Judge Randy Crane (S.D. Tex) ruled on August 26, 2024 that the CFPB did not exceed its authority under Dodd Frank when it issued its final Section 1071 small business lending rule. The court also rejected other Administrative Procedure Act (APA) challenges to the rule. However, the court did not issue a final judgment as, at that time, the court still had to rule on the two motions filed by certain plaintiff-intervenors: first, to amend their complaint to add a claim based on the illegality of the CFPB being funded by the Federal Reserve Board, when since September, 2022, “the combined earnings of the Federal Reserve System” has been negative and second, for judgment on the pleadings.… Continue Reading
Alan S. Kaplinsky
CFPB wins default judgment in auto dealership complaint, but federal judge rejects bureau assessment of damages
By Daniel JT McKenna & Alan S. Kaplinsky on
Posted in CFPB Enforcement
A federal District Judge for the Northern District of Georgia, Victoria Marie Calvert, awarded a default judgment to the CFPB against USASF, a car loan servicer of loans originated by U.S. Auto Sales Inc., a buy-here, pay-here dealership. The claim was based on alleged violations of myriad consumer protection rules.
However, Judge Calvert did not accept the estimates of damages the alleged violations caused, saying they were flawed because a CFPB data scientist used figures suggested by bureau attorneys. … Continue Reading
CFPB’s Frotman: Companies are using technology to squeeze more out of those who can least afford it
Posted in CFPB
Innovation and technology are not the magic wands that will help low-income Americans climb out of debt; they often are tools used to prey on the neediest people, Seth Frotman, the CFPB’s general counsel told the Poverty Law Conference earlier this month.
“We hear a lot about ‘innovation’ and ‘financial technology’ in the consumer financial marketplace,” Frotman said, adding that it is not uncommon for such businesses to boast about how they serve an underprivileged population.… Continue Reading
Plaintiffs free to appeal CFPB 1071 Rule after some plaintiffs drop their CFPB unlawful funding claim
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the CFPB’s 1071 Rule (small business loan data collection rule).
On August 2, 2024, the Farm Credit Intervenors (three organizations who long ago intervened as plaintiffs in order to take advantage of a preliminary injunction against the CFPB granted to the original plaintiffs based on the Fifth Circuit’s opinion in CFSA v.… Continue Reading
CFPB Director Rohit Chopra to do fireside chat with Professor Chris Peterson at conference on October 11, 2024.
By Alan S. Kaplinsky & Mike Kilgarriff on
Posted in CFPB, CFPB People
The Utah Project on Antitrust and Consumer Protection is hosting a free conference open to the public on the future of consumer financial services law on October 11, 2024 from 8 am until 4 pm, MT.
The title of the conference is “From AI to Junk Fees to Public Health: The Future of Consumer Financial Services Law.” … Continue Reading
Ballard lawyers to speak at ABA meeting on September 13 regarding CFPB Contracts Circular
By Alan S. Kaplinsky & Joseph J. Schuster on
Posted in CFPB
On June 4, the CFPB issued 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. We previously drafted a blog post and Law360 article about this circular.… Continue Reading
Appeals Court: No FCRA Informational Injury Standing
Posted in Litigation and Court Decisions
A job applicant who claims he was not fully informed about adverse information that appeared on a background check is not entitled to relief under the Fair Credit Reporting Act (the FCRA), the Sixth Circuit Court of Appeals ruled on Aug. 20.
The court cited the Supreme Court’s decision in TransUnion LLC v.… Continue Reading
House Republican introduces resolution to nullify CFPB non-bank registry rule
Posted in CFPB Rulemaking
Rep. Andy Ogles, R-Tenn., on August 30, 2024 introduced in the House of Representatives a resolution under the Congressional Review Act (CRA) that would nullify the CFPB’s final nonbank registry rule.
The rule, issued in June, will require certain nonbank entities to register certain covered enforcement or court orders. Additionally, CFPB-supervised covered nonbanks must comply with ongoing attestation reporting requirements on their compliance with such orders.… Continue Reading
Federal District Court in Texas which recently validated CFPB’s small business data collection rule might entertain “new” funding challenge to CFPB
By Alan S. Kaplinsky on
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the validity of the CFPB’s small business data collection rule. However, the Judge still needs to rule on a motion to amend the complaint and a motion for judgment on the pleadings.… Continue Reading
Petition for rehearing to be filed in Ninth Circuit in National Bank Act preemption case related to mortgage escrow accounts
By Alan S. Kaplinsky on
On August 27, we blogged about the Ninth Circuit unpublished panel opinion in Kivett v. Flagstar Bank issued upon remand of the case from the Supreme Court with instructions to follow the guidance of the Supreme Court contained in its unanimous opinion in Cantero v. Bank of America. In Cantero, the Supreme Court reversed a Second Circuit opinion which had held that the National Bank Act preempted a New York State law requiring the payment of 2% interest on residential mortgage escrow accounts.… Continue Reading