It took about an hour for someone on the Senate Finance Committee during its hearing today to mention the “elephant in the room” — namely, the fact that the CFPB is only allowed under Dodd-Frank to be funded out of “combined earnings of the Federal Reserve System” and that there has been no combined earnings of the Federal Reserve System beginning in September, 2022.… Continue Reading

I am pleased to report that Ballard Spahr’s Consumer Financial Services Group was once again ranked nationally by Chambers USA: America’s Leading Lawyers for Business in all three national consumer finance categories: Compliance, Enforcement and Investigations, and Litigation.  Chambers has consistently ranked our Consumer Financial Services Group ever since it began ranking firms in the U.S. … Continue Reading

Earlier today, I published a blog post highlighting the flaws in the arguments made by Professor Jeff Sovern in his recent article in the Consumer Law & Policy Blog for why the Fed, notwithstanding its losses, can still lawfully fund the CFPB.  Now, I want to turn to the flaws in Professor Adam Levitin’s blog post published on May 30 in Credit Slips that takes the same position as Jeff.… Continue Reading

If this blog post gives our readers a feeling of déjà vu, there’s a good reason—the latest developments in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule) are a rerun of earlier developments in the case.  In response to an emergency petition for writ of mandamus and administrative stay of transfer filed by the plaintiffs in the lawsuit, the Fifth Circuit stayed the latest district court order transferring the case once again to D.D.C. … Continue Reading

Although neither the CFPB, the Federal Reserve Board, nor the Treasury has responded to Professor Emeritus Hal Scott’s op-ed on May 20 in the Wall Street Journal, my interview with Professor Scott on our Consumer Finance Monitor Podcast episode of June 6, Alex Pollock’s blog post on May 21 on The Federalist Society website, or my blog post published on this blog on May 22, a few consumer advocates have responded. … Continue Reading

Last month, just a few days before the preliminary injunction hearing, Colorado’s attorney general filed a Motion to Dismiss the Complaint filed in federal district court in Colorado by three financial services industry trade groups challenging Colorado’s statute purporting to opt out (slated to take effect July 1, 2024) of a federal law that permits FDIC-insured state-chartered banks to “export” interest rates on interstate loans. … Continue Reading

Last week, the CFPB issued its Semi-Annual Report to Congress covering the period beginning April 1, 2023 and ending September 30, 2023.

On June 12, 2024, CFPB Director Chopra is scheduled to appear before the Senate Banking Committee for a hearing, “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress.”  … Continue Reading

On June 4, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued a Consumer Financial Protection Circular 2024-03 (“Circular”) warning that the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services may violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act (“CFPA”).… Continue Reading

On May 30, 2024, in a unanimous decision, the Supreme Court reversed Cantero v. Bank of America, N.A., and remanded it back to the Second Circuit and instructed the appellate court to analyze whether New York’s law requiring interest to be paid on mortgage escrow accounts is preempted under the Dodd-Frank Act by applying the Barnett Bank standard.… Continue Reading

In a replay of earlier events, in response to an emergency petition for writ of mandamus and administrative stay of transfer filed by the plaintiffs in the lawsuit challenging the legality of the CFPB’s credit card late fee rule, the Fifth Circuit Court of Appeals on May 29, stayed a District Court order that would have transferred the case to the District of Columbia.… Continue Reading