Tag Archives: Dodd-Frank Act

Recent Settlements of Joint UDAAP Enforcement Between State and Federal Regulators

The Dodd-Frank Act (“Dodd-Frank”) granted to state attorneys general and state regulators much of the Consumer Financial Protection Bureau’s (“CFPB”) UDAAP authority. In particular, Dodd-Frank gives state attorneys authority to enforce the UDAAP prohibition in the Consumer Financial Protection Act (“CFPA”) against non-banks and state-chartered financial institutions under their jurisdiction, as well as CFPB regulations … 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

Cordray Renominated as Bureau's Director, But Court Ruling Jeopardizes His Recess Appointment and Bureau's Powers

It’s been the best of times and the worst of times for Richard Cordray this week. First, President Obama renominated Cordray to be the Consumer Financial Protection Bureau’s (the Bureau) director on January 24, 2013. Cordray had been nominated for this post in 2011, but Senate Republicans blocked confirmation of his nomination. President Obama responded by purporting to … Continue reading this entry

CFPB Proposes Revisions to Rules on International Money Transfers by Consumers

The Consumer Financial Protection Bureau (CFPB) recently issued proposed changes to the rule it originally proposed on January 20, 2011, governing certain electronic money transfers by consumers that was required by the Dodd-Frank Act. See http://www.gpo.gov/fdsys/pkg/FR-2011-05-23/pdf/2011-12019.pdf for the original proposed rule. The proposed rule is the first federally mandated disclosure, error resolution and cancelation rule imposed on “remittance transfer … Continue reading this entry

Final Rule Issued on Ability-to-Repay/Qualified Mortgages

The Consumer Financial Protection Bureau (CFPB) issued its final ability to repay rule (Rule) on January 10, 2013. The Rule implements ability-to-repay provisions of the Dodd-Frank Act, which imposed strict underwriting standards upon lenders to ensure that prospective buyers have the ability to repay their mortgages. A failure to comply with these requirements will constitute a … Continue reading this entry

The Consumer Financial Protection Bureau Targets Mortgage Advertising in Its Continuing Enforcement Efforts

Just on the heels of announcing settlements of enforcement actions against several credit card companies, the Consumer Financial Protection Bureau (the “Bureau”) seems to have set its sights on the target of its next round of enforcement actions – lenders who are allegedly violating the Mortgage Acts and Practices – Advertising Rule (“MAP Rule”). The … Continue reading this entry

Court Rules Semicolon in Statute Means Force-Placed Insurance Provision of RESPA is Not Yet Effective

In Williams v. Wells Fargo Bank, N.A., Judge Cecilia M. Altonaga of the United States District Court for the Southern District of Florida, ruled that a semicolon contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act means that force-placed insurance provisions contained in the amendments to the Real Estate Settlement Procedures Act (“RESPA”) … Continue reading this entry

The Consumer Financial Protection Act - Understanding Subtitles F through H

Due to the creation of the new Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”), the existing federal agencies that are currently tasked with oversight of various consumer protection laws now have the unenviable task of transferring their consumer protection functions to the CFPB. The Consumer Financial Protection Act (“CPA” or the “Act”) lays out … Continue reading this entry

CFPA Q&A: Describe the Bureau's Rulemaking Authority.

Expansive. The Consumer Financial Protection Act’s (“CFPA”) Bureau of Consumer Financial Protection (“Bureau”) will not only be big, but it will have broad and sweeping rulemaking authority. Specifically, the Bureau’s Director, once selected and confirmed, will have the power to “prescribe rules . . . as may be necessary or appropriate to enable the Bureau to administer and carry out the purposes and … Continue reading this entry

CFPA Q&A: How Big Will The Bureau Be?

Big. The Dodd Frank Act created the Consumer Financial Protection Bureau (“Bureau”), which will have the responsibility for protecting consumers in the financial services area. The Bureau is an independent federal agency funded by the Federal Reserve Board.  While “big” could mean a lot of things, the best measure of the Bureau’s size at this early stage … Continue reading this entry

Learn More About the Bureau and the CFPA

Title X of the Dodd-Frank Act creates a new comprehensive statutory framework and federal regulatory watchdog to deal with the offering and provision of consumer financial products or services.  There is little doubt that this legislation will have a major impact on the financial industry going forward.  To learn more, join the August 2, 2010 Web conference “Consumer Financial … Continue reading this entry

Meet the New Boss: The Bureau of Consumer Financial Protection

With the passage and signing of the omnibus Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), a new era of financial regulation has been born. The 2,300 plus pages of new legislation will forever change the way financial services companies do business in the United States (and elsewhere). With that in mind, the CFSL Bulletin will publish … Continue reading this entry

President Obama Signs the Dodd-Frank Act; the Bureau of Consumer Financial Protection Is on Its Way

Jim Puzzanghera of the Los Angeles Times reports that the President has signed the Dodd-Frank Act.  With the enactment of this sweeping financial overhaul legislation comes the birth of the Bureau of Consumer Financial Protection — a new and principal regulator which will oversee consumer financial products and virtually every consumer financial protection statute.  In the coming days, the CFSL Bulletin … Continue reading this entry