Search Results: CFPB

Hefferon Serves As Co-Chair and Panelist for ACI's 24th National Conference on Consumer Finance Class Actions & Litigation Conference – January 26-27, 2016

Thomas Hefferon, chair of Goodwin Procter’s Consumer Financial Services Litigation Practice, will serve as a conference co-chair and speak on a panel regarding the CFPB’s increasing regulation of the consumer finance industry titled “Evaluating the Lessons Learned from Recent CFPB Enforcement Actions, Regulation of Arbitration Agreements in Consumer Credit Contracts,…

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CFPB Settles With Law Firm Over Alleged Abusive Debt Collection Practices

On December 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order​ with a Georgia-based law firm over allegations that the law firm used improper and abusive debt collection tactics in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA).  The…

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Auto Dealer-Lender and CFPB Settle Credit Reporting Allegations for $6.4 Million

On December 17, 2015, the CFPB announced a consent order and settlement with a Minnesota-based auto dealer and its affiliated financing company regarding their credit reporting practices in 15 states.  The consent order asserts that the companies violated the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act…

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Payday Lender and CFPB Settle Debt Collection Allegations for $10 Million

On December 16, 2015, the CFPB announced a consent order and settlement with a small-dollar lender concerning its debt collection practices in 15 states.  According to the consent order, the lender’s unlawful conduct allegedly included:  in-person collection visits at consumers’ homes and workplaces and phone calls to supervisors, landlords, and…

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House Report Targets CFPB Indirect Auto Lending Policies

On November 24, 2015, Republicans on the House Financial Services Committee released a report sharply criticizing the CFPB’s methodology for enforcing the Equal Credit Opportunity Act (ECOA) with regard to indirect automobile lending.  The report, entitled, “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending,” adds to the…

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CFPB Settles with Debt Collector Over Unverified Debts

​On December 7, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a state debt collector over allegations that the debt collector, which collected telecommunications debt, reported inaccurate information to credit-reporting agencies and collected and reported debt that consumers disputed and that it could not…

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Credit Reporting Company to Pay CFPB $8 Million for FCRA Violations

​On December 3, the Consumer Financial Protection Bureau (CFPB) entered a consent order with a national credit reporting company, resolving allegations that the company violated the Fair Credit Reporting Act (FCRA). The credit reporting company is in the business of compiling and reselling consumer credit reports to financial service providers, such as…

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CFPB Publishes Rulemaking Agenda Including Proposed Rule Prohibiting Class Action Waivers

On November 20, 2015, the CFPB published​ its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…

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Tayman in Bloomberg BNA: CFPB’s Question Unanswered—What is ‘Abuse’?

Goodwin Procter Consumer Finance Enforcement associate Kyle Tayman was recently published in Bloomberg BNA’s Banking Report for their article, CFPB’s Question Unanswered—What is ‘Abuse’?  The article takes the position that the Consumer Financial Protection Bureau’s silence on what exactly constitutes an ‘‘abusive’’ practice under the Dodd-Frank Act’s provisions governing ‘‘unfair,…

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CFPB Summarizes Supervisory Trends for May through August, 2015

On November 3, 2015, the Consumer Financial Protection Bureau (CFPB) released its Supervisory Highlights report​ detailing the Bureau’s supervision efforts for May through August of 2015. The report summarizes the violations of consumer protection laws the Bureau observed during the four-month period and identifies the areas in which the Bureau has…

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CFPB Sues Student Financial Aid Services Provider

​On October 29, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint seeking a permanent injunction and other relief against a student financial aid services provider for the provider’s alleged violation of the Consumer Financial Protection Act.  The complaint alleges that the provider charged 76,000 college students and prospective…

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CFPB and Auto Lender Settle Servicemember Debt Collection Claim for $3.28 Million

​On October 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it entered an administrative consent order against an Ohio-based auto lender that specializes in loans to military servicemembers.  The CFPB consent order, and the companion stipulated order issued by the U.S. District Court for the Southern District of Ohio, resolve…

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Potential PMI Pitfall: Recalculating PMI Termination Date After Loan Modification May Lead to Litigation Exposure

In August, the CFPB issued a compliance bulletin to clarify lenders’ obligations to terminate Private Mortgage Insurance (PMI) charges under 12 U.S.C. § 4902.  One subject that the bulletin did not address—but which is somewhat ambiguous—is how to calculate when PMI must be terminated after a loan is modified. Unless a borrower…

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Class-Action Waivers on the CFPB Chopping Block

Earlier this month, the CFPB announced that it may propose rules designed to curtail or eliminate class-action waivers from arbitration clauses. Arbitration clauses appear in most financial-services contracts to provide both parties with a cheaper alternative to litigation. Dubbing such clauses “a free pass [to] sidestep the legal system, avoid…

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CFPB Eyes Student Loan Servicing As Next Target In New Report

The CFPB issued a new report on September 29, 2015, making clear that it is targeting student loan servicing for a set of industry-wide reforms.  Servicers should be on notice that the CFPB is reviewing new standards for them to follow.  The CFPB report is the result of a public inquiry…

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