CFPB Resource Center
Introduction
Buckley's CFPB practice includes more than 40 partners and counsel who have advised on CFPB regulatory, examination, and enforcement matters.
The firm has advised or is still advising on more than 50 examinations, investigations, and enforcement actions in connection with CFPB rulemakings. On this page, we outline some of the knowledge, insights and observations we have developed based on our work on CFPB matters.
The majority of our lawyers have experience working on CFPB matters, including 40 of our partners and counsel. Our recent representations have included the following industries:
- Auto finance
- Credit cards
- Mortgage origination and servicing
- Payday lending
- Student loans
- Specialty lending
- Homeowners Protection Act
- Credit reporting
Thought Leadership & Analysis
Banking industry groups say CFPB exceeded its statutory authority when revising the UDAAP exam manual
On September 28, seven banking industry groups sued the CFPB and Director Rohit Chopra claiming the agency exceeded its statutory authority when it released significant revisions to the UDAAP exam manual in March, which included making clear its view that any type of discrimination in connection...
InfoBytesCFPB examines student loan servicers in special edition of Supervisory Highlights
On September 29, the CFPB released a special edition of its Supervisory Highlights focusing on recent examination findings related to practices by student loan servicers and schools that directly lend to students. Highlights of the supervisory findings include: Transcript withholding. The Bureau...
InfoBytesCFPB sues online lender for overcharging servicemembers
On September 29, the CFPB filed a complaint against a New York-based online lender and 38 of its subsidiaries for allegedly violating the Military Lending Act (MLA) and the Consumer Financial Protection Act by imposing excessive charges on loans to servicemembers and their dependents. The Bureau...
InfoBytesDistrict Court criticizes CFPB’s cost-benefit analysis in HMDA 2020 rule change
On September 23, the U.S. District Court for the District of Columbia granted partial summary judgment to a group of consumer fair housing associations (collectively, “plaintiffs”) that challenged changes made in 2020 that permanently raised coverage thresholds for collecting and reporting data...
InfoBytesCFPB rescinds no-action letter and sandbox policies
On September 27, the CFPB issued a statement in the Federal Register rescinding its No-Action Letter Policy and its Compliance Assistance Sandbox Policy. As previously covered by InfoBytes , in September 2019, the CFPB issued three final innovation policies: the No-Action Letter (NAL) Policy ,...
InfoBytesHouse ranking members seek information from the CFPB
On September 20, House Financial Services Committee Ranking Member Patrick McHenry (R-NC) and House Oversight and Reform Committee Ranking Member James Comer (R-KY) sent a letter to CFPB Director Rohit Chopra asking him to provide information to Congress regarding the authorities delegated to the...
InfoBytesChopra highlights CFPB efforts on competitive consumer financial markets
On September 21, CFPB Director Rohit Chopra discussed Bureau efforts to ensure markets for consumer financial products and services are “fair, transparent, and competitive.” Speaking during the Exchequer Club Fireside Chat, Chopra explained that the agency’s authorizing statute specifically directs...
InfoBytesCFPB seeks better refi, loss-mitigation options
On September 22, the CFPB issued a request for information (RFI) regarding ways to improve mortgage refinances for homeowners and how to support automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions. According to the Bureau, refinancing...
InfoBytesCFPB releases 2021 HMDA data
On September 15, the CFPB released a Data Point report titled 2021 Mortgage Market Activity and Trends , which analyzes residential mortgage lending activity and trends for 2021. The 2021 HMDA data encompasses the fourth year of data that incorporates amendments to HMDA by Dodd-Frank. The changes...
InfoBytes10th Circuit: Payday lender must pay $38.4 million restitution order
On September 15, the U.S. Court of Appeals for the Tenth Circuit affirmed the CFPB’s administrative ruling against a Delaware-based online payday lender and its founder and CEO (respondents/petitioners) regarding a 2015 administrative enforcement action that alleged violations of the Consumer...
InfoBytesCFPB examines relationship between high vehicle costs and loan performance
On September 19, the CFPB published a blog post exploring the potential relationship between high vehicle costs and changes in auto loan characteristics and performance, particularly with respect to consumers with near-prime or subprime credit scores. The Bureau reported that the average vehicle...
InfoBytesFTC, CFPB say furnishers must investigate indirect disputes
On September 13, the FTC and CFPB (agencies) filed a joint amicus brief with the U.S. Court of Appeals for the Third Circuit, seeking the reversal of a district court decision that held furnishers of credit information are only obligated to investigate “bona fide” indirect disputes and may choose...
InfoBytesCFPB studying BNPL growth
On September 15, the CFPB announced plans to consider issuing interpretive guidance or regulations to ensure that buy now, pay later (BNPL) lenders follow many of the same consumer protection measures that exist for credit cards. “We will be working to ensure that borrowers have similar protections...
InfoBytesConsumer groups urge Chopra to limit forced arbitration
On September 13, a collation of consumer advocacy groups sent a letter to CFPB Director Rohit Chopra, urging him to limit the use of forced arbitration in consumer contracts in cases where consumers have been “victimized by banking abuses or fraud.” Pursuant to the Dodd-Frank Act, Congress directed...
InfoBytesDistrict Court orders college operator to comply with CFPB CID
On September 13, the U.S. District Court for the District of Utah ordered the operator of several defunct colleges to cooperate with a CFPB civil investigative demand (CID) for potential violations of the Consumer Financial Protection Act. In 2019, the Bureau issued a CID to the operator seeking...
InfoBytesRepublicans take issue with CFPB agenda
On September 12, several Republican senators sent a letter to CFPB Director Rohit Chopra expressing concerns that the Bureau is again pursuing “a radical and highly-politicized agenda unbounded by statutory limits.” In particular, the letter took issue with recent Bureau reports on the use of...
InfoBytesSenate Democrats urge CFPB for guidance on P2P apps
On September 1, five Senate Democrats sent a letter to CFPB Director Rohit Chopra urging the Bureau to issue guidance to provide better tools to protect older Americans and their families from the increased prevalence of P2P fraud. The letter discussed that, according to the FTC, P2P apps are used...
InfoBytesCFPB reports on nursing home debt collection
On September 8, the CFPB released an Issue Spotlight on nursing home debt collection, which focuses on the risk of financial harm that nursing homes and their debt collectors cause by attempting to collect invalid debts. The report, conducted by the Bureau’s Office of Financial Protection for Older...
InfoBytesCFPB examines finances and debt in Appalachia
On September 1, the CFPB released a report detailing family finances and debt in rural Appalachia, intended to provide a starting point in better understanding the needs and challenges of these consumers. The report—which is the first in a series regarding the finances of consumers living in rural...
InfoBytesFFIEC releases new HMDA tool
On August 30, the CFPB unveiled the Federal Financial Institutions Examinations Council’s Quarterly Graphs tool , which permits users to view HMDA mortgage loan data and, for the first time, follow mortgage market trends throughout the collection year. According to the CFPB, the new tool integrates...
InfoBytesCFPB finds relationship between medical care assistance and debt collections
On August 24, the CFPB published a blog post exploring the connection between eligibility for financial assistance for medical care and the prevalence of medical collections. According to the Bureau, Americans spent $4.1 trillion on health care in 2020, and continue to incur significant medical...
InfoBytesCFPB “on track” to issue Section 1071 rulemaking by March 31
On August 22, the CFPB filed its tenth status report in the U.S. District Court for the Northern District of California, as required under a stipulated settlement reached in February 2020 with a group of plaintiffs, including the California Reinvestment Coalition, related to the collection of small...
InfoBytesCFPB reports on credit card interest rates
On August 12, the CFPB released a blog post analyzing factors affecting high credit card interest rates. According to the Bureau, over 175 million Americans have at least one credit card and nearly half of active credit card accounts carry a balance. The Bureau noted that reforms in the Credit Card...
InfoBytesCFPB announces plans to modernize credit card data collection
On August 19, the CFPB published a blog post announcing plans to update how credit card data is collected. Current methods for collecting and publishing credit card data make it challenging for consumers to shop for credit cards or compare interest rates, the Bureau said, explaining for example...
InfoBytesCFPB updates list of institutions under its authority
Recently, the CFPB updated its list of depository institutions (DIs) and depository affiliates of DIs under its supervisory authority. The CFPB has supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates. The list is based on total...
InfoBytesEd. Dept. discharges additional $3.9 billion
On August 16, the Department of Education announced that 208,000 borrowers who attended a large for-profit post-secondary education institution will receive full student loan discharges totaling $3.9 billion. The announcement builds on previous actions taken by the Department that have resulted in...
InfoBytesDistrict Court dismisses EFTA claims over prepaid debit card fraud
On August 11, the U.S. District Court for the District of Maryland dismissed a putative class action alleging violations of the EFTA and state privacy and consumer protection laws brought against a national bank on behalf of consumers who were issued prepaid debit cards providing pandemic...
InfoBytesJohn R. Coleman quoted in S&P Global article, “Consumer agency using 'every tool' to step up scrutiny of financial institutions”
The S&P Global article, “Consumer agency using 'every tool' to step up scrutiny of financial institutions,” examines the CFPB’s “any means necessary approach” to crack down on financial institutions and advance the bureau’s key priorities under Director Rohit Chopra. A broad range of measures...
In The NewsChopra considers banking to be “under threat”
On August 10, CFPB Director Rohit Chopra discussed the digital market before the 2022 National Association of Attorneys General Presidential Summit. In his remarks, Chopra first discussed the evolution of advertising models over time, describing how the persuasion of advertising continues to be...
InfoBytesCFPB: Digital marketing providers/big tech liable for UDAAP violations
On August 10, the CFPB issued an interpretive rule addressing when the CFPA’s UDAAP provisions cover digital marketing providers that commingle the targeting and delivery of advertisements to consumers with the provision of advertising “time or space.” Currently, traditional marketing firms are...
InfoBytesCFPB: Financial services companies must safeguard consumer data
On August 11, the CFPB released Circular 2022-04 to reiterate that financial services companies may violate the CFPA’s prohibition on unfair acts or practices if they fail to safeguard consumer data. The Circular explained that, in addition to other federal laws governing data security for...
InfoBytesCFPB fines fintech for algorithm-induced overdraft charges
On August 10, the CFPB announced a consent order against a California-based fintech company for allegedly using an algorithm that caused consumers to be charged overdrafts on their checking accounts when using the company’s personal finance-management app. According to the Bureau, the app promotes...
InfoBytesCFPB announces meetings for small business lending data reporting
On August 8, the CFPB announced that it is hosting two events to discuss the technical implementation required to prepare for the Bureau’s Small Business Lending Data Collection Rulemaking, which is a requirement under Section 1071 of the Dodd-Frank Act. According to the Bureau, the meetings will...
InfoBytesCFPB receives rulemaking petition seeking validation of credit score models for credit unions
Recently, the CFPB received a rulemaking petition seeking validation of credit score models for credit unions. The petition, which seeks “a rule governing the requirement to periodically validate credit scores for all lending or financing entities,” argues that validation is necessary to measure...
InfoBytesCFPB highlights risks associated with BNPL products
On August 4, the CFPB released a report highlighting risks associated with new product offerings that the agency claimed blur the line between payments and commerce. The report examined the development of new capabilities—like “super apps,” buy now, pay later (BNPL), and embedded commerce—that have...
InfoBytesTrade groups petition CFPB to supervise data aggregators
On August 2, several bank and credit union trade groups petitioned the CFPB asking the Bureau to create regulations that would allow the agency to conduct routine exams and supervise data aggregators and their customers. While the Bureau is currently considering rulemaking under Section 1033 of the...
InfoBytesCFPB ombudsman releases mid-year update
The CFPB Ombudsman’s Office issued its midyear update for 2022, which “provides an independent, impartial, and confidential resource to informally assist individuals, companies, consumer and trade groups, and others in resolving issues with the CFPB.” The Ombudsman received 1,108 individual...
InfoBytesCFPB gets $29.2 million judgment in mortgage relief suit
On August 1, the U.S District Court for the Western District of Wisconsin granted over $29.2 million to the CFPB, revising a $59 million judgment that was thrown out by the U.S. Court of Appeals for the Seventh Circuit last year. As previously covered by InfoBytes , in July 2021, the 7th Circuit...
InfoBytesCFPB, DOJ issue letter to auto companies on SCRA provisions
On July 29, the CFPB and DOJ issued a joint letter reminding auto finance companies of legal protections for military families under the Servicemembers Civil Relief Act (SCRA). Among other things, the letter outlines several SCRA provisions that apply to vehicle financing, including: (i)...
InfoBytesRepublicans allege CFPB “collusion” with states
On July 28, House Financial Services Committee Ranking Member Patrick McHenry (R-NC) and two other Republican members sent a letter to CFPB Director Rohit Chopra, expressing their concerns that the Bureau has been “colluding” with states to “intimidate companies by conspiring with state agencies to...
InfoBytesCFPB updates debt collection FAQs
On July 27 the CFPB added a new section to the Debt Collection Rule Frequently Asked Questions (FAQs), which address questions related to the electronic communication and unusual or inconvenient time and place provisions in the Debt Collection Rule.
InfoBytesCFPB, DOJ take action against mortgage lender
On July 27, the CFPB and the DOJ jointly filed a lawsuit against a Delaware-based mortgage lender for engaging in unlawful discrimination. The complaint , filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that the defendant violated the Equal Credit Opportunity Act...
InfoBytesCFPB issues consent order against nonbank automotive finance company
On July 26, the CFPB announced a consent order against a nonbank automotive finance company to resolve allegations that it engaged in furnishing inaccurate information to consumer reporting companies. The CFPB alleged that the company violated the FCRA and Regulation V by, among other things,...
InfoBytesDem senators urge CFPB to expand Regulation E fraud protections for P2P payment service users
On July 20, six Senate Democrats sent a letter to CFPB Director Rohit Chopra urging the Bureau to hold banks that own instant digital payment networks accountable for facilitating fraudulent payments. In the letter, the senators noted that “consumers are often on the hook because existing rules do...
InfoBytesCFPB reports on banks’ overdraft fee practices
On July 20, the CFPB published a blog post examining banks’ overdraft and non-sufficient fund fees (NSF) fees practices since the publication of their report “Overdraft/NSF Fee Reliance Since 2015 – Evidence from Bank Call Reports” in December 2021. According to the blog post, the Bureau relied on...
InfoBytesCFPB testifies on commitment to servicemembers
On July 13, the CFPB testified before Subcommittee on National Security of the House Committee on Oversight and Reform regarding the Bureau’s efforts with respect to servicemembers. The testimony began by noting that the Bureau “is committed to our mission . . . to educate and empower...
InfoBytes"CFPB revises UDAAP manual to include discriminatory practices" by Sasha Leonhardt, Jeffrey P. Naimon, and John R. Coleman (The Banking Law Journal)
The Consumer Financial Protection Bureau (“CFPB”) has announced1 significant revisions to its Unfair, Deceptive, or Abusive Acts or Practices (“UDAAP”) exam manual,2 in particular highlighting the CFPB’s view that its broad authority under UDAAP allows it to address discriminatory conduct in the...
ArticlesCFPB, OCC issue consent orders against national bank
On July 14, the CFPB announced a consent order against a national bank to resolve allegations that the bank engaged in unfair and abusive acts or practices with respect to unemployment insurance benefit recipients who filed notices of error concerning alleged unauthorized electronic fund transfers...
InfoBytesChopra outlines CFPB’s efforts to promote competition in financial markets
On July 11, CFPB Director Rohit Chopra provided an overview of recent steps taken by the agency as part of a “whole-of-government effort” to promote financial market competition. In an effort to identify obstacles facing consumers who want to refinance or easily switch providers, the Bureau sent...
InfoBytesCFPB sues payday lender over debt collection practices
On July 12, the CFPB filed a complaint against a Texas-based payday lender (defendant) for allegedly engaging in illegal debt-collection practices and allegedly generating $240 million in reborrowing fees from borrowers who were eligible for free repayment plans in violation of the CFPA. As...
InfoBytesDistrict Court orders CFPB to issue Section 1071 rulemaking by March 31
On July 11, the U.S. District Court for the Northern District of California issued an order setting March 31, 2023 as the deadline for the CFPB to issue a notice of proposed rulemaking (NPRM) on small business lending data. As previously covered by InfoBytes , the Bureau is obligated to issue an...
InfoBytesCFPB publishes rulemaking agenda
Recently, the Office of Information and Regulatory Affairs released the CFPB’s spring 2022 rulemaking agenda . According to the preamble , the information in the agenda is current as of April 1, 2022 and identifies regulatory matters that the Bureau “reasonably anticipates having under...
InfoBytesCFPB advisory stresses “permissible purpose” of consumer reports
On July 7, the CFPB issued an advisory opinion to state its interpretation that under certain FCRA-permissible purpose provisions, a consumer reporting agency may not provide a consumer report to a user unless it has reason to believe that all of the information it includes pertains to the consumer...
InfoBytesEx-NFL players no longer part of CFPB, New York suit on high-cost loans
On June 27, the CFPB and New York attorney general filed an amended complaint in the U.S. District Court for the Southern District of New York, removing references to a New Jersey-based finance company’s arrangements with seven former NFL players in an action concerning whether the company and its...
InfoBytesHalperin discusses invoking UDAAP under CFPA
On June 29, the American University Washington College of Law held a symposium centered in part around the CFPB’s new approach for examining institutions for unfair conduct. During the CFPB’s New Approach to Discrimination: Invoking UDAAP symposium, CFPB Assistant Director for the Office of...
InfoBytesCFPB reports on credit card line decreases
On June 29, the CFPB issued a report analyzing the impact of credit card line decreases (CLD) on consumers. The report is a part of a CFPB series that examines consumer credit trends using a longitudinal sample of approximately five million de-identified credit records maintained by one of the...
InfoBytesCFPB warns debt collectors on “pay-to-pay” fees
On June 29, the CFPB issued an advisory opinion to state its interpretation that Section 808 of the FDCPA and Regulation F generally prohibit debt collectors from charging consumers “pay-to-pay” fees for making payments online or by phone. “These types of fees are often illegal,” the Bureau said,...
InfoBytesCFPB says states may regulate credit reporting markets
On June 28, the CFPB issued an interpretive rule addressing states’ authority to pass consumer-reporting laws. Specifically, the Bureau clarified that states “retain broad authority to protect people from harm due to credit reporting issues,” and explained that state laws are generally not...
InfoBytesIndustry groups urge CFPB to rescind UDAAP anti-discrimination policy
On June 28, industry groups and the U.S Chamber of Commerce (collectively, “groups”) released a White Paper, Unfairness and Discrimination: Examining the CFPB’s Conflation of Distinct Statutory Concepts , urging the CFPB to rescind the recently released unfair, deceptive and abusive acts or...
InfoBytesCFPB discusses expanding electronic payments access
On June 28, CFPB Deputy Director Zixta Martinez spoke before the FDIC Meeting of the Advisory Committee on Economic Inclusion to discuss expanding access to affordable payments, credit, and other financial products and services. In her remarks, Martinez first discussed electronic payments, which...
InfoBytesCFPB updates FAQs on civil money penalties
On June 6, the CFPB updated its Civil Penalty Fund Frequently Asked Questions (FAQs). The FAQs, among other things: (i) present the Civil Penalty Fund Allocation Schedule; (ii) clarify basic definitions related to CFPB civil money penalties; (iii) clarify when the Bureau will begin to distribute...
InfoBytesCFPB to look at late fees on cards
On June 22, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPRM) soliciting information from credit card issuers, consumer groups, and the public regarding credit card late fees and late payments, and card issuers’ revenue and expenses. Under the Credit Card Accountability...
InfoBytesCFPB issues final rule re: credit reporting on human trafficking victims
On June 23, the CFPB issued a final rule implementing amendments to the FCRA intended to assist victims of human trafficking. According to the Bureau’s announcement, the final rule prohibits credit reporting agencies (CRAs) from providing reports containing any adverse items of information...
InfoBytesFDIC issues a proposed rule on assessments, revised deposit insurance assessment rates
On June 21, the FDIC Board of Directors issued a notice of proposed rulemaking to increase deposit insurance assessment rates by 2 basis points for all insured depository institutions to increase the likelihood that the reserve ratio of the Deposit Insurance Fund (DIF) reaches the statutory minimum...
InfoBytesCFPB shares consumer finance data
On June 15, CFPB Deputy Director Zixta Martinez spoke before the Consumer Federation of America’s 2022 Consumer Assembly addressing recent research by the Bureau on payday loans, rent-a-bank schemes, overdraft and other banking fees, medical debt, and credit reporting. In her remarks, Martinez...
InfoBytesCFPB revising its rulemaking approach
On June 17, CFPB Director Rohit Chopra announced in a blog post that the agency plans to move away from overly complicated and tailored rules. “Complexity creates unintended loopholes, but it also gives companies the ability to claim there is a loophole with creative lawyering,” Chopra said. The...
InfoBytesCFPB examining impact of overdraft programs
On June 16, the CFPB published a blog post outlining recent efforts taken by the agency to collect key metrics concerning the consumer impact of certain supervised institutions’ overdraft and non-sufficient fund (NSF) practices. The Bureau asked more than 20 institutions to provide data on several...
InfoBytesCFPB says BNPL needs standardized credit reporting
On June 15, the CFPB published a blog post calling on the Buy Now Pay Later (BNPL) industry to establish standardized codes and formats for furnishing information to credit reporting agencies that take into account the unique characteristics of these short-term, no-interest consumer credit products...
InfoBytesDistrict Court issues judgment against student debt relief operation
On June 10, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against an individual defendant who participated in a deceptive debt-relief operation. As previously covered by InfoBytes , in 2019, the Bureau, along with the Minnesota and...
InfoBytesCFPB looking at relationship banking at large institutions
On June 14, the CFPB issued a request for information (RFI) seeking public comments “related to relationship banking and how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets,...
InfoBytesCFPB publishes annual report on servicemember complaints
On June 13, the CFPB's Office of Servicemember Affairs (OSA) released its annual report , which provides an overview of OSA’s activities in fulfilling its statutory responsibilities for fiscal year 2021. The report highlights issues facing military consumers based on approximately 42,700 complaints...
InfoBytesCFPB launches inquiry into employer-driven debt practices
On June 9, the CFPB issued a request for information (RFI) seeking public input on practices and financial products that may cause an employee to owe a debt to their employer. The Bureau’s focus is on debt obligations incurred by consumers in the context of an employment or independent contractor...
InfoBytesCFPB releases HAF flyers in multiple languages
On June 9, the CFPB released Homeowner Assistance Fund (HAF) informational flyers in English, Spanish, Chinese, Vietnamese, Korean, Tagalog, and Arabic. As previously covered by InfoBytes , the HAF program was created to provide direct assistance to consumers for mortgage payments, property...
InfoBytesCFPB settles with student-loan debt relief company
On June 9, the CFPB filed a stipulated final judgment and order in the U.S. District Court for the Southern District of California resolving allegations that the operator of a student-loan debt relief company engaged in unfair debiting of consumer accounts, in violation of the CFPA. According to...
InfoBytesCFPB grants financial services company’s request to end no action letter
On June 8, the CFPB announced an order to end a “no-action letter” (NAL) issued to a consumer lending platform in 2020 in response to the NAL recipient’s request to shorten the term of the letter, which the company noted was necessary in order to be able to keep its underwriting models accurate and...
InfoBytesCFPB reports on consumer financial well-being
On June 7, the CFPB published a “Data Spotlight” report regarding financial well-being of consumers between 2017 and 2020. In September 2017, the CFPB published its first report on Financial Well-Being in America, which found a wide variation in how people feel about their financial well-being. The...
InfoBytesFTC shares 2021 enforcement report with CFPB
On June 3, the FTC announced that it submitted its 2021 Annual Financial Acts Enforcement Report to the CFPB. The report covers FTC enforcement activities regarding the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA). Highlights of the...
InfoBytesCFPB highlights abuses in military allotment system
On June 2, the CFPB posted a blog post highlighting abuses within the military allotment system with respect to servicemembers’ automatic recurring payments. According to the Bureau, the allotment system was established to help servicemembers make payments directly from their paychecks, especially...
InfoBytesEd. Dept. discharges additional $5 billion
On June 1, the Department of Education announced the “largest single loan discharge the Department has made in history,” which includes discharging all remaining federal student loans borrowed to attend any campus owned or operated by a specific large for-profit post-secondary education company...
InfoBytesCFPB questions CEOs on credit card payment reporting
On May 25, the CFPB announced that it sent letters to the CEOs of the nation’s largest credit card companies asking them to explain how they furnish data to credit reporting agencies regarding the exact monthly payment amounts made by borrowers. The letters noted that in 2020, the Bureau released a...
InfoBytesDistrict Court enters consent order in 2016 CFPB structured settlement action
On May 18, the U.S. District Court for the District of Maryland approved a consent order against defendants in an action concerning allegedly unfair, abusive, and deceptive structured settlement practices. As previously covered by InfoBytes , in 2016 the Bureau initiated an enforcement action...
InfoBytesCFPB reminds creditors of ECOA adverse action notice requirements
On May 26, the CFPB released Circular 2022-03 to reiterate creditors’ adverse action notice requirements under ECOA. The Circular, among other things, explains that ECOA and Regulation B require companies to explain the specific reasons for denying an application for credit or taking other adverse...
InfoBytesCFPB’s new innovation office to focus on competition instead of fintech sandboxes
On May 24, the CFPB launched the Office of Competition and Innovation, which will focus on competition and explore ways to “create market conditions where consumers have choices, the best products win, and large incumbents cannot stifle competition by exploiting their network effects or market...
InfoBytesDistrict Court issues judgment against student debt relief operation
On May 24, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against an individual defendant who participated in a deceptive debt-relief enterprise operation. As previously covered by InfoBytes , in 2019, the CFPB, along with the Minnesota...
InfoBytes9th Circuit says CFPB can seek restitution in action against payday lender
On May 23, the U.S. Court of Appeals for the Ninth Circuit upheld a district court’s judgment finding an online loan servicer and its affiliates liable for a deceptive loan scheme. However, the appellate court vacated the district court’s order, which had imposed a $10 million civil penalty (rather...
InfoBytesRemittance provider hints it may challenge CFPB’s funding structure
On May 20, a global payments provider, which was recently sued by the New York attorney general and the CFPB, filed a pre-motion letter hinting that it will challenge the constitutionality of the Bureau’s funding structure. As previously covered by InfoBytes , the complaint claimed the “repeat...
InfoBytesCFPB, New York reach $4 million settlement with debt collection operation
On May 25, the U.S. District Court for the Western District of New York entered a stipulated final judgment and order in an action taken by the CFPB, in partnership with the New York attorney general, resolving allegations that a debt collection operation based near Buffalo, New York, which...
InfoBytesHouse Republicans concerned about CFPB UDAAP manual and administrative adjudications
On May 19, nineteen Financial Services Committee Republicans sent a letter to CFPB Director Rohit Chopra expressing concerns about the agency’s new UDAAP supervisory policy and the recent changes to CFPB administrative adjudication procedures. As previously covered by a Buckley Special Alert , the...
InfoBytesCFPB affirms states may enforce CFPA and other federal laws
On May 19, the CFPB issued an interpretive rule addressing states’ authority to bring enforcement actions for violations of federal consumer financial protection laws, including the CFPA. Though the Bureau is charged with, among other things, administering, interpreting, and enforcing federal...
InfoBytesFDIC rule seeks to thwart misrepresentations about deposit insurance
On May 17, the FDIC approved a final rule implementing its authority to prohibit any person or organization from making misrepresentations about FDIC deposit insurance or misusing the FDIC’s name or logo. According to the FDIC, the final rule responds to the “increasing number of instances where...
InfoBytesCFPB seeks consistent enforcement of consumer financial law
On May 16, the CFPB launched a new system for providing transparent guidance on how the agency intends to administer and enforce federal consumer financial laws. Consumer Financial Protection Circular 2022-01 discusses the broad variety of agencies responsible for enforcing federal consumer...
InfoBytesCFPB report finds variance in mortgage servicers’ pandemic response
On May 16, the CFPB released a report examining data collected across 16 large mortgage servicers from May through December 2021 on the servicers’ responses to the Covid-19 pandemic. According to the Bureau, there is significant variation in how servicers collected information on borrowers’...
InfoBytesCFPB, FTC weigh in on consumer reporting obligations under the FCRA
On May 5, the CFPB and FTC filed a joint amicus brief with the U.S. Court of Appeals for the Second Circuit, seeking the reversal of a district court’s decision which determined that a consumer reporting agency (CRA) was not liable under Section 1681e(b) of the FCRA for allegedly failing to...
InfoBytesCFPB releases Spanish translations of certain disclosures
On May 11, the CFPB announced that it made available Spanish translations of certain disclosures to help financial institutions better support Spanish-speaking communities. According to the Bureau, financial service providers recognize the need for additional services and customer-facing materials...
InfoBytesCFPB: ECOA protection extends past application process
On May 9, the CFPB issued an advisory opinion to affirm its interpretation that ECOA bars lenders from discriminating against customers after they have applied for and received credit, not just during the application process. The Bureau’s opinion and analysis interprets ECOA and its implementing...
InfoBytesCFPB delivers 2021 fair lending report to Congress
On May 6, the CFPB issued its annual fair lending report to Congress, which outlines the Bureau’s efforts in 2021 to fulfill its fair lending mandate. Much of the Bureau’s work in 2021 focused on addressing racial injustice and long-term economic consequences of the Covid-19 pandemic. According to...
InfoBytesCFPB exposes private loan servicers’ unfair practices
On May 5, the CFPB discussed examination findings related to private student loan servicers’ alleged failure to follow through with promised loan offers or modifications. The Bureau directed servicers found to have breached their commitments to make “significant remediation amounts” for failing to...
InfoBytesCFPB fines bank $10 million over garnishment practices
On May 4, the CFPB announced a consent order against a national bank for allegedly engaging in unfair and deceptive acts or practices in violation of the CFPA by processing out-of-state garnishment orders against its customers’ bank accounts. According to the consent order, since August 2011, the...
InfoBytesAgencies overhaul CRA requirements
On May 5, the Federal Reserve Board, FDIC, and OCC (collectively, “agencies”) issued a joint notice of proposed rulemaking (NPRM) on new regulations implementing the Community Reinvestment Act (CRA) to update how CRA activities qualify for consideration, where CRA activities are considered, and how...
InfoBytesRemittance provider denies CFPB allegations
On May 2, a global payments provider recently sued by the New York attorney general and the CFPB responded to allegations claiming the “repeat offender” violated numerous federal and state consumer financial protection laws in its handling of remittance transfers. As previously covered by InfoBytes...
InfoBytes5th Circuit: CFPB enforcement may proceed but funding questions remain
On May 2, the U.S. Court of Appeals for the Fifth Circuit issued an en banc decision vacating a district court’s interlocutory decision denying the plaintiff payday lenders’ motion for judgment on the pleadings, and holding that the CFPB can continue its enforcement action against a Mississippi-...
InfoBytesCFPB examines servicers’ handling of auto lending add-on products
On May 2, the CFPB published a blog post examining how servicers handle overcharging for add-on products on auto loans. The post describes, among other things, that auto dealers and financial companies “often charge consumers all payments for any add-on products as a lump sum at origination of the...
InfoBytesCFPB issues spring supervisory highlights
On May 2, the CFPB released its spring 2022 Supervisory Highlights , which details its supervisory and enforcement actions in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittances, and student...
InfoBytesCFPB provides Spanish translations
On April 29, the CFPB released Spanish translations for certain model and sample forms included in the Prepaid Rule in Regulation E and for certain adverse action model and sample notices included in Regulation B . According to the Bureau, the release is part of its continuing effort to ensure fair...
InfoBytesCFPB enters proposed final judgment in TSR and CFPA violation suit
On April 29, the CFPB filed a proposed stipulated final judgment and order in the U.S. District Court for the Central District of California resolving allegations that a student loan debt relief business and a general debt-settlement company, along with their owner and CEO (collectively, “...
InfoBytesChopra testifies at congressional hearings
On April 26, CFPB Director Rohit Chopra testified at a hearing held by the Senate Banking Committee on the CFPB’s most recent semi-annual report to Congress (covered by InfoBytes here ). Chopra’s opening remarks focused on key efforts the agency is taking to meet objectives established by Congress...
InfoBytesCFPB invokes dormant authority to examine nonbanks
On April 25, the CFPB announced it was invoking a “dormant authority” under the Dodd-Frank Act to conduct supervisory examinations of fintech firms and other nonbank financial services providers based upon a determination of risk. “This authority gives us critical agility to move as quickly as the...
InfoBytesDistrict Court compels college operator to testify in CFPB CID challenge
On April 20, a magistrate judge for the U.S. District Court for the District of Utah issued a report and recommendation in a CFPB action seeking to compel testimony from a private, non-profit operator of several colleges as part of its petition to enforce a 2019 civil investigative demand (CID)...
InfoBytesCFPB, New York sue remittance provider
On April 21, the CFPB and New York attorney general filed a complaint against a remittance provider (defendant) for allegedly violating the Electronic Funds Transfer Act and its implementing Regulation E and the Remittance Rule (the Rule) and the Consumer Financial Protection Act (CFPA), among...
InfoBytesCFPB reports on rural banking deserts
On April 19, the CFPB released a report regarding the challenges faced by Americans in rural communities. According to the report, in 2012, over 600 counties “had no other physical banking offices except those operated by community banks.” The report also noted that bank consolidation has...
InfoBytesSenators warn CFPB of student loan servicers’ mismanagement of IDR programs
On April 14, Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), and Richard J. Durbin (D-IL) sent a letter to CFPB Director Rohit Chopra urging the Bureau to investigate recent reports of student loan servicers mismanaging income-driven repayment (IDR) programs. The letter alleged that...
InfoBytesCFPB questions transcript withholding as a debt collection practice
On April 18, the CFPB announced it is examining the practice of transcript withholding as a debt collection practice. According to a Bureau blog post, many post-secondary institutions choose to withhold official transcripts from borrowers as an attempt to collect education-related debts ranging...
InfoBytesCFPB updates list of institutions under its authority
Recently, the CFPB updated its list of Depository institutions (DIs) and depository affiliates of DIs under its supervisory authority. The CFPB has supervisory authority over banks, thrifts, and credit unions with assets over $10 billion, as well as their affiliates. The list is based on total...
InfoBytesCFPB and FTC release 2021 FDCPA report
On April 15, the CFPB and the FTC released their annual report to Congress on the administration of the FDCPA (see announcements here and here ). The agencies are delegated joint FDCPA enforcement responsibility and, pursuant to a 2019 memorandum of understanding, may share supervisory and consumer...
InfoBytesCFPB addresses risks facing student loan borrowers when payment suspension ends
On April 14, the CFPB’s Office of Research released a special issue brief addressing risks facing student loan borrowers once federal Covid-19 payment suspensions end later this year. The report documented the status of millions of student loan borrowers during the pandemic and found that borrowers...
InfoBytesStates urge CFPB to prohibit mortgage servicers from charging convenience fees
On April 11, a coalition of state attorneys general, led by Illinois Attorney General Kwame Raoul, announced that they are urging the CFPB to prohibit mortgage servicers from charging convenience fees, which the AGs also referred to as “junk fees” or “pay-to-pay” fees. As previously covered by...
InfoBytesCFPB sues credit reporter and one of its executives
On April 12, the CFPB sued a credit reporting agency (CRA), two of its subsidiaries (collectively, “corporate defendants"), and a former senior executive for allegedly violating a 2017 enforcement order in connection with alleged deceptive practices related to their marketing and sale of credit...
InfoBytesChopra offers warning on core service providers
On April 7, CFPB Director Rohit Chopra expressed concerns that “contracts written by the major core services providers are making it harder for local financial institutions to switch providers or use add-ons from outside technology providers.” In remarks to the CFPB’s Community Bank and Credit...
InfoBytesCFPB releases semi-annual report
On April 6, the CFPB issued its semi-annual report to Congress covering the Bureau’s work for the period beginning April 1, 2021 and ending September 30, 2021. The report, which is required by Dodd-Frank, addresses several issues, including difficulties faced by consumers in obtaining consumer...
InfoBytesCFPB addresses servicers’ obligations to respond to borrower inquiries
On April 4, the CFPB filed an amicus brief in a case on appeal to the U.S. Court of Appeals for the Ninth Circuit concerning a mortgage loan servicer allegedly failing to answer multiple inquiries from two separate consumers regarding their loans despite the requirement under Regulation X that...
InfoBytesChopra says credit reporting on medical debt needs review
On April 6, CFPB Director Rohit Chopra expressed cautious optimism about medical debt credit reporting changes during remarks to the CFPB’s Consumer Advisory Board. The Bureau has studied the burden of medical debt on consumers since the agency’s inception and has issued reports examining the...
InfoBytesCFPB proposal would limit negative credit reporting on human trafficking victims
On April 7, the CFPB released a proposed rule and solicited comments on regulations implementing amendments to the FCRA intended to assist victims of trafficking. The proposed rule would establish a method for a trafficking victim to submit documentation to consumer reporting agencies (CRAs)...
InfoBytesCFPB reports on extended payment plans for payday loans
On April 6, the CFPB released a report on consumer use of state payday loan extended payment plans, which is believed to be the first study to compare state extended payment plans and usage rates. The report examines state payday loan extended payment plans, an intervention which permits payday...
InfoBytesCFPB’s TSR claims against software company to proceed
On April 5, the U.S. District Court for the Central District of California denied a motion to dismiss claims brought by the CFPB alleging violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). As previously covered by InfoBytes , the California-based...
InfoBytesCFPB’s UDAAP claims to proceed against mortgage lender
On March 31, the U.S. District Court for the District of Columbia mostly denied motions to dismiss filed by a mortgage lender and four executives (collectively, “defendants”) sued by the CFPB for allegedly engaging in unlawful mortgage lending practices. As previously covered by InfoBytes , the...
InfoBytes"Finance cos. should brace for wider CFPB anti-bias reach" by Caroline M. Stapleton (Law360)
The Consumer Financial Protection Bureau recently raised eyebrows when it broadly expanded the legal theories under which it will seek to challenge illegal discrimination in the financial services industry. The CFPB announced on March 16 that it revised its examination manual to identify...
ArticlesCFPB handled nearly 1 million consumer complaints in 2021
On March 31, the CFPB published its Consumer Response Annual Report for 2021, providing an overview of consumer complaints received by the agency between January 1 and December 31, 2021. According to the report, the Bureau handled approximately 994,000 consumer complaints last year. Among other...
InfoBytesHouse subcommittee discusses eliminating overdraft fees
On March 31, the House Financial Services Committee’s Subcommittee on Consumer Protection and Financial Institutions held a hearing titled, The End of Overdraft Fees? Examining the Movement to Eliminate the Fees Costing Consumers Billions , to discuss efforts to reduce or eliminate overdraft fees...
InfoBytesSenate Banking Committee members ask CFPB to address medical debt
On March 29, several Democratic U.S. senators sent a letter to CFPB Director Rohit Chopra asking the Bureau to use its authority to take measures to address the growing medical debt burden facing consumers. The letter, led by Senator Sherrod Brown (D-OH), follows a report issued by the Bureau...
InfoBytesState AGs urge CFPB to prioritize consumers during inquiry into BNPL industry
On March 25, a coalition of state attorneys general, led by Illinois Attorney General Kwame Raoul, announced that they are urging the CFPB to ensure that “buy-now-pay-later” (BNPL) lenders are not engaging in practices that trap consumers in a cycle of debt. As previously covered by InfoBytes , in...
InfoBytesCFPB settles with student loan servicer over unfair practices
On March 30, the CFPB announced a settlement with a student loan servicer to resolve allegations that the company engaged in deceptive acts with respect to borrowers with Federal Family Education Loan Program (FFELP) loans about their eligibility for Public Service Loan Forgiveness (PSLF), in...
InfoBytesCFPB complies with settlement agreement in FACA dispute over consumer financial law taskforce
On March 28, the CFPB filed its final status report detailing measures taken by the agency to remedy the Bureau’s Taskforce on Federal Consumer Financial Law’s stipulated violations of the Federal Advisory Committee Act (FACA). As previously covered by InfoBytes , in January the Bureau publicly...
InfoBytesCFPB releases report on credit card late fees
On March 29, the CFPB released a report analyzing credit card late fees. Using three data sources to study the consumer impact of and industry reliance on late fees, the report found that credit card issuers charged approximately $12 billion in 2020. The Credit Card Accountability Responsibility...
InfoBytesChopra: Large repeat offenders should face tougher consequences
On March 28, CFPB Director Rohit Chopra warned that large, dominant banks and firms that repeatedly break the law “should be subject to the same consequences of enforcement actions as small firms.” Speaking before the University of Pennsylvania Law School as the 2022 Distinguished Lecturer on...
InfoBytesCFPB announces 2021 HMDA-modified LAR availability
On March 23, the CFPB announced that the HMDA modified loan/application register (LAR) is available on the Federal Financial Institutions Examination Council’s HMDA Platform for approximately 4,316 HMDA filers. According to the announcement, the modified LARs provide each financial institution's...
InfoBytesCFPB reports cover mortgage challenges, emergency savings
On March 23, the CFPB released two reports, New Data on the Characteristics of Mortgage Borrowers During the COVID-19 Pandemic and Emergency Savings and Financial Security : Insights from the Making Ends Meet Survey and Consumer Credit Panel . As previously covered by InfoBytes , the CFPB first...
InfoBytesDistrict Court denies motion to dismiss for lack of jurisdiction
On March 21, the U.S. District Court for the Western District of Virginia denied defendants’ motion to dismiss for lack of subject matter jurisdiction in a suit alleging that they misrepresented the cost of immigration bond services and deceived migrants to keep them paying monthly fees, including...
InfoBytesDistrict Court enters $2.8 million judgment in CFPB student debt relief action
On March 22, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against one of the defendants in an action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney, alleging a student loan...
InfoBytesCredit bureaus to eliminate 70% of medical debt tradelines
On March 18, three major credit bureaus released a statement announcing that they are eliminating nearly 70 percent of medical collection debt tradelines from consumer credit reports. According to the statement, beginning July 1, “paid medical collection debt will no longer be included on consumer...
InfoBytesCFPB releases compliance guidance on online consumer reviews
On March 22, the CFPB released a compliance bulletin regarding potentially illegal practices related to consumer reviews. The guidance highlights certain business practices related to consumer reviews that are generally unlawful under the CFPA, which include, among other things: (i) deceiving...
InfoBytesPAVE task force delivers plan on appraisal bias
On March 23, HUD delivered the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan to President Biden. Created in June 2021 to address racial bias in home lending and appraisals and establish actions to root out inequity, PAVE Task Force members include HUD...
InfoBytesSpecial Alert: CFPB revises UDAAP manual to include discriminatory practices
On March 16, the Consumer Financial Protection Bureau announced significant revisions to its Unfair, Deceptive, or Abusive Acts or Practices exam manual , in particular highlighting the CFPB’s view that its broad authority under UDAAP allows it to address discriminatory conduct in the offering of...
InfoBytesSpecial Alert: CFPB revises UDAAP manual to include discriminatory practices
On March 16, the Consumer Financial Protection Bureau announced significant revisions to its Unfair, Deceptive, or Abusive Acts or Practices exam manual , in particular highlighting the CFPB’s view that its broad authority under UDAAP allows it to address discriminatory conduct in the offering of...
Special AlertsDistrict Court rules ratification unnecessary for CFPB to proceed with 2017 enforcement action
On March 16, the U.S. District Court for the Southern District of New York ruled that the CFPB can proceed with its 2017 enforcement action against a New Jersey-based finance company alleging, among other things, that it misled first responders to the World Trade Center attack and NFL retirees...
InfoBytesCFPB updates debt collection examination procedures to include Regulation F provisions
Recently, the CFPB updated its debt collection examination procedures to incorporate provisions of Regulation F (the FDCPA’s implementing regulation). As previously covered by InfoBytes , in October 2020, the Bureau issued its final rule (effective November 30, 2021) amending Regulation F to...
InfoBytesCFPB reminds servicers to use HAF funds to prevent foreclosure
On March 14, the CFPB published a blog post strongly encouraging mortgage servicers to participate in the Homeowner Assistance Fund (HAF) to help borrowers avoid foreclosure and resolve delinquencies. While participation is voluntary, the Bureau reminded servicers that it remains focused on...
InfoBytesCFPB launches initiative to address financial issues facing rural communities
On March 10, the CFPB launched an initiative focusing on financial issues facing rural communities in the U.S. Citing economic trends that have disproportionately affected rural communities over the past several decades, the Bureau stated its initial focus will center around banking deserts,...
InfoBytesCFPB investigates employer-driven debt and the sale of workers’ personal data
On March 9, the CFPB published findings from a recent roundtable event where worker organizations and labor unions shared their members’ financial hardships and challenges. According to the Bureau’s blog post, more workers are reporting that they are responsible for paying for employer-mandated...
InfoBytesCFPB looks at removing medical debt from credit reports
On March 1, the CFPB announced plans to review whether data on unpaid medical bills should be included in consumer credit reports. The Bureau stated in its report, Medical Debt Burden in the United States , that research found $88 billion in medical debt on consumer credit reports, accounting for...
InfoBytesCFPB guidance on automobile repossession warns on UDAAPs
On February 28, the CFPB released Bulletin 2022-4 regarding the repossession of vehicles and the potential for violations of Dodd-Frank’s prohibition on engaging in unfair, deceptive, or abusive acts or practices (collectively, “UDAAPs”) when repossessing vehicles. According to the Bulletin, “[t]he...
InfoBytesCFPB blogs about growth in auto lending
On February 24, the CFPB published a blog post regarding the auto lending market. In the post, the Bureau noted that the consumer price index for new and used cars increased by nearly 40 percent over the last year, and that it anticipated “that both the total amount of debt and the average loan...
InfoBytesAgencies weigh in on availability of SPCPs under ECOA and Regulation B
On February 22, the CFPB, DOJ, FDIC, Fed, FHFA HUD, OCC, and NCUA released an interagency statement “to remind creditors of the ability under [ECOA] and Regulation B to establish special purpose credit programs [(SPCPs)].” The statement points creditors to the CFPB’s December 2020 Advisory Opinion...
InfoBytesCFPB seeks to prevent algorithmic bias
On February 23, the CFPB released an outline of possible options for upcoming rulemaking to prevent algorithmic bias in automated home valuation models (AVMs). Dodd-Frank mandates that the Bureau, Federal Reserve Board, OCC, FDIC, NCUA, and FHFA engage in joint agency rulemaking to strengthen the...
InfoBytesFTC provides 2021 ECOA summary to CFPB
On February 23, the FTC announced it recently provided the CFPB with its annual summary of activities related to ECOA enforcement, focusing specifically on the Commission’s activities with respect to Regulation B. The summary discussed, among other things, the following FTC enforcement, research,...
InfoBytesCFPB releases fact sheet on interest rate calculation under QM APR
On February 23, the CFPB released a factsheet on the interest rate that is used for calculating prepaid interest under the price-based General Qualified Mortgage (QM) annual percentage rate (APR) calculation rule for certain adjustable-rate mortgages (ARMs) and step-rate loans. As previously...
InfoBytesCFPB releases comment letter on FTC enforcement action
On February 18, the CFPB released a comment letter in response to the FTC’s request for comments on its proposed order with a business credit reporting agency alleging that the respondent engaged in deceptive and unfair practices. (Covered by InfoBytes here ). In commending the FTC, the CFPB noted...
InfoBytesCFPB revises Rules of Practice for Adjudication Proceedings
On February 22, the CFPB published a procedural rule and request for public comment in the Federal Register , to update its Rules of Practice for Adjudication Proceedings. Under Section 1053(e) of the Consumer Financial Protection Act, the Bureau has authority to conduct administrative proceedings...
InfoBytesCFPB scrutinizes student loan servicers’ PSLF compliance
On February 18, the CFPB released a compliance bulletin warning student loan servicers to make sure they provide complete and accurate information to eligible borrowers about Public Service Loan Forgiveness (PSLF) benefits. The Bureau indicated that it will be paying close attention to servicers’...
InfoBytesCFPB opens rulemaking petition to public
On February 16, the CFPB announced the launch of a new process for the public to submit petitions for rulemaking directly to the Bureau. According to the announcement, the public will have the ability to request that the Bureau pursue a new rule, amend an existing one, or repeal a rule. By allowing...
InfoBytesCFPB compares banks’ overdraft practices
On February 10, the CFPB published a blog post providing research on banks’ overdraft fees, which highlighted the Bureau’s “ ongoing and growing concern about the impact of bank overdraft fees on families.” The Bureau noted that in 2019, overdraft and non-sufficient fund fees (NSF) fees cost...
InfoBytesCFPB releases EFTA bulletin
On February 15, the CFPB released a bulletin reiterating that the EFTA and its implementing regulation, Regulation E, apply to government benefit accounts with the exception of certain state and local electronic benefit transfer programs. The EFTA establishes, among other things, that “no person...
InfoBytesCFPB updates remittance transfer examination procedures
Recently, the CFPB updated its remittance transfer examination procedures to reflect the latest amendments to Regulation E (EFTA’s implementing regulation), Subpart B, as of May 2020. The updates are reflected within the Bureau’s Supervision and Examinations Manual . The updated procedures outline...
InfoBytesAppeals Court to consider whether CFPA covers trusts
On February 11, the U.S. District Court for the District of Delaware stayed a 2017 CFPB enforcement action against a collection of Delaware statutory trusts and their debt collector after determining there may be room for reasonable disagreement related to questions of “covered persons” and “...
InfoBytesCBA urges CFPB to supervise nonbank small business lenders
On February 9, the Consumer Bankers Association (CBA) sent CFPB Director Rohit Chopra a letter regarding the supervision of nonbank small business lenders. The letter noted that the landscape for business lending has recently altered “substantially,” specifically with the alternative banking...
InfoBytesSenators urge CFPB to investigate student lenders’ bankruptcy compliance
On February 10, several U.S. senators sent a letter to CFPB Director Rohit Chopra claiming private student loan companies and servicers have “intentionally misrepresented to borrowers” their ability to discharge certain private student loans in bankruptcy. Citing a report from the Student Borrower...
InfoBytesChopra highlights consumer protection topics
On February 10, CFPB Director Rohit Chopra answered questions during a Washington Post Live session on several consumer protection topics. Citing auto lending as a top concern for the Bureau, Chopra noted that it is important for consumers to be able to shop around, refinance loans, and navigate a...
InfoBytesDistrict Court orders debt-relief company to pay $41.1 million CMP
On February 7, the U.S. District Court for the Northern District of Illinois entered a default judgment and order against a debt-relief company (default defendant) accused of allegedly violating the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. As previously covered by...
InfoBytesCFPB publishes 2022 reportable HMDA data reference chart
On January 27, the CFPB published the Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart for HMDA Data Collected in 2022 . The chart serves as a reference tool for data points that are required to be collected, recorded, and reported under Regulation C, as amended by HMDA...
InfoBytesFive agencies launch effort to address romance scams
On February 7, the CFTC, FinCEN, CFPB, ICE, and U.S. Postal Inspection Service launched the nationwide awareness effort “Dating or Defrauding?” to remind the public about the ongoing dangers of romance scams that target individuals through dating apps or social media. The agencies draw attention to...
InfoBytesVA establishes threshold for reporting VA debts to CRAs
On February 2, the Department of Veterans Affairs published a final rule in the Federal Register amending its regulations around the conditions by which VA benefits debts or medical debts are reported to consumer reporting agencies (CRAs), and creating a methodology for determining a minimum...
InfoBytesAgencies emphasize illegality of appraisal discrimination
On February 4, CFPB Fair Lending Director Patrice Ficklin, along with senior staff from the Federal Reserve Board, OCC, FDIC, NCUA, HUD, FHFA, and DOJ, sent a joint letter to The Appraisal Foundation (TAF) emphasizing that discrimination prohibitions under the Fair Housing Act (FHA) and ECOA extend...
InfoBytesCFPB studies criminal justice financial ecosystem
On January 31, the CFPB published a report studying the criminal justice financial ecosystem, which addressed financial challenges people and families face at every stage of the criminal justice process. According to Justice-Involved Individuals and the Consumer Financial Marketplace , contact with...
InfoBytesCFPB releases regulatory agenda
On January 31, the CFPB released its semiannual regulatory agenda in the Federal Register , as part of the Fall 2021 Unified Agenda of Federal Regulatory and Deregulatory Actions. According to the CFPB, it “reasonably anticipates having the regulatory matters identified below under consideration...
InfoBytesCFPB files emergency motion to hold phantom debt scammers in contempt
On January 22, the CFPB filed an emergency motion seeking to hold two individual defendants in contempt of court for allegedly failing to honor the terms of a default judgment and order related to a 2015 enforcement action. The defendants are two of multiple participants that were allegedly...
InfoBytesCFPB publishes list of consumer reporting companies
On January 27, the CFPB released its annual list of consumer reporting companies, which identifies reporting companies that collect and sell access to people’s data. According to the CFPB, the list can be used “to see what information these firms have, dispute inaccuracies, and file lawsuits if the...
InfoBytesCFPB is monitoring for PSLF waiver compliance
On January 26, the CFPB encouraged consumers to take advantage of the Public Service Loan Forgiveness (PSLF) limited waiver program before the October 31 application deadline. As previously covered by InfoBytes , last October the Department of Education announced several changes to its PSLF program...
InfoBytesCFPB seeks input on “junk fees”
On January 26, the CFPB announced an initiative requesting comments from the public on fees that are associated with consumers’ bank accounts, prepaid or credit card accounts, mortgages, loans, payment transfers, and other financial products and that are allegedly not subject to competitive...
InfoBytesCFPB examines credit card rates and fees
On January 19, the CFPB released a blog on credit card interest and fees. The Bureau noted that credit card debt is rising, and that “from 2015 to 2019, the average assessed interest rate on credit cards increased by more than 20%.” The blog pointed out that the Bureau is examining ways to ensure...
InfoBytesCFPB seeks comment on BNPL inquiry
On January 24, the CFPB issued a notice and request for comment in the Federal Registe r regarding the Bureau’s inquiry into “buy now, pay later” (BNPL) providers. As previously covered by InfoBytes , in December, the Bureau issued a series of orders to five financial technology companies seeking...
InfoBytesCFPB may revisit EWA guidance
On January 18, acting CFPB General Counsel Seth Frotman sent a letter to consumer advocates responding to their concerns that the Bureau’s November 2020 advisory opinion on earned wage access (EWA) products was being misused as justification for passage by proponents of a pending New Jersey bill...
InfoBytesCFPB to examine college lending
On January 20, the CFPB announced its plans to examine the operations of post-secondary schools that extend private loans directly to students and update its exam procedures, including a new section on institutional student loans. The Bureau noted that it is “concerned about the borrower experience...
InfoBytesCFPB reports on diversity and inclusion in financial services industry
On January 19, the CFPB’s Office of Minority Women and Inclusion (OMWI) released a report on diversity and inclusion in the financial services industry. The report, among other things, summarized the results of the Bureau’s research in 2020 to further understand how companies under the Bureau’s...
InfoBytesCFPB bans payment processor for alleged fraud
On January 18, the CFPB filed a proposed stipulated judgment and order to resolve a complaint filed last year against an Illinois-based third-party payment processor and its founder and former CEO (collectively, “defendants”) for allegedly engaging in unfair practices in violation of the CFPA and...
InfoBytesCFPB issues HMDA filing reminders and tips
On January 18, the CFPB issued “reminders and tips” for preparing and uploading submission for 2021 HMDA data, which will close for on-time submissions on March 1. As previously covered by InfoBytes , the filing period for HMDA data collected in 2021 opened on January 1. According to the CFPB,...
InfoBytesCFPB settles FACA dispute over taskforce
On January 14, the CFPB announced publicly that it settled a lawsuit filed by several consumer advocacy groups against the CFPB, which claimed that the Bureau’s Taskforce on Federal Consumer Financial Law established under former Director Kathy Kraninger was “illegally chartered” and violated the...
InfoBytesDistrict Court tosses challenge to CFPB’s payday rule
On January 14, the U.S. District Court for the District of Columbia granted two motions to dismiss a challenge to the Bureau’s 2020 final rule revoking certain underwriting provisions of the agency’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (Payday...
InfoBytesAgencies file amicus brief on “hybrid” loan MLA protections
On January 6, the CFPB, DOJ, and DOD filed an amicus brief on behalf of the United States in support of a consumer servicemember plaintiff’s appeal in Jerry Davidson v. United Auto Credit Corp, arguing that the hybrid loan at issue in the case, which was used for both an MLA-exempt and non-exempt...
InfoBytesAgencies adjust civil penalties to account for inflation
Recently, the CFPB, CFTC, FDIC, FinCen, FHFA, and OCC provided notice in the Federal Register regarding adjustments to the maximum civil money penalties due to inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation...
InfoBytesCFPB releases 2022 rural or underserved counties lists
Recently, the CFPB released its annual lists of rural counties and rural or underserved counties for lenders to use when determining qualified exemptions to certain TILA regulatory requirements. In connection with these releases, the Bureau also directed lenders to use its web-based Rural or...
InfoBytesCFPB issues guidance on medical debt covered by the NSA
On January 13, the CFPB released a new Bulletin to remind debt collectors and credit reporting agencies (CRAs) of their legal obligations under the FDCPA and the FCRA when collecting, furnishing information about, and reporting medical debts covered by the No Surprises Act (NSA). Effective for plan...
InfoBytesCFPB reports on NCRA’s complaint responsiveness
On January 5, the CFPB released a report , pursuant to Section 611(e)(5) of the FCRA, on information gathered by the Bureau on certain consumer complaints transmitted by the Bureau to the three largest nationwide consumer reporting agencies (NCRAs). According to the report, the CFPB received over...
InfoBytesCFPB updates Mortgage Origination Examination Procedures
On December 22, the CFPB updated its Mortgage Origination Examination Procedures to reflect amendments to Regulation Z’s Qualified Mortgage (QM) provisions. The Mortgage Origination Examination Procedures address various elements of the mortgage origination process and provide guidance for...
InfoBytesCFPB sues debt collectors
On January 10, the CFPB filed a complaint against three debt collection companies and their owners (collectively, “defendants”) for allegedly engaging in illegal debt-collection practices. According to the Bureau, the defendants purchase debt portfolios and place them with other collection...
InfoBytesNYDFS concerned with CFPB’s small business loan data collection proposal
On January 6, NYDFS issued a comment letter responding to the CFPB’s Notice of Proposed Rulemaking (NPRM), “Small Business Lending Data Collection under the Equal Credit Opportunity Act (Regulation B).” The NPRM—mandated under Section 1071 of the Dodd-Frank Act—would require a broad swath of...
InfoBytes"FTC updates data security expectations for nonbanks" by Elizabeth E. McGinn, Amanda R. Lawrence, Sherry-Maria Safchuk, Lauren Bomberger (Bloomberg Law)
Persistent cyberbreaches are compelling government responses to protect consumer data, particularly consumer financial information. Laws passed in California, Colorado, and Virginia are among the most influential at the state level, but federal regulators are also moving to implement additional...
ArticlesCFPB opens HMDA data filing period
On January 4, the CFPB announced that the filing period for HMDA data collected in 2021 opened on January 1. According to the CFPB, submissions will be considered timely if received by March 1. As previously covered by InfoBytes , in September 2020, the CFPB released the Filing Instructions Guide...
InfoBytesFTC comments on CFPB’s big tech payments inquiry
On December 21, FTC Chair Lina M. Khan submitted a comment in response to the CFPB's Notice and Request for Comment inquiring about the CFPB’s October orders issued to six large U.S. technology companies seeking information and data on their payment system business practices. (Covered by InfoBytes...
InfoBytesJelena McWilliams to resign as FDIC chairman
On December 31, Jelena McWilliams announced her resignation as FDIC Chairman effective February 4. McWilliams, who was appointed in 2018, noted in her resignation letter to President Biden that throughout her tenure at the agency the FDIC “has focused on its fundamental mission to maintain and...
InfoBytesCFPB examines pandemic’s effects on consumer finances
On December 21, the CFPB released a data point report discussing the results of a Making Ends Meet survey, which examined consumers’ financial health during the Covid-19 pandemic. Using the results from the survey as well associated credit bureau data, the Bureau found that while consumers “were...
InfoBytesCFPB releases annual HMDA and TILA adjustments
On December 23, the CFPB announced final rules adjusting the asset-size thresholds under HMDA (Regulation C) and TILA (Regulation Z). Both rules took effect January 1, 2022. Under HMDA, institutions with assets below certain dollar thresholds are exempt from the collection and reporting...
InfoBytesAgencies file amicus brief on use of term “applicant” in ECOA
On December 16, the CFPB filed a joint amicus brief with the DOJ, Federal Reserve Board, and the FTC arguing that the term “applicant” as used in ECOA and its implementing rule, Regulation B, includes both those seeking credit as well as persons who have sought and have received credit (i.e.,...
InfoBytesCFPB reaches settlement with online lender
On December 30, the U.S. District Court for the Northern District of California approved the stipulated final judgment and order against a California-based online lender (defendant) for alleged violations of fair lending regulations and a 2016 consent order. As previously covered by InfoBytes , the...
InfoBytesCFPB enters proposed final judgment in 2016 structured settlement action
On December 17, the CFPB filed a proposed stipulated final judgment and order in an action accusing defendants of allegedly employing abusive practices when purchasing structured settlements from consumers in exchange for lump-sum payments. As previously covered by InfoBytes , the CFPB filed a...
InfoBytesCFPB, DOJ remind on servicemember protections
On December 20, the CFPB and the DOJ issued two joint letters reminding mortgage servicers and landlords to ensure that military homeowners and tenants are safeguarded during the Covid-19 pandemic and benefit equally as the U.S. economically recovers. One letter was sent to landlords and other...
InfoBytesCFPB orders companies to submit BNPL information
On December 16, the CFPB issued a series of orders to five companies seeking information regarding the risks and benefits of the “buy now, pay later” (BNPL) credit model. BNPL is a “fast-growing” form of deferred payment that permits a consumer to divide a purchase into smaller installment payments...
InfoBytesCFPB asks tech workers to report AI lending discrimination
On December 15, the CFPB released a blog post calling on technology workers to report potential violations of federal consumer financial laws, including related to artificial intelligence (AI), as part of the Bureau’s efforts to adapt to the evolving financial landscape. According to the Bureau, AI...
InfoBytesCFPB’s debt-collection suit can proceed
On December 13, the U.S. District Court for the District of Delaware ruled that the CFPB can proceed with its 2017 enforcement action against a collection of Delaware statutory trusts and their debt collector for, among other things, allegedly filing lawsuits against consumers for private student...
InfoBytesChopra discusses DIF restoration plan
On December 14, CFPB Director Rohit Chopra expressed concerns with the FDIC’s current plan to “restore the Deposit Insurance Fund to the statutory minimum in 2028.” The Federal Deposit Insurance Act requires the development and adoption of a Deposit Insurance Fund (DIF) Restoration Plan (Plan) when...
InfoBytesChopra releases statement on bank merger policy conflict
On December 14, after his first public meeting as a Member of the Board of Directors of the FDIC, CFPB Director Rohit Chopra issued a statement detailing the circumstances leading up to the request for information (RFI) that seeks public comment on revising the FDIC’s framework for vetting proposed...
InfoBytesCFPB publishes fall 2021 rulemaking agenda
On December 13, the Office of Information And Regulatory Affairs released the CFPB’s fall 2021 rulemaking agenda . According to a Bureau announcement , the information released represents regulatory matters the Bureau plans to pursue during the period from November 2, 2021 to October 31, 2022...
InfoBytesCFPB releases EFTA FAQs
On December 13, the CFPB released updated Electronic Fund Transfers FAQs , which pertain to compliance with the Electronic Fund Transfer Act (EFTA) and Subpart A to Regulation E. The updated topics include transaction coverage, financial institution coverage, error resolution, and unauthorized EFT...
InfoBytesBenjamin W. Hutten extensively quoted in CoinDesk article, “Chatex users ask US Treasury to release crypto frozen by sanctions”
The CoinDesk article, “Chatex users ask US Treasury to release crypto frozen by sanctions,” discussed the recent sanctions against Chatex, which allegedly facilitated transactions for multiple ransomware variants leaving 370,000 registered users unable to make withdrawals from their accounts...
In The News"New 9th Circ. rulings may restrict McGill Rule's scope" by Fredrick S. Levin, James McGuire, Ali M. Abugheida, and Megan E. Whitehill (Law360)
In the 2017 McGill v. Citibank NA decision, the California Supreme Court held that any arbitration clause that bars a plaintiff from seeking public injunctive relief in any forum is unenforceable. The so-called McGill rule has become a central feature of the California arbitration landscape, and...
ArticlesFDIC refutes CFPB’s bank merger policy announcement
On December 9, the FDIC issued a statement refuting a request for review of bank merger policies announced in a CFPB blog post . According to a joint statement issued by FDIC Board member Martin J. Gruenberg and Rohit Chopra (who has an automatic board seat as Director of the CFPB), the FDIC Board...
InfoBytesCFPB supervisory highlights cover wide range of violations
On December 8, the CFPB released its fall 2021 Supervisory Highlights , which details its supervisory and enforcement actions in the areas of credit card account management, debt collection, deposits, fair lending, mortgage servicing, payday lending, prepaid accounts, and remittance transfers. The...
InfoBytesChopra concerned about PE investment in nursing homes
On December 7, CFPB Director Rohit Chopra spoke before the Elder Justice Coordinating Council Meeting and raised concerns regarding worsening fraud, neglect, and financial exploitation in nursing homes and other for-profit facilities. Chopra discussed that financial straits due to the pandemic...
InfoBytesChopra, Hsu encourage use of special purpose credit programs
On December 6, CFPB Director Rohit Chopra released a statement regarding HUD’s guidance , also issued that day, clarifying that special purpose credit programs that conform with ECOA and its implementing regulation, Regulation B, generally do not violate the Federal Housing Act. According to HUD’s...
InfoBytesChopra wants states to enforce federal consumer protection laws
On December 7, in a speech before the National Association of Attorneys General (NAAG) meeting, CFPB Director Rohit Chopra discussed the importance state partnerships play in enforcing consumer financial protection laws. In addressing the dangers of federal preemption over state consumer protection...
InfoBytesCFPB finalizes LIBOR transition rule
On December 7, the CFPB issued a final rule facilitating the transition from LIBOR for consumer financial products. (Corrected rule published February 16, 2022.) The final rule amends Regulation Z, which implements TILA, to generally address LIBOR’s eventual cessation for most U.S. dollar settings...
InfoBytesCFPB releases 2021 ombudsman report
On December 2, the CFPB Ombudsman’s Office published its annual report, which details inquiries handled by the office as well as its strategic plan goals for the next two years. As a new initiative going forward, following a pilot test at the request of the CFPB, the Ombudsman determined that it...
InfoBytesCFPB sets 2022 FCRA asset threshold
On November 29, the CFPB announced the annual adjustment to the maximum amount that consumer reporting agencies are permitted to charge consumers for making a file disclosure to a consumer under the FCRA. According to the rule , the ceiling on allowable charges under Section 612(f) of the FCRA will...
InfoBytesAgencies finalize 2022 HPML exemption threshold
On November 30, the CFPB, OCC, and Federal Reserve Board published finalized amendments to the official interpretations for regulations implementing Section 129H of TILA, which establishes special appraisal requirements for “higher-priced mortgage loans” (HPMLs). The final rule increases the TILA...
InfoBytesAgencies finalize TILA, CLA 2022 thresholds
On December 1, the CFPB and the Federal Reserve Board finalized the annual dollar threshold adjustments that govern the application of TILA (Regulation Z) and the Consumer Leasing Act (Regulation M) (available here and here ), as required by the Dodd-Frank Act. The exemption threshold for 2021,...
InfoBytes7th Circuit denies CFPB’s request to reconsider attorney exemption in foreclosures
On November 29, the U.S. Court of Appeals for the Seventh Circuit denied the CFPB’s petition for panel or en banc rehearing of its earlier decision in an action taken against several foreclosure relief companies and associated individuals accused of violating Regulation O. As previously covered by...
InfoBytesCFPB agrees taskforce was illegally chartered
On November 29, the parties reached a stipulated settlement in an action filed by several consumer advocacy groups against the CFPB, which claimed that the Bureau’s Taskforce on Federal Consumer Financial Law established under former Director Kathy Kraninger was “illegally chartered” and violated...
InfoBytesCFPB releases draft strategic plan for FY 2022-26
On December 2, the CFPB released for public feedback its draft strategic plan for fiscal years 2022-2026, which outlines and communicates its mission, strategic goals, and objectives for the next five years. External Factors Impacting the Bureau’s Strategic Goals and Objectives: The Bureau...
InfoBytesCFPB updates status on data collection rulemaking
On November 22, the CFPB filed its seventh status report in the U.S. District Court for the Northern District of California as required under a stipulated settlement reached in February 2020 with a group of plaintiffs, including the California Reinvestment Coalition, related to the collection of...
InfoBytesDistrict Court enters final judgment in 2016 CFPB structured settlement action
On November 18, the U.S. District Court for the District of Maryland entered a stipulated final judgment and order against one of the individual defendants in an action concerning allegedly unfair, abusive, and deceptive structured settlement practices. As previously covered by InfoBytes , the...
InfoBytesCFPB releases ethics guidance
On November 19, the CFPB released a blog post providing guidance regarding revolving door misconduct and reminding Bureau staff to report suspicious communications and activity committed by former employees to agency officials. According to CFPB Director Rohit Chopra, the reminder will permit the...
InfoBytesBenjamin W. Hutten extensively quoted in CoinDesk article, “ConsenSys Suddenly Bars Iranian Students from Ethereum Coding Class”
The CoinDesk article, “ConsenSys Suddenly Bars Iranian Students from Ethereum Coding Class,” discussed the removal of 50 Iranian students from the ConsenSys Academy, an educational branch of the New York City-based block chain software technology company in mid-November. It is not clear if the...
In The NewsJeffrey P. Naimon quoted in American Banker article, “PNC, KeyCorp upgrade collections tech as CFPB deadline nears”
The American Banker article, “PNC, KeyCorp upgrade collections tech as CFPB deadline nears,” explored how some banks have already shifted their collection practices from phone calls and letters to text an email in advance of certain Consumer Financial Protection Bureau rules set to take effect on...
In The NewsCFPB issues FDCPA reminder on text messaging
On November 18, the CFPB issued a reminder that “debt collectors who adopt and follow certain procedures can obtain a bona fide error defense from civil liability for unintentional violations of the prohibition against third-party communications when communicating by email or text message,” as...
InfoBytesCFPB seeks input on HMDA
On November 16, the CFPB issued a notice and request for comments regarding the rules for implementing the Home Mortgage Disclosure Act (HMDA). The Request for Information (RFI) solicits public comments on its plans to assess the effectiveness of the HMDA Rule, focusing on, among other things: (i)...
InfoBytesDemocratic senators ask CFPB to reconsider the credit reporting process
On November 10, seven democratic senators sent a letter to CFPB Director Rohit Chopra requesting that the Bureau reform the credit reporting industry by improving credit reporting accuracy and updating the process on dispute resolutions, among other things. The senators recommended that the Bureau...
InfoBytesCFPB releases FAQs on HMDA requirements
On November 10, the CFPB updated its FAQs on the Home Mortgage Disclosure Act (HMDA) reporting requirements to clarify institutional and transactional coverage. The updated FAQs, among other things, highlighted that the final rule, issued in April 2020, established the closed-end mortgage loan...
InfoBytesCFPB sues pawn lenders for MLA violations
On November 12, the CFPB filed a complaint against a Texas-based pawn lender and its wholly owned subsidiary (together, “lenders”) for allegedly violating the Military Lending Act (MLA) by charging active-duty servicemembers and their dependents more than the allowable 36 percent annual percentage...
InfoBytesJeffrey P. Naimon quoted in American Banker article, “Can OCC nominee calm fears of bankers, Senate that she is too extreme?”
The American Banker article, “Can OCC nominee calm fears of bankers, Senate that she is too extreme?” examined the upcoming, and what promises to be contentious, nomination hearing of Saule Omarova, President Biden’s pick for comptroller of the currency. Omarova, a Cornell University law professor...
In The NewsAgencies end Covid mortgage servicing flexibility
On November 10, the OCC, Federal Reserve Board, CFPB, FDIC, NCUA, and state financial regulators issued a joint statement announcing the end to temporary supervisory and enforcement flexibility provided to mortgage servicers due to the Covid-19 pandemic by the agencies’ April 3, 2020 joint...
InfoBytesDistrict Court denies EFTA safe harbor in overdraft class action
On November 8, the U.S. District Court for the District of New Hampshire denied a credit union’s motion to dismiss claims concerning its overdraft fees and policies. Plaintiffs filed a putative class action alleging that the defendant failed to properly disclose how it assessed overdrafts in...
InfoBytesCFPB seeks comments on recent orders to U.S. tech companies
On November 5, the CFPB published a notice in the Federal Register seeking public comments on recently issued orders to six large U.S. technology companies requesting information and data on their payment system business practices (covered by InfoBytes here ). According to the notice, the Bureau...
InfoBytesCFPB deputy director discusses future rulemaking research efforts
On November 5, CFPB Deputy Director Zixta Martinez spoke before the Bureau’s Academic Research Council (ARC) meeting, in which she discussed recent research efforts taken to inform future rulemaking and identify root causes of challenges facing consumers. Martinez highlighted Section 1022 orders...
InfoBytes"Incorporating safeguards for CFPB info request targets" by John R. Coleman (Law360)
The U.S. Consumer Financial Protection Bureau announced recently that it ordered several large technology companies to submit detailed information concerning their payment products, including how they collect, use and share data about consumers who use their products. The information demand is...
ArticlesCFPB affirms name-only matching practices violate FCRA
On November 4, the CFPB issued an advisory opinion to express its interpretation that credit reporting companies, including tenant and employment screening companies, are in violation of the FCRA if they engage in the practice of matching consumer records solely by name. According to the Bureau,...
InfoBytesDistrict Court grants MTD in CFPB, NY AG debt collector case
On October 27, the U.S. District Court for the Western District of New York denied a motion to dismiss an action brought by the CFPB and the New York attorney general against the operators of a debt-collection scheme, rejecting the defendants’ argument that they did not have fraudulent intent and...
InfoBytesCFPB resolves UDAAP allegations with debt collection company
On November 1, the U.S. District Court for the Western District of Missouri ordered a Missouri-based company to pay a $30,000 civil money penalty to resolve allegations that it used district-attorney letterhead to threaten consumers with criminal prosecution. As previously covered by InfoBytes ,...
InfoBytesCFPB reaches $850,000 settlement with debt collectors
On October 26, the U.S. District Court for the District of Maryland entered a stipulated final judgment and order against defendants (a debt collection entity, its subsidiaries, and their owner) in an action alleging FCRA and FDCPA violations. As previously covered by InfoBytes , the Bureau filed a...
InfoBytesCFPB publishes Regulation F debt collection compliance guidance
On October 29, the CFPB released information on validation notices to help facilitate compliance with requirements in the Regulation F debt collection final rule. As previously covered by InfoBytes , in October 2020 the CFPB issued its final rule (effective November 30) amending Regulation F, which...
InfoBytesCFPB releases report on consumer credit disputes
On November 2, the CFPB released a report on credit report disputes that outlined the demographic characteristics of disputers and the outcomes for accounts with dispute flags. The report highlighted that consumers in majority Black and Hispanic neighborhoods, as well as younger consumers and those...
InfoBytesChopra testifies on CFPB direction
On October 27, newly sworn in CFPB Director Rohit Chopra appeared for the first time before the House Financial Services Committee to offer some of the first insights into his priorities at the Bureau. Chopra’s opening remarks focused on concerns regarding “Big Tech” and its control over the flow...
InfoBytesCFPB announces new chiefs for supervision and enforcement
On October 29, the CFPB announced two significant leadership changes within the Bureau. Lorelei Salas will serve as the Assistant Director for Supervision Policy as well as the Acting Assistant Director for Supervision Examinations. Salas’ experience prior to joining the Bureau includes serving as...
InfoBytesCFPB adjusts annual dollar threshold for Regulation Z, CLA
On October 25, the CFPB announced the annual dollar threshold adjustments that govern the application of Regulation Z (Truth in Lending Act). The final rule revises the dollar amounts, where appropriate, for provisions implementing TILA and amendments to TILA, including under the CARD Act, the Home...
InfoBytesCFPB urged to regulate fee-based EWA products as credit subject to TILA
On October 12, CFPB Director Rohit Chopra received a letter from “96 consumer, labor, civil rights, legal services, faith, community and financial organizations and academics,” which urged the Bureau to rescind its earned wage access (EWA) advisory opinion and sandbox approval, and requested that...
InfoBytesCFPB releases education ombudsman’s annual report
On October 26, the CFPB Private Education Loan Ombudsman published its annual report on consumer complaints submitted between September 1, 2020 and August 31, 2021. The report is based on approximately 5,300 complaints received by the Bureau regarding federal and private student loans. Of these...
InfoBytesDOJ, CFPB, and OCC announce aggressive redlining initiative; take action against national bank for alleged lending discrimination
On October 22, the DOJ, in collaboration with the CFPB and the OCC, announced a new initiative to combat redlining and lending discrimination. The Combatting Redlining Initiative will be led by the DOJ’s Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney...
InfoBytesCFPB orders tech companies to submit payment system information
On October 21, the CFPB issued orders to six large U.S. technology companies seeking information and data on their payment system business practices. The Bureau stated that the information is intended to help the Bureau understand how these companies use personal payments data and manage data...
InfoBytesAgencies release statement on LIBOR transition
On October 20, the CFPB, Federal Reserve Board, FDIC, NCUA, and OCC, in conjunction with the state bank and state credit union regulators, (collectively, “agencies”) released a joint statement regarding the transition away from LIBOR. As previously covered by InfoBytes , the Fed, FDIC, and OCC...
InfoBytesCFPB releases Spanish-language model validation notice for debt collectors
Recently, the CFPB issued a Spanish-language translation of its Model Validation Notice. Debt collectors are permitted to send a consumer a completely and accurately translated validation notice if the consumer was either provided an English-language version in the same communication or in a prior...
InfoBytesCFPB updates 2022 HMDA filing instructions
On October 20, the CFPB released three updates regarding the Filing Instructions Guide for HMDA data collected in 2022 that must be reported in 2023. As previously covered by InfoBytes , the CFPB released the Filing Instructions Guide for HMDA, which states that there are no significant changes to...
InfoBytesCFPB and debt relief company agree to permanent injunction
On October 20, the U.S. District Court for the Northern District of Georgia entered a default judgment and order against five participants in an allegedly illegal debt collection scheme involving certain payment processors and a telephone broadcast service provider (collectively, “default...
InfoBytesDistrict Court approves non-party settlement in student debt-relief action
On October 20, the U.S. District Court for the Central District of California approved a settlement with two non-parties in an action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney, alleging a student loan debt relief operation deceived...
InfoBytesCFPB reaches $6 million settlement with prison financial services company
On October 19, the CFPB issued its first enforcement action under newly-appointed Director Rohit Chopra. The consent order , issued against a provider of financial services to prisons and jails, stated that the company engaged in unfair, deceptive, and abusive acts or practices in violation of the...
InfoBytes5th Circuit delays payday lending compliance until after resolution of appeal
On October 14, the U.S. Court of Appeals for the Fifth Circuit stayed the implementation of the payment provisions of the CFPB’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (2017 Rule) for 286 days after the resolution of the appeal. The appellate court...
InfoBytesCFPB, FTC, and North Carolina argue public records website does not qualify for Section 230 immunity
On October 14, the CFPB, FTC, and the North Carolina Department of Justice filed an amicus brief in support of the consumer plaintiffs in Henderson v. The Source for Public Data, L.P. , arguing that a public records website, its founder, and two affiliated entities (collectively, “defendants”)...
InfoBytesChopra sworn in as CFPB director
On October 12, Rohit Chopra was sworn in as Director of the CFPB. Chopra issued a message to Bureau staff, the Federal Reserve Board, FDIC Board of Directors, and members of the Financial Stability Oversight Council, applauding former acting Director Dave Uejio’s service and stressing the...
InfoBytesCFPB petitions 7th Circuit to reconsider Regulation O attorney exemption
On October 7, the CFPB filed a petition for panel or en banc rehearing with the U.S. Court of Appeals for the Seventh Circuit, asking the appellate court to reconsider its recent determination “that practicing attorneys are categorically exempt from Regulation O,” as it strips the CFPB “of the...
InfoBytesSeila Law will not petition Supreme Court a second time
On October 8, counsel for the appellant in CFPB v. Seila Law LLC sent a letter to the U.S. Court of Appeals for the Ninth Circuit stating that, after further consideration, the law firm has decided not to seek further review from the U.S. Supreme Court in its long-running challenge with the Bureau...
InfoBytesCFPB issues semi-annual report to Congress
On October 8, the CFPB issued its semi-annual report to Congress covering the Bureau’s work from October 1, 2020 to March 31, 2021. The report, which is required by Dodd-Frank, addresses, among other things, the effects of the Covid-19 pandemic on consumer credit, significant rules and orders...
InfoBytesSupreme Court won’t hear challenge to CFPB ratification
On October 4, the U.S. Supreme Court declined to hear a petition filed by a New Jersey-based finance company accused by the CFPB and the New York attorney general of misleading first responders to the World Trade Center attack and NFL retirees about high-cost loans mischaracterized as assignments...
InfoBytesDistrict Court denies delay on payday lending compliance
On September 30, the U.S. District Court for the Western District of Texas denied a request made by two trade groups to stay the implementation of the payment provisions of the CFPB’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (2017 Rule) while they...
InfoBytesCFPB releases debt collection FAQs
On October 1, the CFPB released a set of FAQs discussing limited-content messages and the call frequency provisions under the Debt Collection Rule in Regulation F. As previously covered by InfoBytes , in October 2020 the CFPB issued its final rule amending Regulation F, which implements the Fair...
InfoBytesCFPB examines subprime auto loans
On September 30, the CFPB released a Data Point report, titled Subprime Auto Loan Outcomes by Lender Type , which examines interest rate and default risk trends across different types of subprime lenders, including how much of the variation of interest rates charged among subprime lenders can be...
InfoBytesCFPB releases consumer credit card report
On September 29, the CFPB released its fifth biennial report on the state of the credit card market as required by Section 502 of the Credit Card Accountability Responsibility and Disclosure Act. The 2021 report covers the credit card market for the 2019-2020 period, and revisits similar baseline...
InfoBytesDistrict Court orders student loan debt-relief defendant to pay $20 million
On September 23, the U.S. District Court for the Central District of California entered a judgment in favor of the CFPB against an individual defendant in an action taken by the Bureau against a lender and several related individuals and companies (collectively, “defendants”) for alleged violations...
InfoBytesCFPB offers reminder on forbearance options for borrowers
On September 30, the CFPB issued an analysis of recent rules that ensure mortgage servicers provide options to potentially vulnerable borrowers exiting forbearance. The analysis points out that there are approximately 1.6 million borrowers exiting mortgage forbearance programs and that many may be...
InfoBytes"Chopra confirmed as CFPB director: What to expect" by John R. Coleman
The Consumer Financial Protection Bureau under the leadership of Rohit Chopra appears poised to pursue an aggressive enforcement posture and test the limits of its authority in pursuit of broad market change. But the headline-grabbing enforcement actions expected under Chopra, whom the Senate...
Buckley Commentary & AnalysisCFPB reports on complaints received
On September 23, the CFPB released its first in-depth report analyzing complaint submission patterns by U.S. Census tract, titled “Consumer complaints throughout the credit life cycle, by demographic characteristics.” The report is based on approximately 1 million consumer complaints submitted to...
InfoBytesChopra moves closer to Senate confirmation
On September 21, the U.S. Senate passed a motion, 49-48 along party lines, to discharge Rohit Chopra’s nomination as permanent director of the CFPB from the Senate Committee Banking, Housing, and Urban Affairs. Chopra, currently an FTC Commissioner, was nominated by President Biden in January (...
InfoBytesHouse fintech task force discusses consumer data privacy
On September 21, the House Financial Services Committee’s Task Force on Financial Technology held a hearing titled, “Preserving the Right of Consumers to Access Personal Financial Data,” to discuss developments in fintech sharing and consumers’ right to control their own financial data. Task Force...
InfoBytesCFPB announces new advisory committee members
On September 22, the CFPB released new membership details for the Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council. Committee members, “experts in consumer protection, financial services, consumer lending, economic justice, and...
InfoBytesCFPB requests comments on credit card data collections
On September 21, the CFPB published a notice and request for comments in the Federal Register seeking input on revisions to an existing, currently approved information collection, related to reporting terms of credit card plans and consumer and college credit card agreements. The notice relates to...
InfoBytesCFPB addresses IT examinations in updated Supervision and Examination Manual
Recently, the CFPB updated its Supervision and Examinations Manual to include a new section, Compliance Management Review – Information Technology , to assist examiners when assessing an institution and its service providers’ IT controls as part of a compliance management systems (CMS) review. All...
InfoBytesCFPB sues software company for encouraging TSR violations
On September 20, the CFPB filed a complaint against a California-based software company and its owner (collectively, “defendants”) for allegedly violating the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act by substantially assisting or supporting credit-repair businesses...
InfoBytesCFPB highlights post-pandemic risks for renters
On September 17, the CFPB released a report revealing that renters and their families may experience “previously avoided economic harms of the Covid-19 pandemic as federal and state relief programs expire.” The report, which compared homeowners and renters using the CFPB’s Making Ends Meet survey...
InfoBytesCFPB releases 2018 policy reminder on disaster recovery
On September 14, the CFPB issued an e-mail announcement reminding entities of a 2018 Supervisory Policy Statement regarding the existing flexibility some laws and regulations provide for supervised entities to assist with community and consumer recovery in the wake of major disasters and...
InfoBytesCFPB releases 2022 HMDA filing instructions
On September 9, the CFPB released the Filing Instructions Guide for HMDA data collected in 2022 that must be reported in 2023. The guide states that there are no significant changes to the submission process and that the required data fields to be collected and reported have not changed...
InfoBytesCFPB releases annual college credit card report
On September 9, the CFPB released its annual report to Congress on college credit card agreements. The report was prepared pursuant to the CARD Act, which requires card issuers to submit to the CFPB the terms and conditions of any agreements they make with colleges, as well as certain organizations...
InfoBytesJohn R. Coleman profiled in Law360 article, “Former senior CFPB official joins Buckley in DC”
In the Law360 article, “Former senior CFPB official joins Buckley in DC,” new Buckley Partner and former CFPB Deputy General Counsel John Coleman noted a couple themes that “jump out” regarding Acting CFPB Director Rohit Chopra. “One is that he's aggressive. Two is he's concerned with what I'd call...
In The NewsJohn R. Coleman profiled in Reuters article, “CFPB vet joins Buckley in D.C.”
The Reuters article, “CFPB vet joins Buckley in D.C.” covered the arrival of Buckley’s newest partner, former CFPB Deputy General Counsel John Coleman. He said he aims to represent clients looking to “stay out of the crosshairs of the CFPB” and companies that are responding to civil investor...
In The NewsCFPB alleges online lender violated 2016 consent order
On September 8, the CFPB filed a complaint against a California-based online lender (defendant) for allegedly violating the terms of a 2016 consent order related to false claims about their lending program. As previously covered by InfoBytes , the 2016 consent order alleged the defendant engaged in...
InfoBytesJohn R. Coleman profiled in The National Law Journal article, “Buckley taps Consumer Financial Protection Bureau deputy general counsel”
John Coleman was profiled in The National Law Journal article, “Buckley taps Consumer Financial Protection Bureau deputy general counsel,” which covered his move from the CFPB to join Buckley. He noted, “Here at Buckley, I am now part of a team of people who bring world-class expertise and...
In The NewsCFPB settles with ISA provider on unfair practices
On September 7, the CFPB announced a settlement with a Virginia-based non-profit income share agreement (ISA) provider, and its affiliated companies, to resolve allegations that the company engaged in deceptive acts with respect to its ISAs product to finance postsecondary education, in violation...
InfoBytesCFPB denies debt collection company’s petition to set aside CID
On August 18, the CFPB denied a petition by a debt collection company to set aside a civil investigative demand (CID) issued by the Bureau in May. The CID requested information regarding whether debt buyers, debt collectors or persons associated with selling or collecting debt, have “made false or...
InfoBytesSpecial Alert: CFPB proposes small business loan data collection regime
Over a decade ago, Congress enacted an amendment to the Equal Credit Opportunity Act that directed the Consumer Financial Protection Bureau to implement a new regime for small business loan data collection similar to the regime that exists in the mortgage industry. Last week, a month before a court...
InfoBytesSpecial Alert: CFPB proposes small business loan data collection regime
Over a decade ago, Congress enacted an amendment to the Equal Credit Opportunity Act that directed the Consumer Financial Protection Bureau to implement a new regime for small business loan data collection similar to the regime that exists in the mortgage industry. Last week, a month before a court...
Special AlertsCFPB proposes collection of small business lending data
On September 1, the CFPB released a notice of proposed rulemaking (NPRM) and request for public comment on a proposed rule to implement Section 1071 of the Dodd-Frank Act, which requires the agency to collect and disclose data on lending to women and minority-owned small businesses. The NPRM would...
InfoBytesCourt temporarily stays compliance with CFPB’s payday rule
On August 31, the U.S. District Court for the Western District of Texas granted summary judgment in favor of the CFPB in an action filed by two trade groups challenging the payment provisions of the Bureau’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (...
InfoBytesUejio says SPCPs may help economically disadvantaged homeowners
On September 1, CFPB acting Director Dave Uejio spoke before the National Fair Housing Alliance’s forum on special purpose credit programs (SPCPs) to address discrimination and inequity trends in homeownership and explore ways that SPCPs could be used to promote fair and equitable access to credit...
InfoBytesCFPB examines pandemic effect on access to new credit
On August 26, the CFPB released findings regarding trends in credit cards, mortgages, and auto loans for consumers through the Covid-19 pandemic. The post—the fifth and final in a series documenting trends in consumer credit outcomes during the Covid-19 pandemic—examines how access to new credit...
InfoBytesCFPB officially withdraws extension of compliance date for debt collection rules
On September 1, the CFPB published a proposal in the Federal Register to withdraw its proposed rule that would have extended the effective date of its final rules amending Regulation F, which implements the FDCPA. As previously covered by InfoBytes , in April, the Bureau proposed delaying the...
InfoBytesDistrict Court denies bank’s motion to dismiss class action regarding overdrafts
On August 23, the U.S. District Court for the District of Connecticut denied a motion to dismiss a putative class action case, in which the plaintiff alleged that a national bank’s (defendant) overdraft opt-in notice failed to satisfy Regulation E of the Electronic Funds Transfer Act (EFTA), and...
InfoBytesCFPB to issue Section 1071 NPRM by September 30
On August 23, the CFPB filed its sixth status report in the U.S. District Court for the Northern District of California as required under a stipulated settlement reached in February 2020 with a group of plaintiffs, including the California Reinvestment Coalition. The settlement (covered by...
InfoBytesSupreme Court lifts federal eviction moratorium
On August 26, the U.S. Supreme Court issued a 6-3 decision in Alabama Association of Realtors et al. v. U.S. Department of Health and Human Services et al. to lift the federal government’s eviction moratorium, stating the CDC lacked authority to impose the ban. This decision follows the Court’s...
InfoBytesCFPB releases TILA and CARD Act specifications
On August 20, the CFPB released new technical specifications regarding credit card agreement and data submission compliance requirements under TILA and the CARD Act (Regulation Z). Credit card issuers will utilize the Bureau’s website to submit: (i) Terms of Credit Card Plans (TCCP) Survey data (...
InfoBytesCFPB releases HMDA data report
On August 19, the CFPB released a Data Point report titled, 2020 Mortgage Market Activity and Trends , which finds that the total number of closed-end originations, as well as applications, increased substantially between 2019 and 2020. The 2020 HMDA data encompasses the third year of data that...
InfoBytesCFPB appeals decision on Prepaid Accounts Rule
On August 16, the CFPB filed its opening brief in the agency’s appeal of a district court’s December 2020 decision , which granted a payment company’s motion for summary judgment and vacated two provisions of the Bureau’s Prepaid Account Rule: (i) the short-form disclosure requirement “to the...
InfoBytesCFPB takes action against Maryland debt collectors
On August 16, the CFPB entered into a preliminary settlement with a debt collection entity, its subsidiaries, and their owner (collectively, “defendants”) for allegedly violating the FCRA, FDCPA, and the CFPA, resolving a case filed in the U.S. District Court for the District of Maryland. As...
InfoBytesCFPB joins Census Bureau's tech sprint
On August 18, the CFPB announced that the Bureau will participate in the Census Bureau’s The Opportunity Project (TOP) “The World Post COVID-19” tech sprint program, comprised of six tech sprints that will focus on post-pandemic challenges. The CFPB is partnering with HUD to lead a tech sprint...
InfoBytesDistrict Court grants summary judgment against student loan debt-relief defendant
On August 10, the U.S. District Court for the Central District of California granted summary judgment against an individual defendant in an action by the CFPB against a lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the Consumer Financial...
InfoBytesDistrict Court allows CFPB, Massachusetts AG’s telemarketing suit to proceed
On August 10, the U.S. District Court for the District of Massachusetts denied a motion to dismiss filed by a credit repair organization and the company’s president and owner (collectively, “defendants”) in a joint action taken by the CFPB and the Massachusetts attorney general, which alleged the...
InfoBytesCFPB seeks comment on mobile-device disclosures
On August 11, the CFPB issued a notice and request in the Federal Register for comments on a Generic Information Collection titled, “Electronic Disclosure on Mobile Devices.” According to the notice, the CFPB is planning “to conduct several studies using methodologies rooted in psychology and...
InfoBytesCFPB and lenders file briefs for 2017 payday lending case
On August 6, the U.S. District Court for the Western District of Texas received briefs from the CFPB and the two trade groups (plaintiffs) challenging the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule) regarding a compliance date for the 2017 Rule’s payment...
InfoBytesCFPB examines pandemic effect on card limits
On August 11, the CFPB released findings regarding trends in credit card limits for consumers throughout the Covid-19 pandemic. The post—the fourth in a series documenting trends in consumer credit outcomes during the Covid-19 pandemic (the first covered by InfoBytes here )—examines whether “credit...
InfoBytesCFPB finds varying pandemic response among servicers
On August 10, the CFPB released an overview report of Covid-19 pandemic responses from 16 large mortgage servicers (servicers). The CFPB used supervisory data from the servicers to understand how they are interacting with homeowners throughout the pandemic and if those interactions are effective...
InfoBytesCFPB releases Juneteenth timing guidance rule
On August 5, the CFPB clarified that it will not penalize mortgage lenders that did not adjust some time-sensitive borrower protections for Juneteenth, noting that the quick enactment of the law designating the holiday left the industry “unsure of how to treat the day for purposes of regulatory...
InfoBytesCFPB updates mortgage servicing small entity compliance guide
On August 4, the CFPB updated the mortgage servicing Small Entity Compliance Guide to include guidance on the 2021 Mortgage Servicing COVID-19 Final Rule and the 2020 Mortgage Servicing COVID-19 Interim Final Rule . In June, the Bureau finalized amendments to certain federal mortgage servicing...
InfoBytesSen. Toomey sends letter to NEC regarding CFPB employees
On July 29, Ranking Member of the Senate Banking Committee Senator Pat Toomey (R-PA) sent a follow-up letter to the Chief of Staff at the National Economic Council, Leandra English, claiming the CFPB is “taking unusual and possibly unlawful actions” to replace civil servants at the CFPB. As...
InfoBytesCFPB, Arkansas AG settle FCRA violations
On August 4, in an action brought by the CFPB and the Arkansas attorney general, the U.S. District Court for the Eastern District of Arkansas entered a stipulated final judgment and order against a Utah-based home-security and alarm company (defendant) for allegedly failing to provide proper...
InfoBytesPayday lender must comply with $50 million CFPB order
On July 30, the U.S. District Court for the District of Kansas granted a petition filed by the CFPB to enforce an administrative order that assessed more than $50 million in restitution and fines against a Delaware-based online payday lender and its CEO (collectively, “respondents”) while the...
InfoBytesCFPB confirms final debt collection rules still set to take effect November 30
On July 30, the CFPB officially announced that the agency’s two final debt collection rules, which implement the FDCPA, will take effect as scheduled on November 30. Earlier in April, the Bureau proposed delaying the effective date by 60 days to provide affected parties additional time to comply...
InfoBytesAgencies extend Covid-19 eviction moratorium
On July 30, USDA, HUD, the VA, and FHFA extended their foreclosure-related eviction moratoria until September 30. The extensions follow President Biden’s July 29 announcement , which asked federal agencies to extend their respective eviction moratoria through the end of September following the...
InfoBytesCFPB, FHFA release updated data on borrowers’ mortgage experiences
On July 29, the CFPB and FHFA released updated loan-level data for public use, which provides insights into borrowers’ experiences during the process of obtaining residential mortgages, as well as their perceptions of the mortgage market and future expectations. The data, collected through the...
InfoBytes7th Circuit vacates $59 million CFPB penalty against mortgage-assistance relief companies
On July 23, the U.S. Court of Appeals for the Seventh Circuit vacated a 2019 restitution award in an action brought by the CFPB against two former mortgage-assistance relief companies and their principals (collectively, “defendants”) for violations of Regulation O. As previously covered by...
InfoBytesCFPB: Credit applications rebound to pre-pandemic levels
On July 27, the CFPB published a special issue brief finding that consumer applications for auto loans, new mortgages, and revolving credit cards had, for the most part, returned to pre-pandemic levels by May 2021. The brief compares the number of applications made in these categories before the...
InfoBytesCFPB marks 10th anniversary
On July 21, the CFPB marked its 10 year anniversary. Prepared remarks published by acting Director Dave Uejio highlighted Bureau activities taken over the past decade in consumer empowerment and racial equity, as well as recent actions in response to the Covid-19 pandemic. With respect to...
InfoBytesCalifornia court orders CFPB to issue Section 1071 NPRM by September 30
On July 16, the U.S. District Court for the Northern District of California issued an order setting September 30 as the deadline for the CFPB to issue a notice of proposed rulemaking (NPRM) on small business lending data. As previously covered by InfoBytes , the Bureau is obligated to issue an NPRM...
InfoBytesJeffrey P. Naimon quoted in American Banker article, “Harsher rules, more enforcement: What to expect from Chopra's CFPB”
Jeffrey P. Naimon was quoted in the American Banker article, “Harsher rules, more enforcement: What to expect from Chopra's CFPB,” which discussed what the Consumer Financial Protection Bureau will look like under the bureau’s new Director Rohit Chopra, as well as what Acting Director Dave Uejio...
In The NewsDistrict Court approves $35 million settlement in student debt-relief action
On July 14, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against the named defendant in a 2019 action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney, which had alleged a...
InfoBytesJeffrey P. Naimon quoted in S&P Global Market Intelligence article, “Lenders see new CFPB foreclosure rule as win-win”
Jeffrey P. Naimon was quoted in the S&P Global Market Intelligence article, “Lenders see new CFPB foreclosure rule as win-win,” which discussed how lenders are praising the new CFPB guidance giving millions of homeowners added protections against foreclosure. Naimon noted some challenges: “I'm...
In The NewsSenate Republicans say Chopra’s refusal to answer questions should disqualify him as next CFPB director
On July 13, Republican members of the Senate Banking Committee sent a follow-up letter to CFPB director nominee and FTC Commissioner Rohit Chopra, claiming Chopra’s refusal to answer questions concerning potential violations of law at the Bureau should disqualify him from consideration as its next...
InfoBytesDistrict Court allows CFPB to pursue 2016 structured settlement claims
On July 12, the U.S. District Court for the District of Maryland issued an opinion denying several motions filed by parties in litigation stemming from a 2016 complaint filed by the CFPB, which alleged the defendants employed abusive practices when purchasing structured settlements from consumers...
InfoBytesCFPB settles with fintech over loan scheme operation
On July 12, the CFPB announced a consent order against a Georgia-based fintech company for allegedly enabling contractors and other merchants to take out loans on behalf of thousands of consumers who did not authorize them. According to the CFPB, the respondent allegedly violated the CFPA’s...
InfoBytesCFPB and FDIC release enhancements to financial education program for seniors
On July 14, the CFPB and FDIC announced enhancements to Money Smart for Older Adults , the agencies’ financial education program geared toward preventing elder financial exploitation. The enhanced version includes sections to help people avoid romance scams, which, according to data from the FTC,...
InfoBytesColorado limits credit and debit card surcharges
On July 7, the Colorado governor signed SB 91 , which, among other things, repeals a prior ban on surcharges for credit or debit card transactions. The bill limits the maximum surcharge amount per transaction to 2 percent of the payment amount or the actual fee. Merchants are required to display a...
InfoBytesBiden orders federal agencies to evaluate banking, consumer protections
On July 9, President Biden issued a broad Executive Order (E.O.) that includes provisions related to the financial services industry. CFPB. The E.O. encourages the CFPB director to issue rules under Section 1033 of Dodd-Frank “to facilitate the portability of consumer financial transaction data so...
InfoBytesCFPB examines reported assistance trends on consumers’ credit records
On July 13, the CFPB released findings regarding trends in reported assistance on consumers’ credit records. The post—the second in a series documenting trends in consumer credit outcomes during the Covid-19 pandemic (the first covered by InfoBytes here )—examines consumer month-to-month...
InfoBytesCFPB reports on AAPI subgroups in the mortgage market
On July 1, the CFPB released a report that analyzed 2020 HMDA loan data and examined the differences in mortgage characteristics across Asian American and Pacific Islander (AAPI) subgroups. The report examined various outcomes for the subgroups, including costs of borrowing, denial rates, and...
InfoBytesJeffrey P. Naimon quoted in American Banker article, “Banking regulators expected to advance Biden agenda despite 'acting' tag”
The American Banker article, “Banking regulators expected to advance Biden agenda despite 'acting' tag,” discussed the many vacancies at financial regulatory agencies and whether it prevents the Biden administration from advancing its policy agenda. Naimon noted, “The officials appointed as acting...
In The NewsDistrict Court’s order targets debt settlement firm’s abusive acts
On July 2, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against an online debt-settlement company to resolve CFPB allegations concerning violations of the TSR and the CFPA’s prohibition on abusive acts or practices. As previously...
InfoBytesDistrict Court grants CFPB’s motion to strike affirmative defenses in FCRA, FDCPA action
On June 30, the U.S. District Court for the District of Maryland issued a memorandum opinion granting the CFPB’s motion to strike four out of five affirmative defenses presented by defendants in an action alleging FCRA and FDCPA violations. As previously covered by InfoBytes , the Bureau filed a...
InfoBytesCFPB focuses on racial bias in home appraisals
On July 2, the CFPB announced its prioritization of resources to focus on the role of racial bias in home appraisals. According to the CFPB, undervaluation of homes based on race further drives the racial wealth divide and overvaluation of homes also puts family wealth at risk, leading to higher...
InfoBytesDistrict Court approves $6.02 million settlement in student debt-relief action
On July 1, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against two defendants in a 2019 action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney, which alleged a student loan...
InfoBytesCFPB reports on trends in commercial and consumer credit
On June 30, the CFPB released a report highlighting relationships and trends in commercial and consumer credit for small businesses. The report analyzes the frequency and types of commercial credit commonly found on consumer credit reports and the inconsistencies in reporting practices and...
InfoBytesCFPB issues summer supervisory highlights
On June 29, the CFPB released its summer 2021 Supervisory Highlights , which details its supervisory and enforcement actions in the areas of auto loan servicing, consumer reporting, debt collection, deposits, fair lending, mortgage origination and servicing, payday lending, private education loan...
InfoBytesCFPB, Georgia AG allege debt-relief violations
On June 29, the CFPB announced a stipulated final judgment and order against a financial services company and its owners for allegedly deceiving consumers into hiring the company. According to the complaint filed in the U.S. District Court for the Northern District of Georgia with the Georgia...
InfoBytesCFPB enforcement bulletin emphasizes accuracy in rental data
On July 1, the CFPB released an enforcement compliance bulletin to reiterate to landlords, consumer reporting agencies (CRAs), and others of their obligation to correctly report rental and eviction information. The CFPB noted that it is “concerned that the end of the CDC eviction moratorium could...
InfoBytesCFPB highlights consumer complaints related to pandemic response
On July 1, the CFPB released a new bulletin analyzing consumer complaints and responses related to actions taken by Congress or the Bureau to provide relief for consumers impacted by the Covid-19 pandemic. The bulletin expands upon the Bureau’s 2020 Consumer Response Annual report (covered by...
InfoBytesSpecial Alert: CFPB specifies pandemic foreclosure protections and signals tight supervision and enforcement around servicer efforts
The Consumer Financial Protection Bureau’s Covid-relief mortgage servicing rule issued yesterday steered away from a nationwide foreclosure freeze as initially proposed, instead creating heightened protections for those borrowers who became seriously delinquent during the pandemic. The distinction...
InfoBytesSpecial Alert: CFPB specifies pandemic foreclosure protections and signals tight supervision and enforcement around servicer efforts
The Consumer Financial Protection Bureau’s Covid-relief mortgage servicing rule issued yesterday steered away from a nationwide foreclosure freeze as initially proposed, instead creating heightened protections for those borrowers who became seriously delinquent during the pandemic. The distinction...
Special AlertsFHFA announces CFPB final rule
On June 29, FHFA announced that Fannie Mae and Freddie Mac (GSEs) will not be permitted to make a first notice or filing for foreclosure that would be prohibited by the CFPB’s “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA),...
InfoBytesBiden announces key nominations
On June 24, President Biden announced his intent to nominate seven individuals to serve in key roles, including two nominations to positions in the Department of Housing and Urban Development. Among them is Dave Uejio, the current acting Director of the CFPB, as the nominee for Assistant Secretary...
InfoBytesWaters urges foreclosure moratoria extension
On June 21, Chairwoman of the House Financial Services Committee Maxine Waters (D-CA) sent a letter to several federal agencies “urging them to administratively extend their moratoria on foreclosures at least until the CFPB is able to finalize and implement its pandemic recovery mortgage servicing...
InfoBytesFFIEC releases 2020 HMDA data
On June 17, the Federal Financial Institutions Examinations Council (FFIEC) released the 2020 Home Mortgage Disclosure Act (HMDA) data on mortgage lending transactions at 4,475 covered institutions. Available data products include: (i) the HMDA Dynamic National Loan-Level Dataset , which is updated...
InfoBytesJuneteenth creates compliance challenges for mortgage industry
On June 17, President Biden signed S. 475 establishing June 19, Juneteenth, as a federal holiday. The “Juneteenth National Independence Day Act” amends 5 U.S.C. § 6103(a) which codifies the legal public holidays. Because June 19 falls on a Saturday this year, the holiday will be observed on Friday...
InfoBytesCFPB resumes MLA exams
On June 16, the CFPB issued an interpretive rule explaining the reversal of its prior determination that it lacked the authority to examine supervised financial institutions for compliance with the Military Lending Act (MLA). As previously covered by InfoBytes , in 2018, the Bureau discontinued MLA...
InfoBytesDistrict Court approves new settlement in student debt-relief action
On June 15, the U.S. District Court for the Central District of California entered a stipulated final judgment and order against one of the defendants in an action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney in 2019, which alleged a...
InfoBytesActing comptroller discusses bias in appraisals
On June 15, OCC acting Comptroller Michael J. Hsu delivered remarks during the CFPB’s Virtual Home Appraisal Bias Event to raise awareness on the importance of reducing bias in real estate appraisals. The event included discussions with civil rights organizations, housing policy experts, and other...
InfoBytesCFPB analyzes HMDA data of small to medium-size lenders
On June 14, the CFPB released a report analyzing differences in certain loan and borrower characteristics and general lending patterns for lenders below and above the 100-loan closed-end threshold set by the 2020 HMDA final rule. As previously covered by InfoBytes , last year the Bureau issued a...
InfoBytesCFPB reports low delinquency rates despite Covid-19
On June 16, the CFPB released findings on delinquency trends for auto loans, student loans, mortgages, and credit cards. The post—the first in a series that will document consumer credit trend outcomes during the Covid-19 pandemic—examines how trends have evolved since June 2020. As previously...
InfoBytesGAO reports on CFPB fair lending activities
Last month, the Government Accountability Office delivered a report at the request of Senators Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) on the CFPB’s oversight and enforcement of fair lending laws after the agency’s 2018 reorganization which moved the Office of Fair Lending and Equal...
InfoBytesCFPB publishes rulemaking agenda
On June 11, the Office of Information and Regulatory Affairs released the CFPB’s spring 2021 rulemaking agenda . According to a Bureau announcement , the information released represents regulatory matters the Bureau is “currently pursuing under interim leadership pending the appointment and...
InfoBytesCFPB releases mortgage servicing FAQs
On June 2, the CFPB released new FAQs regarding the Mortgage Servicing Rule and Regulation X and Regulation Z relating to escrow account guidance and analysis. General highlights from the FAQs are listed below: Regulation X provides that (i) an escrow account is any account established or...
InfoBytesCFPB amends Regulation Z HPML escrow exemption commentary
On June 3, the CFPB published correcting amendments to its Official Interpretations to Regulation Z (TILA) that were not part of the final rule published in February, which exempts certain insured depository institutions and credit unions from the requirement to establish escrow accounts for...
InfoBytesCFPB to address racial equality
On June 2, CFPB acting Director Dave Uejio published a blog post highlighting Bureau efforts to address issues regarding racial injustice and the long-term economic effects of the Covid-19 pandemic on consumers. In January, as previously covered by InfoBytes , Uejio released a statement announcing...
InfoBytesCFPB releases unauthorized EFTs and error resolution FAQs
On June 4, the CFPB released eight new FAQs regarding compliance with the Electronic Fund Transfer Act (EFTA) and Regulation E. Highlights from the FAQs are listed below: As explained by the commentary to Regulation E, unauthorized electronic funds transfers (EFTs) include transfers by a person who...
InfoBytes9th Circuit stays Seila CID pending Supreme Court appeal
On June 1, the U.S. Court of Appeals for the Ninth Circuit granted Seila Law’s request to stay a mandate ordering compliance with a civil investigative demand (CID) issued by the CFPB. The order stays the appellate court’s mandate (covered by InfoBytes here ) for 150 days, or until final...
InfoBytesFTC shares 2020 enforcement report with CFPB
On June 1, the FTC announced that it submitted its 2020 Annual Financial Acts Enforcement Report to the CFPB. The report covers the FTC’s enforcement activities regarding the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA). Highlights of the...
InfoBytesCFPB settles with company over misrepresenting deposit risks, loan APRs
On May 27, the CFPB announced a settlement with a Florida-based lender and the CEO of the company (collectively, “defendants”) to resolve allegations that the defendants violated the Consumer Financial Protection Act by misrepresenting the risks associated with their deposit product and the annual...
InfoBytesCFPB releases report on manufactured housing financing
On May 27, the CFPB released a report providing insights into manufactured housing financing, which is a source of lending for millions of manufactured housing homeowners. The report utilizes new information about manufactured housing that was added in 2018 to the list of HMDA data. The report also...
InfoBytesCFPB updates status on women and minority-owned business data
On May 24, the CFPB filed its fifth status report in the U.S. District Court for the Northern District of California as required under a stipulated settlement reached in February with a group of plaintiffs, including the California Reinvestment Coalition. The settlement (covered by InfoBytes here...
InfoBytesCFPB hosts 5th Research Conference
On May 27, the CFPB published a blog post discussing the Bureau’s 5th Research Conference held earlier in the month. During the conference, academics and policymakers presented research covering several consumer finance areas, addressing topics including (i) racial disparities in homeownership,...
InfoBytesCFPB settles with auto lender over unfair LDW practices
On May 21, the CFPB announced a settlement with a California-based auto-loan lender to resolve allegations that the company engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act. The CFPB alleged that the company...
InfoBytesDistrict Court denies TRO request to block CFPB’s eviction disclosure rule
On May 14, the U.S. District Court for the Middle District of Tennessee denied a request for a temporary restraining order (TRO) to block a CFPB interim final rule (IFR), which requires all landlords to disclose to tenants certain federal protections put in place as a result of the ongoing Covid-19...
InfoBytesCFPB obtains new judgments against debt-relief defendants
On May 11, the U.S. District Court for the Central District of California obtained two additional judgments in an action by the CFPB against a mortgage lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the Consumer Financial Protection Act (...
InfoBytesCFPB charges debt-settlement company with TSR and CFPA violations
On May 17, the CFPB announced a settlement with a Massachusetts-based debt-settlement company for allegedly violating the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). As previously covered by InfoBytes , the Bureau alleged the company violated the TSR and/or the...
InfoBytes9th Circuit denies en banc rehearing in CFPB case against Seila Law
On May 14, the U.S. Court of Appeals for the Ninth Circuit denied en banc rehearing of CFPB v. Seila Law, LLC . As previously covered by InfoBytes , following remand from the U.S. Supreme Court, a three-judge panel of the 9th Circuit had reaffirmed a district court order granting the CFPB’s...
InfoBytesCFPB denies lending agency’s petition to set aside CID
On April 26, the CFPB denied a petition by a title lending company to set aside a civil investigative demand (CID) issued by the Bureau in February. The CID requested information from the company to determine, among other things, whether “consumer-lending companies or title-loan companies, in...
InfoBytesCFPB enters $34.1 million in judgments against debt-relief companies
On May 7, the U.S. District Court for the Central District of California entered two default judgments totaling more than $34.1 million in an action by the CFPB against a mortgage lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the...
InfoBytesCFPB Office of Servicemember Affairs releases annual report on servicemembers’ financial needs
On May 6, the CFPB’s Office of Servicemember Affairs (OSA) released its annual report , which provides an overview of OSA’s activities in fulfilling its statutory responsibilities for fiscal year 2020 and covers the period between January 1, 2020 to December 31, 2020. The report also addresses...
InfoBytesCFPB argues eviction disclosure rule does not require false speech
On May 11, the CFPB urged the U.S. District Court for the Middle District of Tennessee to deny a request for a temporary injunction of a CFPB rule that would require all landlords to disclose to tenants federal protections put in place as a result of the ongoing Covid-19 pandemic, arguing that the...
InfoBytesCFPB reports on use of payday, auto title, and pawn loans
On May 5, the CFPB released a new report surveying the prevalence, persistence of use, and other credit sources accessible for consumers who utilize payday, auto title, and pawn loans. The report uses the first two rounds of the Bureau’s Making Ends Meet survey, which was conducted before the Covid...
InfoBytesCFPB settles with additional debt-relief defendants
On May 4, two additional settlements were reached with defendants in an action by the CFPB against a lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the Consumer Financial Protection Act (CFPA), Telemarketing Sales Rule (TSR), and Fair...
InfoBytesCFPB reports on Covid-19 mortgage borrower challenges
On May 4, the CFPB released two reports analyzing mortgage borrowers’ challenges due to the ongoing Covid-19 pandemic. The first report explores the characteristics of borrowers who are delinquent or in forbearance based a sample of nearly 662,000 loans for owner-occupied properties. The report...
InfoBytesCFPB, FTC remind landlords of tenant pandemic protections
On May 3, the CFPB acting Director Dave Uejio and FTC acting Chairwoman Rebecca Kelly Slaughter released a joint notification letter to the nation’s largest apartment landlords that together own over 2 million units. The letter serves as a reminder of federal protections put in place to keep...
InfoBytesCFPB sued over Covid-19 FDCPA eviction rule
On May 3, plaintiffs, including members of the National Association of Residential Property Managers, sued the CFPB asserting the Bureau’s recently issued interim final rule (IFR) violates their First Amendment rights. As previously covered by InfoBytes , the IFR amended Regulation F to require...
InfoBytesDistrict Court dismisses shareholder sales-compensation suit
On April 27, the U.S. District Court for the District of Illinois granted an Ohio-based bank’s motion to dismiss a consolidated shareholder suit, ruling that investors “failed to allege facts that give rise to a strong inference of scienter” concerning whether bank executives intended to deceive...
InfoBytesCFPB releases county-level info on consumer complaints
On April 28, the CFPB released a newly updated consumer complaint bulletin analyzing complaints submitted in 2020 in counties nationwide and providing a county-level visualization of identified trends. According to the report, while a total of 514,102 complaints were reported to the Bureau in 2020...
InfoBytesCFPB releases tech sprints presentations
On April 26, the CFPB announced presentations from the Bureau’s first two tech sprints—forums that gather “regulators, technologists, financial institutions, and subject matter experts from key stakeholders for several days to work together to develop innovative solutions to clearly-identified...
InfoBytesCFPB alleges deceptive advertising by NJ reverse-mortgage company
On April 27, the CFPB announced a consent order against a nationwide, New Jersey-based mortgage broker and direct lender for allegedly sending deceptive loan advertisements to hundreds of thousands of older borrowers. According to the CFPB, the respondent’s advertisements and letters violated the...
InfoBytesCFPB extends QM compliance to October 2022
On April 27, the CFPB issued a final rule formally extending the mandatory compliance date of the General Qualified Mortgage (QM) final rule to October 1, 2022. As previously covered by InfoBytes , and following a two-year rulemaking, last December the Bureau issued the General QM Final Rule to...
InfoBytesCFPB, NY AG sue debt collector to seize transferred property
On April 22, the CFPB and the New York attorney general filed a complaint against the owner of a now-defunct debt-collection firm for allegedly transferring ownership of his $1.6 million home to his wife and daughter for $1 shortly after he received a civil investigative demand and learned that the...
InfoBytesCFPB updates debt collection small entity compliance guide
On April 16, the CFPB updated its small entity compliance guide to incorporate amendments in the December 2020 debt collection rule (covered by InfoBytes here ). Updates to the guide, originally issued in January (covered by InfoBytes here ), include: (i) a new section discussing the prohibition...
InfoBytesJeffrey P. Naimon quoted in HousingWire article, “The CFPB is coming for you: Here’s how to prepare”
The HousingWire article, “The CFPB is coming for you: Here’s how to prepare,” quoted Jeffrey P. Naimon and provided coverage of his "Post-pandemic CFPB exam preparation" session at the Mortgage Bankers Association Spring Conference & Expo. Naimon said that the Consumer Financial Protection...
In The NewsCFPB: Debt collectors must provide written notice for evictions
On April 19, the CFPB issued an interim final rule (IFR) to amend Regulation F, which implements the FDCPA, that will require debt collectors to provide tenants written notice alerting them of their rights under the CDC’s moratorium on evictions in response to the Covid-19 pandemic. Failure to...
InfoBytesFTC highlights Covid-19 consumer protection efforts
On April 19, the FTC issued a staff report highlighting the Commission’s efforts to protect consumers during the continuing Covid-19 pandemic. The report addresses hardships consumers face during the pandemic and identifies the Commission’s priorities to tackle Covid-19-associated fraud and other...
InfoBytesCFPB delivers 2020 fair lending report to Congress
On April 14, the CFPB issued its annual fair lending report to Congress, which outlines the Bureau’s efforts in 2020 to fulfill its fair lending mandate, while protecting consumers against the resulting economic consequences of the Covid-19 pandemic. According to the report, the Bureau continued to...
InfoBytesCFPB action against debt settlement firm targets abusive acts
On April 13, the CFPB entered into a preliminary settlement with an online debt-settlement company for allegedly violating the CFPA’s prohibition on abusive acts or practices and failing to clearly and conspicuously disclose total cost under the Telemarketing Sales Rule. The complaint alleges that...
InfoBytesCFPB settles with California-based company for debt collection violations
On April 6, the CFPB announced a consent order against a California-based debt collector and its former owner for allegedly harassing consumers and threatening to take legal action if they did not pay their debts. According to the CFPB, the respondents violated the FDCPA and the CFPA’s prohibition...
InfoBytesCFPB proposes delaying effective date for recent debt collection rules
On April 7, the CFPB proposed to extend the effective date of two recent debt collection rules to allow affected parties additional time to comply due to the ongoing Covid-19 pandemic. The Notice of Proposed Rulemaking (NPRM) delays the effective date by 60 days of the two final rules issued under...
InfoBytesCFPB urges servicers to stave off foreclosure wave
On April 1, the CFPB urged mortgage servicers “to take all necessary steps to prevent a wave of avoidable foreclosures this fall.” Citing to the millions of homeowners currently in forbearance due to the Covid-19 pandemic, the Bureau’s compliance bulletin warns servicers that consumers will need...
InfoBytesCFPB rolls back last year’s Covid-19 flexibilities
On March 31, the CFPB rescinded , effective April 1, the following policy statements, which provided temporary regulatory flexibility measures to help financial institutions work with consumers affected by the Covid-19 pandemic: A March 26, 2020, statement addressing the Bureau’s commitment to...
InfoBytesFFIEC releases 2020 HMDA data
On March 31, the CFPB announced the release of the 2020 HMDA loan application register (LAR) data. The LAR data, available on the Federal Financial Institutions Examination Council’s HMDA Platform , contains modified loan-level information on approximately 4,400 HMDA filers. The Bureau also...
InfoBytesPrudential regulators exploring how institutions use AI
On March 29, the FDIC, Fed, OCC, CFPB, and NCUA issued a request for information (RFI) seeking input on financial institutions’ use of artificial intelligence (AI), which may include AI-based tools and models used for (i) fraud prevention to identify unusual transactions for Bank Secrecy Act/anti-...
InfoBytesCourt rules CFPB lacked authority to bring suit while its structure was unconstitutional
On March 26, the U.S. District Court for the District of Delaware dismissed a 2017 lawsuit filed by the CFPB against a collection of Delaware statutory trusts and their debt collector, ruling that the Bureau lacked enforcement authority to bring the action when its structure was unconstitutional...
InfoBytesCFPB and FTC monitoring eviction practices
On March 29, CFPB acting Director Dave Uejio and FTC acting Chairwoman Rebecca Kelly Slaughter issued a joint statement indicating staff at both agencies will be monitoring and investigating eviction practices to ensure that they comply with the law. The statement follows the CDC’s March 28...
InfoBytesCFPB to address harm created from revocation of payday rule’s ability to repay standard
On March 23, CFPB acting Director Dave Uejio published a blog post highlighting the Bureau’s belief that harms in the small dollar lending market identified by its 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” still exist. As previously covered by...
InfoBytesCFPB: 54 percent increase in consumer complaints from 2019
On March 24, the CFPB published its Consumer Response Annual Report for 2020, providing a review of the Bureau’s complaint process and a description of complaints received from consumers in all 50 states and the District of Columbia between January 1 and December 31, 2020. According to the report,...
InfoBytesCFPB and FTC release 2020 FDCPA report
On March 22, the CFPB and the FTC released their 2020 annual report to Congress on the administration of the FDCPA. Under a memorandum of understanding, the agencies are provided joint FDCPA enforcement responsibility and may share supervisory and consumer complaint information, as well as...
InfoBytesCFPB sues student loan debt-relief operation
On March 16, the CFPB sued a California-based student loan debt relief company, its owner, and manager (collectively, “defendants”) for allegedly charging borrowers more than $3.5 million in unlawful advance fees. The complaint alleged that between 2015 and 2019, the defendants violated the...
InfoBytesCFPB declines to stay $51 million order for online payday lender
On March 9, the CFPB denied a request made by a Delaware online payday lender and its CEO (collectively, “respondents”) to stay a January 2021 final decision and order requiring the payment of approximately $51 million in restitution and civil money penalties, pending appellate review. As...
InfoBytesCFPB asks industry to aid consumers in getting stimulus funds
On March 17, CFPB acting Director Dave Uejio issued a statement encouraging financial institutions and debt collectors to allow Economic Impact Payment (EIP) funds to reach consumers. Uejio expressed concerns that EIP funds—distributed through the recently enacted American Rescue Plan Act of 2021 (...
InfoBytesCFPB rescinds abusiveness policy statement
On March 11, the CFPB announced it has rescinded its January 2020 policy statement , which addressed prohibitions on abusive acts or practices. As previously covered by InfoBytes , the Bureau issued the policy statement to provide a “common-sense framework” for how it planned to apply the “...
InfoBytesCFPB: Lenders cannot discriminate on the basis of sexual orientation or gender identity
On March 9, the CFPB issued an interpretive rule to clarify that ECOA’s prohibition against sex discrimination includes sexual orientation and gender identity discrimination. “This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-...
InfoBytesCourt dismisses credit repair association’s suit against CFPB, FTC
On March 9, the U.S. District Court for the Southern District of Florida dismissed a credit repair industry association’s challenge against the CFPB and the FTC for exceeding their constitutional authority in promulgating the Telemarketing Sales Rule (TSR). In 2020, the plaintiff filed a lawsuit on...
InfoBytesCFPB sues payment processor for fraudulent practices
On March 3, the CFPB filed a complaint against an Illinois-based third-party payment processor and its founder and former CEO (collectively, “defendants”) for allegedly engaging in unfair practices in violation of the CFPA and deceptive telemarketing practices in violation of the Telemarketing...
InfoBytesCFPB appeals ruling vacating mandatory disclosures and 30-day credit linking restriction in Prepaid Accounts Rule
On March 1, the CFPB filed a notice to appeal a December 2020 ruling, in which the U.S. District Court for the District of D.C. vacated two provisions of the Bureau’s Prepaid Account Rule: (i) the short-form disclosure requirement “to the extent it provides mandatory disclosure clauses”; and (ii)...
InfoBytesCourt grants interlocutory appeal in CFPB student loan servicing action
On February 26, the U.S. District Court for the Middle District of Pennsylvania granted a student loan servicer’s request for interlocutory appeal as to whether questions concerning the CFPB’s constitutionality stopped the clock on claims that it allegedly misled borrowers. The court’s order pauses...
InfoBytesCFPB, Maryland reduce disgorgement amount in mortgage kickback case
On February 25, the U.S. District Court for the District of Maryland granted a motion for entry of monetary remedy filed by the CFPB and the Consumer Protection Division of the Maryland Attorney General’s Office (collectively, “Regulators”) in an action concerning the disgorgement calculation for a...
InfoBytesCFPB proposes extending General QM Final Rule compliance date
On March 3, the CFPB released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) Final Rule from July 1, 2021 to October 1, 2022. As previously covered by InfoBytes , last December the Bureau issued the General QM Final Rule to amend...
InfoBytesCFPB files Section 1071 status report, evaluates recommendations
On February 22, the CFPB filed its fourth status report in the U.S. District Court for the Northern District of California as required under a stipulated settlement reached in February with a group of plaintiffs, including the California Reinvestment Coalition. The settlement (covered by InfoBytes...
InfoBytesChopra testifies before Senate Banking Committee
On March 2, FTC Commissioner Rohit Chopra testified before the Senate Committee on Banking, Housing, and Urban Affairs where he was asked about his plans should he be confirmed as the permanent CFPB director. Chopra released prepared remarks in which he discussed challenges stemming from the Covid-...
InfoBytesCFPB analyzes effects of Covid-19 on the housing market
On March 1, the CFPB released a report, Housing Insecurity and the COVID-19 Pandemic , analyzing the effects of the Covid-19 pandemic on the housing market, particularly with respect to low-income and minority households. According to the Bureau, as of December 2020, more than 11 million households...
InfoBytesHouse discusses lending discrimination, proposed fair lending legislation
On February 24, the House Financial Services Committee’s Subcommittee on Oversight and Investigations held a hearing entitled “How Invidious Discrimination Works and Hurts: An Examination of Lending Discrimination and Its Long-term Economic Impacts on Borrowers of Color.” The subcommittee’s...
InfoBytesCourt grants injunctive relief against pension advance company
On February 22, the U.S. District Court for the District of South Carolina granted the CFPB’s motion for default judgment and appointment of receiver in an action alleging defendants violated the CFPA and TILA by falsely representing that their lump-sum pension advances were not loans and that they...
InfoBytesCFPB, states sue defendants for predatory immigrant-services scam
On February 22, the CFPB and state attorneys general from Massachusetts, New York, and Virginia filed a complaint against a group of defendants that provide immigration bond products or services for non-English speaking U.S. Immigration and Customs Enforcement (ICE) detainees. The Bureau alleges...
InfoBytesCFPB considering compliance delay for QM final rules
On February 23, the CFPB issued a statement noting it is considering whether to revisit final rules issued last year regarding the definition of a Qualified Mortgage and the establishment of a “Seasoned QM” category of loans. As previously covered by InfoBytes , last December the Bureau issued the...
InfoBytesUeijo says CFPB focus is on the economically vulnerable; urges attention to consumer complaints
On February 10, CFPB acting Director Dave Uejio published a blog post sharing his “broad vision” for the Division of Consumer Education and External Affairs (CEEA). This guidance, Uejio emphasized, will help to immediately advance the Bureau’s policy priorities and protect economically vulnerable...
InfoBytesActing director outlines future direction for CFPB
On February 4, CFPB acting Director Dave Uejio published a blog post conveying his “broad vision” for the Division of Research, Markets, and Regulations (RMR). Uejio emphasized that in order for the Bureau to respond to his previously stated policy priorities—(i) relief for consumers facing...
InfoBytesFTC provides annual ECOA summary to CFPB
On February 3, the FTC announced it recently provided the CFPB with its annual summary of work on ECOA-related policy issues, focusing specifically on the Commission’s activities with respect to Regulation B during 2020. The summary discusses, among other things, the following FTC research and...
InfoBytesActing director sets out CFPB priorities
On January 28, newly appointed CFPB acting Director, Dave Uejio, released a statement he sent to staff announcing his immediate priorities for the Bureau as: (i) relief for consumers facing hardship and economic crisis due to the Covid-19 pandemic, and (ii) racial equity. Acknowledging the recently...
InfoBytesCFPB obtains $15 million judgment against student financial aid operation
On January 21, the U.S. District Court for the Southern District of California issued an order granting in part and denying in part the CFPB’s motion for partial summary judgment and granting the agency’s motion for default judgment in a 2015 case against a now defunct California-based student...
InfoBytesCFPB issues Covid-19 supervisory highlights
On January 19, the CFPB released a special edition of Supervisory Highlights detailing the agency’s Covid-19 prioritized assessment (PA) observations. Since May 2020, the Bureau has conducted PAs in response to the pandemic in order to obtain real-time information from supervised entities operating...
InfoBytesKraninger resigns; Uejio to lead CFPB while Chopra awaits confirmation
On January 20, Kathy Kraninger resigned from her position as CFPB director and newly sworn-in President Biden announced that Dave Uejio would serve as acting director until permanent leadership is confirmed by the U.S. Senate. President Biden officially nominated Rohit Chopra as the permanent...
InfoBytesCFPB finalizes Regulation Z HPML escrow exemptions
On January 19, the CFPB issued a final rule amending Regulation Z, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act, to exempt certain insured depository institutions and credit unions from the requirement to establish escrow accounts for certain higher-priced...
InfoBytesCFPB finalizes rule stating supervisory guidance lacks force of law
On January 19, the CFPB issued a final rule codifying the Interagency Statement Clarifying the Role of Supervisory Guidance issued by the CFPB, OCC, Federal Reserve Board, FDIC, and the NCUA on September 11, 2018 (2018 Statement). As previously covered by InfoBytes , the October 2018 joint proposal...
InfoBytesOnline lender settles MLA violations for $1.25 million
On January 19, the CFPB announced a settlement with a California-based online lender resolving allegations that the company violated the Military Lending Act (MLA) when making installment loans. This settlement is part of “the Bureau’s broader sweep of investigations of multiple lenders that may be...
InfoBytesCFPB issue semi-annual report to Congress
On January 21, the CFPB issued its semi-annual report to Congress covering the Bureau’s work from April 1 to September 30, 2020. The report, which is required by Dodd-Frank, addresses, among other things, the effects of the Covid-19 pandemic on consumer credit, significant rules and orders adopted...
InfoBytesCFPB files action against mortgage lender for unlawful practices
On January 15, the CFPB announced a complaint filed in the U.S. District Court for the District of Connecticut against a mortgage lender and four executives (collectively, “defendants”) alleging the defendants engaged in unlawful mortgage lending practices in violation of TILA, FCRA, ECOA, the...
InfoBytesCFPB issues debt collection small entity compliance guide
On January 15, the CFPB issued a small entity compliance guide summarizing the Bureau’s debt collection rule. As previously covered by InfoBytes , the Bureau issued a final rule last October amending Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA), to address debt...
InfoBytesCFPB and NCUA announce supervision MOU
On January 14, the CFPB announced a Memorandum of Understanding (MOU) with the NCUA, which is intended to improve supervision coordination of credit unions with over $10 billion in assets. According to the Bureau’s press release, the MOU covers (i) the sharing of the Covered Reports of Examination...
InfoBytesCourt says CFPB unconstitutionality argument strays from Supreme Court ruling in Seila
On January 13, the U.S. District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion for judgment on the pleadings, ruling that the servicer’s argument that the CFPB is unconstitutional “strays afar” from the U.S. Supreme Court’s finding in Seila Law LLC v. CFPB ...
InfoBytesCFPB releases LEP statement
On January 13, the CFPB released fair-lending guidance for financial institutions that provide services to borrowers with limited English proficiency (LEP). As previously covered by InfoBytes , last July the Bureau issued a request for information that sought, among other things, information on...
InfoBytesCFPB lets QM cure provision expire
January 10 was the sunset date for the QM Rule’s provision allowing creditors to cure loans that exceed the rule’s limitation on points and fees. For transactions consummated prior to January 10, a creditor could cure any loan exceeding the (generally 3 percent) points and fees limit by refunding...
InfoBytesFTC comments on application of ECOA, Regulation B in response to CFPB RFI
Recently, FTC staff submitted a comment letter in response to the CFPB’s request for information (RFI) seeking input on ways to provide additional clarity under the Equal Credit Opportunity Act (ECOA) and implementing Regulation B. As previously covered by InfoBytes , the CFPB issued the RFI last...
InfoBytesCFPB denies guaranty agency’s petition to set aside CID
On December 16, the CFPB denied a petition by a non-profit guaranty agency that serves as a guarantor of federal student loans to set aside a civil investigative demand (CID) issued by the Bureau last September. The CID requested information from the company to determine, among other things,...
InfoBytesJeffrey P. Naimon quoted in VIXIO Payments Compliance article, “PayPal court win could pave the way for further reform"
Jeffrey P. Naimon was quoted on January 11 in a VIXIO Payments Compliance article, “PayPal court win could pave the way for further reform." The article examined how a recent ruling against the Consumer Financial Protection Bureau focused attention on the outdated patchwork of legislation under...
In The NewsCFPB taskforce releases recommendations for modernizing consumer financial marketplace
On January 5, the CFPB Taskforce on Federal Consumer Financial Law released a two volume report with approximately 100 recommendations on ways the CFPB, Congress, and state and federal regulators can improve and modernize the legal and regulatory environment for the consumer financial services...
InfoBytesCourt vacates mandatory disclosures and 30-day credit linking restriction in Prepaid Accounts Rule
On December 30, the U.S. District Court for the District of Columbia granted a payment company’s motion for summary judgment against the CFPB, vacating two provisions of the agency’s Prepaid Account Rule: (i) the short-form disclosure requirement “to the extent it provides mandatory disclosure...
InfoBytes9th Circuit reaffirms order enforcing Seila CID
On December 29, the U.S. Court of Appeals for the Ninth Circuit reaffirmed a district court’s order granting the CFPB’s petition seeking to enforce a civil investigative demand (CID) sent to Seila Law. As previously covered by InfoBytes , the Bureau filed a supplemental brief arguing that the...
InfoBytesCFPB issues two new CAS approval orders
On December 30, the CFPB issued two compliance assistance sandbox (CAS) approval orders covering a dual-feature credit card and an earned wage access product. The first approval was issued to a federal savings bank regarding its proposal to develop a “dual-feature credit card,” which would be...
InfoBytesCFPB reaches $2 million settlement with installment lender for MLA, EFTA violations
On December 30, the CFPB announced a settlement with a Nevada-based consumer lender resolving allegations that the company violated the Military Lending Act (MLA), the Electronic Fund Transfer Act (EFTA), and the CFPA when making installment loans. The settlement is part of “the Bureau’s sweep of...
InfoBytesCFPB issues advisory opinion on special purpose credit programs
On December 21, the CFPB issued an advisory opinion addressing ECOA’s implementing regulation, Regulation B, as it applies to certain aspects of special purpose credit programs (SPCPs). The CFPB issued the advisory opinion in response to feedback from the Bureau’s request for information (RFI)...
InfoBytesCFPB releases annual HMDA and TILA adjustments
On December 22, the CFPB announced final rules adjusting the asset-size thresholds under HMDA (Regulation C) and TILA (Regulation Z). Both rules took effect January 1. Under HMDA, institutions with assets below certain dollar thresholds are exempt from the collection and reporting requirements. The...
InfoBytesCFPB reaches settlement with remittance transfer provider
On December 21, the CFPB announced a settlement with a large non-bank remittance transfer provider resolving allegations that the company violated the Electronic Fund Transfer Act (EFTA) and the Remittance Transfer Rule by failing to adequately comply with the rules’ requirements. According to the...
InfoBytesCFPB settles with auto loan company for inaccurate furnishing
On December 22, the CFPB announced a settlement with a nonprime auto loan originator and servicer (company) for allegedly violating the FCRA by providing erroneous consumer loan data to consumer reporting agencies (CRAs). According to the consent order, between January 2016 and August 2019, the...
InfoBytesCFPB announces $5.5 million loss mitigation settlement
On December 18, the CFPB announced a settlement with a mortgage servicer for allegedly violating the CFPA and RESPA’s implementing regulation, Regulation X, due to widespread failures in the handling and processing of homeowners’ applications for loss mitigation options. According to the consent...
InfoBytesCFPB finalizes debt collection disclosure rules
On December 18, the CFPB issued a final rule amending Regulation F, which implements the Fair Debt Collection Practices Act, clarifying the information debt collectors must provide to consumers at the outset of collection communications and providing a model validation notice containing such...
InfoBytesCourt enters nearly $90 million default judgment against student debt-relief defendants
On December 15, the U.S. District Court for the Central District of California entered a default judgment and order against two companies (collectively, “default defendants”) for their role in a student loan debt-relief operation. As previously covered by InfoBytes , the CFPB, along with the...
InfoBytesCourt enters judgments against multiple defendants in CFPB debt-relief action
On December 15, the U.S. District Court for the Central District of California entered final judgment against two defendants (defendants) and a default judgment against another defendant (defaulting defendant) in an action brought by the CFPB alleging the defendants (and others not subject to these...
InfoBytesCFPB report anticipates data collection on small-business lending
On December 15, the CFPB released a report detailing the results of the panel convened pursuant to the Small Business Regulatory Enforcement Fairness Act (SBREFA), which discussed the Bureau’s pending rulemaking to implement Section 1071 Dodd-Frank Act. Section 1071 requires the Bureau to engage in...
InfoBytesCFPB and Arkansas AG settle with company for failing to provide risk-based pricing notices
On December 11, the CFPB and the Arkansas attorney general announced a proposed settlement with a Utah-based home-security and alarm company for allegedly failing to provide proper notices under the FCRA. According to the complaint filed in the U.S. District Court for the Eastern District of...
InfoBytesSpecial Alert: CFPB redefines Qualified Mortgage; “GSE Patch” to expire
The Consumer Financial Protection Bureau last week released two final rules further defining what types of loans can be a “qualified mortgage loan” for purposes of the bureau’s Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule). The General QM Final Rule substantially revamps the general rules...
InfoBytesSpecial Alert: CFPB redefines Qualified Mortgage; “GSE Patch” to expire
The Consumer Financial Protection Bureau last week released two final rules further defining what types of loans can be a “qualified mortgage loan” for purposes of the bureau’s Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule). The General QM Final Rule substantially revamps the general rules...
Special AlertsJeffrey P. Naimon quoted in American Banker article, "A Biden CFPB could put pressure on mortgage servicers”
Jeffrey P. Naimon was quoted in an American Banker article, "A Biden CFPB could put pressure on mortgage servicers,” which discussed how mortgage servicers could face increased scrutiny in 2021 as federal and state agencies are expected to exert pressure on lenders that fail to work with borrowers...
In The News"CFPB credit stance has broad specialty finance implications" by Jeffrey P. Naimon (Law360)
The Consumer Financial Protection Bureau issued an advisory opinion at the end of November that could compel specialty-finance companies — including those offering income-share agreements, litigation funding, merchant cash advances and earned wage access products — to take a fresh look at whether...
ArticlesCFPB amends General QM loan definition, creates definition for Seasoned QMs
On December 10, the CFPB issued two final rules related to qualified mortgage (QM) loans. The first of the two final rules, the General QM Final Rule , amends Regulation Z and revises the definition of a General QM by eliminating the General QM loan definition’s 43 percent debt-to-income ratio (DTI...
InfoBytesCFPB releases fall 2020 rulemaking agenda
On December 11, the CFPB released its fall 2020 rulemaking agenda . According to a Bureau announcement, the information details the regulatory matters that the Bureau “expect[s] to focus on” between November 2020 and November 2021. The announcement notes that the Bureau will also continue to...
InfoBytesCFPB sues debt collection company that used DA letterhead to threaten consumers
On December 9, the CFPB announced it filed a complaint in the U.S. District Court for the Western District of Missouri against a Missouri-based company alleging violations of the FDCPA and the CFPA. The company allegedly engaged in deceptive and otherwise unlawful debt collection acts and practices...
InfoBytesCFPB reaches settlement with unlicensed debt collector
On December 8, the CFPB announced a settlement with a New Jersey-based debt collector resolving allegations that the defendant violated the FDCPA and the CFPA’s prohibition against deceptive acts or practices by obtaining judgments and demanding payments from consumers in states where it was not...
InfoBytesWaters recommends Biden reverse several of Trump's actions
On December 4, Chairman of the House Financial Services Committee, Maxine Waters (D-CA) sent a letter to President-Elect Biden providing a list of regulations and other executive actions taken by the Trump administration that the Biden administration should immediately reverse, as well as...
InfoBytesCourt enters $41 million default judgment against student debt-relief operators
On December 3, the U.S. District Court of the Central District of California entered a default judgment against a student debt-relief company and one of its owners (collectively, “defaulting defendants”) in an action brought by the CFPB alleging the defaulting defendants (and others not subject to...
InfoBytesDistrict court denies dismissal and stay of CFPB action
On November 30, the U.S. District Court of the District of Maryland denied a motion to dismiss an action brought by the CFPB against a debt collection entity, its subsidiaries, and their owner (collectively, “defendants”), rejecting the defendants’ argument that the Bureau lacked standing to bring...
InfoBytesCFPB charges online lender with MLA violations
On December 4, the CFPB announced it filed a complaint in the U.S. District Court for the Northern District of California against a California-based online lender alleging violations of the Military Lending Act (MLA). According to the CFPB, the “action is part of a broader Bureau sweep of...
InfoBytesSpecial Alert: Federal and state authorities take significant actions to address mortgage servicing concerns
On December 7, the Consumer Financial Protection Bureau, Multi-State Mortgage Committee of state mortgage banking regulators, and every state attorney general took actions against a large nonbank mortgage company for alleged violations pertaining to both mortgage origination and servicing practices...
InfoBytesCFPB charges debt-settlement company with TSR and CFPA violations
On December 1, the CFPB announced it filed a complaint in the U.S. District Court for the District of Massachusetts against a Massachusetts-based debt-settlement company alleging violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). According to the...
InfoBytesDistrict court advances CFPB action against bank for alleged TILA, CFPA violations
On December 1, the U.S. District Court for the District of Rhode Island denied a national bank’s motion to dismiss a CFPB lawsuit alleging violations of the Consumer Financial Protection Act (CFPA) and TILA, rejecting the bank’s arguments that, among other things, the CFPB’s claims were time-barred...
InfoBytesCFPB issues automated underwriting NAL to Fintech
On November 30, the Bureau issued a no action letter (NAL) to a Fintech covering its automated underwriting and pricing model that facilitates the origination of unsecured, closed-end loans made by third party lenders. The NAL states that the Bureau will not bring supervisory or enforcement actions...
InfoBytesCFPB finalizes Advisory Opinions Policy, issues two opinions
On November 30, the CFPB announced the finalization of its Advisory Opinions Policy , which will allow entities seeking to comply with existing regulatory requirements to request an advisory opinion in the form of an interpretive rule from the Bureau to address areas of uncertainty. Persons or...
InfoBytesCFPB releases enforcement database
On November 25, the CFPB announced a refreshed website that includes an “interactive enforcement database” to assist the public in tracking the Bureau’s enforcement actions. According to a blog post accompanying the announcement, the enforcement database identifies each public enforcement action by...
InfoBytesCFPB charges debt-relief company and owners
On November 20, the CFPB announced it filed a complaint in the U.S. District Court for the Northern District of Illinois against a debt-relief company and its two owners (collectively, “defendants”) for allegedly violating the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act...
InfoBytesCFPB settles with auto loan company over deceptive sales practices
On November 20, the CFPB announced a settlement with a Florida-based nonbank and the nonbank’s founder (collectively, “defendants”), resolving allegations that the defendants violated the Consumer Financial Protection Act by making misleading statements in disclosures and advertisements for their...
InfoBytesAgencies finalize certain 2021 thresholds
On November 18, the CFPB, OCC, and the Federal Reserve Board announced a final rule , which increases the TILA smaller loan exemption threshold for the special appraisal requirements for higher-priced mortgage loans (HPMLs). TILA requires creditors to obtain a written appraisal before making a HPML...
InfoBytesCFPB settles with debt collector over credit reporting violations
On November 12, the CFPB announced a settlement with an Illinois-based non-bank debt collector, resolving allegations that the company violated the Fair Credit Reporting Act (FCRA), Regulation V, and the Consumer Financial Protection Act when providing information to consumer reporting agencies (...
InfoBytesCFPB reports on payment information furnishing
On November 12, the CFPB released its latest quarterly consumer credit trends report on the prevalence of actual payment information in consumer credit reporting, concluding that actual payment furnishing for installment loan products has increased steadily between 2012 and 2020 while actual...
InfoBytesCFPB seeks comment on payday loan disclosure testing
On November 12, the CFPB published a notice and request for comment in the Federal Register detailing a plan for payday loan disclosure testing. The Bureau notes that a contractor will conduct one-on-one consumer interviews to evaluate potential options for payday loan disclosures. The interviews...
InfoBytesCFPB reports on debt trends for young veterans leaving service
On November 9, the CFPB released a report highlighting credit record trends for young enlisted servicemembers during the first year after separation. According to the CFPB, a large number of these servicemembers become delinquent on debt payments or have severe derogatories appear on their credit...
InfoBytesCFPB takes action against debt-relief and debt-settlement companies
On November 5, the CFPB announced an action filed in the U.S. District Court for the Central District of California against a student loan debt-relief company, a debt-settlement company, and the owner of both companies (collectively, “defendants”) for allegedly violating the Telemarketing Sales...
InfoBytesCFPB will not alter credit reporting guidance deadline relief
On November 9, CFPB Director Kathy Kraninger sent a letter to the National Consumer Law Center (NCLC) stating that the Bureau is not planning to make any changes to the guidance it issued in April (covered by InfoBytes here ), which informed furnishers that the Bureau will refrain from taking...
InfoBytesBank gets NAL from CFPB using small-dollar template
On November 5, under the CFPB’s revised no-action letter (NAL) policy, the Bureau issued a NAL to a national bank regarding certain small-dollar credit products offered by the bank. As previously covered by InfoBytes , in May, the Bureau approved a template in response to a request by a nonpartisan...
InfoBytesCFPB and South Carolina settle with loan broker for veteran pension loans
On October 30, the CFPB and the South Carolina Department of Consumer Affairs filed a proposed final judgment in the U.S. District Court for the District of South Carolina to settle an action alleging that two companies and their owner (collectively, “defendants”) violated the Consumer Financial...
InfoBytesCFPB charges lender with misrepresenting loan risks
On November 5, the CFPB filed a complaint in the U.S. District Court for the Southern District of Florida against a Florida-based company and its CEO (collectively, “defendants”) alleging violations of the Consumer Financial Protection Act through their offering of short-term, high-interest loans...
InfoBytes2nd Circuit vacates dismissal of CFPB action following Seila
On October 30, the U.S. Court of Appeals for the Second Circuit summarily vacated a 2018 district court order that had dismissed CFPB and New York attorney general claims against a New Jersey-based finance company accused of misleading first responders to the World Trade Center attack and NFL...
InfoBytesCFPB settles with payment plan company over deceptive sales practices
On November 2, the CFPB announced a settlement with a Texas-based payment plan company, resolving allegations that the company’s loan payment program disclosures contained misleading statements in violation of the Consumer Financial Protection Act. According to the Bureau, the company’s loan...
InfoBytesCFPB finalizes rule on confidential information disclosures
On October 29, the CFPB issued a final rule to modify its procedures for the disclosure of records and information. As previously covered by InfoBytes , in August 2016, the Bureau issued a proposed rule seeking to, among other things, amend procedures used by persons in the public domain to obtain...
InfoBytesTrade group sues CFPB over payday repeal
On October 29, a national community advocate group filed a complaint against the CFPB challenging the Bureau’s repeal of the underwriting provisions of the agency’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (Rule). As previously covered by InfoBytes...
InfoBytesCFPB finalizes certain debt collection rules
On October 30, the CFPB issued (along with blog post from Director Kraninger) its final rule amending Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA), addressing debt collection communications and prohibitions on harassment or abuse, false or misleading representations...
InfoBytesCFPB settles with ninth lender on misleading VA advertising
On October 26, the CFPB announced a settlement with a ninth mortgage lender for mailing consumers advertisements for Department of Veterans Affairs (VA) mortgages that allegedly contained misleading statements or lacked required disclosures. According to the Bureau, the lender allegedly sent false...
InfoBytesCFPB urges court to reject challenge to Payday Rule’s payment provisions
On October 23, the CFPB filed a cross-motion for summary judgment in the U.S. District Court for the Western District of Texas in ongoing litigation involving two payday loan trade groups (plaintiffs) concerning the Bureau’s 2017 final rule covering payday loans, vehicle title loans, and certain...
InfoBytesCFPB settles with bank for HMDA filing errors
On October 27, the CFPB announced a settlement with a national bank, resolving allegations that the bank reported inaccurate HMDA data for 2016 and 2017 mortgage transactions. According to the consent order , the bank allegedly violated HMDA, Regulation C, and the Consumer Financial Protection Act...
InfoBytesNonbank lender argues CFPB redlining action is flawed
On October 23, a Chicago-based nonbank mortgage company moved to dismiss a CFPB redlining action on the grounds that the Bureau’s complaint “improperly seek[s]” to expand ECOA to “prospective applicants.” As previously covered by a Buckley Special Alert , in July, the Bureau filed a complaint...
InfoBytesCFPB releases education ombudsman’s annual report
On October 28, the CFPB Private Education Loan Ombudsman published its annual report on consumer complaints submitted between September 1, 2019 and August 31, 2020. The report is based on approximately 7,000 complaints received by the Bureau relating to federal and private student loans. Of these...
InfoBytesCFPB issues ANPR on consumer access to financial records
On October 22, the CFPB released an advanced notice of proposed rulemaking (ANPR), which seeks comments to assist the Bureau in developing regulations covering consumers’ access to financial records. The Bureau is required to promulgate regulations to implement Section 1033 of the Dodd-Frank Act,...
InfoBytesSenator Brown objects to Bureau’s SEFL reorganization proposal
On October 21, Senator Sherrod Brown (D-OH) asked CFPB Director Kathy Kraninger to delay the implementation of a proposed reorganization of the Bureau’s Division of Supervision, Enforcement, and Fair Lending (SEFL) until after the election and a determination is made as to whether Kraninger will...
InfoBytesCFPB extends GSE Patch
On October 20, the CFPB issued a final rule extending the expiration of the GSE Patch until the mandatory compliance date of final amendments to the General Qualified Mortgage (QM) loan definition in order to facilitate a smooth and orderly transition away from the GSE Patch. As previously covered...
InfoBytesAgencies propose codifying that supervisory guidance lacks force of law
On October 20, the Federal Reserve Board, CFPB, FDIC, NCUA, and OCC released a notice of proposed rulemaking (NPRM), which seeks to codify the “Interagency Statement Clarifying the Role of Supervisory Guidance issued by the agencies on September 11, 2018 (2018 Statement).” As previously covered by...
InfoBytesCFPB settles with auto servicer over deceptive practices
On October 13, the CFPB announced a settlement with the Texas-based auto-financing subsidiary of a Japanese automobile manufacturer to resolve allegations that the servicer violated the Consumer Financial Protection Act by engaging in illegal repossession and collection practices. The CFPB alleged...
InfoBytesDebt collector settles with CFPB for $15 million
On October 15, the CFPB announced a proposed settlement with the largest U.S. debt collector and debt buyer and its subsidiaries (collectively, “defendants”), resolving allegations that the defendants violated the terms of a 2015 consent order related to their debt collection practices. As...
InfoBytesCFPB releases annual college credit card report
On October 8, the CFPB released its annual report to Congress on college credit card agreements. The report was prepared pursuant to the CARD Act, which requires credit card issuers to submit to the Bureau the terms and conditions of any agreements they make with colleges, as well as certain...
InfoBytesCFPB offers RESPA guidance on MSAs
On October 7, the CFPB issued FAQs covering RESPA Section 8 and corresponding Regulation X sections. The FAQs provide a general overview of Section 8 and its prohibited activities. The FAQs also address the application of Section 8 to common scenarios involving gifts and promotional activities and...
InfoBytesSenate Democrats question CFPB’s lack of restitution in VA ad settlements
On October 1, sixteen Democratic Senators sent a letter to CFPB Director Kathy Kraninger, expressing concern over the Bureau’s failure to obtain restitution in eight recent settlements with mortgage lenders for allegedly mailing consumers advertisements for Department of Veterans Affairs (VA)...
InfoBytesCFPB outlines application process for early termination of consent orders
On October 5, the CFPB issued a policy statement outlining the application process for entities seeking to terminate a consent order before the original expiration date. Generally, consent orders issued by the Bureau carry five-year terms, although the term may be extended in certain circumstances...
InfoBytesCFPB releases TRID five-year lookback assessment
On October 1, the CFPB released the assessment report required by Section 1022(d) of the Dodd-Frank Act for the TILA-RESPA Integrated Disclosure Rule (TRID), concluding that the TRID Rule “made progress towards several of its goals.” The assessment report was conducted using the Bureau’s own...
InfoBytesFFIEC adopts revised interagency examination procedures for TILA
On September 30, On September 30, the OCC issued Bulletin 2020-84 announcing the Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council’s adoption of revised interagency examination procedures for TILA, as implemented by Regulation Z. The updated interagency...
InfoBytesCFPB, FTC, and states announce debt collection enforcement operation
On September 29, the CFPB, FTC, and more than 50 federal and state law enforcement partners announced a nationwide enforcement and outreach effort titled “Operation Corrupt Collector” to address illegal debt collection practices. As of the date of the announcement, according to the CFPB, the...
InfoBytesCFPB settles with auto lender on unfair LDW practices
On September 21, the CFPB announced a settlement with a California-based auto-loan servicer to resolve allegations that the company engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act. The CFPB alleged that the...
InfoBytesCFPB denies petition to set aside CID; cites authority to seek “reasonably relevant” information
On August 27, the CFPB denied a petition by an auto financing company to set aside a civil investigative demand (CID) issued by the Bureau in June. The CID requested information from the company to determine, among other things, “whether auto lenders or associated persons, in connection with...
InfoBytesCFPB outlines plan to disclose data on small-business lending
On September 15, the CFPB released its “Outline of Proposals Under Consideration and Alternatives Considered” (Outline) for implementing the requirements of Section 1071 of the Dodd-Frank Act, which instructs the Bureau to collect and disclose data on lending to women and minority-owned small...
InfoBytesJoint settlement requires forgiveness on $330 million of student loans
On September 15, the CFPB filed a complaint and proposed stipulated judgment against a trust, along with three banks acting in their capacity as trustees to the trust, for allegedly providing substantial assistance to a now defunct for-profit educational institution in engaging in unfair acts and...
InfoBytesCFPB settles with eighth lender on misleading VA advertising
On September 14, the CFPB announced a settlement with an eighth mortgage lender for mailing consumers advertisements for Department of Veterans Affairs (VA) mortgages that allegedly contained misleading statements or lacked required disclosures. According to the Bureau, the lender offers and...
InfoBytesCourt approves additional settlements in CFPB student debt relief action
On September 8, the U.S. District Court for the Central District of California entered a stipulated final judgment against two additional defendants in an action brought by the CFPB, the Minnesota and North Carolina attorneys general, and the Los Angeles City Attorney alleging a student loan debt...
InfoBytesCFPB alleges debt collection, debt buying companies violated 2015 consent order
On September 8, the CFPB filed a complaint against the largest U.S. debt collector and debt buyer and its subsidiaries (collectively, “defendants”) for allegedly violating the terms of a 2015 consent order related to their debt collection practices. As previously covered by InfoBytes , the...
InfoBytesCFPB and New York AG take action against debt collection operation
On September 8, the CFPB and the New York attorney general jointly filed a lawsuit against a debt collection operation based near Buffalo, New York. The defendants include five companies, two of their owners, and two of their managers (collectively, “defendants”). According to the complaint , filed...
InfoBytesSpecial Alert: California’s new consumer financial protection law expands UDAAP and enforcement authority
On Monday, August 31, the California Legislature passed Assembly Bill 1864 , which enacts the California Consumer Financial Protection Law (CCFPL) and changes the name of the Department of Business Oversight (DBO) to the Department of Financial Protection and Innovation (DFPI). Key takeaways...
Special AlertsCFPB issues Summer 2020 Supervisory Highlights
On September 4, the CFPB released its summer 2020 Supervisory Highlights , which details its supervisory and enforcement actions in the areas of consumer reporting, debt collection, deposits, fair lending, mortgage servicing, and payday lending. The findings of the report, which are published to...
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