The CFPB’s final prepaid card rule has survived Republican efforts to nullify the rule under the Congressional Review Act (CRA).  The CRA establishes a special set of procedures through which Congress can nullify final regulations issued by a federal agency.  While a CRA joint resolution of disapproval must be approved by both Houses of Congress, it cannot be filibustered in the Senate and can be passed with only a simple majority. … Continue Reading

We previously reported that the Connecticut Attorney General, on behalf of the Attorneys General of Indiana, Kansas and Vermont, (the “state AGs”) had filed a joint motion to intervene in a CFPB enforcement action against Sprint to request a Consent Order modification permitting unused settlement funds to be paid to the National Association of Attorneys General (“NAAG”). … Continue Reading

Two enforcement actions filed by the CFPB recently went to trial in federal district court.

One of the cases was filed by the CFPB in July 2014 in a Wisconsin federal district court against two law firms and four of the firms’ attorneys for alleged violations of Regulation O, formerly known as the Mortgage Assistance Relief Services Rule, and for engaging in alleged deceptive practices in violation of the CFPA UDAAP prohibition. … Continue Reading

For years many industry participants wondered if allowing their real estate agents or loan officers to engage in co-marketing on Zillow Group applications and websites posed a risk to their companies under RESPA.  The industry may soon know the answer, as Zillow Group advised in recent prepared remarks on first quarter earnings that “Over the past two years, the Consumer Financial Protection Bureau, or CFPB, has been reviewing our program for compliance with the Real Estate Settlement Procedures Act, or RESPA, which is a regulation designed to protect consumers.”… Continue Reading

Significant changes to West Virginia’s debt collection law will take effect on July 4, 2017.  Senate Bill 536, approved by the state’s governor on April 21, 2017, includes the following amendments:

  • The definition of “debt collector” is amended to exempt attorneys “representing creditors provided that the attorneys are licensed in West Virginia or otherwise authorized to practice law in the State of West Virginia and handling claims and collections in their own name as an employee, partner, member, shareholder or owner of a law firm and not operating a collection agency under the management of a person who is not a licensed attorney.”
… Continue Reading

Yesterday, I attended the CFPB’s field hearing in Los Angeles on small business lending.  In connection with the hearing, the CFPB issued a white paper entitled “Key dimensions of the small business lending landscape,” together with a request for information (RFI) on the small business lending market.

On July 11, 2017, from 12:00 p.m.… Continue Reading

Numerous media sources have reported that Senate Minority Leader Chuck Schumer has recommended Rohit Chopra to fill the open Democratic seat on the FTC.

Mr. Chopra, who currently serves as a senior fellow at the Consumer Federation of America, formerly served as the CFPB’s Student Loan Ombudsman.  After leaving the CFPB, he is reported to have served as a special adviser to former Education Secretary John B.… Continue Reading

Last Thursday, by a party-line vote of 34-26, the House Financial Services Committee approved the Financial CHOICE Act (H.R. 10) proposed by Committee Chairman Jeb Hensarling.

In addition to overhauling the CFPB’s structure and authority, the bill would make significant changes to the rulemaking process followed by the CFPB and other financial services regulators, including the Fed, FDIC, OCC and NCUA. … Continue Reading

On May 4, the CFPB announced that as part of its impending 5-year review of mortgage rules, it was proposing a plan to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule.  The proposed assessment plan focuses on the 2013 RESPA Servicing Final Rule, which was issued in January 2013 and amended before it became effective on January 10, 2014. … Continue Reading

A D.C. federal district court has rejected a trade group’s attempt to invalidate a November 2016 FTC opinion in which the agency concluded that outbound telemarketing calls made using soundboard technology are subject to the prior written consent requirement for robocalls in the FTC’s Telemarketing Sales Rule (TSR).

The TSR’s robocall written consent requirement applies to “any outbound telephone call that delivers a prerecorded message.” … Continue Reading