District Court for the Northern District of California entered an order granting a civil penalty and injunctive relief in a CFPB case against mortgage loan servicer Nationwide Biweekly Administration, Inc. (“Nationwide”), its wholly-owned subsidiary Loan Payment Administration, and the principal of Nationwide. In its suit, the CFPB alleged that the … Continue Reading

Federal Court Dismisses Part of CFPB’s Case Against TCF National Bank

On September 8, 2017, the U.S. District Court for the District of Minnesota entered an order granting in part and denying in part a motion to dismiss claims brought by the CFPB against TCF National Bank (“TCF”) for alleged wrongdoing in connection with offering overdraft services. Brought in January, the case centered on allegations that TCF, … Continue Reading

CFTC Enforcement and Regulatory Report: 2017 Activity and Outlook

The U.S. Commodity Futures Trading Commission (the “CFTC” or the “Commission”) has been very active since the beginning of this year, despite the change in Presidential Administration, the lack (until recently) of appointed Commissioners, and the turnover of leadership at both the Commission and Division level.  Notably, the Commission has announced over 20 enforcement actions, … Continue Reading

The OCC Rejects Operation Chokepoint in Letter to Chairman Hensarling

On August 21, 2017, Keith Noreika, the Acting Comptroller of the Currency, sent a letter to Jeb Hensarling, the Chairman of the House Financial Services Committee, stating that the Office of the Comptroller of the Currency (“OCC”) is not, and never was, a part of Operation Chokepoint, and that Operation Chokepoint is not the policy … Continue Reading

CFPB Obtains $2 Million Settlement Against Credit Repair Companies

On June 27, 2017, the CFPB announced it had filed complaints in the U.S. District Court for the Central District of California against credit repair companies Prime Credit, LLC, IMC Capital, LLC, Commercial Credit Consultants (d/b/a Accurise), Park View Law, Inc., and individuals who are principals of these companies, Blake Johnson, Eric Schlegel, and Arthur … 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

Texas District Court Rules that Notification of Purpose in CFPB CID Provides Fair Notice

On January 5, 2017, the Consumer Financial Protection Bureau (the “CFPB”) issued a civil investigative demand (“CID”) to The Source for Public Data, L.P. (“Public Data”), a company that collects personal information about consumers. The CID requested information to determine whether consumer reporting agencies, persons using consumer reports, or other persons have engaged or are … Continue Reading

CFPB Enters Consent Order with Mortgage Servicer Fay Servicing

On June 7, 2017, the Consumer Financial Protection Bureau announced entry of a consent order against mortgage servicer Fay Servicing, LLC for alleged violations of the Bureau’s 2014 mortgage servicing rules. The CFPB alleged that Fay Servicing failed to provide timely notices to delinquent borrowers acknowledging that their loss mitigation applications were complete or incomplete, … Continue Reading

CFTC Acting Chairman Makes Budget Request

On June 8, 2017, Acting Chair J. Christopher Giancarlo of the Commodity Futures Trading Commission (“CFTC”) made his request for the CFTC’s budget for fiscal year 2018 (“FY 2018”) to the House Appropriations Committee Subcommittee on Agriculture, Rural Development and Related Agencies (“Subcommittee”).  Acting Chair Giancarlo is seeking an increase in the CFTC’s budget from … Continue Reading

CFTC Adopts Amendments to Whistleblower Rule, Asserts Anti-Retaliation Authority

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the finalization of amendments to its whistleblower rules.  The most important change is the CFTC’s assertion of the authority to enforce Section 23(h)(1) of the Commodity Exchange Act (“CEA”), which prohibits retaliation against whistleblowers.  When it originally promulgated its whistleblower rules in 2011, the … Continue Reading

D.C. Circuit Holds Oral Argument in Rehearing of PHH v. CFPB

On May 24, 2017, the U.S. Court of Appeals for the D.C. Circuit held en banc oral argument in the rehearing of PHH Corp., et al. v. Consumer Financial Protection Bureau (“PHH”).  The lively oral argument extended well beyond the time originally allotted by the Court, as lawyers for PHH, the Department of Justice, and … Continue Reading
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