John L. Culhane, Jr.

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The CFPB’s Student Loan Ombudsman has released his annual report, again emphasizing complaint volume without investigating all complaints, suggesting that states should acquiesce when the Department of Education promulgates rules that exceed its statutory authority, and blaming servicers for communications issues caused in no small part by the Department of Education’s failure to provide clear directions and to set and adequately fund appropriate staffing levels for federal student loan servicing.… Continue Reading

A Texas federal judge has refused to lift the preliminary injunction blocking the CFPB’s enforcement of its final rule that would require larger credit card issuers to lower their late fees to $8 and that would also permit smaller credit card issuers to charge late fees up to $32 for a first violation and up to $43 for a subsequent violation during the next six billing cycles.… Continue Reading

The Servicemember Civil Relief Act limits the amount of interest that may be charged on certain financial obligations that were incurred before military service began to no more than 6% percent per year, including most fees and charges, the CFPB and the Justice Department reminded financial institutions in a recent letter.… Continue Reading

As previously reported, this summer the U.S. Department of Housing and Urban Development (HUD) filed a housing discrimination charge under the Fair Housing Act against an appraisal company, individual appraiser, appraisal management company and lender based on an asserted biased appraisal and denial of a mortgage refinance loan application based on the appraisal.… Continue Reading

The CFPB intends to issue a proposed rule to address the impact of credit reporting relating to accounts of survivors of domestic violence, elder abuse, and other forms of financial abuse.

The bureau has issued an Advance Notice of Proposed Rulemaking (ANPR) to gather input on potential amendments to the regulation that implements the Fair Credit Reporting Act.… Continue Reading

The CFPB has taken action to permanently ban Student Loan Pro and its owner, Judith Noh, from offering consumer financial products or services.

In a complaint, filed in the U.S. District Court for the Central District of California, the CFPB alleged that Student Loan Pro and Noh violated federal law when they charged borrowers upfront fees to file paperwork to access free debt-relief programs available to consumers with federal student loans.… Continue Reading

Senate Banking Committee ranking Republican Sen. Tim Scott, R-S.C. said on December 11 that unlike several other regulators, the CFPB is ignoring his call to pause rulemaking until the Trump Administration takes office.

“It is paramount that President Trump can begin his administration on January 20th with a fresh slate to implement the economic agenda that the American people resoundingly voted for,” Scott, who will become Chairman of the committee in the next Congress, said at a hearing that featured CFPB Director Rohit Chopra.… Continue Reading

The CFPB has proposed a rule that it promotes as ensuring that Fair Credit Reporting Act (FCRA) protections are applied to sensitive consumer information that the statute was designed to protect, including information sold by data brokers. However, the proposal is much broader than a data broker rule and could have far reaching implications, including what is considered a consumer report, who is considered a consumer reporting agency, and specific requirements to qualify for the written authorization permissible purpose that are not provided for in the FCRA. … Continue Reading

The CFPB recently issued a report entitled Matched-Pair Testing in Small Business Lending Markets that summarizes results of small business lending matched pair testing that it conducted in conjunction with the U.S. Department of Justice.

The CFPB notes that its Small Business Lending Rule,, which implements section 1071 of the Dodd-Frank Act, requires financial institutions to collect and report to the CFPB data regarding applications for credit by small businesses.… Continue Reading

The CFPB will hold two virtual sessions later this month to answer questions about its Nonbank Enforcement Action Registry rule. The rule, issued in June 2024, will require certain nonbank entities to register certain covered administrative or court orders, and certain nonbank entities to comply with ongoing attestation requirements on the entity’s compliance with such orders

The two sessions—the first on December 11 and the second on December17—will feature staff from the bureau’s Nonbank Registration Team.… Continue Reading