The CFPB announced that it has entered into a consent order to settle the CFPB’s allegations that a debt collector, Yorba Capital Management, LLC (Yorba), and its owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act and that Yorba violated the Fair Debt Collection Practices Act. The consent order permanently bans both Yorba and
CFPB
CFPB issues proposal to extend effective date of debt collection rule
The CFPB issued a proposal today that would extend by 60 days the effective date of Part I and Part II of its final debt collection rule issued in, respectively, October 2020 and December 2020. Comments on the proposal will be due no later than 30 days after the date it is published in the…
CFPB rescinds seven policy statements providing regulatory flexibility during pandemic
The CFPB has rescinded seven policy statements issued from March 26 through June 3, 2020 that were intended to provide flexibility to financial institutions in meeting certain compliance requirements during the pandemic. (The Bureau’s press release announcing the rescission of the seven policy statements also announced that the Bureau was rescinding its 2018 bulletin on…
CFPB and federal banking agencies issue RFI on the use of artificial intelligence by financial institutions
In what could be an important step towards needed regulatory updating to accommodate the growing use of artificial intelligence (AI) by financial institutions, the CFPB, FDIC, OCC, Federal Reserve Board, and NCUA issued a request for information (RFI) regarding financial institutions’ use of AI, including machine learning (ML). Comments on the RFI must be received…
CFPB moves to dismiss lawsuit challenging its rescission of mandatory underwriting provisions of 2017 payday/auto title/high-rate installment loan rule but CFPB Acting Director Uejio targets underwriting practices of small-dollar lenders
The CFPB has filed a motion to dismiss the federal district court lawsuit brought by the National Association for Latino Community Asset Builders (NALCAB). That lawsuit seeks to overturn the CFPB’s July 2020 final rule (2020 Rule) rescinding the “ability-to-repay” (ATR) or “mandatory underwriting provisions” in its 2017 final payday/auto title/high-rate installment loan rule (2017…
CFPB issues 2020 Consumer Response Annual Report
The CFPB has issued its Consumer Response Annual Report, which analyzes the approximately 542,300 complaints received by the CFPB between January 1 and December 31, 2020. The number of complaints received in 2020 represents a nearly 54% increase over the approximately 352,400 complaints received in 2019. The report details the trends in consumer complaints…
CFPB issues annual FDCPA report
The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s and FTC’s activities in 2020. Debt collectors should expect increased scrutiny from the CFPB in 2021, with both Acting Director Uejio and Director-nominee Rohit Chopra having identified unlawful debt collection practices as a CFPB priority target.
In addition to a…
CFPB highlights state of student loans in the pandemic on heels of coalition’s recommendations for transitioning federal student loans out of pandemic era servicing
The CFPB has created a student loan infographic to highlight the state of student loans in the pandemic. Among the statistics included in the infographic is that, based on Department of Education data current as of September 2020, 87% of federal student loan borrowers had their federal student loans in administrative forbearance.
The CFPB published…
This week’s podcast: A discussion of the legal challenge to the CFPB’s Taskforce on Federal Consumer Financial Law with special guest Ira Rheingold, Executive Director of the National Association of Consumer Advocates (NACA)
NACA is one of the plaintiffs in the Massachusetts lawsuit challenging the CFPB’s creation of its Taskforce on Federal Consumer Financial Law. Mr. Rheingold discusses the legal basis for the lawsuit, NACA’s views on how the CFPB should approach modernization of federal consumer financial laws, and NACA’s support for federal legislation or new CFPB rulemaking…
CFPB files lawsuit against student debt relief company, along with its owner and manager
In its third lawsuit filed under the leadership of Acting Director Uejio, the CFPB, earlier this week, sued Student Loan Pro (SLP), a student loan debt relief company, its owner, and its manager, for alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. The CFPB’s complaint, which was filed …