Search Results: CFPB

D.C. Circuit Issues Long-awaited Decision in PHH Corp. v. CFPB, Reinstating the Panel's RESPA Holdings

On January 31, 2018, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit), sitting en banc, issued its long-awaited decision in PHH Corp. v. CFPB, holding that the provision of the Dodd-Frank Act shielding the single director of the Consumer Financial Protection Bureau (CFPB) from removal without cause…

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CFPB Solicits Comments on CID Process

The Consumer Financial Protection Bureau (CFPB) has solicited comments to assist it to revise its current Civil Investigative Demand (CID) process.  The “Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes” was published in the Federal Register on January 26, 2018. The CFPB’s power to issue CIDs is derived from…

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CFPB Announces Implementation Delays and Potential Changes to Two Financial Services Rules

On December 21, 2017, the Consumer Financial Protection Bureau (CFPB) announced delays and potential changes to its Home Mortgage Disclosure Act (HMDA) and pre-paid card regulations.  Both sets of regulations have been subject to criticism by industry participants and others.  Although lenders will have to comply with the CFPB’s HMDA…

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Congress Uses CRA to Target CFPB Payday Lending Rule and Auto Lending Guidance

The Congressional Review Act (CRA) provides Congress with oversight over administrative rulemaking, providing it with a veto of sorts over rulemaking with which it disagrees.  For an agency rule to become effective, the agency must submit a report to Congress describing the rule.  Congress then has 60 days to issue…

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CFPB Settles With National Bank Over Student Lending Practices for $6.5 Million

​On November 21, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations over the bank’s allegedly harmful student loan servicing practices and requiring it to pay millions in consumer relief and civil penalties. ​ According to the CFPB, the bank engaged…

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CFPB's Arbitration Rule Dies at Hands of Senate and President

Three months after the U.S. House of Representatives voted on July 25, 2017 to block the Consumer Financial Protection Bureau’s (CFPB) Arbitration Rule, the U.S. Senate followed suit.  On October 24, 2017, the Senate passed a joint resolution previously passed by the House disapproving of the Arbitration Rule with a 51-to-50…

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CFPB Files Suit Against National Debt-Settlement Services Provider For Allegedly Misleading Consumers

On November 8, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced it filed suit in federal court in California against a national debt-settlement services provider and its CEO based on alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, the Telemarketing Consumer Fraud and Abuse…

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CFPB Issues Consumer Protection Principles for Sharing Financial Account Information with Third Parties

On October 18, 2017, the Consumer Financial Protection Bureau (CFPB) published guidelines for financial institutions to use when authorizing third-party access to consumers’ financial information.  These guidelines are targeted at protecting consumers who give their consent to allow other companies to access their account information.  Companies—including fintech firms, banks, and…

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CFPB Files Complaint Alleging Debt-Relief Providers Misrepresented Affiliation with U.S. Government

On October 12, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against two debt-relief companies and their owners, and a third company that processed payments for and provided other services in connection the debt-relief providers. The complaint alleges violations under the Consumer Financial Protection Act of…

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U.S. Chamber of Commerce Challenges CFPB Rule Immunizing Class Actions from Arbitration Clauses

On September 29, 2017, the United States Chamber of Commerce and various business and financial services groups (collectively, Plaintiffs) filed a complaint for declaratory and injunctive relief in the United States District Court for the Northern District of Texas, alleging that—for four independent reasons—the Consumer Financial Protection Bureau’s (CFPB) recently-issued…

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CFPB Amends Mortgage Servicing Rule to Facilitate Communications with Borrowers

On October 4, 2017, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule amending a provision of Regulation X regarding the timing for mortgage servicers to communicate with borrowers about foreclosure prevention alternatives.  On the same date, the CFPB also issued a proposed rule regarding timing requirements for…

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UPDATE: CFPB's $21.6 Million Settlement Concerning Student Loan Servicing and Debt Collection in Doubt

As Enforcement Watch reported in late September, the Consumer Financial Protection Bureau (“CFPB”) announced that it had filed a proposed consent judgment in the United States District Court for Delaware to resolve claims relating to the servicing and debt collection activities on a portfolio of about 800,000 student loans.  Under the proposed settlement agreement, the student loan trusts…

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CFPB Agrees to Consent Order With Real Estate Settlement Services Provider Over Alleged RESPA Violations

​On September 27, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a real estate settlement services provider for allegedly steering consumers to an affiliated title insurer without disclosing the relationship, an alleged violation of the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2607, and…

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CFPB, Student Loan Securitizer, and Debt Collector Agree to Combined $21.6 Million Settlement for Alleged Illegal Collection Practices

On September 18, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a settlement and proposed consent judgment with a student loan owner and securitizer, and a separate consent judgment with the securitizer’s debt collector.  The securitizer has a loan portfolio of approximately 800,000 student loans.  According…

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Loan Brokerage Firm Agrees to $70,000 Settlement with CFPB Over Personal Loans Made to Recipients of Victim Compensation Funds

On September 19, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced a simultaneous complaint and proposed consent order with a loan brokerage company and two associated individuals (the “Defendants”).  The Defendants are alleged to have made misrepresentations concerning the brokerage and the loan terms they offered to potential borrowers.  According to the CFPB,…

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