Regulatory Agencies

During a telephone conference call on December 8 labeled as a “listening session,” California’s newly renamed DFPI (formerly DBO) provided additional details about its upcoming plans for rulemaking related to the California Consumer Financial Protection Law (AB 1864, aka the mini-CFPB) and related to the Debt Collectors License Act (SB 908). Similar to what was discussed during the first such… Read More

After SCOTUS punted on whether Chevron deference need be given to the FCC’s Fax Rule, so too did the 4th Cir. in Carlton & Harris Chiropractic v. Pdr Network, No. 16-2185, 2020 U.S. App. LEXIS 38073 (4th Cir. Dec. 7, 2020).  First, the Court of Appeals held that the Rule was interpretive and not legislative since the FCC had not… Read More

The DFPI provided information on its second “Listening Session” on December 8, 2020.   https://dfpi.ca.gov/2020/11/06/november-2020-monthly-bulletin/   For information on the the DFPI’s session or the implementation of the California Consumer Financial Protection Law (CCFPL), generally, contact Laszlo Ladi at ll@severson.com   Read More

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

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

On September 25, 2020, Governor Newsom signed a number of bills, including AB 1864, which established the Department of Financial Protection and Innovation (“DFPI”) in place of the Department of Business Oversight (“DBO”), and SB 908, the Debt Collection Licensing Act. Both bills were passed by the California legislature in late August 2020, and are touted by Governor Newsome as… Read More

AB 1864 has now passed California’s legislature and is another California fire with which Governor Newsom must deal.  This Bill seeks to rename the Department of Business Oversight as the Department of Financial Protection and Innovation (“DFPI”), and is expected to be signed by Governor Newsom. Earlier, Governor Newsom proposed the CFPL in his 2020-2021 budget frame-work. The goal, according to Newsom,… Read More

The Federal Trade Commission announced that it is seeking comment on proposed changes that would bring several rules implementing parts of the Fair Credit Reporting Act (FCRA) in line with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). In separate Notices of Proposed Rule Making (NPRMs), which will be published in the Federal Register shortly, the FTC… Read More

The California Legislature passed a budget by its annual deadline to do so--June 15, 2020—but the budget did not include Governor Gavin Newsom’s proposed mini-CFPB. Earlier, Governor Newsom’s January 2020 proposed budget included the California Consumer Financial Protection Law, which sought to overhaul the California Department of Business Oversight (“DBO”) and remake it into a more powerful Department of Financial… Read More

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

As a reminder that the promises you make on your website must align with your data privacy practices,the FTC announced that it just reached reached a settlement with a background screening company over allegations it falsely claimed to be a participant in the EU-U.S. Privacy Shield program. In separate actions, the FTC also sent warning letters to more than a… Read More

As FY 2015 came to a close, the FTC asked for commentary on its Holder Rule for assignee liability.  Consumers and Industry responded in early 2016.  Three years in the making, the FTC finally responded, issuing its commentary today in the Federal Register, and it's first official commentary since the Rule was promulgated in 1975.  FTC Commentary on Holder Rule 5-2-19. … Read More

Today, the FCC issued its 2018 Privacy and Data Security Update, a compendium for attorneys, business executives, and others who are long on interest, but short on time. It summarizes the seven zones that were central to the FTC’s 360° approach in 2018.  The Report can be found in embedded links with the FCC’s press release today. https://www.ftc.gov/news-events/blogs/business-blog/2019/03/ftcs-2018-privacy-data-security-update-what-it-means-your?utm_source=govdelivery 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

The Federal Trade Commission is seeking comment on proposed amendments to two rules that protect the privacy and security of customer information held by financial institutions. In separate notices to be published in the Federal Register, the FTC is seeking comment on proposed changes to the Safeguards Rule and the Privacy Rule under GLBA.  The Safeguards Rule requires a financial… Read More

On October 3, the FCC issued a Request for Comment on the TCPA's definition of ATDS following the 9th Circuit's Marks decision.  A copy of the FCC's Request is here.  The deadline to file commentary is October 24, 2018.   The FCC seemed concerned by Marks' expansive interpretation of the TCPA's definition(s).  In other words, the [Marks] court interpreted the statutory language expansively so… 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

On May 3, 2018, a coalition of industry groups filed a petition for a declaratory ruling with the FCC, following the DC Circuit's decision in ACA Int'l.  Yesterday, the FCC asked for comment.  A copy of the Petition can be found here.  Interested parties may file comments by June 13, or reply to comments by June 28. Read More