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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

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

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

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

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

A copy of Erik Kemp's and Scott Hyman's article "The Consumer Financial Protection Bureau Regulates Pay-by-Phone 'Convenience” Fees'", CFSC Newsletter: ABA Business Law Section, (March 2018) can be found here: https://www.americanbar.org/content/dam/aba/administrative/business_law/newsletters/CL230000/full-issue-201803.authcheckdam.pdf Read More

In CFPB v. Weltman, Weinberg & Reis Co., L.P.A., 2017 WL 6042221, at *1–2 (N.D.Ohio, 2017), Judge Nugent denied the CFPB's motion for a protective order that would have prevented the deposition of (former) Director Cordray from taking place, clearing the way for (former) Director Cordray's deposition. However, since the filing of the protective order, Mr. Cordray has resigned from… Read More

The Senate voted 51 to 50 late Tuesday to repeal the Consumer Financial Protection Bureau’s rule banning mandatory arbitration clauses in financial contracts.  Vice-President Pence cast the deciding vote to break the tie.    Senate Republicans relied on the Congressional Review Act ("CRA") to overturn the CFPB's anti-Arbitration Rule.  The CFPB's Rule had been challenged by the Department of Treasury… Read More

The CFPB just issued its Summer Supervisory Highlights regarding complaints lodged against debt collection, a copy of which can be found here.  The CFPB notes that its examiners' reviewed numerous companies, both within the united states and from foreign countries, and highlighted the following types of common violations: Unauthorized communications with third parties False representations made to authorized credit card users… Read More

In Consumer Financial Protection Bureau v. Navient Corporation, No. 3:17-CV-101, 2017 WL 3380530 (M.D. Pa. August 4, 2017), Judge Mariani rejected constitutional challenges to the CFPB’s structure. Navient first argues that the CFPB lacks statutory authority to bring an enforcement action without first engaging in rulemaking to declare a specific act or practice unfair, deceptive, or abusive. (Doc. 29 at… Read More

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