The CFPB, DOJ, and Hudson City Savings Bank, F.S.B. (“Hudson City”) recently entered into the largest residential mortgage redlining settlement in DOJ history. On September 24, 2015, the parties filed a Joint Motion for Entry of Consent Order that resolves allegations of discriminatory practices of redlining in predominately Black and Hispanic neighborhoods. The consent order… Continue Reading
The CFPB recently obtained preliminary injunctions against debt-reduction company World Law Group, its affiliates and its owners, thereby freezing the company’s assets and stopping all further operations pending the outcome of a CFPB lawsuit against the company. The injunctions, issued on September 2 and September 14, come on the heels of the complaint filed by… Continue Reading
A new poll by Zogby Analytics and the U.S. Consumer Coalition suggests that American consumers are not entirely happy with the CFPB, a government agency that is supposed to be protecting their interests. The poll of 3,225 likely voters and 3,604 adults indicates that Americans are largely unfamiliar with the CFPB and that those who… Continue Reading
On August 5, 2015, the CFPB published a report titled “Leveraging technology to empower mortgage consumers at closing,” which concluded that borrowers can benefit from electronic closings or “eClosings” – that is, closings in which a borrower can view and sign documents electronically. According to CFPB Director Richard Cordray, “Using the power of technology has… Continue Reading
On July 13, the Consumer Financial Protection Bureau (CFPB) Director Richard Cordray delivered remarks at the White House Conference on Aging and signaled the CFPB’s plans to issue an advisory later in 2015 to assist financial institutions with preventing, recognizing, and reporting elder financial abuse. He noted that the CFPB’s “Office for Older Americans has… Continue Reading
On July 9, 2015, the Consumer Financial Protection Bureau (CFPB) issued a set of “consumer protection principles” for the financial industry as it develops new, faster payment processing systems. Last November, CFPB Director Richard Cordray gave a speech that expressed concerns over lack of consumer protection for loss or theft, a general lack of transparency,… Continue Reading
In testimony before the Senate Committee on Banking, Housing & Urban Affairs on July 15, CFPB Director Richard Cordray affirmed the Bureau’s intention to proceed with rulemaking governing arbitration clauses in consumer financial products. Cordray’s comments came in response to questioning from committee member Sherrod Brown, who asked about the CFPB’s implementation of suggestions made… Continue Reading
This week, JP Morgan Chase & Co. agreed to a settlement with the Consumer Financial Protection Bureau (CFPB), the Office of Comptroller of the Currency, and 47 states to settle probes into its credit card debt collection practices. The consent order filed July 8 calls for Chase to pay $30 million to the CFPB, $106… Continue Reading
On June 11, 2015, Sen. Jack Reed [D-RI] introduced a bill amending the Consumer Financial Protection Act to extend CFPB oversight and protection to include key provisions of the Servicemembers Civil Relief Act (SCRA). The SCRA provides an array of protections to members of the military, including postponing civil obligations so that servicemembers can better fulfill… Continue Reading
Corinthian Colleges (Corinthian) announced on April 26 that it would cease operations at its remaining physical campuses. This announcement refers to the 30 or so physical campuses that Corinthian continued to operate subsequent to the sale of more than 50 of its campuses to ECMC Group last fall. The campuses sold to ECMC Group are… Continue Reading
The Consumer Financial Protection Bureau (CFPB) recently entered into a consent order against International Land Consultants, Inc. (ILC), a real estate development company, and four of its employees involved in the marketing, development and sale of real property in Tennessee. The enforcement action was based upon violations of the Interstate Land Sales Full Disclosure Act,… Continue Reading
In a recent letter, 58 members of Congress asked the Consumer Financial Protection Bureau (CFPB) to exercise its rule-making authority and ban mandatory arbitration provisions in consumer financial agreements. In support of their request, the authors cite the CFPB’s March 2015 internal study on arbitration, which the CFPB conducted pursuant to Section 1028 of the… Continue Reading
On Thursday, the CFPB and the Department of Justice (DOJ) filed a joint complaint against the second-largest private mortgage company in the United States alleging it engaged in discriminatory lending practices from 2006 to at least 2011. Specifically, the complaint alleges that Provident Funding Associates violated the Fair Housing Act (FHA) and the Equal Credit… Continue Reading
On May 1, 2015, the U.S. Court of Appeals for the D.C. Circuit rejected a constitutional challenge to the Consumer Financial Protection Bureau’s (CFPB’s) authority. In Morgan Drexen, Inc. v. CFPB, Morgan Drexen, Inc., which licenses its proprietary software to law firms and provides “live paraprofessional and support services,” and one of its attorney customers,… Continue Reading
Last month, the White House informed Congress that it opposes a bill passed by the House of Representatives designed to give small businesses a larger role in developing Consumer Financial Protection Bureau (CFPB) rules and regulations. Currently, the CFPB does not consult with small businesses and lenders before adopting rules and regulations that affect them.… Continue Reading
On March 9, 2015, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray presided over oral argument in the first appeal hearing of an administrative enforcement action. The appeal involves two companies that allegedly gave and received millions in payments through a “captive” mortgage reinsurance arrangement. Administrative Law Judge Cameron Elliot’s recommended decision concluded that these… Continue Reading
On April 21, 2015, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) announced a joint enforcement action and joint order with a national mortgage servicer. The CFPB and FTC alleged that the servicer failed to honor loan modifications transferred from other servicers and insisted that borrowers pay their original, higher monthly… Continue Reading
A recently released Consumer Financial Protection Bureau (CFPB) plan meant to end “payday debt traps” is meeting serious criticism from industry experts who say the rule, as proposed, would seriously limit short-term borrowing options for American consumers. According to the CFPB, the proposed rulemaking would require lenders to take steps to ensure that consumers are… Continue Reading
Last week, the Consumer Financial Protection Bureau (CFPB) announced that it was considering new rules for payday lending, the practice of making relatively short-term, high-interest loans to borrowers. According to NPR, millions of Americans rely on payday loans every year, and payday lending is now a $46 billion-per-year industry. See Payday Loan—and Endless Cycles of… Continue Reading
On March 19, 2015, the Consumer Financial Protection Bureau (CFPB) issued a new consumer complaint policy that gives individual complainants the ability to provide narrative versions of their complaints about a company, product or service. While the CFPB has been accepting consumer complaints since its inception in 2011, historically, the Consumer Complaint Database has provided… Continue Reading
Last week, the Consumer Financial Protection Bureau (CFPB) announced it is seeking public comment from consumers on how the credit card market is functioning following several initiatives imposed by the Credit Card Accountability Responsibility and Disclosure Act of 2009, H.R. 627 (CARD Act), which amended various provisions of the Truth in Lending Act, 15 U.S.C… Continue Reading
Last week, the Consumer Financial Protection Bureau (CFPB) released its 728-page report on the use of arbitration clauses in consumer financial products and services contracts. The findings in the report come from a three-year study, which CFPB Director Richard Cordray called “the most comprehensive empirical study of consumer financial arbitration ever conducted.” In addition to… Continue Reading
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