LexisNexis® Legal Newsroom
CFPB May Sue PayPal Over Its Payment Services

by H. Scott Kelly and Michael E. Lacy On April 9, PayPal Holdings Inc . (“PayPal”) issued a regulatory filing indicating that it may soon face a lawsuit from the Consumer Financial Protection Bureau . The CFPB is targeting the activities of PayPal’s payments service, which lets consumers...

CFPB’s Winter 2015 Supervisory Highlights Report Provides a Roadmap to Compliance

by Paige S. Fitzgerald and Alan D. Wingfield The Consumer Financial Protection Bureau in March issued its Winter 2015 Supervisory Highlights report which provides an overview of the supervision work completed by the CFPB from July through December 2014. Matters resolved by the CFPB’s Supervision...

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”...

Democrats Push End to Mandatory Arbitration

by Samantha L. Walls On Thursday, May 21, 2015, fifty-eight Democratic members of Congress pushed the Consumer Financial Protection Bureau (“CFPB”) to prohibit mandatory arbitration clauses in consumer financial contracts. The clauses, which Democrats argue unfairly deprive consumers of...

Director Cordray Increases RESPA Disgorgement Penalty Against PHH Seventeen Fold

by Robert Hugh Ellis In what was the first appeal of an administrative decision before the CFPB, Director Richard Cordray issued a decision on June 4, 2015 that increased disgorgement sanctions against PHH Corporation from $6.4 million to approximately $109.2 million. The decision drew an immediate...

CFPB Reflects on Five Years of Dodd-Frank Enforcement in Written Senate Testimony

by Mark J. Magyar On July 15, 2015, the Consumer Financial Protection Bureau (“CFPB”) published on its website the written testimony of CFPB Director Richard Cordray before the Senate Committee on Banking, Housing, and Urban Affairs. In his testimony, Mr. Cordray noted that “[n]ext...

Meredith Fuchs Named as Acting Deputy Director of the CFPB

by Alan S. Kaplinsky Meredith Fuchs, the General Counsel of the CFPB, was named on Wednesday by Director Cordray to be the Acting Deputy Director of the CFPB effective August 1, 2015. The CFPB previously announced that the existing Deputy Director and Associate Director of the Division of Supervision...

CFPB Settles Action Against Provider of Student Financial Aid Assistance

by Barbara S. Mishkin The CFPB has announced a proposed settlement with Student Financial Aid Services, Inc. (SFAS) to resolve charges that the company engaged in unlawful sales and billing practices in connection with offering fee-based financial aid assistance and preparation services to consumers...

CFPB Delays by Two Months the Effective Date of the “Know Before You Owe” Mortgage Disclosure Rule

by S. Mohsin Reza and Jason Manning The Consumer Financial Protection Bureau issued a final rule that delays the effective date of the Know Before You Owe mortgage disclosure rule to October 3, 2015. This news follows on the announcement by the CFPB on June 24 of its proposed amendment to the rule...

Challenge to CFPB’s Constitutionality Reemerges

by Barbara S. Mishkin The issue of the CFPB’s constitutionality reemerged last week in court and Congress. On the judicial front, the U.S. Court of Appeals for the D.C. Circuit, in State National Bank of Big Spring, Texas, et al. v. Lew, et al. , reversed the district court and ruled that...

CFPB Issues 2015 Plain Writing Act Compliance Report

by Barbara S. Mishkin The CFPB has issued its 2015 Plain Writing Act Compliance Report . Under the PWA, federal “executive agencies,” including the CFPB, are required to use plain language in documents that: are necessary for obtaining information about a federal government benefit or...

CFPB Fines Mortgage Servicer $1.5 Million for Failing to Honor Loan Modifications after Service Transfers

by D. Kyle Deak , Jason Manning and John C. Lynch On July 30, the Consumer Financial Protection Bureau announced that it reached an agreement with Residential Credit Solutions, Inc., a national mortgage servicing company, whereby the mortgage loan servicer agreed to pay $1.5 million in restitution...

CFPB Files Lawsuit Against Internet Payday Loan Companies

by Barbara S. Mishkin The CFPB has filed a complaint in federal district court in New York against a group of commonly-controlled companies for allegedly engaging in unlawful conduct in connection with making payday loans over the Internet. With the exception of two defendants that are alleged to...

CFPB Requesting More Information Regarding Its Debt Collection Rulemaking

by Ethan G. Ostroff , David N. Anthony and Keith J. Barnett The Consumer Financial Protection Bureau sent a questionnaire with almost 60 questions to randomly selected debt collectors and service providers as part of its potential rulemaking regarding debt collection, a process that began almost two...

CFPB Lawsuit Against Pension Advance Companies Could Have Broader Implication

by Scott M. Pearson and Jeremy T. Rosenblum A new lawsuit, filed by the CFPB and the New York Department of Financial Services (NY DFS) in a California federal court against two pension advance companies and three of the companies’ individual managers, again demonstrates the aggressive approach...

Snapshot Reveals Numbers and Trends of Consumer Credit Reporting Complaints to CFPB

by David M. Gettings , Tim J. St. George and David N. Anthony On August 25, the Consumer Financial Protection Bureau released its monthly consumer complaint snapshot , which included a focus on complaints regarding credit reporting. According to the snapshot, the CFPB has handled 105,000 credit reporting...

Trade Groups’ Comment Letters Urge CFPB to Fix Complaint Database Before Trying to Normalize Data

by Ethan G. Ostroff , Keith J. Barnett and David N. Anthony In response to the CFPB’s request for information (RFI) regarding “best practices” for normalizing the data in the Consumer Complaint Database , issued on June 30, 2015, the American Bankers Association (ABA) submitted a...

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: ...

Fair Lending Director Ficklin Discusses Small Business Lending, LGBT Issues, LEP Consumers and Inclusive Communities at ABA Institute

by Mark J. Furletti Last Thursday, I had the pleasure of teaching a class on payments and banking products to new lawyers at the American Bar Association’s Consumer Financial Services Institute. I arrived early for the class and got to hear a lunch address on fair lending by Patrice Ficklin...

Ballard Spahr: Our Thoughts on Director Cordray’s Arbitration Comments to the CFPB’s Consumer Advisory Board

by Alan S. Kaplinsky In his remarks today to the CFPB’s Consumer Advisory Board, Director Cordray denigrated arbitration agreements as a “free pass” that allows companies to “sidestep the legal system, avoid big refunds, and continue to pursue profitable practices that may...

CFPB Director Provides Additional Commentary on Efforts to Address Arbitration Issues

by Tim J. St. George , David M. Gettings , David N. Anthony and John C. Lynch On October 22, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks to the Consumer Advisory Board. At the meeting, Cordray discussed arbitration and issues relating to non-English or...

CFPB Highlights Credit Card Complaints in Fourth Monthly Complaint Report

by Barbara S. Mishkin The CFPB has issued its October 2015 complaint report , the fourth in its new series of monthly complaint reports. The new report highlights credit card complaints and complaints from consumers in the Chicago, Illinois metro area. General findings include the following: ...

CFPB Sues Company and Owner for Alleged Student Financial Aid Scam

by Barbara S. Mishkin A new lawsuit filed by the CFPB in a California federal district court alleges that the defendants, a company and its individual owner, are engaged in a nationwide student financial aid scam. In addition to injunctive relief, the complaint seeks redress for harmed consumers and...

CFPB Orders Another Auto Lender to Pay $3.28 Million to Settle Claims for Illegal Debt Collection Involving Service Members

by Ethan G. Ostroff , Keith J. Barnett and Alan D. Wingfield On October 28, the Consumer Financial Protection Bureau filed an administrative consent order against Security National Automotive Acceptance Company (“SNAAC”), an Ohio auto lender specializing in loans to service members, for...

FTC Announces “Operation Collection Protection”

The Federal Trade Commission (FTC) yesterday announced its new coordinated effort against unlawful debt collection practices, “Operation Collection Protection.” The FTC also announced that federal, state and local law enforcement agencies have brought 30 new actions against debt collectors...