Category Archives: Consumer Financial Protection Bureau

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Only 28 Days Left to Submit Comments Regarding the CFPB’s Proposed Modifications to Home Mortgage Disclosure (Regulation C)

The Consumer Financial Protection Bureau (“CFPB”) has published for public comment, a proposed rule amending Regulation C to implement amendments to the Home Mortgage Disclosure Act (HMDA). The HMDA requires certain financial institutions to collect and report information in connection with housing-related loans and loan applications. The amendments made by the Dodd- Frank Act expanded the … Continue reading this entry

CFPB and FTC Stop Two Payday Lending Scams

In separate suits brought by the Consumer Financial Practices Bureau (“CFPB”) and the Federal Trade Commission (“FTC”) federal courts have frozen the assets of two separate groups who allegedly defrauded consumers by creating unauthorized payday loans. Payday loans are short term loans generally made in small amounts that are intended to be repaid out of the … Continue reading this entry

Truth in Lending Act and Consumer Leasing Act Dollar Thresholds Raised: Fewer Transactions Exempt

More consumer credit and leasing transactions will be subject to the Truth in Lending Act (TILA) and Consumer Leasing Act (CLA) in 2015. Effective January 1, 2015, the dollar threshold for exemption of most consumer credit transactions and consumer leases from TILA, the CLA, and their implementing regulations (Regulations Z and M) was increased from $53,500 (the … Continue reading this entry

The CFPB Alerts Credit Card Issuers That Marketing of Credit Card Promotional APR Offers May Violate Federal Law

The Consumer Financial Protection Bureau (“CFPB”) recently issued a bulletin alerting credit card companies that they may be at risk of breaking the law as a result of the way they market promotional rates. Specifically, credit card issuers may be at risk of engaging in deceptive and/or abusive acts and practices  in connection with solicitations … Continue reading this entry

Credit Card Issuers Beware: CFPB Fires Warning Shot on Promotional APRs

Who could possibly object to zero or low promotional interest rates offered for convenience checks, balance transfers or new purchases? The Consumer Financial Protection Board (CFPB), that’s who. In a new Bulletin based on its findings from examinations of large banks and card issuers, the CFPB warns that some credit card issuers may be engaging in deceptive … Continue reading this entry

Time is Running Out to Complain About the Complaint Portal

Consumer Financial Protection Bureau
You have 4 days! August 22, 2014 is the deadline to submit your comments in response to the Consumer Financial Protection Bureau’s (CFPB) proposed disclosure of consumer complaint narrative data. (https://federalregister.gov/a/2014-17274). The CFPB maintains a public Consumer Complaint Database through which consumers may file complaints regarding financial services and products (commonly referred to as the “Complaint … Continue reading this entry

CFPB to Shine Spotlight on Mini-Correspondent Mortgage Lending?

On July 9, 2014, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued Policy Guidance on the issue of Mortgage Brokers Transitioning to Mini-Correspondent Lenders (“Policy Guidance”), which highlights risks and considerations that should be taken into account by brokers who may be considering or venturing into the mini-correspondent channel. The Mini-Correspondent Model Mini-correspondents are … Continue reading this entry

CFPB Expands Its Enforcement Efforts Against Payday Lending

In November, 2013, the Consumer Financial Protection Bureau announced its first enforcement action against a payday lender. Cash America International was fined $5 million and was ordered to refund $14 million to its borrowers due to violations of the Military Lending Act. Recently, the CFPB took action against one of the nation’s largest payday lenders, … Continue reading this entry

CFPB Proposes Public Disclosure of Consumer Complaint Narratives

Will the CFPB start disclosing consumers’ gripes and rants? Would it provide endless hours of salacious reading, like complaints posted on popular online review sites like Yelp and Angie’s List? Could it become a platform for publicizing unverified or, in worst cases, false and defamatory allegations which could harm compliant and conscientious businesses? We may find … Continue reading this entry

CFPB Issues Electronic-Closing Pilot Guidelines and Seeks to Use Technology to Improve Mortgage Closing Experience

The Consumer Financial Protection Bureau (CFPB) recently announced that it is launching an electronic-closing (e-Closing) Pilot program designed to address some of the most common concerns relating to the mortgage closing process. CFPB states that electronic closing has the potential to address current challenges by shifting the closing experience toward a more paperless process and … Continue reading this entry

CFPB Finalizes Rule on Awards of Expenses, Attorney Fees to Prevailing Parties in Adversary Proceedings

As previously noted on this blog, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule in June 2012 to implement the Equal Access to Justice Act. At the time, the CFPB requested public comment on the interim final rule. Nearly two years later, the CFPB has now finalized the rule with no changes. … Continue reading this entry

CFPB Prepares to Overhaul Home Mortgage Disclosure Act Rules

The Consumer Financial Protection Bureau (CFPB) is preparing to make significant revisions to the regulations promulgated under the Home Mortgage Disclosure Act of 1975 (HMDA)  (Regulation C) by requiring home mortgage lenders to disclose far more information to regulators.  In its first step toward these revisions, the CFPB is convening a Small Business Review Panel … Continue reading this entry

CFPB Proposes New "Larger Participants" Rule for Non-Bank International Money Transmitters

The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to define “larger participants” of the market for non-bank international money transfers.  Comments to the proposed rule will be accepted by the CFPB for sixty (60) days after publication in the Federal Register, which has not yet occurred. Under the proposed rule, a nonbank would … Continue reading this entry

CFPB Tests the Limits of Tribal Lending Immunity With Cash Call Case

On December 16, 2013, the Consumer Financial Protection Bureau filed suit against Cash Call, Inc., WS Funding, LLC, Delbert Services Corporation and J. Paul Reddam (collectively “Cash Call”), alleging that the extremely high interest rates charged by Cash Call on short term loans are unfair, deceptive and abusive because the interest rates charged are illegal … Continue reading this entry

The CFPB Requests That Agreements Marketing Financial Products to Students Enrolled in Institutions of Higher Education be Voluntarily Made Available on the Company’s Website

As a follow up to its initial inquiry earlier this year, the Consumer Financial Protection Bureau (“CFPB”) is alerting financial institutions about the “potentially risky practice of making secret payments” to colleges and universities to market financial products to students. On January 31, 2013, the CFPB published a notice in the Federal Register seeking information … Continue reading this entry

CFPB Action Against Payday Lender to be Followed by New Military Lending Act Regulations

On November 20, 3013, the Consumer Financial Protection Bureau announced its first enforcement action against a payday lender. Cash America International was fined $5 million and was ordered to refund $14 million to its borrowers due to violations of the Military Lending Act. This action was made possible by amendments to the MLA signed into … Continue reading this entry

CFPB Unveils New Integrated Disclosures Under RESPA and TILA

Today, in a broadcast streamed live on the internet, the CFPB unveiled the long awaited final rule that contains the Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (“RESPA”), Regulation X, and the Truth-In-Lending Act (“TILA”), Regulation Z.[1] The final rule applies to most closed-end consumer mortgage loans (including timeshare estate products), but … Continue reading this entry

CFPB’s Remittance Transfer Rule

The Consumer Financial Protection Bureau’s (“CFPB”) Remittance Transfer Rule, also known as Regulation E, became effective on October 28, 2013.  The Rule established the basic rights, liabilities, and responsibilities of consumers who use remittance transfer services and of financial institutions or other persons that offer these services.  The Rule generally applies to transactions that qualify … Continue reading this entry

Can the CFPB Regulate Payroll Cards?

As credit card issuers have been subjected to increasing restrictions on the interest and fees they can charge consumers, they have found a new and lucrative sector in which to market their debit cards: payroll. The Federal Deposit Insurance Corporation (“FDIC”) has estimated that employers will disperse $60 billion in wages via payroll debit cards … Continue reading this entry

Can the CFPB Crack Down on Tribal Payday Lending?

Robert Cordray, Director of the Consumer Financial Protection Bureau (“CFPB”) has stated that his agency intends to regulate payday lending, and has indicated that this includes tribal payday lenders. However, the CFPB has limited ability to regulate tribal payday lenders due to the sovereign status of Indian tribes. The states are even less able to … Continue reading this entry

CFPB Data Collection Methods Under Fire

When Robert Cordray, Director of the Consumer Financial Protection Bureau (“CFPB”), testified before the Senate Banking Committee in April, 2013, he attempted to reassure senators that the CFPB had no interest in tracking individuals’ financial transactions, even though the bureau has access to financial information of millions of Americans. Senator Mike Crapo, R-Idaho, the Committee’s … Continue reading this entry

Tools to Ensure You Are Compliant With Your Compliance Check

It seems as if the Consumer Financial Protection Bureau (CFPB) has released final rules regarding consumer mortgage lending and servicing on a daily basis. There have been just as many announcements from the CFPB that is was delaying the effective date of the final rules and regulations. The CFPB has now informed us that most of … Continue reading this entry

CFPB Continues to Finalize Elements of “Points and Fees” Test as Implementation Date Draws Closer

The CFPB’s final ability-to-repay rule (Rule), issued January 10, 2013, implements Dodd-Frank mortgage reforms requiring creditors to make good faith determination that a consumer has reasonable ability to repay his or her home loan before the loan is extended.  The CFPB provided certain protections from liability under this requirement for loans that meet the criteria … Continue reading this entry

"Money Smart for Older Adults" Provides Valuable Information for All Consumers

On June 12 the Federal Deposit Insurance Corporation (“FDIC”) and Consumer financial Protection Bureau (“CFPB”) jointly launched a new financial resource tool, “Money Smart for Older Adults”, with the goal of helping older adults and their caregivers prevent elder financial exploitation. Money Smart for Older Adults provides information to raise awareness among older adults (defined … Continue reading this entry