The CFPB announced the filing of a proposed stipulated final judgment and order in its December 2014 lawsuit against Student Loan Processing.US (a fictitious business name of Irvine Web Works, Inc.) and its individual owner.  Filed in a California federal district court, the CFPB’s lawsuit alleged that the defendants violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA) prohibition of unfair, deceptive or abusive acts or practices (UDAAP) by conduct that included falsely representing an affiliation with the U.S.… Continue Reading

The CFPB will hold a meeting of its Credit Union Advisory Council on March 24, 2016 in Washington, D.C.  According to the meeting agenda, one session will be a discussion of the CFPB’s strategic outlook and the other session will be a discussion on preventing elder financial abuse.

At last month’s meeting of the CFPB’s Consumer Advisory Board, there was also a session devoted to the CFPB’s strategic outlook. … Continue Reading

To the dismay of many consumer advocates, it has been reported that Democratic National Committee Chairwoman and Florida Congresswoman Deborah Wasserman Schultz is supporting a bill (H.R. 4018) that would limit the authority of the CFPB to regulate payday loans.

The bill, entitled the “Consumer Protection and Choice Act,” would provide that if the CFPB finds that a state has a “deferred presentment transaction” law that satisfies certain requirements set forth in the bill, any CFPB rules regulating deferred presentment transactions or payday loans would not apply in that state. … Continue Reading

In his prepared remarks to the Consumer Bankers Association yesterday, Director Cordray attempted to defend the CFPB’s “regulation by enforcement” approach that has been widely criticized by industry.

Director Cordray’s remarks included the surprising acknowledgment that despite indications by his colleagues to the contrary, the reach of CFPB consent orders is not limited to the parties involved. … Continue Reading

In its Winter 2016 Supervisory Highlights, which covers supervision work generally completed between September and December 2015, the CFPB highlights violations found by CFPB examiners involving consumer reporting, debt collection, mortgage origination, remittances, and student loan servicing.

The report states that recent non-public supervisory actions have resulted in restitution of approximately $14.3 million to more than 228,000 consumers. … Continue Reading

According to Politico, “sources familiar with the discussions” have indicated that the CFPB will not issue a proposed rule for payday (and other small-dollar, high-rate) loans until later this Spring.  In April 2015, the CFPB convened a SBREFA panel to review the proposals it is considering and, in its Fall 2015 rulemaking agenda, the CFPB estimated that it would issue a  proposal in February 2016. … Continue Reading

The CFPB announced that it is now accepting consumer complaints about loans obtained through marketplace lenders and also issued a consumer bulletin directed at consumers who are shopping for such loans.  The CFPB’s press release contains the following description of a marketplace lender:  “A marketplace lender uses an online interface to connect consumers or businesses seeking to borrow money with investors willing to buy or invest in the loan. … Continue Reading

The American Bankers Association (ABA) has released findings from its recent 2016 ABA TRID Survey focusing on the TILA/RESPA Integrated Disclosure (TRID) rule’s effect on the residential mortgage lending market. The findings, which can be found here, tell the story of increased processing times, fewer products, and substantial closing delays.… Continue Reading

Last August, we blogged about a Third Circuit decision that held the FTC can regulate cybersecurity policies and procedures as “unfair” acts or practices under Section 5 of the FTC Act.  In our blog post, we commented that banks and other companies subject to the CFPB’s jurisdiction faced the possibility that the CFPB could begin using its Dodd-Frank authority  to bring enforcement actions against companies engaged in unfair, deceptive, and abusive acts and practices (UDAAP) to regulate cybersecurity policies and procedures. … Continue Reading

The Office of the Comptroller of the Currency recently issued a revised Policies and Procedures Manual (PPM) for assessing civil money penalties (CMP).  The PPM applies to CMPs assessed against all national banks, federal savings associations, federal branches and agencies licensed by the OCC, and institution-affiliated parties.  It also applies to bank service companies and service providers.… Continue Reading