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
"Educational tools may bring regulatory risk for fintech cos." by H Joshua Kotin, Michelle L. Rogers, and Kathryn R. Goodman (Law360)
Financial services providers are increasingly combining delivery of products and services with advice designed to help consumers make better-informed financial decisions. Fintech companies, which typically rely upon data and analytics as fundamental components of their business proposition, should...
ArticlesSpecial Alert: CFPB takes first-ever agency redlining action against nonbank lender
On July 15, the Consumer Financial Protection Bureau filed a complaint against a Chicago-based nonbank mortgage company alleging fair lending violations predicated, in part, on statements made by the company’s owner and other employees during radio shows and podcasts from 2014 through 2017. The...
Special AlertsSpecial Alert: Supreme Court preserves CFPB through severance
The U.S. Supreme Court on Monday issued its long-awaited opinion in Seila Law LLC v. Consumer Financial Protection Bureau , with a 5-4 split along ideological lines holding that the structure of the CFPB is unconstitutional. Specifically, the clause in the underlying statute that requires cause to...
Special Alerts"School of hard knocks: Federal student loan servicing and the looming federal student loan crisis" by Jeffrey P. Naimon, Sasha Leonhardt, and Sarah B. Smick (American University Administrative Law Review)
Nearly forty-three million Americans collectively owe $1.5 trillion in outstanding student loan debt. Of that, approximately ten percent of student loan debt is over ninety days delinquent or in default, while the actual delinquency rate is estimated to likely be double this amount due to the fact...
ArticlesSpecial Alert: CFPB proposes changes to qualified mortgage definition; delays expiration of “GSE patch” until final rule becomes effective
On June 22, the CFPB released two Notices of Proposed Rulemaking (NPRM) to address the January 2021 expiration of the so-called GSE Patch for the Qualified Mortgage (QM) Rule. The GSE Patch provided QM status to mortgage loans eligible for purchase by either of the GSEs even if the loans did not...
Special Alerts"Ruling on anti-hacking law may guide fair lending tests" by Jeffrey P. Naimon, H Joshua Kotin, and Frida Alim (Law360)
Regulators, consumer groups, academics and private litigants are grappling with the fair lending implications of the credit models powering the explosive growth in online lending by banks and financial technology firms. The U.S. District Court for the District of Columbia in late March concluded...
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 (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"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"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...
ArticlesC-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: 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 ReviewC-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 Review"Is the CFPB bound by its non-binding guidance? The implications of the PHH due process decision for TRID and other CFPB rules" by 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
News & Blogs
Consumer groups sue CFPB over HMDA threshold increase
On July 30, a group of consumer fair housing associations (collectively, “plaintiffs”) filed suit against the CFPB, challenging the Bureau’s final rule permanently raising coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under HMDA...
InfoBytesCFPB requests input on ways to prevent credit discrimination
On July 28, the CFPB issued a request for information (RFI) seeking input on ways to create a regulatory environment that expands credit access and ensures consumers and communities are protected from discrimination with respect to any aspect of a credit transaction. The RFI seeks comments to “...
InfoBytes3rd Circuit holds Pennsylvania’s loan servicing claims can proceed
On July 27, the U.S. Court of Appeals for the Third Circuit determined that the Commonwealth of Pennsylvania may pursue claims against a student loan servicer under the Consumer Financial Protection Act (CFPA) despite a concurrent action brought against the servicer by the CFPB. The appellate court...
InfoBytesCFPB to release ANPR on consumer access to financial records
On July 24, the CFPB announced plans to issue an Advanced Notice of Proposed Rulemaking (ANPR) on consumer-authorized access to financial records later this year. The future ANPR relates to the February Symposium held by the Bureau covering this subject and Section 1033 of the Dodd-Frank Act, which...
InfoBytesCFPB settles with two mortgage lenders for misleading VA loan advertisements
On July 24, the CFPB announced settlements with two mortgage lenders ( here and here ) for allegedly mailing consumers advertisements for Department of Veterans Affairs (VA) mortgages that allegedly contained misleading statements or lacked required disclosures. According to the Bureau, both...
InfoBytesKraninger discusses semi-annual report at Senate and House hearings, including response to Covid-19 pandemic
On July 29, CFPB Director Kathy Kraninger testified at a hearing held by the Senate Banking Committee on the CFPB’s Semi-Annual Report to Congress, which covers the Bureau’s work from October 1, 2019, through March 31, 2020. (Covered by InfoBytes here .) Kraninger’s testimony identified four key...
InfoBytesCFPB approves new automatic savings program under CAS Policy
On July 17, the CFPB announced a new Compliance Assistance Statement of Terms Template (CAST Template) under its Compliance Assistance Sandbox (CAS) Policy issued to a company’s program designed to help employees build emergency savings. Specifically, under the approved template , known as “...
InfoBytesForeclosure relief operation ordered to pay $40,000 penalty in CFPB action
On July 23, the CFPB announced that the U.S. District Court for the Central District of California entered a stipulated final judgment and order against a foreclosure relief services company, along with the company’s president/CEO (defendants), resolving CFPB allegations that the defendants engaged...
InfoBytesCFPB adjusts annual dollar amount thresholds under TILA regulations
On July 17, the CFPB released the final rule revising the dollar amounts for provisions implementing the Truth in Lending Act (TILA) and amendments to TILA, including the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of...
InfoBytesSpecial Alert: CFPB takes first-ever agency redlining action against nonbank lender
On July 15, the Consumer Financial Protection Bureau filed a complaint against a Chicago-based nonbank mortgage company alleging fair lending violations predicated, in part, on statements made by the company’s owner and other employees during radio shows and podcasts from 2014 through 2017. The...
InfoBytes
Press Releases & Announcements
Legal 500 2020 recognizes 21 Buckley attorneys in six practice areas
“Buckley attorneys are incredibly responsive while providing top quality legal services,” is how respondents described the firm in the 2020 edition of Legal 500, which ranked Buckley as a top law firm and recognized it in six categories:
- Corporate Investigations and White ...
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
"Educational tools may bring regulatory risk for fintech cos." by H Joshua Kotin, Michelle L. Rogers, and Kathryn R. Goodman (Law360)
Special Alert: CFPB takes first-ever agency redlining action against nonbank lender
Special Alert: Supreme Court preserves CFPB through severance
Recent Blog Posts
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August 5, 2020
Consumer groups sue CFPB over HMDA threshold increase
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July 31, 2020
CFPB requests input on ways to prevent credit discrimination
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July 31, 2020
3rd Circuit holds Pennsylvania’s loan servicing claims can proceed
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July 29, 2020
CFPB to release ANPR on consumer access to financial records
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July 29, 2020
CFPB settles with two mortgage lenders for misleading VA loan advertisements