Tag Archives: CFPB

CFPB Data Collection Methods Under Fire

When Robert Cordray, Director of the Consumer Financial Protection Bureau (“CFPB”), testified before the Senate Banking Committee in April, 2013, he attempted to reassure senators that the CFPB had no interest in tracking individuals’ financial transactions, even though the bureau has access to financial information of millions of Americans. Senator Mike Crapo, R-Idaho, the Committee’s … Continue reading this entry

"Money Smart for Older Adults" Provides Valuable Information for All Consumers

On June 12 the Federal Deposit Insurance Corporation (“FDIC”) and Consumer financial Protection Bureau (“CFPB”) jointly launched a new financial resource tool, “Money Smart for Older Adults”, with the goal of helping older adults and their caregivers prevent elder financial exploitation. Money Smart for Older Adults provides information to raise awareness among older adults (defined … Continue reading this entry

CFPB Expands Information Available in its Consumer Complaint Database

On May 31, 2013 the Consumer Financial Protection Bureau (“CFPB”) announced that it had expanded the information contained in its Consumer Complaint Database to include credit reporting complaints, money transfer complaints and state information for all consumer complaints filed with the CFPB. Director Richard Cordray said: “This data puts valuable information in the hands of consumers to … Continue reading this entry

As the CFPB Turns ... And Other Consumer Financial Services News

In this week’s episode of As the CFPB Turns questions remain regarding Director(?) Richard Cordray’s constitutional authority to act as the Director of the CFPB.  House Financial Services Committee Chairman, Jeb Hensarling, R-Texas, advised Cordray that the D.C. Circuit’s recent decision, which found that President Obama’s recess appointments to the National Labor Relations Board were … Continue reading this entry

Revealing UDAAP Comments From Cordray

Yesterday, CFPB Director Cordray delivered a speech to the Consumer Advisory Board in Washington, D.C. The director’s prepared remarks are revealing and likely foreshadow more of what is to come for our industry. First, Director Cordray emphasized the importance of the Bureau’s UDAAP duties: The new financial reform law makes it illegal to engage in … Continue reading this entry

Consumers Have Another Channel to Make Complaints

Many cities and municipalities have non-emergency “hotlines” designed to provide access to non-urgent municipal services (e.g., tree trimming, dead animal removal, sidewalk repair). As of yesterday, this list of services has expanded to consumer questions and complaints about consumer financial products and services, at least in Newark, New Jersey. The Bureau announced that it is teaming up … Continue reading this entry

The CFPB Is Taking a Closer Look at Financial Products Marketed to Students Enrolled in Institutions of Higher Education

On January 31, 2013, the Consumer Financial Protection Bureau (“CFPB”) published a notice in the Federal Register seeking information regarding the impact of financial products marketed to students enrolled in institutions of higher education (the “Notice”). Although the Credit Card Accountability, Responsibility and Disclosure Act of 2009 includes requirements that financial companies publicly disclose credit card … Continue reading this entry

Raj Date Steps Down at CFPB; Steve Antonakes Named as Acting Deputy Director

On January 31, 2013, Deputy Director Raj Date officially stepped down from his position as the second-highest official in the CFPB. Date was the first deputy director of the agency, and was closely involved with Elizabeth Warren in the formation of the CFPB. Date’s departure was confirmed in November 2012. Date has been a notable leader … Continue reading this entry

Cordray Renominated as Bureau's Director, But Court Ruling Jeopardizes His Recess Appointment and Bureau's Powers

It’s been the best of times and the worst of times for Richard Cordray this week. First, President Obama renominated Cordray to be the Consumer Financial Protection Bureau’s (the Bureau) director on January 24, 2013. Cordray had been nominated for this post in 2011, but Senate Republicans blocked confirmation of his nomination. President Obama responded by purporting to … Continue reading this entry

CFPB Proposes Amendments to New Final Ability-to-Repay Rule, Solicits Comment on Calculating Loan Originator Compensation

On January 10, 2013, the CFPB issued its final ability-to-repay rule (Rule), which implements Dodd-Frank mortgage reforms requiring creditors to make a reasonable and good faith determination that a consumer will have a reasonable ability to repay the loan according to its terms. Failure to comply with these requirements may give rise to various damages … Continue reading this entry

CFPB Proposes Revisions to Rules on International Money Transfers by Consumers

The Consumer Financial Protection Bureau (CFPB) recently issued proposed changes to the rule it originally proposed on January 20, 2011, governing certain electronic money transfers by consumers that was required by the Dodd-Frank Act. See http://www.gpo.gov/fdsys/pkg/FR-2011-05-23/pdf/2011-12019.pdf for the original proposed rule. The proposed rule is the first federally mandated disclosure, error resolution and cancelation rule imposed on ”remittance transfer … Continue reading this entry

CFPB Issues Final Rules Amending Regulation X and Regulation Z

Today, the CFPB issued final rules amending Regulation X (Real Estate Settlement Procedures Act (“RESPA”)) and Regulation Z (Truth in Lending Act (“TILA”)). The amendments focus on mortgage servicing requirements and servicer obligations, and largely track the CFPB’s proposed rules issued August 10, 2012. The CFPB’s announcement of the final rules includes the preamble, regulatory text and … Continue reading this entry

Final Rule Issued on Ability-to-Repay/Qualified Mortgages

The Consumer Financial Protection Bureau (CFPB) issued its final ability to repay rule (Rule) on January 10, 2013. The Rule implements ability-to-repay provisions of the Dodd-Frank Act, which imposed strict underwriting standards upon lenders to ensure that prospective buyers have the ability to repay their mortgages. A failure to comply with these requirements will constitute a … Continue reading this entry

House Committee on Oversight and Reform: CFPB a Threat to Credit Access

On December 14, 2012, the House of Representatives Committee on Oversight and Government Reform, Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs issued a scathing staff report entitled: The Consumer Financial Protection Bureau’s Threat to Credit Access in the United States. The report, from Committee Chair Darrell Issa and Subcommittee Chair Patrick McHenry, was a … Continue reading this entry

Is Your Company Using the Right Form for Background Checks?

The Consumer Financial Protection Bureau (the “Bureau”) has taken over rulemaking and enforcement responsibilities for the Fair Credit Reporting Act (“FCRA”) and has updated an important FCRA form that employers must use when utilizing consumer reports in conducting background investigations of prospective and current employees. Employers must use the new form beginning in January. The FCRA … Continue reading this entry

National Mortgage Database Formed

The Consumer Financial Protection Bureau (“CFPB”) and the Federal Housing Finance Agency (FHFA”) have agreed to jointly produce a National Mortgage Database containing detailed mortgage loan information. In a press release dated November 1, 2012, the CFPB said: “The database will primarily be used to support the agencies’ policymaking and research efforts and to help … Continue reading this entry

Chicago Joins CFPB in Information-Sharing Partnership; City Takes Additional Measures

In a first-of-its-kind partnership with a municipality, CFPB Director Richard Cordray and Chicago Mayor Rahm Emanuel jointly announced a framework for sharing of information between the City and the CFPB. Under the agreement, Chicago becomes the first city in the nation to agree to directly report alleged violations of federal consumer financial protection laws and regulations to … Continue reading this entry

The Consumer Financial Protection Bureau Targets Mortgage Advertising in Its Continuing Enforcement Efforts

Just on the heels of announcing settlements of enforcement actions against several credit card companies, the Consumer Financial Protection Bureau (the “Bureau”) seems to have set its sights on the target of its next round of enforcement actions – lenders who are allegedly violating the Mortgage Acts and Practices – Advertising Rule (“MAP Rule”). The … Continue reading this entry

Capital One Required to Pay $140 Million in Consumer Refunds

Today, the Consumer Financial Protection Bureau (“CFPB”) engaged in its first major enforcement action by requiring Capital One to refund 2 million consumers approximately $140 million for profits gained from deceptive marketing practices related to its credit card protection services. The settlement was reached following an investigation, prompted by a March 2011 Government Accountability report on … Continue reading this entry

The Consumer Financial Protection Bureau Is Challenged as Unconstitutional

This past Thursday, June 21, 2012, the State National Bank of Big Spring (“National Bank’”), the Competitive Enterprise Institute (“CEI”), and the 60 Plus Association, Inc. (“the Association”), filed suit against the Consumer Financial Protection Bureau (“CFPB”), the U.S. Department of the Treasury and various financial officials, including Richard Cordray, Director of the CFPB, in … Continue reading this entry

CFPB Issues Final Rules (Part 4 of 4): Compliance With the Equal Access to Justice Act

On Wednesday June 6, 2012, the Consumer Financial Protection Bureau (“the Bureau”) also issued an interim rule with request for public comment, on the rules drafted to bring the Bureau into compliance with the Equal Access to Justice Act (“EAJA”).  The rules set out the guidelines for payment of attorney’s fees for certain parties, excluding … Continue reading this entry

CFPB Issues Final Rules (Part 3 of 4): Investigative Procedures and CIDs

On June 6, 2012  the Consumer Financial Protection Bureau (the “Bureau”) issued a final rule providing more on their investigative procedures. Codified in Section 1080, the rules have only further delineated the practices and processes already in use by the Bureau. Yet, the regulations provide further structure and clarity to the Bureau’s intended investigation procedures. … Continue reading this entry

CFPB Issues Final Rules (Part 2 of 4): State Official Notification

The Consumer Financial Protection Bureau (“the Bureau”) promulgated various final rules dealing with their enforcement powers on June 6, 2012. Among them was the final rule for state official notification. While short in comparison to the other rules issued, this rule provided some guidelines for state officials and attempted to create a process that will … Continue reading this entry