CFPB Report Warns of Compliance and Mortgage Servicing Problems

by Jeffrey E. Jamison The CFPB released its summer 2013 “Supervisory Highlights” Report highlighting numerous mortgage servicing and compliance issues affecting both banks and non-banks. The 25-page Report, which is based on the CFPB’s supervisory activity from November 2012 to June...

Chase to Pay $389M to Settle Credit Card Fees Allegations

WASHINGTON, D.C. — (Mealey’s) JPMorgan Chase & Co. (Chase) on Sept. 19 agreed to pay $80 million in fines to settle allegations by the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) that it charged customers additional fees for credit card...

Agencies Address Fair Lending Concerns of Industry and Indicate that ECOA, Ability-to-Repay Rule Compatible

by Haydn J. Richards, Jr. and Heather C. Hutchings In an October 22, 2013 statement released by the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National...

Are You Ready? New Dodd-Frank Mortgage Rules Set for Early 2014

In the 1970s, the expression “future shock” made its way into common use. It started, of course, with Alvin Toffler’s hugely successful book with that phrase as its title. Like others, Toffler had observed the overwhelming effects on post-industrial societies that were experiencing...

CFPB Issues Advance Notice of Proposed Rulemaking Concerning the Collection of Consumer Debt

The Consumer Financial Protection Bureau (CFPB) intends to promulgate CFPB rules governing the collection of consumer debt. On November 6, 2013, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) in which it indicates that “the Bureau is interested in learning through responses to...

CFPB Takes First Action Against Online Loan Servicer

by Lauren E. Quigley On December 16, 2013, the CFPB initiated its first action against an online loan servicer. CashCall, Inc. allegedly engaged in unfair, deceptive, and abusive practices. The CFPB investigation uncovered evidence that the company had violated either licensing requirements or interest...

CFPB Continues Focus on Student Loans, Opening Complaint and Feedback Tool for Servicemembers and Veterans

by Chais L. Sweat In its continuing effort to ramp up oversight of student loans, on January 30, 2014, the CFPB announced the opening of a new online student complaint system specifically for servicemembers, veterans, and their families to report negative experiences at education institutions and...

House of Representatives to Take up Bill Aimed at Reforming the CFPB

by Andrew J. Buczek and Haydn J. Richards, Jr. This week, the House of Representatives will consider H.R. 3193, the Consumer Financial Protection and Soundness Improvement Act of 2013. The bill, which was approved favorably on a party-line vote in the Financial Services Committee, seeks to broadly...

CFPB Announces Potential Changes in Home Mortgage Disclosure Act Data Collection

by Walead Esmail On February 7, 2014, the Consumer Financial Protection Bureau (CFPB) announced that it will consider changes to improve data collection under the Home Mortgage Disclosure Act (HMDA), which was enacted in 1975 to gather information on whether financial institutions were serving the...

CFPB Sues ITT Educational Services for Predatory Lending Practices

by Zafreen J. Husain On February 26, 2014, the Consumer Financial Protection Bureau (CFPB) filed a four-count complaint in the U.S. District Court for the Southern District of Indiana against for-profit college chain, ITT Educational Services, Inc. (ITT), alleging that ITT engaged in predatory student...

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...