CFPB, Federal Agencies, State Agencies, and Attorneys General
The CFPB has announced that it will be holding a field hearing on payday loans on
March 25, 2014 in Nashville, Tennessee. The event will feature remarks by Director Cordray and testimony from consumer groups, industry members, and the general public.
The CFPB’s rulemaking agenda issued at the end of last year included “prerule activities” concerning payday loans and deposit advance products targeted for this month. … Continue Reading
According to a report by Kim Chipman and Carter Dougherty of Bloomberg, in a Q&A with state attorneys general that followed a speech today in Washington, D.C. to the National Association of Attorneys General, Director Cordray said that issues relating to payday and title loans and other small-dollar lending products will be “very much on the [CFPB’s] plate” in 2014. … Continue Reading
The CFPB has issued an order denying the petition filed by CheckSmart Financial Company in September 2013 to modify or set aside a civil investigative demand (CID) it received from the CFPB.
As we previously reported, the petition stated that the CID was issued in connection with a nonpublic investigation launched by the CFPB “to determine whether payday lenders, check cashers, their affiliates, or other unnamed persons have been or are engaging in unlawful acts or practices in connection with the origination of payday loans and the cashing of payday loan proceeds” in violation of the Consumer Financial Protection Act (CFPA). … Continue Reading
Last month, the CFPB filed its first lawsuit against companies involved in online payday lending. The lawsuit against CashCall and several related companies that funded, purchased, serviced and collected online payday loans broke new ground by asserting UDAAP violations based on the defendants’ efforts to collect loans that were purportedly void in whole or in part under state law. … Continue Reading
We have learned that, starting Monday, Laura Udis will join the CFPB as the Payday and Small Dollar Lending Program Manager in Research, Markets and Regulations. Ms. Udis comes to the CFPB from the Consumer Federation of America, where she served as Senior Advocate for Financial Services and worked on consumer credit, debt collection and debt settlement issues.… Continue Reading
The CFPB recently posted to its website a petition filed by CheckSmart Financial Company to modify or set aside a civil investigative demand it received from the Bureau.
According to the petition, the CID was issued in connection with a nonpublic investigation launched by the CFPB “to determine whether payday lenders, check cashers, their affiliates, or other unnamed persons have been or are engaging in unlawful acts or practices in connection with the origination of payday loans and the cashing of payday loan proceeds” in violation of the Consumer Financial Protection Act. … Continue Reading
Based on testimony to a Senate Committee last week by Holly Petraeus, CFPB Assistant Director with the Office of Servicemember Affairs, it looks very likely that an expansion of Military Loan Act coverage will be among proposed changes to MLA regulations that the Department of Defense is expected to issue soon. … Continue Reading
In addition to our own criticism of the CFPB’s April 2013 White Paper on payday and deposit advance loans, the paper has drawn well-deserved fire from industry. As we reported, that fire included a June 2013 petition to the CFPB filed by the Community Financial Services Association (CFSA), a national payday lending trade group, seeking the White Paper’s retraction. … Continue Reading
The CFPB has filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in The Otoe-Missouria Tribe of Indians et al. v. New York Department of Financial Services et al., a case stemming from New York’s concerted crackdown on the online payday lending industry. The brief, which supports the DFS, has not yet been posted on the CFPB’s website.… Continue Reading
The CFPB has announced that its consumer complaint system is now accepting complaints about payday loans. In describing the issue involved in a complaint, a consumer can choose from the following:
Consumers with a complaint about a lender’s collection practices on a payday loan are directed to submit a debt collection complaint.… Continue Reading
