Public Citizen, Inc. has sent a petition to the Department of Education requesting the Department to adopt a rule that requires schools to agree, as a condition of receiving Title IV assistance under the Higher Education Act (HEA), not to include pre-dispute arbitration agreements in enrollment or other agreements with students.… Continue Reading

A new white paper issued by ACA International takes aim at the use of CFPB complaint data by The Alliance for a Just Society in a report titled “Unfair, Deceptive, and Abusive: Debt Collectors Profit from Aggressive Tactics.”

The Alliance’s report concluded that consumer complaints filed with the CFPB “suggest that unfair, deceptive and abusive tactics are prevalent in the debt collection industry.” … Continue Reading

In remarks earlier this week to the National Credit Union Association, Director Cordray discussed  the proposals the CFPB is considering for small dollar loans.  In March 2015, in anticipation of convening a SBREFA panel, the CFPB issued an outline of the proposals it was considering for payday (and other small-dollar, high-rate) loans (“Covered Loans”). … Continue Reading

The 21st Annual Consumer Financial Services Institute, sponsored by the Practicing Law Institute, will take place on April 4-5, 2016 in New York City (and by live webcast and groupcast in Cincinnati, Cleveland, Philadelphia, Pittsburgh, Mechanicsburg, PA) and on May 12-13, 2016 in Chicago.

As I have done for the past 20 years, I will be co-chairing the event.… Continue Reading

As we previously addressed, the CFPB issued a final rule to expand the definition of “rural areas” under Regulation Z with regard to the authority of small creditors to make certain qualified mortgage loans under the ability to repay rule and avoid the escrow account requirement for certain higher priced mortgage loans.… Continue Reading

The FTC has sent a letter to the CFPB summarizing the FTC’s debt collection activities in 2015.  The letter is intended to provide the CFPB with information for its annual report to Congress on the federal government’s FDCPA activities.

The letter includes a discussion of the FTC’s collaboration with the CFPB on two amicus briefs in cases involving FDCPA issues.  … Continue Reading

Ballard Spahr to conduct webinar on March 24, 2016 entitled “CFPB Regulatory Certainty or Uncertainty? Consent Orders, Informal Guidance, and the New No-Action Letter Policy” Register here

The CFPB has issued a final policy statement on issuing “no-action” letters (NAL) for innovative financial products or services.  The CFPB’s statement that the final policy was released on its website on February 18, 2016 presumably means that the final policy became effective immediately.… Continue Reading

At a presentation on February 18, 2016 to the American Constitution Society, CFPB Director Richard Cordray devoted most of his remarks to the subject of consumer arbitration. Director Cordray revealed that the effect on consumers of mandatory predispute arbitration clauses “has been on our radar screen since the very beginning,” and he confirmed that the CFPB strongly favors class actions over arbitration and is “considering whether to prohibit companies from using arbitration clauses to block class actions” through rulemaking.… Continue Reading

The CFPB recently issued an advisory for older consumers about asset recovery companies that target older consumers who are past victims of fraud, such as bogus timeshare investments and in-home business opportunities.

The advisory describes a typical asset recovery scam as one in which the  asset recovery company contacts a defrauded older consumer claiming it can get the consumer’s money back for an upfront fee of several hundred to thousands of dollars. … Continue Reading

The Department of Education has published a notice in the Federal Register extending the period for comments to be submitted on its plans to create a new Web site by July 1, 2016 for students and borrowers “to file complaints and provide feedback about federal student loan lenders, servicers, collection agencies, and institutions of higher education.” … Continue Reading