CFPB to Survey Consumers on Debt Collection Experiences

In considering new rulemaking for the debt collection industry, the CFPB has decided to turn directly to consumers for input. As set forth in the notice issued March 6, 2014, the CFPB plans to send out a survey in order to learn more about consumers' interactions with debt collection agencies. ...

CFPB Annual Report Shows 80% Increase in Consumer Complaints in 2013

by David Anthony and Scott Kelly In an annual report issued by the Consumer Financial Protection Bureau on Monday, March 31, 2014, the Bureau announced that it had received nearly double the number of consumer complaints in 2013 as compared to 2012. The report noted that 163,700 total complaints were...

Bank of America Settles Credit Card Allegations For $727 Million

WASHINGTON, D.C. — (Mealey’s) Bank of America N.A. and FIA Card Services N.A. yesterday agreed to a Consumer Financial Protection Bureau (CFPB) consent order that requires them to pay approximately $727 million to consumers who allegedly were harmed because the bank illegally charged them...

CFPB Issues $772 Million Penalty to Large Bank for Sale of Credit Card Add-On Products

by Michael Lacy and Scott Kelly On April 9, 2014, the Consumer Financial Protection Bureau announced a $772 million deal with a large bank to settle allegations that it deceptively marketed credit card add-on products and illegally billed customers. The bank will refund $727 million to consumers and...

CFPB Publishes Guide to the TILA-RESPA Loan Estimate and Closing Disclosure Forms

by Erika J. Sonstroem The Consumer Financial Protection Bureau (CFPB) on April 17, 2014 announced the release of a Guide to Completing TILA-RESPA Integrated Disclosure Forms (the Forms Guide). The CFPB states that the purpose of the Forms Guide is to provide instructions for completing the two new...

CFPB Concludes Medical Debts Unduly Harm Credit Scores

by Theodore (Ted) J. Greeley On May 20, 2014, the Consumer Financial Protection Bureau (CFPB) issued a data point report that focused on whether consumers with medical debts were overly penalized for medical debts that go into collection and show up on their credit reports. The CFPB confronted two...

CFPB Succumbs to Pressure, Opens Advisory Board and Council Meetings to Public

by Ethan Ostroff , David Anthony and Bryan Haynes Beginning in June, the Consumer Financial Protection Bureau will provide the public with access to the meetings of the Consumer Advisory Board (CAB)and the CFPB’s three Councils. Anyone may attend or watch the full meetings live online the same...

CFPB’S Fifth Semi-Annual Report: A Brief Summary

by Jeffrey A. Iloulian On May 28, 2014, the Consumer Financial Protection Bureau (CFPB) issued its fifth Semi-Annual Report to the President and Congress, covering its activities from October 1, 2013 - March 31, 2014. Not surprisingly, the fifth report echoes many of the same points as the previous...

Industry Groups Oppose CFPB Initiative to Conduct Telephone Survey of Credit Card Holders

by Maryia Y. Jones and David N. Anthony The CFPB is seeking approval from the Office of Management and Budget to conduct a national telephone survey of 1,000 credit card holders as part of its study on which the CFPB may base its decision to limit or prohibit the use of arbitration clauses in credit...

CFPB Proposed Arbitration Study Receives Criticism from Industry and Consumer Groups

by Lauren E. Quigley In June 2013, the CFPB put credit card issuers and servicers on notice that it was planning to investigate consumer experience with mandatory arbitration agreements. With the proposed survey, the CFPB planned to elicit feedback regarding the effect of dispute resolution provisions...

CFPB Begins Oversight of Prepaid-Card Complaints

by Scott Kelly and Michael E. Lacy The Consumer Financial Protection Bureau will begin looking into complaints about prepaid cards – including gift cards, benefit cards, and general purpose reloadable cards – the Bureau announced Monday . Consumers can also now submit complaints about...

CFPB Raises Concerns About Overdraft Fees

by Theodore (Ted) J. Greeley In a July 31, 2014 Data Point, the Consumer Financial Protection Bureau (CFPB) concluded that consumers who opt in to overdraft services for debit card and ATM transactions put themselves at a “serious risk when using their debit card.” The Data Point is based...

Eighteen Months after Bulletin 2013-01, CFPB Issues New Guidance on Mortgage Servicing Transfers

by Karen L. Courtheoux Mortgage servicers and subservicers should consider reviewing the August 19, 2014 bulletin from the Consumer Financial Protection Bureau (CFPB) on mortgage servicing transfers to ensure compliance with the most up-to-date guidance. This bulletin replaces the February 2013...

Interagency Guidance Regarding Unfair or Deceptive Credit Practices

by Robert Hugh Ellis Several regulatory agencies have jointly issued guidance to banks, saving associations, and Federal credit unions concerning the repeal of consumer protection regulations promulgated under the FTC Act. The Board of Governors of the Federal Reserve System (the Board), the Consumer...

CFPB Continues Increased Scrutiny of Auto-Lending Financers Even as Congress Attempts to Rein It In

by Lauren E. Quigley In March 2013, the CFPB released industry guidance regarding auto financing interest rates and dealership reserves. On September 8, 2014, Congress finally took steps to nullify this guidance. The March 2013 guidance included findings that by allowing dealerships to set their...

GAO Insists That CFPB Must Improve Financial Data Security

by H. Scott Kelly AND Michael E. Lacy According to a recent study by the U.S. Government Accountability Office, the financial data gathered by the Consumer Financial Protection Bureau on 25 million to 75 million U.S. credit cardholders is not safe enough. As part of its government mandate, the GAO...

Round Two: TILA-RESPA Disclosure Integration Rule Presents Fresh Challenges to Banks

Here we go again. That sentiment—or one close to it—is surely on the minds of many in financial institutions across the country. The reason: after a grueling race to prepare for sweeping changes to the mortgage industry that took effect at the beginning of 2014 , bank executives and their...

Roll Out Mobile Payment Technology Could Subject Apple to CFPB Scrutiny

by Vivian I. Kim During Apple Inc.’s latest product announcement on September 9, 2014, Apple announced a new system for mobile payments that “will change how you pay with breakthrough contractless payment technology and unique security features build right into the devices you have with...

CFPB Warns Credit Card Companies About Deceptive Marketing - Again

by Jeffrey A. Iloulian The Consumer Financial Protection Bureau (CFPB) has issued a new warning to credit card companies in order to curb recent deceptive marketing practices. This is not the first time that the CFPB has warned credit card companies to be more clear with their offerings to consumers...

CFPB Announces Proposed No-Action Letter Program

by Kristen S. Birdsall On October 10, 2014, the Consumer Financial Protection Bureau (CFPB) announced a proposed policy under which they would issue No-Action Letters to applicants indicating that the CFPB would not initiate supervisory or enforcement action regarding innovative financial products...

CFPB Releases Report and Resources on Student Loan Repayment

by Karen L. Courtheoux This week, the Consumer Financial Protection Bureau (CFPB) reaffirmed its focus on the problem of intractable student loan debt. On October 16, 2014, the CFPB Student Loan Ombudsman released his Annual Report , which described the number and nature of student loan complaints...

CFPB Issues New Proposed Rules for Prepaid Debit Cards

by H. Scott Kelly and Michael E. Lacy On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product. The proposed rules (found here ) are the most comprehensive...

CFPB Proposes New Rules Regulating Prepaid Cards

by Elisa J. Lintemuth The Consumer Financial Protection Bureau has proposed new rules to amend Regulation E (Electronic Fund Transfer Act) and Regulation Z (Truth in Lending Act) to create protections for consumers using prepaid cards. These proposed rules come as more and more people are using prepaid...

CFPB Proposes Expanded Foreclosure Protections

by Massie P. Cooper and John C. Lynch On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal...

Debt Consulting Firm Settles with CFPB for $69,075

by David N. Anthony and C. Reade Jacob, Jr. Protection Bureau asked a federal district court to approve a settlement with a New Jersey debt settlement firm that would require the firm to pay a fine of $69,075 for allegedly charging consumers illegal upfront fees for debt-settlement services they never...