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As he has done in prior years, Director Cordray spoke earlier this week to the National Association of Attorneys General.  His prepared remarks focused on the familiar theme of “the four Ds” that create obstacles for consumers in the financial services marketplace–deceptive marketing, debt traps, dead ends, and discrimination.

Director Cordray’s remarks included the following noteworthy comments on the “Four Ds”:

  • Deceptive marketing:  Director Cordray stated that “one of the most objectionable experiences we have had to date has been with law firms that purport to be helping people resolve their debts, but really are misusing their law license to defraud consumers.” 
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Below is an update on the lawsuits we have been following that state attorneys general and a state regulator have brought using their Dodd-Frank enforcement authority.  Under Dodd-Frank Section 1042, a state AG or regulator is authorized to bring a civil action to enforce provisions of Dodd-Frank Title 10 or regulations issued under Title 10, including the Dodd-Frank prohibition of unfair, deceptive or abusive acts or practices (UDAAP).… Continue Reading

The CFPB’s collaboration with state attorneys general was the focus of Director Cordray’s remarks today to the National Association of Attorneys General.  Director Cordray discussed the role of such collaboration in various CFPB enforcement actions, including its actions against Payday Loan Debt Solutions and CashCall.  He also commented that in addition to cases that have resulted in public filings, “our teamwork is much more deeply embedded” with the CFPB “speaking with, meeting with, or working with” state AG offices on a daily basis. … Continue Reading

In its final rule on Disclosure of Records and Information published last week, the CFPB gave no ground on its position that it has discretionary authority to share confidential information with state attorneys general.   This has been a significant concern to industry since the rule was published as an interim final rule in July 2011. … Continue Reading

In a recent blog on the Bacchus-Capito letter to CFPB Director Richard Cordray, possible “legislative fixes” to the highly publicized privilege waiver issues involving the Bureau and possible amendments to 12 U.S.C. §§ 1821(t) and 1828(x) were discussed.  The major shortcoming identified with regard to such amendments was the persistent problem of the Bureau’s sharing privileged information, whether obtained from a regulated entity or from another federal regulatory agency, with State Attorneys General or other law enforcement authorities.… Continue Reading

NotificationOne of the four sets of Interim Final Rules released by the CFPB on July 28 was its “State Official Notification Rules,” which set forth the obligations of state attorneys general to notify the CFPB when the AGs bring actions to enforce the provisions of the Dodd-Frank Act.  One might wonder whether such rules are even necessary, given the close cooperation anticipated between state AGs and the CFPB. … Continue Reading