The DOJ submitted its amicus brief in the PHH case on Friday, March 17. We have blogged extensively about this case since its inception. Unsurprisingly, the Trump DOJ supports striking from Dodd-Frank the removal-only-for-cause protection currently applicable to the director of the CFPB. In its “view, the panel correctly applied severability principles and therefore properly struck down only the for-cause removal restrictions.” … Continue Reading
Cordray’s CNBC interview answers few questions
Recently, Richard Cordray was interviewed by CNBC while eating breakfast at a diner in his hometown in Ohio. The interview was more noteworthy for what it failed to cover than for what it covered. He was not asked the following questions:
- Do you still intend to issue a final arbitration rule and, if so, when will that happen?
Trump ignores Dodd-Frank and CFPB in Congressional address
In his more than one hour nationwide address last night to a joint session of Congress, President Trump discussed a broad range of topics: repeal of Obamacare, tax relief, immigration, rebuilding the Country’s infrastructure, strengthening the military, foreign trade. All of these topics, and others mentioned by him, were important campaign issues for Trump. … Continue Reading
Director Cordray’s Wall Street Journal interview today
Here are the highlights from Richard Cordray’s interview earlier today with the Wall Street Journal.
He refused to respond to the question of whether or not the memo issued on January 20 on behalf of President Trump by his Chief of Staff, Reince Priebus, directing a moratorium with respect to regulations issued by executive agencies applies to the CFPB.… Continue Reading
Breaking News: In PHH v. CFPB, D.C. Circuit Holds that CFPB Structure is Unconstitutional
The D.C. Circuit issued its long-awaited decision in PHH Corporation v. CFPB. In reversing the decision of Consumer Financial Protection Bureau (CFPB) Director Cordray to impose an enhanced penalty of $109 million on PHH for its use of a captive (wholly-owned) mortgage reinsurer, the court made several landmark rulings.
First, it held that the CFPB’s single-director-removable-only-for-cause structure is unconstitutional.… Continue Reading
Chamber of Commerce suggests issues for CFPB to address at May 5 arbitration field hearing
The U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness has sent a letter to Director Cordray suggesting a series of issues for Mr. Cordray to address in his prepared remarks at the CFPB’s field hearing on arbitration scheduled for this Thursday, May 5.
As the Chamber’s letter notes, the CFPB foreshadowed in the materials given to the SBREFA panel that the CFPB was contemplating a ban on the use of class action waivers in arbitration agreements. … Continue Reading
Director Cordray signals no change in direction regarding arbitration
At a presentation on February 18, 2016 to the American Constitution Society, CFPB Director Richard Cordray devoted most of his remarks to the subject of consumer arbitration. Director Cordray revealed that the effect on consumers of mandatory predispute arbitration clauses “has been on our radar screen since the very beginning,” and he confirmed that the CFPB strongly favors class actions over arbitration and is “considering whether to prohibit companies from using arbitration clauses to block class actions” through rulemaking.… Continue Reading
CFPB denies petition to modify CID
On December 2, 2015, the CFPB denied a petition for modification of a Civil Investigative Demand (CID) filed by UniRush, LLC. In doing so, the CFPB reinforced its view that such petitions are disfavored. However, in denying the petition, the CFPB actually gave UniRush the relief it sought – additional time to provide a proposed production schedule – by ordering UniRush to provide the requested production schedule within 10 days of the order denying the petition.… Continue Reading
Director Cordray responds to American Banker article
Two weeks ago, we reported on an article published by the American Banker, which alleged certain inaccuracies and flawed practices in the CFPB’s consumer complaint database, citing several current and former employees of the Bureau. This week, CFPB Director Richard Cordray wrote a sharp rebuke of the American Banker’s article, claiming that it was “riddled with inaccuracies about the database and how it works.”… Continue Reading
Candid remarks from Director Cordray
Last week, Director Cordray spoke at a National Credit Union Administration town hall webinar. While his prepared remarks were not particularly revealing, the American Banker reported that Director Cordray was unusually candid during the Q&A part of the program.
In discussing the CFPB’s work on a proposed rule for overdraft products, Director Cordray indicated that the CFPB is not planning on banning overdraft products, but is “reviewing the size of fees, frequency of fees, occasion for fees, [and] the ordering of transactions.”… Continue Reading