Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Protection Bureau Law Blog

CFPB Law Blog

News and analysisi of the priorities, initiatives and regulatory actions and proceedings of the Consumer Financial Protection Bureau


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Democrats Push End to Mandatory Arbitration

On Thursday, May 21, 2015, fifty-eight Democratic members of Congress pushed the Consumer Financial Protection Bureau (“CFPB”) to prohibit mandatory arbitration clauses in consumer financial contracts. The clauses, which Democrats argue unfairly deprive consumers of their day in court, are often included as standard language in contracts for regularly utilized products such as credit cards and banking accounts. Read More ›

Verizon and Sprint Agree to Pay Customers $120 Million for Allegedly Unauthorized Wireless Charges

UPDATE: Just seven days after the announcement that Sprint and the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) reached a $68 million settlement resolving allegations that Sprint crammed its customers’ bills with unauthorized charges, a federal judge ordered the parties to show that the agreement reached is “fair, reasonable and does not disserve the public interest.” Read More ›

CFPB Invites Public Comment regarding an Information Collection Titled, "Registration of Mortgage Loan Originators (Regulation G) 12 CFR 1007"

Given the ever-increasing regulations pertaining to consumer financial services, servicers and lenders subject to such regulations may wish to voice their opinions and concerns both as to the regulations and the related information collection requirements. The CFPB has invited comment from the public on several topics, including an invitation for public comment by June 8, 2015, regarding an information collection titled, “Registration of Mortgage Loan Originators (Regulation G) 12 CFR 1007.” Read More ›

CFPB Proposes Changes to Expand Credit in Rural and Underserved Communities

On January 29, 2015 the Consumer Finance Protection Bureau (CFPB) proposed several changes to its mortgage lending rules which would apply to small creditors who lend money to those in rural and underserved communities. The amendments are an attempt to address the collateral consequences of strict regulations enacted in January 2013 pursuant to the Dodd-Frank Act. Read More ›

Lesson Learned from CFPB’s Actions against Banks Engaging in Illegal Marketing Services Kickback Scheme

Under Section 8 of the Real Estate Settlement procedures Act (RESPA), it is illegal for anyone to give or receive a fee, kickback or anything of value in exchange for referrals of settlement service business to a particular person or organization relating to a federal mortgage loan. Violations of this section of RESPA are subject to civil and criminal penalties which could be assessed in the form of a fine, imprisonment or both. Read More ›

In Support of Revisions to Military Lending Act Rules, CFPB Issues Report on Current Practices and Outcomes

On December 29, 2014, the Consumer Financial Protection Bureau (CFPB) issued a report on the implications of certain loopholes in the current Military Lending Act rules.  The CFPB is “urging the Department of Defense to finalize” its proposed revisions to these rule.  The revisions promise to expand the scope of the rules and to close many of the most significant loopholes, subjecting lenders to additional regulatory and litigation risk. Read More ›

Happy New Year 2015!

This past year brought many developments to the consumer financial services industry and we have worked to keep you updated and informed about the changes and their potential impact on your business. The next year promises to offer many additional events that will impact the regulatory environment and we pledge to get key information and insight to our readers as quickly and thoroughly as possible. Read More ›

CFPB Reports On Credit Card Marketing To College Students

The pitch is familiar to almost everyone who has attended college: “Free pizza! Just sign up for a credit card with Bank!” or “No strings attached! Free T-shirt when you register with Bank!” Unfortunately, for many students these gimmicks lead to out of control spending and an early brush with systematic debt. On December 15, 2014, the Consumer Financial Protection Bureau (CFPB) issued its yearly report analyzing the agreements financial institutions make with colleges to market credit cards to students. Read More ›

CFPB Proposes New Rules Regulating Prepaid Cards

The Consumer Financial Protection Bureau has proposed new rules to amend Regulation E (Electronic Fund Transfer Act) and Regulation Z (Truth in Lending Act) to create protections for consumers using prepaid cards.  These proposed rules  come as more and more people are using prepaid cards as a substitute for traditional checking accounts.  In addition to cards consumers purchase themselves, prepaid cards are used by some employers for payroll and by certain government agencies to distribute benefits.  CFPB Director Richard Cordray announced: “Consumers are increasingly relying on prepaid products to make purchases and access funds, but they are not guaranteed the same protections or disclosures as traditional bank accounts.” Read More ›

CFPB Releases Report and Resources on Student Loan Repayment

This week, the Consumer Financial Protection Bureau (CFPB) reaffirmed its focus on the problem of intractable student loan debt.  On October 16, 2014, the CFPB Student Loan Ombudsman released his Annual Report, which described the number and nature of student loan complaints handled by the CFPB in the preceding year and issued recommendations for the coming year Read More ›