On May 7, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) released a Notice of Proposed Rule Making (Notice) to implement the Fair Debt Collection Practices Act (FDCPA). The Bureau’s stated purpose for the proposed rules, which would be placed in the existing Regulation F, is to “set clear,…
On May 29, 2009, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a Texas-based mortgage servicer, resolving allegations that the servicer had violated the Consumer Financial Protection Act (CFPA), the Real Estate Settlement Procedures Act (RESPA), and the Truth in Lending Act…
On May 6, 2019, the Ninth Circuit Court of Appeals upheld the constitutionality of the Consumer Financial Protection Bureau (CFPB) in CFPB v. Seila Law LLC, No. 7-56324. Seila Law LLC is a law firm that provides debt-relief services to consumers. The CFPB filed a petition to force Seila Law to…
On May 1, the Consumer Financial Protection Bureau (CFPB) announced a $3.9 million settlement with a student loan servicer, resolving allegations that the servicer engaged in unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA). The parties’ consent order resolves allegations that the servicer failed to timely…
On May 2, the Consumer Financial Protection Bureau (CFPB) filed suit in the District of Utah against defendants operating two of the largest credit repair companies in the country, alleging that the companies engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR)….
On March 12, 2019, the issue of whether the Consumer Financial Protection Bureau’s (CFPB) leadership structure violates Article II and the separation of powers established by the United States Constitution was argued before the U.S. Court of Appeals for the Fifth Circuit in CFPB v. All American Check Cashing, Inc, et…
On February 6, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) released a proposed rescission of the 2017 “Payday, Vehicle Title, and Certain High-Cost Installment Loans” final rule (Payday Rule), along with a “Payday, Vehicle Title, and Certain High-Cost Installment Loans; Delay of Compliance Date” (Delay of Compliance) notice. The Payday…
On January 25, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an online lender that extends unsecured payday and installment loans, as well as lines of credit, resolving allegations that the lender had engaged in unfair acts or practices in violation of the Consumer Financial Protection…
On January 10, 2019, the CFPB issued a press release regarding two recently-released reports, which analyze the efficacy of the Ability to Repay Rule (ATR), and the RESPA Servicing Rule (Servicing Rule). The assessment reports analyze data collected since the rules were enacted in January 2013, and are designed to assess whether…
On January 23, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a loan broker, resolving allegations the broker’s offering of high-interest credit to veterans on behalf of several unnamed companies had thereby violated the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536….
On January 16, the Consumer Financial Protection Bureau (CFPB) and the State of New York announced that they had filed a consent order in the U.S. District Court for the Southern District of New York.to settle allegations that a jewelry retailer enrolled customers in credit cards and related products without their consent….
On January 3, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a $15.5 million consent order with a federally-chartered savings association bank. The consent order resolves allegations that the bank violated the Electronic Fund Transfer Act (EFTA) and Consumer Financial Protection Act (CFPA) between 2011 and 2016. Specifically, the CFPB…
On December 13, 2018, the CFPB published a proposed rule, seeking public comment regarding a change to its policy on No-Action Letters, as well as a new feature called the “Product Sandbox,” a rule change that was initially announced on September 13, 2018. The comment period for the proposed rule…
On December 10, 2018, Kathy Kraninger was sworn in to serve as Director of the Consumer Financial Protection Bureau (CFPB) for a five-year term. This followed her December 6, 2018 confirmation by the Senate with a vote of 50 to 49. Kraninger succeeds Mick Mulvaney, her former boss at…
On December 6, 2018, the Bureau of Consumer Financial Protection (“CFPB”) announced that it had entered into a consent order with a federal savings association headquartered in Bloomington, Ill. According to the consent order, the CFPB alleged that the savings association violated the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.,…
On December 6, 2018, the Bureau of Consumer Financial Protection (“CFPB”) announced that two days earlier it had filed a complaint and stipulated final judgment and order against a Nevada-based non-bank mortgage company in the U.S. District Court for the District of Nevada. The mortgage company allegedly violated the Consumer…
On November 20, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a Texas-based financial services company, resolving allegations that the company violated sections 1031 and 1036 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531, 5536. Specifically, the CFPB alleged that the company engaged in deceptive…
During the first half of 2018, Enforcement Watch tracked 40 publicly announced or publicly filed enforcement actions involving consumer financial services companies. The 18 enforcement actions tracked during Q1 2018 represent a substantial decrease from the 46 actions tracked in Q1 2017. That trend continued in Q2 2018, with Enforcement Watch…
On October 24, 2018, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a Consent Order with a Tennessee-based small dollar lender, resolving allegations that the lender had committed deceptive acts and practices in violation of the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. §§ 5531, 5536(a)(1)(B). The Consent Order…
On October 15, 2018, in remarks to the Mortgage Banker’s Association, Acting Director Mick Mulvaney declared that the CFPB will move away from “regulation by enforcement” by clarifying standards of conduct, to provide the regulated community with a measure of certainty when engaging in business operations. Mulvaney stated that, under…