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CFPB Issues Small Entity Compliance Guide for October 2020 Debt Collection Rule

by Laszlo Ladi, Jr. |

On January 15, 2021, the Consumer Finance Protection Bureau (CFPB) issued a small entity compliance guide summarizing the October 2020 debt collection rule. The small entity compliance guide is available here. Earlier, the October 2020 debt collection rule amended Regulation F to implement most of the Fair Debt Collection Practices Act’s (FDCPA), including, among other things, communications in connection with… Read More

District Court (D.C.) Says CFPB’s Pre-Paid Card Rule Exceeded Authority

by Scott J. Hyman |

In Paypal, Inc. v. Consumer Fin. Prot. Bureau, No. 19-3700 (RJL), 2020 U.S. Dist. LEXIS 244761 (D.D.C. Dec. 30, 2020), Judge Leon held that the CFPB’s Pre-Paid Card Rule exceeded the CFPB’s authority because Congress neither authorized it to require mandatory short forms nor permitted it to create a substantive restriction on a consumer's access to and use of credit under… Read More

CFPB Issues December 2020 Debt Collection Final Rule

by Laszlo Ladi, Jr. |

On the heels of the October 2020 Debt Collection Final Rule issued by the Consumer Finance Protection Bureau (CFPB), on December 18, 2020, the CFPB issued an additional final rule implementing the Fair Debt Collection Practices Act. The December 2020 final rule and an executive summary are available here: https://www.consumerfinance.gov/compliance/compliance-resources/other-applicable-requirements/debt-collection/. The December 2020 final rule primarily addresses the (1) requirements… Read More

Two District Courts Hold that the CFPB Director Constitutionally Ratified CFPB Actions after the Selia Law Decision by SCOTUS

by Scott J. Hyman |

In Bureau of Consumer Fin. Prot. v. Fair Collections & Outsourcing, No. GJH-19-2817, 2020 U.S. Dist. LEXIS 223797, at *14-21 (D. Md. Nov. 30, 2020), Judge Hazel found constitutional ratification after SCOTUS' decision in Seila Law v. CFPB, 140 S.Ct. 2183 (2020). The Court next turns to a question left unanswered by Seila Law: whether the current CFPB Director properly… Read More

CFPB Issues Final Debt Collection Rule

by Scott J. Hyman |

The CFPB has issued its Final Debt Collection rule:  https://www.consumerfinance.gov/policy-compliance/guidance/other-applicable-requirements/debt-collection/ The CFPB's Executive Summary is here:  https://files.consumerfinance.gov/f/documents/cfpb_october_2020_debt_collection_executive_summary.pdf We are reviewing the new Final Rule, and will be publishing period updates.  Stay tuned! Read More

CFPB Warns Against Discriminatory Servicing During COVID-19 Crisis

by Scott J. Hyman |

In a recent weblog post, the CFPB warned against creditors undertaking unfair and discriminatory servicing of debts during the COVID-19 crisis.  The CFPB explained: We are monitoring the marketplace in real time and coordinating on an ongoing basis with fellow Federal and State regulators who are committed to stopping COVID-19-related malfeasance. We are taking, and will continue to take, swift… Read More

FTC Submits Comments to the CFPB’s Notice of Proposed Rulemaking Regarding the FDCPA

by Scott J. Hyman |

They used to write the Official Staff Commentary, and give "Informal Staff Opinion" letters to industry to assist industry in complying with the FDCPA.  Now, the FTC has filed a Comment in response to the CFPB's Notice of Proposed Rulemaking that can be found at https://www.ftc.gov/system/files/documents/advocacy_documents/comment-staff-federal-trade-commissions-bureau-consumer-protection-matter-proposed-rule-request/final_-_cfpb_debt_coll_draft_comment_9-13_v2_1pm_ver_to_comm.pdf  The FTC devotes almost half of their comment to reminding the CFPB that the… Read More

CFPB’s March 2019 Supervisory Highlights Focus on Automobile Finance

by Scott J. Hyman |

The CFPB just issued it’s Supervisory Highlights, paying particular attention to automobile finance and issues regarding ancillary products. The Bureau continues to examine auto loan servicing activities, primarily to assess whether servicers have engaged in unfair, deceptive, or abusive acts or practices (UDAAPs) prohibited by the Consumer Financial Protection Act of 2010 (CFPA). Recent auto loan servicing examinations identified unfair… Read More

5th Cir. Says CFPB Did Not Issue a Proper CID; the CFPB Does Not Have “Unfettered Authority to Cast About for Potential Wrongdoing”

by Scott J. Hyman |

In Consumer Financial Protection Bureau v. Source for Public Data, L.P., 2018 WL 4258966, at *3 (C.A.5 (Tex.), 2018), the Court of Appeals for the Fifth Circuit rejected the CFPB's petition to enforce a CID against an alleged consumer reporting agency, where the only the wrongdoing the CFPB listed was "FCRA violation" and “any other federal consumer financial law.”. Such… Read More

District Court (N.Y.) Strikes Down CFPB’s Structure as Unconstitutional

by Scott J. Hyman |

In CFPB v. RD Legal Funding, Inc., 17-CV-890 (U.S.D.C. S.D. N.Y. June 21, 2018), here, Judge Preska disagreed with the DC Circuit’s PHH decision and found the CFPB’s structure unconstitutional. In reaching the question of the constitutionality of Title X of Dodd-Frank, which established the CFPB as an “independent bureau” within the Federal Reserve System, 12 U.S.C. § 5491(a), the… Read More

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