Consumer Financial Protection Bureau
A destination firm for entities engaged in CFPB investigations.Legal 500
Practice Overview
Buckley is a leader in providing legal counsel to financial institutions in matters involving supervision and enforcement by the Consumer Financial Protection Bureau (CFPB), handling as many, if not more CFPB matters, than any other firm in the country. Our firm has advised on more than 200 separate CFPB matters, taking leading roles in many significant escalated supervisory matters, investigations, and enforcement actions. These matters have run the gamut on industries, products, and practices, and have included auto finance, credit bureau reporting, debt collection, mortgage and home equity line of credit (HELOC) lending and servicing, overdraft programs, deposit products, payment cards, student lending and servicing, credit card origination and servicing, alternative finance, and telecommunications, among others.
Through decades of experience in analyzing and applying consumer financial protection laws and the impact those requirements have on our clients’ business objectives and operations, our attorneys advise financial service companies and their service providers on a wide range of CFPB matters. As the primary enforcement agency for consumer financial products and services, the CFPB has actively conducted investigations and horizontal reviews since its inception in 2011, resulting in a multitude of public and nonpublic enforcement actions. Our firm has represented banks, mortgage lenders and servicers, payday lenders, telecommunication companies, and other financial service companies in CFPB investigations and inquiries, many of which resulted in no further action against our clients. In cases resulting in a consent order or a lawsuit, our firm has negotiated more than a dozen public matters. We have also defended banks and financial service companies in response to dozens of Potential Action Requiring Response (PARR) letters citing preliminary findings from CFPB examinations. Our attorneys also advise clients on responding to voluntary information requests and third-party civil investigative demands (CIDs) from the CFPB, as well as inquiries stemming from complaints submitted through the CFPB complaint portal, which present enforcement risk.
Though we maintain strong credentials in handling enforcement matters, our highest priority in dealing with the CFPB is to help clients prevent and avoid adverse outcomes. We assist clients in developing proactive and strategic solutions to their compliance challenges and, when needed, prepare vigorous defenses to support their positions. Our attorneys assist companies with a variety of preventive and detective efforts such as examination readiness reviews, risk assessments, compliance training, and mystery shopping. We also assist clients with examination management matters by drafting narratives and reviewing documents that are responsive to supervisory requests, preparing presentations to examination teams, and providing strategic advice on self-reporting compliance issues to the CFPB. In addition, we provide extensive counseling and guidance on complying with CFPB rules and regulations. Our integrated approach to counseling includes the development of best practices aimed at achieving and maintaining enterprisewide cultures of compliance. Moreover, we help our clients to balance evolving CFPB supervisory expectations with those of prudential regulators. The depth and breadth of our CFPB experience provides critical insight to our clients and informs our daily interactions with CFPB staff, which together help minimize their legal, regulatory, and reputational risk.
We also are involved, at the request of clients, in taking steps to influence broader policy at the CFPB. We have filed amicus briefs on behalf of individual clients and trade groups pertaining to closely-watched consumer protection cases on which the CFPB has expressed its views. We also frequently provide more informal advice on policy matters on which our clients seek to engage with the CFPB.
Noteworthy public settlements include:
- Represented Flagstar Bank in what was the first CFPB enforcement action based on the newly promulgated mortgage servicing rules, where the CFPB alleged UDAAP violations in connection with the bank’s default servicing and loss mitigation practices, resulting in a $37.5 million settlement
- Represented Verizon Wireless in a settlement with the CFPB, Federal Communications Commission (FCC), and 51 state attorneys general alleging that Verizon Wireless permitted third parties to place unauthorized charges on consumers’ wireless telephone bills
- Represented JPMorgan Chase Bank in a joint CFPB and Maryland Attorney General investigation into allegations that loan officers accepted leads and marketing assistance from a now-defunct title company in exchange for referrals to the title company, resulting in a settlement of less than $1 million
- Represented one of the top three consumer credit reporting agencies in a CFPB enforcement action alleging unfair, deceptive, or abusive acts or practices and Fair Credit Reporting Act (FCRA) violations relating to the marketing of credit score monitoring products to consumers and the use of negative option billing
- Represented a credit card issuer in the second CFPB enforcement action, issued jointly with the FDIC, in which the agencies alleged deceptive marketing and sales practices related to its “add-on” products
A destination firm for entities engaged in CFPB investigations.Legal 500
Articles
"A new era of FCRA scrutiny for consumer data furnishers" by Jessica L. Pollet and Frida Alim (Law360)
Furnishers provide information to consumer reporting agencies on over 1.3 billion consumer credit accounts or other tradelines each month, with the three largest national consumer reporting agencies holding the personal information of over 200 million consumers. Given the extent of the consumer...
Articles"Email notice lessons from 7th Circ. debt collection ruling" (Lavallee v. Med-1 Solutions LLC) by Marshall T. Bell and John C. Redding (Law360)
Consumers increasingly expect to have access to information and the ability to conduct business at the time and place of their choosing, whether shopping for goods and services or managing their finances. Often, that means they expect service providers to communicate with them by email, text or...
ArticlesSpecial Alert: CFPB issues Advance Notice of Proposed Rulemaking to end GSE patch
On July 25, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) that is intended as a first step in an orderly expiration of the so-called GSE patch, which confers Qualified Mortgage status for loans purchased or guaranteed by Fannie Mae and Freddie Mac while those entities operate...
Special Alerts"Alternative data and fair lending face off: The relationship is complicated" by Jonice Gray Tucker and Caroline M. Stapleton (Mortgage Compliance Magazine)
Thinking of getting into a relationship with alternative data? You're not alone. Use of "alternate data," a term broadly used to describe consumer information gathered from non-conventional sources, is becoming increasingly attractive to mortgage lenders, their service providers, and even consumers...
Articles"TRID 2.0 and the disappearance of the black hole" by Brandy A. Hood (The Business Lawyer)
INTRODUCTION The Know Before You Owe: TILA-RESPA Integrated Disclosures Rule (“TRID Rule”) and its initial accompanying amendments have now been in effect for several years, and the rule continues to evolve. In response to industry requests, the Consumer Financial Protection Bureau (“CFPB”)...
Articles"What to expect from increased FTC-state AG collaboration" by Michelle L. Rogers and Katherine L. Halliday (Law360)
In prepared remarks at the winter meeting of the National Association of Attorneys General on March 5, 2019, Federal Trade Commission Chairman Joseph Simons advocated for increased collaboration with state attorneys general and noted that such collaboration is critical to the FTC’s mission. His...
Articles"Breaking down (language) barriers: A practical approach to LEP borrowers" by Jessica L. Pollet and Susanna K. Sedrak (Westlaw Journal)
In roughly 5.3 million households in the United States, the head of the house doesn’t speak English as the primary language or has limited ability to understand it.1 But like most individuals seeking full participation in the U.S. economy, those with limited English proficiency need access to...
Articles"Is the CFPB bound by its non-binding guidance? The implications of the PHH due process decision for TRID and other CFPB rules" by Brandy A. Hood and Steven R. vonBerg
Predictability and certainty are crucial components of the consumer finance market. Consumers crave it, as do industry participants. A common understanding of legal requirements promotes uniformity in the application of consumer protections and allows lenders, servicers, systems providers,...
Buckley Commentary & Analysis"Takeaways from military member complaints at CFPB" by Jeffrey P. Naimon, Sasha Leonhardt, and Christina R. Smith (Law360)
The Consumer Financial Protection Bureau ’s Office of Servicemember Affairs recently released a report highlighting issues facing military consumers based on complaints submitted by service members, veterans and their families. This report identifies categories and trends among the approximately 48...
ArticlesSpecial Alert: D.C. Circuit upholds CFPB’s constitutionality but rejects its interpretation of RESPA
On January 31, the U.S. Court of Appeals for the D.C. Circuit issued its long-awaited en banc decision in CFPB v. PHH Corporation . In a 7-3 decision, the court concluded that the CFPB’s single-director structure is constitutional, even though the president can only remove the director for cause...
Special AlertsSpecial Alert: Mulvaney says the CFPB will depend heavily on state Attorneys General for enforcement of consumer protection laws
Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, in a February 28 speech, outlined the Bureau’s overall direction and strategic priorities, and described plans to coordinate with state Attorneys General in enforcing federal consumer financial protection law. Mulvaney...
Special AlertsC-Suite Financial Services Review: Breaking down (language) barriers: A practical approach to LEP borrowers
In roughly 5.3 million households in the United States, the head of the house doesn’t speak English as the primary language or has limited ability to understand it. But like most individuals seeking full participation in the U.S. economy, those with limited English proficiency need access to credit...
C-Suite Review"Finding the purpose in bureau civil investigative demands" by Aaron C. Mahler (Bloomberg BNA)
“Why me?” It’s a common refrain whenever something bad happens. It’s also one of the first questions companies ask when finding themselves on the receiving end of a civil investigative demand from the Consumer Financial Protection Bureau. The logical place to look should be the notification of...
Articles"The Home Mortgage Disclosure Act: Common compliance challenges" by Sherry-Maria Safchuk and Frida Alim (The Review of Banking & Financial Services)
Since 2015, financial institutions have been inundated with reviewing and implementing numerous changes to the Home Mortgage Disclosure Act (“HMDA”) as required by the Dodd-Frank Act. The act transferred HMDA rulemaking authority to the Bureau of Consumer Financial Protection (“Bureau”), added new...
ArticlesC-Suite Financial Services Review: Building a Better Compliance Management System
The change in leadership and direction at the Consumer Financial Protection Bureau has prompted many providers of consumer financial services to question the importance of a rigorous, well-coordinated compliance management system. Changing emphasis and easing back — and saving some time and expense...
C-Suite ReviewC-Suite Financial Services Review: Enforcement Trends - The States Step Up
The new leadership at the Consumer Financial Protection Bureau has explicitly stated that it expects to pursue fewer enforcement actions than it has in the past. While the anticipated reduction in CFPB enforcement activity may cause some companies to feel a sense of relief, there may be less cause...
C-Suite ReviewBuckley Sandler Special Alert: CFPB director Cordray resigns, attempts to name successor
Today, CFPB Director Richard Cordray named the agency’s chief of staff, Leandra English, as the bureau’s deputy director, and submitted his resignation to President Trump. The moves follow media reports that President Trump planned to appoint OMB Director Mick Mulvaney as the acting director of the...
ArticlesBuckley Sandler Special Alert: Cordray to resign as director of CFPB
Richard Cordray said today in an email to the staff of the Consumer Financial Protection Bureau that he will resign as director before the end of November. While it has long been expected that he would seek the Democratic nomination for the governorship of Ohio, he did not specify his plans in the...
Articles"CFPB Issues Rule Regarding Payday, Title, Deposit Advance, and Certain Other Installment Loans" By Marshall T. Bell (Thomson Reuters)
On October 5, 2017, the CFPB published its final rule (the “Rule”) addressing payday loans, vehicle title loans, and certain other extensions of credit (collectively, “covered loans”). Among the Rule’s key provisions, it requires lenders to determine a borrower’s ability to repay for “covered short...
Articles
News & Blogs
CFPB updates FCRA exam procedures
On February 11, the CFPB issued updates to its Supervision and Examination Manual to include requirements of the FCRA created by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The updates apply to the examination procedures covering consumer reporting, larger participants, and...
InfoBytesFFIEC releases 2020 HMDA reporting guide
On February 13, the FDIC issued FIL-9-2020 announcing the Federal Financial Institutions Examinations Council’s issuance of the 2020 edition of the “Guide to HMDA Reporting: Getting It Right!” The guide applies to HMDA data collected in 2020 that will be reported to supervisory agencies by March 1...
InfoBytesCFPB denies debt collector’s request to set aside CID
On February 6, the CFPB released a Decision and Order denying a debt collection company’s (petitioner) request to set aside or modify a third-party Civil Investigative Demand (CID) issued by the Bureau, and directing the petitioner to provide all information required by the CID. The CID in dispute...
InfoBytesKraninger testifies at House hearing; final payday rule expected in April
On February 6, CFPB Director Kathy Kraninger testified at a House Financial Services Committee hearing on the CFPB’s Semi-Annual Report to Congress. (Covered by InfoBytes here .) The hearing covered the semi-annual report to Congress on the Bureau’s work from April 1, 2019, through September 30,...
InfoBytesCFPB settles UDAAP allegations with Texas payday lender
On February 5, the CFPB announced a settlement with a Texas-based payday lender and six subsidiaries (defendants) for allegedly assisting in the collection of online installment loans and online lines of credit that consumers were not legally obligated to pay based on certain states’ usury laws or...
InfoBytesCFPB, DOE sign MOU on student loan complaint data
On February 3, the CFPB and the Department of Education (Department) announced a new agreement to share student loan complaint data. (See press releases here and here .) The newly signed Memorandum of Understanding (MOU) is the first information sharing agreement between the agencies since the...
InfoBytesCFPB issues semi-annual report to Congress
On February 3, the CFPB issued its semi-annual report to Congress covering the Bureau’s work from April 1, 2019, through September 30, 2019. The report, which is required by the Dodd-Frank Act, addresses, among other things, problems faced by consumers with regard to consumer financial products or...
InfoBytesNational bank to challenge CFPB on cards suit
On January 30, the CFPB announced that it filed suit in the U.S. District Court for the District of Rhode Island against a national bank (defendant) based upon alleged violations of the Truth in Lending Act (TILA) and its implementing Regulation Z, the Fair Credit Billing Act (FCBA), and the Credit...
InfoBytesCFPB updates HMDA Small Entity Compliance Guide
On January 24, the CFPB published the HMDA Small Entity Compliance Guide with updates to integrate the HMDA final rule issued in October. According to the guide, HMDA rule changes include (i) the types of institutions and transactions that are subject to Regulation C; (ii) the information that...
InfoBytesParties file amicus briefs in CFPB constitutionality challenge
On January 22, a coalition of attorneys general from 23 states and the District of Columbia filed an amicus brief in Seila Law LLC v. CFPB arguing that the U.S. Supreme Court should preserve the CFPB and other consumer protections provide under Title X of Dodd-Frank. Last October the Court granted...
InfoBytes
Press Releases & Announcements
Buckley files amicus brief in CFPB constitutionality case
Buckley LLP on Dec. 16 filed an amicus brief on behalf of the Mortgage Bankers Association, the National Association of Home Builders, and the National Association of...
AnnouncementsThe Legal 500 2019 recognizes 17 Buckley attorneys in five practice areas
The Legal 500 once again ranked Buckley as a top law firm and recognized it in five categories:
- Corporate Investigations and White Collar Criminal Defense: Corporate – Tier 4
- Corporate Investigations and White Collar Criminal Defense: Individuals – Tier 2 ...
The Legal 500 2018 recognizes five practice areas and 17 attorneys at Buckley Sandler
Buckley Sandler LLP again has been noted as one of the nation’s top law firms by The Legal 500 in its 2018 rankings, with recognition in five practice areas:
- Financial Services: Litigation
- Financial Services: Regulation
- Corporate ...
Buckley Sandler Issues Second Edition of CFPB Mortgage Origination Rules Deskbook
Buckley Sandler today announced the publication of the second edition of the CFPB Mortgage Origination Rules Deskbook. Produced in partnership with the American Bankers Association, the book is the definitive guide for bank and nonbank mortgage originators navigating the Consumer...
AnnouncementsThe Legal 500 2017 Recognizes Four Practice Areas and 20 Attorneys at Buckley Sandler
Buckley Sandler has again been cited as one of the nation’s top law firms by The Legal 500 in its 2017 rankings, with the recognition of four practice areas:
- Financial Services: Litigation
- Financial Services: Regulatory
- Cyber Law (Data Protection and ...
BuckleySandler Hosts Eighth Annual Fair Lending Today Conference
BuckleySandler LLP hosted its eighth annual Fair Lending Today conference in Washington, DC on March 13-14, 2016. The two-day event featured an evening of interactive roundtable discussions on fair lending issues, followed by a full day of seminars. The sessions were led by BuckleySandler attorneys...
Press ReleasesBuckley Sandler Files Amicus Curiae Brief on Behalf of Industry Group in RESPA Case; Marks First Appeal Against CFPB Director Decision
On October 5, 2015, Buckley Sandler attorneys filed an amicus curiae brief on behalf of the Consumer Mortgage Coalition (CMC) in the first case to come up on appeal to the District of Columbia Circuit since the CFPB was founded in 2011. In the CMC’s brief, Buckley Sandler attorneys argued that the...
Press ReleasesBuckley Sandler & American Bankers Association Release CFPB Mortgage Origination Deskbook
WASHINGTON, D.C. (October 9, 2014) – Buckley Sandler LLP , a leading financial services and criminal and civil enforcement defense law firm, is pleased to announce the availability of “The New CFPB Mortgage Origination Rules Deskbook.” Published in partnership with the American Bankers Association...
Press Releases
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FYI
Buckley files amicus brief in CFPB constitutionality case
"Email notice lessons from 7th Circ. debt collection ruling" (Lavallee v. Med-1 Solutions LLC) by Marshall T. Bell and John C. Redding (Law360)
Special Alert: CFPB issues Advance Notice of Proposed Rulemaking to end GSE patch
Recent Blog Posts
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February 14, 2020
CFPB updates FCRA exam procedures
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February 14, 2020
FFIEC releases 2020 HMDA reporting guide
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February 14, 2020
CFPB denies debt collector’s request to set aside CID
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February 11, 2020
Kraninger testifies at House hearing; final payday rule expected in April
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February 7, 2020
CFPB settles UDAAP allegations with Texas payday lender