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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...

Lesson Learned from CFPB’s Actions Against Banks Engaging in Illegal Marketing Services Kickback Scheme

by Zafreen J. Husain Under Section 8 of the Real Estate Settlement procedures Act (RESPA), it is illegal for anyone to give or receive a fee, kickback or anything of value in exchange for referrals of settlement service business to a particular person or organization relating to a federal mortgage...

Did You Hear That? CFPB Report to Congress Sounds Death Knell for Arbitration Clauses

by David N. Anthony , Alan D. Wingfield , John C. Lynch and Ethan G. Ostroff As anticipated , yesterday the CFPB announced the release of its report to Congress following the CFPB’s study of arbitration agreements in connection with offering or providing consumer financial products or services...

CFPB’s Nationwide Sweep Continues: Law Firm’s Activities, Assets, and Websites Frozen

by Jennifer Bowen and John C. Lynch The Consumer Financial Protection Bureau (“CFPB”) recently prevailed on a motion for preliminary injunction against a Florida law firm and several related companies as part of its “ nationwide sweep of alleged foreclosure relief scams .”...

CFPB’s Nationwide Sweep Continues: Law Firm’s Activities, Assets, and Websites Frozen

by Jennifer Bowen and John C. Lynch The Consumer Financial Protection Bureau (“CFPB”) recently prevailed on a motion for preliminary injunction against a Florida law firm and several related companies as part of its “ nationwide sweep of alleged foreclosure relief scams .”...

CFPB Issues Compliance Bulletin On Confidentiality of Supervisory Information

by Alejandro Moreno and Brian Burke Farrell On January 27, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a compliance bulletin reminding supervised financial institutions (including large depository institutions, credit unions and their affiliates, certain nonbanks, and...

Groundbreaking: Cordray Heads Inaugural CFPB Appeal Hearing

by Ethan G. Ostroff , William H. Hurd and Brendan H. Connors On March 9, a regulatory milestone occurred. Consumer Financial Protection Bureau Director Richard Cordray presided over oral arguments in the first ever appeal of a CFPB administrative enforcement action. As this blog reported on December...

CFPB Director Cordray Addresses “Serious Misunderstanding” About Three-Day Requirement, Reiterates CFPB Will Not Voluntarily Change August 1 Effective Date for TILA-RESPA Integrated Disclosure Rule

by Ethan G. Ostroff , John C. Lynch and Ashley L. Taylor, Jr. In a speech made on May 12 to the National Association of Realtors, Consumer Financial Protection Bureau Director Richard Cordray addressed questions surrounding the three-day requirement of the TILA-RESPA Integrated Disclosure Rule (“TRID”...

CFPB Highlight Mortgage Complaints in Third Monthly Complaint Report

by Barbara S. Mishkin The CFPB has issued its September 2015 complaint report, the third in its new series of monthly complaint reports. The new report spotlights mortgage complaints and complaints from consumers in the Denver, Colorado metro area. General findings include the following: ...