As expected, the CFPB today released final results of its consumer arbitration study as mandated by Section 1028 of the Dodd-Frank Act.  Section 1028 provides that the CFPB, “by regulation, may prohibit or impose conditions or limitations on the use of” pre-dispute arbitration agreements concerning consumer financial products or services if it finds doing so “is in the public interest and for the protection of consumers.”… Continue Reading

The CFPB has asked Alan Kaplinsky to present the industry perspective at a field hearing on arbitration in Newark, New Jersey, tomorrow.  As the Bureau typically uses field hearings as the venue for announcing new developments, we expect that this hearing is likely to coincide with the release and submission to Congress of the Bureau’s arbitration study, which it conducted under Section 1028 of the Dodd-Frank Act.… Continue Reading

On Tuesday, March 3, CFPB Director Richard Cordray appeared before the House Financial Services Committee to answer questions regarding the Bureau’s Semi-Annual Report to Congress and the President, which it published on December 4 of last year.  As we anticipated shortly before Director Cordray’s testimony, the report merely provided a backdrop for the hearing, which, in reality, served as a forum for committee members to question the Director on a range of issues significant to their respective constituents. … Continue Reading

House Republicans are making another attempt to replace the CFPB’s director with a five-member commission.  A similar attempt passed the House early last year but did not reach a vote in the Senate.

H.R. 1266, introduced earlier this week by Republican Congressman Randy Neugebauer, is entitled the “Financial Product Safety Commission Act of 2015.” … Continue Reading

We recently wrote about a new report from the National Consumer Law Center that urges the CFPB to ban the collection of debts on which the statute of limitations has run.  In a blog post published last Sunday on the Consumer Law & Policy Blog, Peter A. Holland, a lawyer and consumer advocate, argues that while “banning the sale of time-barred debt is an excellent start,” the CFPB should go even further “and mandate that banks sell only legitimate accounts, and institute an outright ban on the sale of the bogus, “dirty” accounts.” … Continue Reading

The leaders of four liberal and minority Congressional caucuses have written to Director Cordray to urge the CFPB to adopt “strong protections” for payday loans.  The letter was signed by the co-chairs of the Congressional Progressive Caucus and the chairs of the Congressional Hispanic Caucus, Congressional Black Caucus, and Congressional Asian Pacific American Caucus.… Continue Reading

Republican Congressman Jeb Hensarling, who chairs the House Financial Services Committee, has established a new policy for using his authority to issue subpoenas to the CFPB and other agency’s subject to the Committee’s oversight.  According to a letter from Mr. Hensarling to Democratic Congresswoman Maxine Waters, the Committee’s ranking member, an agency will have “two weeks to produce documents requested by the Committee and, if no responsive documents are received, a follow-up letter providing the agency with two additional weeks to comply will be sent.” … Continue Reading

The House Financial Services Committee will hold a hearing tomorrow, March 3, entitled “The Semi-Annual Report of the Bureau of Consumer Financial Protection” at which Director Cordray is expected to testify.  The most recent report was issued in December 2014 and covered the period from April 1 through September 30, 2014. … Continue Reading

We recently wrote about two studies, one by Professor Ronald Mann and the other by Professor Jennifer Lewis Priestley, that cast serious doubt on the benefit to payday loan borrowers of an ability-to-repay requirement and limits on rollovers for payday loans, two elements that the CFPB is expected to include in its payday loan proposal.… Continue Reading