A new decision and order from Director Kraninger that, with minor changes, strictly enforces another CFPB civil investigative demand is a further indication that the CFPB’s enforcement activities remain robust under her leadership. The new order and decision follows five decisions and orders issued by Director Kraninger on April 25 in which she also, with
enforcement
CFPB’s top enforcement official reported to have resigned
By Barbara S. Mishkin on
According to American Banker, Kristen Donoghue, who has served as the CFPB’s Assistant Director of Enforcement since November 2017, has resigned.
American Banker also reports that Cara Petersen, the CFPB’s Principal Deputy Enforcement Director, has been named Acting Director of Enforcement, and that Jeffrey Ehrlich, the CFPB’s Deputy Enforcement Director, will become Principal Deputy…
NYDFS Creates New “Powerhouse” Consumer Protection and Financial Enforcement Division
By Brian Slagle, James Kim & Marjorie J. Peerce on
The New York Department of Financial Services has announced the creation of a new “powerhouse” Consumer Protection and Financial Enforcement Division. The Division has been created by consolidating the Enforcement and Financial Frauds Division and Consumer Protection Division and will place supervision, enforcement, and consumer education under the same roof. The Division consists…
FTC Cites Need for Improvement in Compliance Reports
By Sarah T. Reise on
Posted in FTC, FTC Enforcement
Less than a week after warning subpoena and CID recipients to take their obligation to respond “seriously,” the FTC took aim at perceived inadequacies in compliance reports submitted pursuant to FTC consent orders and litigated judgments. In its March 11, 2019 blog post, the FTC’s Bureau of Competition alleges that “some Respondents are not…
CFPB Seeks to Enforce CID against Debt Collection Law Firm
By Jason M. Cover on
The CFPB has filed a request in the District Court for the Southern District of New York to enforce a civil investigative demand (“CID”) against the Law Offices of Crystal Moroney, P.C. (“LOCM”), a debt collection law firm located in New City, New York, continuing under Director Kraninger the CFPB’s pursuit of law firms despite…
Judge Preska dismisses with prejudice the New York Attorney General’s Dodd-Frank claim in the RD Legal Funding Case
By Alan S. Kaplinsky on
We have been following very closely the lawsuit filed by the CFPB and the New York Attorney General against RD Legal Funding. We earlier reported that on June 21 Judge Preska dismissed the CFPB’s claims based on the unconstitutionality of the CFPA. We subsequently reported that on September 12 Judge Preska dismissed the claims brought…
SDNY, disagreeing with D.C. Circuit, finds CFPB structure unconstitutional and strikes Title X of CFPA in its entirety
By Alan S. Kaplinsky & Theodore R. Flo on
Posted in CFPB General, CFPB Monitor
On June 21, 2018, Judge Preska of the Southern District of New York (“SDNY”) issued a decision finding that the CFPB’s single-director-removable-only-for-cause structure is unconstitutional. In doing so, the SDNY held that Title X of Dodd-Frank—the title that created the CFPB and established its regulatory, supervisory, and enforcement authority—should be stricken in its entirety.
The…
Federal banking agencies issue policy statement on interagency notification of enforcement actions
By Alan S. Kaplinsky on
The federal banking agencies (the Federal Reserve Board, OCC, and FDIC (FBAs)), recently issued a “Policy Statement on Interagency Notification of Formal Enforcement Actions” that is intended “to promote notification of, and coordination on, formal enforcement actions among the FBAs at the earliest practicable date.” The issuance of the policy statement follows the…
CFPB seeks comments on its administrative enforcement proceedings
By Christopher J. Willis & James Kim on
Posted in CFPB Enforcement, CFPB Monitor
The CFPB has issued a request for information that seeks comment on how the CFPB can improve its administrative adjudication processes, including its “Rules of Practice for Adjudication Proceedings” codified at 12 CFR part 1081, Subpart E (Rules). The Rules address the general conduct of administrative enforcement proceedings, the initiation of such proceedings and prehearing…
CFPB Requests Comments on its CID Process
On January 26, 2018, the CFPB published a “Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes” (“Request”) in the Federal Register. In the Request, the CFPB asks industry and attorneys who regularly practice before the Bureau to comment on its processes surrounding Civil Investigative Demands (“CID”) and investigational hearings. Comments…