Ballard Spahr Senior Counsel Alan S. Kaplinsky and Mark J. Levin, and David Sherwyn, Professor of Law at Cornell University’s School of Hotel Administration, today submitted lengthy comments to the Consumer Financial Protection Bureau opposing the recent petition filed by consumer advocates urging the CFPB to undertake rulemaking that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses that would permit consumers to choose between arbitration and litigation only after a dispute has arisen.… Continue Reading
CFPB/Fed/OCC increase exemption thresholds for appraisal requirement, Regs Z and M
Posted in CFPB, Regulatory and Enforcement
The CFPB, Fed, and OCC have announced that they are increasing three exemption thresholds that are subject to annual inflation adjustments. Effective January 1, 2024 through December 31, 2024, these exemption thresholds are increased as follows:
- Smaller loans exempt from the appraisal requirement for “higher-priced mortgage loans” are increased from $31,000 to $32,400.
Zelle offers details on its solution to protect scammed customers
By Ballard CFS Group on
Last year, we blogged that Zelle was considering possible solutions for P2P customers on the Zelle Network who were the victims of scams. In an August 30, 2023 press release, Zelle announced that it was initiating new safety measures. It stated:
All banks and credit unions on the Zelle Network® must implement Risk Insights for Zelle®.… Continue Reading
The new CRA: Understanding the final rule and its impact on large, intermediate, and small banks; Ballard Spahr to hold webinar on final rule on Dec. 6
By Scott A. Coleman & Sarah B. Dannecker on
On October 24, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a final rule amending their regulations implementing the Community Reinvestment Act (“CRA”) (the “Final Rule”). The Final Rule marks the first substantial revision to the CRA regulations in nearly thirty years. … Continue Reading
Dept. of Education issues framework for student loan servicer accountability
By John L. Culhane, Jr. & Thomas Burke on
Posted in Dept. of Education, Student Loans
The White House signaled last week that, with the resumption of federal student loan payments, federal student loan servicers can expect to face increased scrutiny. The Department of Education issued a “Framework for Student Loan Servicer Oversight and Accountability to Protect Borrowers” and indicated that “[t]he framework’s strategies help the Department to encourage servicers to better support borrowers and allows the Department to hold their feet to the fire when they have servicing failures.”… Continue Reading
CFPB removes changes regarding discrimination as an unfair practice from UDAAP exam manual but appeals from district court order vacating changes
In September 2023, the CFPB updated its UDAAP Examination Manual to remove the changes it made in March 2022 which provided that unfair acts or practices encompassed discriminatory conduct, even in circumstances to which federal fair lending laws, such as the Equal Credit Opportunity Act, did not apply.
It has been suggested that this update means the CFPB has retreated from its position that discriminatory conduct can be the basis of a UDAAP violation. … Continue Reading
Nevada federal district court stays CFPB action to enforce civil investigative demand pending SCOTUS decision in CFSA case
By Michael Gordon & Alan S. Kaplinsky on
Posted in CFPB, Regulatory and Enforcement
A Nevada federal district court has stayed an action filed by the CFPB to enforce a civil investigative demand (CID) issued to a small-dollar lender pending the U.S. Supreme Court’s decision in Community Financial Services Association of America Ltd. v. CFPB. The issue in CFSA v. CFPB is whether the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading
FTC announces settlement with operator of personal finance mobile app alleged to have used “dark patterns” in connection with negative option
The Federal Trade Commission recently announced that it has entered into a settlement with Bridge It, Inc. (“Brigit”), the operator of a personal finance mobile application, to resolve the FTC’s allegations that Brigit engaged in unfair and deceptive acts or practices in violation of Section 5 of the FTC Act and engaged in conduct that violated the Restore Online Shoppers’ Confidence Act (“ROSCA”). … Continue Reading
This week’s podcast episode: A deep dive into the Consumer Financial Protection Bureau’s Policy Statement on abusive acts and practices under the Consumer Financial Protection Act
By Barbara S. Mishkin on
The CFPB recently issued a policy statement in which it provided a framework for determining what constitutes abusive conduct under the CFPA. After reviewing the definition of abusive in the CFPA and the historical background of the adoption of an abusive standard in the CFPA, we examine how the policy statement addresses each element of the abusive standard and share our observations as to the policy statement’s implications. … Continue Reading
CFPB appeals district court order granting summary judgment to plaintiffs in lawsuit challenging UDAAP exam manual
On November 6, the CFPB filed a notice with the Texas federal district court that it is appealing to the Fifth Circuit the district court’s order granting summary judgment to a group of trade associations in their lawsuit against the CFPB challenging the changes made to its UDAAP Exam Manual in March 2022. … Continue Reading