Tag Archives: CFPB

CFPB Releases New Prototype Overdraft Disclosures

On August 4, 2017, the Consumer Financial Protection Bureau released four prototype disclosures for the overdraft opt-in required under Regulation E that it is currently testing. The Bureau is considering the prototypes as replacements for the Model Form A-9 opt-in disclosure, which was adopted when the Regulation E overdraft rule was promulgated by the Federal … Continue Reading

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 Identifies Regulatory Action Plans in Spring 2017 Update to the Unified Agenda of Federal Regulatory and Deregulatory Actions

On July 20, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced the release of its Spring 2017 semiannual update of its rulemaking agenda, which is included in the Unified Agenda of Federal Regulatory and Deregulatory Actions (the “Unified Agenda”), published by the Office of Information and Regulatory Affairs (“OIRA”). Submissions for the Spring 2017 update to … Continue Reading

Public Support for the CFPB and its Arbitration Rule — Is The Evidence Clear?

A recent poll — conducted by Lake Research Partners and Chesapeake Beach Consulting on behalf of Americans for Financial Reform and the Center for Responsible Lending — appears to show substantial public support for the Consumer Financial Protection Bureau (CFPB) and a number of its recent regulatory initiatives.  The published poll results reflect, among other things, … Continue Reading

CFPB Releases “Special Edition” of Monthly Complaint Report

On June 27, 2017, the CFPB released its monthly complaint report.  As opposed to its typical monthly complaint reports, which highlight broad trends in complaints and focus on specific products and services as well as regions, this month’s “special edition” report provides overall statistics on complaints the CFPB has received since it began accepting complaints in July 2011.  … 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

The CFPB Finalizes Amendments to Federal Mortgage Disclosure Requirements under Regulation Z (the “Know Before You Owe” Rule)

On July 7, 2017, the Consumer Financial Protection Agency (“CFPB”) announced final amendments to its “Know Before You Owe” (“KBYO”) mortgage disclosure rule to memorialize informal guidance regarding the rule, clarify certain aspects of the rule, and provide implementation guidance to industry. The CFPB also issued a proposed rule regarding when a creditor may compare … 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

CFPB Reports and Acts on Complaints about Student Loan Servicer Handling of Public Service Loan Forgiveness Program

On June 22, 2017, the CFPB announced a series of actions based on consumer complaints it has received about the manner in which student loan servicers handle the Public Service Loan Forgiveness (“PSLF”) program. PSLF is a federal student loan forgiveness program that provides borrowers in public service jobs, such as teachers, nurses, first responders, … Continue Reading

Treasury Issues Regulatory Reform Recommendations for Banking Industry

On June 12, 2017, the U.S. Department of the Treasury released the first of a series of reports recommending regulatory reforms to the financial system consistent with President Trump’s Core Principles for Regulating the United States Financial System.  Treasury’s first report focuses on the regulatory framework governing the depository system.  Notably, a substantial portion of … Continue Reading

CFPB Proposes Additional Changes to the Prepaid Rule

On June 15, 2017, the CFPB announced that it is proposing for public comment certain modifications to its prepaid rule. The rule, which was issued in final form in October 2016, limits consumers’ losses for lost and stolen prepaid cards, requires financial institutions to investigate errors, and includes enhanced disclosure provisions. The final rule unexpectedly … 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

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

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

CFPB Issues its First Fine for a Violation of a Consent Order

On April 26, 2017, the CFPB announced it had entered into a consent order (the “2017 Order”) with Security National Automotive Company, LLC (“SNAAC”).  The consent order, for the first time, imposes a $1.25 million fine for the violation of a prior CFPB consent order.  In October 2015, the CFPB issued a consent order against … Continue Reading

CFPB Monthly Complaint Report Highlights Consumer Complaints Regarding Student Loans

On April 25, 2017, the Consumer Financial Protection Bureau (“CFPB”) released its monthly complaint report.  For the month of March 2017, the products and services generating the most consumer complaints were debt collection, credit reporting, and mortgages, collectively representing approximately 65% of all complaints received.  This continues the trend from February 2017, when the same … Continue Reading

D.C. Circuit Panel Rules that CFPB Civil Investigative Demand is Overly Broad and Unenforceable

On April 21, 2017, a panel of the U.S. Court of Appeals for the District of Columbia Circuit ruled that a civil investigative demand (“CID”) issued by the Consumer Financial Protection Bureau against the Accrediting Council for Independent Colleges and Schools (“ACICS”) was overly broad and unenforceable.  The D.C. Circuit’s decision sets an important precedent … Continue Reading

CFPB Sues Ocwen for Alleged Violations of Consumer Financial Laws

On April 20, 2017, the CFPB sued nonbank mortgage loan servicer Ocwen Financial Corporation and its subsidiaries (collectively, “Ocwen”) in the U.S. District Court for the Southern District of Florida. The Bureau’s complaint alleges violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Fair Debt Collection Practices Act, the Real Estate Settlement … Continue Reading

CFPB Sues Debt Collection Law Firm for Allegedly Misleading Communications

On April 17, 2017, the Consumer Financial Protection Bureau filed suit in the Northern District of Ohio against Weltman, Weinberg & Reis Co., L.P.A. (“Weltman”), a debt collection law firm.  The CFPB’s complaint alleges that the firm misrepresented the level of attorney involvement in its collection efforts in violation of the Fair Debt Collection Practices … Continue Reading

CFPB Announces Fair Lending Priorities in Fifth Annual Fair Lending Report

On April 15, 2017, the CFPB issued its fifth annual Fair Lending Report (“Report”). The Report describes the CFPB’s 2016 fair lending supervisory, enforcement, and rulemaking activities, interagency collaboration, and outreach to stakeholders. Most importantly, the Report outlines the CFPB’s fair lending priorities for 2017, indicating that the CFPB will increase its focus on redlining, … Continue Reading

CFPB Proposes Revisions to Final Rules under Home Mortgage Disclosure Act (Regulation C)

On April 13, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a Notice of Proposed Rule Making (the “NPRM” or “proposal”) to amend the Regulation C final rule issued by the CFPB in October 2015 (“Final Rule”).  Regulation C implements the Home Mortgage Disclosure Act (“HMDA”), 12 U.S.C. § 2801 et seq.  The Final Rule … Continue Reading

CFPB Director Richard Cordray Spars with Republicans at House Financial Services Committee Hearing

On April 5, 2017, the House Financial Services Committee held a hearing at which Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray was the sole witness.  During the five hours of the hearing, a wide partisan split over the performance of the CFPB  and Director Cordray  was on full display.  Throughout, Republicans characterized the CFPB … Continue Reading
LexBlog