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Tag Archives: Consumer Financial Protection Bureau

Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

Hudson City Savings Bank Reaches Largest Mortgage Redlining Settlement in DOJ History

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation, Fraud, Deception and False Claims

CFPB Obtains Injunction Against World Law Group

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
Financial Institution Regulation

CFPB Announces Results of eClosing Pilot Project

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
Financial Institution Regulation

CFPB Targets Practices Impacting the Elderly

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB Signals Future Regulation in the Payment Processing Industry

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
Financial Institution Regulation

CFPB’s Cordray Reiterates Intent to Pursue Rulemaking on Consumer Arbitration Clauses, Despite Opposition

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

JP Morgan Chase to Pay $216 Million Over Credit Card Debt Sales Practices

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
Financial Institution Regulation

Proposed New Legislation Would Extend CFPB Oversight Over SCRA

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB Targets Real Estate Developer in Recent Enforcement Action

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
Financial Institution Regulation

With Rule-Making Expected, CFPB’s March 2015 Arbitration Study Continues to Draw Attention

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB, DOJ Join in Fair Lending Enforcement Action Against Provident

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

Here to Stay? Appellate Court Rejects Challenges to CFPB

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
Financial Institution Regulation

White House Opposes Bill Giving Small Businesses Greater Voice in CFPB Rulemaking

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
Financial Institution Regulation

CFPB Enforcement Action Appeals: Quick Resolution with Unchecked Discretion

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
Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

National Mortgage Servicer Pays CFPB and FTC $63 Million to Settle Claims Over Alleged Servicing Violations

 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
Compliance, Enforcement and Prosecution Policy and Trends, Financial Institution Regulation

CFPB PROPOSAL TO END “PAYDAY DEBT TRAPS” MEETS SERIOUS CRITICISM

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
Financial Institution Regulation

CFPB Considering New Rules for Payday Lending

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
Financial Institution Regulation

The CFPB’s Controversial New Narrative Complaint Policy

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
Financial Institution Regulation

CFPB Releases Study on Use of Arbitration Clauses in Consumer Contracts

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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