The use of enforcement by the Consumer Financial Protection Bureau and other federal agencies rather than administrative rulemaking to advance novel legal theories has been widely criticized. After discussing the meaning of “regulation by enforcement,” we look at examples of the use of regulation by enforcement by the CFPB and other agencies, U.S.… Continue Reading
enforcement
FTC provides annual report to CFPB on 2022 activities regarding Financial Acts and issues 2022 annual report on refunds
By John L. Culhane, Jr. on
Posted in FTC, Regulatory and Enforcement
The Federal Trade Commission has provided its annual report to the CFPB on its enforcement and related activities in 2022 regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA) (collectively, the “Financial Acts”). It also released its 2022 annual report on refunds. … Continue Reading
This week’s podcast episode: Recent small business and consumer finance developments at the Federal Trade Commission, with special guest Malini Mithal, Associate Director, FTC Division of Financial Practices
By Barbara S. Mishkin on
We discuss the industries and practices that have been the subject of recent FTC enforcement focus, including: marketing, servicing, and collection practices involving small business financing such as merchant cash advances; auto add-on product sales practices; product endorsements and reviews; dark patterns; marketing practices of for-profit schools; lead generation; and COVID-related fraud. … Continue Reading
Director Chopra promotes aggressive enforcement in remarks to National Association of State Attorneys General
By Ballard CFS Group on
In remarks given on Tuesday to the National Association of State Attorneys General (NAAG), CFPB Director Chopra promoted an aggressive approach to enforcement by both the CFPB and state attorneys general (AGs).
In his most noteworthy remarks, Director Chopra:
- Identified federal preemption as having played a major role in the 2007-2009 sub-prime mortgage crisis and suggested that the OCC had used preemption “to attack state consumer protection enforcement.”
This week’s podcast: “The Case For Regulation Through Rulemaking & Guidance”: A discussion of the Consumer Bankers Association’s white paper with special guests Dan Smith, CBA Executive Vice President, and Ebony Johnson, CBA Associate General Counsel
By Barbara S. Mishkin on
Posted in CFPB, Regulatory and Enforcement
Joined by two CBA representatives who previously served at the CFPB, we discuss the key arguments advanced in the white paper for why rulemaking and informal written guidance are more effective tools than enforcement for the Bureau to use to create new standards and expectations for industry and to carry out its consumer protection mission. … Continue Reading
CBA issues white paper advocating CFPB’s use of rulemaking and guidance in lieu of “regulation by enforcement”
By Ballard CFS Group on
Posted in CFPB, Regulatory and Enforcement
The Consumer Bankers Association has released a new white paper, “The Case For Regulation Through Rulemaking & Guidance,” that advocates for the CFPB to use rulemaking and informal written guidance in lieu of attempting to create new industry regulatory standards through enforcement. Attorneys from Ballard Spahr’s Consumer Financial Services Group assisted CBA in preparing the white paper.… Continue Reading
This week’s podcast: CFPB enforcement action developments and trends
By Barbara S. Mishkin on
Posted in CFPB Enforcement
CFPB enforcement activity has already ramped up and the pace is expected to increase with Director Chopra now at the helm. We look at the areas expected to be the focus of intensified enforcement activity, such as military lending, fair lending, and treatment of LEP consumers, and new areas under consideration by CFPB enforcement staff, such as machine learning models, use of alternative data, and fair lending related to servicing and loss mitigation (particularly in light of the end of pandemic-related forbearances). … Continue Reading
CFPB announces proposed settlement of lawsuit alleging provider of short-term loans violated CFPA’S UDAAP prohibition in connection with deposit account program
By Ballard CFS Group on
Posted in CFPB, Regulatory and Enforcement
The CFPB announced last week that it has entered into a proposed settlement with Driver Loan, LLC (“Driver Loan”) and its Chief Executive Officer to settle the November 2020 lawsuit it filed against Driver Loan and its CEO alleging the defendants engaged in deceptive acts and practices in violation of the Dodd-Frank Act’s UDAAP prohibition in connection with taking deposits from and making loans to consumers.… Continue Reading
This week’s podcast: The CFPB’s plan to reorganize its Supervision, Enforcement, and Fair Lending (SEFL) Division: what it means for industry
By Barbara S. Mishkin on
Posted in CFPB, Regulatory and Enforcement
We take a close look at the role of the new Office of SEFL Policy and Strategy to be created by the plan and how the plan would change the CFPB’s current enforcement decision-making process. We also look at how the plan aligns with the approach of federal banking regulators, share our reactions to criticism of the plan by Democratic lawmakers and thoughts on the new Office’s expected leadership, and discuss the Presidential election’s potential impact.… Continue Reading
Congresswoman Waters raises questions about CFPB Enforcement Director candidate
By Barbara S. Mishkin on
Posted in CFPB Enforcement, Regulatory and Enforcement
House Financial Services Committee Chairwoman Maxine Waters has sent a letter to CFPB Director Kraninger raising questions about the potential appointment of Thomas G. Ward as CFPB’s Assistant Director for Enforcement.
In her letter, Ms. Waters stated that, according to media reports, Mr. Ward is the leading candidate for the Enforcement Director position and that he currently serves as the Deputy Assistant Attorney General overseeing the torts branch in the Civil Division of the Department of Justice. … Continue Reading