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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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 ›

Financial Services Issues Expected to be a Focus of New Republican Majority in Congress

There may be no policy area that will be impacted more by the Republican’s election day landslide than financial services.  After years of frustration with Democrats unwillingness to make any changes to the Dodd-Frank Wall Street Reform Act (Dodd-Frank), which incoming Senate Majority Leader Mitch McConnell (R-KY) has referred to as “Obamacare for banks,” the Republican majority will now have their opportunity. Although repeal is not a possibility, with only 220 of the 398 total required rulemakings having been finalized and 95 of the rulemaking requirements not even proposed yet, the new Congress will have many opportunities to put the brakes on Dodd-Frank implementation. 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 ›

CFPB Announces Proposed No-Action Letter Program

On October 10, 2014, the Consumer Financial Protection Bureau (CFPB) announced a proposed policy under which they would issue No-Action Letters to applicants indicating that the CFPB would not initiate supervisory or enforcement action regarding innovative financial products or services.  Under this proposal, the CFPB would issue these No-Action Letters when a new financial product or service promises "substantial customer benefit where there is substantial uncertainty whether or how specific provisions of statutes or regulations implemented by the [CFPB] would be applied." Read More ›

CFPB Warns Credit Card Companies About Deceptive Marketing - Again

The Consumer Financial Protection Bureau (CFPB) has issued a new warning to credit card companies in order to curb recent deceptive marketing practices.  This is not the first time that the CFPB has warned credit card companies to be more clear with their offerings to consumers.  Read More ›

CFPB Targets For-Profit Corinthian Colleges for Alleged Predatory Lending

On September 16, 2014, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit against Corinthian Colleges (Corinthian), which operates nearly 100 for-profit colleges under the names Heald, Everest, and WyoTech.  The CFPB charges Corinthian with predatory lending and alleges that Corinthian inflated tuition costs, misrepresented students’ career prospects, and engaged in aggressive and embarrassing debt collection tactics, even while students were still enrolled in school. The Complaint outlines in detail Corinthian’s alleged internal policies of targeting individuals with “low self-esteem,” who are “isolated,” and have “minimal to non-existent understanding of basic financial concepts.”   Read More ›

CFPB Continues Increased Scrutiny of Auto-Lending Financers Even as Congress Attempts to Rein It In

In March 2013, the CFPB released industry guidance regarding auto financing interest rates and dealership reserves. On September 8, 2014, Congress finally took steps to nullify this guidance.  Read More ›

Roll Out Mobile Payment Technology Could Subject Apple to CFPB Scrutiny

During Apple Inc.’s latest product announcement on September 9, 2014, Apple announced a new system for mobile payments that “will change how you pay with breakthrough contractless payment technology and unique security features build right into the devices you have with you every day.” The Apple Pay system is Apple’s first foray into the mobile payment industry.  Apple will be partnering with numerous banks and retailers to provide an alternative way to pay, utilizing a nearfield communication (NFC) chip which is a set of standards for smartphones and other mobile devices to establish short-range radio communication (a few centimeters). Read More ›

Top Democrat on the House Financial Services Committee Proposes Sweeping Changes to Fair Credit Reporting Act

U.S. Representative Maxine Waters (D-Cal), the top Democrat on the Republican led House Financial Services Committee, proposed a bill on September 10, 2014 to change many key provisions of the Fair Credit Reporting Act (FCRA) regulating the way lenders report consumer payments to credit reporting agencies.  The bill, entitled the “Fair Credit Reporting Improvement Act of 2014”, proposes the most sweeping changes to the FCRA since it was passed in 1970, and would affect consumer reporting agencies, consumers, lenders, employers and furnishers of credit information. Read More ›

Interagency Guidance Regarding Unfair or Deceptive Credit Practices

Several regulatory agencies have jointly issued guidance to banks, saving associations, and Federal credit unions concerning the repeal of consumer protection regulations promulgated under the FTC Act.  The Board of Governors of the Federal Reserve System (the Board), the Consumer Financial Protection Bureau (CFPB), the National Credit Union Administration (NCUA), and the Office of the Comptroller of Currency (the OCC) jointly issued guidance on August 22, 2014 to banks, savings associations, and Federal credit unions explaining that the repeal of certain regulations as a result of the Dodd-Frank Act should not be construed as a tacit approval of these prohibited practices addressed in the regulations, and that the CFPB may still enforce such rules in principal under its general mandate to prohibit deceptive practices.  Read More ›