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One of our favorite readers commented on the CFPB’s overdraft “penalty box,” which was the subject of a prior blog.  Our reader criticizes the CFPB for creating the impression that the concept of an overdraft fee box is new.  In fact, Reg DD currently requires a (shorter) box that lists the amount of overdraft and NSF fees paid for the period and year to date. … Continue Reading

Director Cordray attended a meeting of the National Association of Attorneys General yesterday, delivering some prepared remarks and answering questions from the state AGs in attendance.  Here are the highlights – statements that give us a clue about what the CFPB and the AGs will be joining forces to do in the near future:

  • A new information-sharing MOU. 
… Continue Reading

Last week, Barbara Mishkin posted generally on the CFPB’s overdraft fee initiative. I found the CFPB’s prototype “penalty fee box” particularly interesting and have a few comments: 

  • While it is certainly possible that the CFPB will both require targeted disclosures and sharply circumscribe consumer choice, I take some hope from the penalty fee box disclosure that the CFPB will focus on requiring clear disclosure and continue to allow consumers a considerable measure of autonomy.
… Continue Reading

In a recent blog on the Bacchus-Capito letter to CFPB Director Richard Cordray, possible “legislative fixes” to the highly publicized privilege waiver issues involving the Bureau and possible amendments to 12 U.S.C. §§ 1821(t) and 1828(x) were discussed.  The major shortcoming identified with regard to such amendments was the persistent problem of the Bureau’s sharing privileged information, whether obtained from a regulated entity or from another federal regulatory agency, with State Attorneys General or other law enforcement authorities.… Continue Reading

Shortly after the President appointed Richard Cordray and several members of the NLRB through “recess” appointments, Alan Kaplinsky predicted on this blog that there would be litigation over the validity of the recess appointments first with regard to the NLRB, simply because it was likely to result in a “case or controversy” before anything involving the CFPB. … Continue Reading

Last week, a second legislative effort was launched to attempt to fix the much-discussed issue regarding the CFPB’s demands for attorney-client privileged information from banks subject to its supervision.  The new bill, H.R. 3871, seeks to “preserve privilege for information submitted to” the Bureau, but the key text of the legislation may or may not fully address the problem.… Continue Reading

On January 30, 2012, the American Bankers Association delivered a comment letter  to the CFPB in which it expressed strong disagreement with the CFPB’s proposed policy statement on “Disclosure of Certain Credit Card Complaint Data“. The ABA expressed concern that the complaint data will not help and may actually mislead consumers because it is “incomplete, unrepresentative, and unverified.”… Continue Reading

A hearing entitled “How will the CFPB Function under Richard Cordray?” was held on January 24 by the House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs. At that hearing, Mr. Cordray testified that Congress’s failure to amend 12 U.S.C. § 1828(x) to include the Bureau was an oversight and that he would be supportive of a legislative fix.… Continue Reading

The CFPB and the FTC recently released their long-awaited Memorandum of Understanding (MOU), outlining how they plan to work together on non-bank enforcement, rulemaking and research in the consumer financial services market.  For non-banks subject to the CFPB’s jurisdiction, there is plenty of cause for concern in the MOU, principally arising from the sharing of information between the two agencies.… Continue Reading

The CFPB has ramped up its enforcement staff to approximately 100 attorneys. That’s more than twice as many as are currently employed by the OCC, which is no shrinking violet when it comes to enforcement and compliance. The disparity is striking. It is all the more striking since, unlike the OCC, the CFPB has no 150-year track record of supervision and regulation upon which to judge its reasonably anticipated enforcement needs.… Continue Reading