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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Photo of Consumer Financial Protection Bureau Law Blog Lauren E. Quigley
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Showing 5 posts by Lauren E. Quigley.

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 ›

CFPB Proposed Arbitration Study Receives Criticism from Industry and Consumer Groups

In June 2013, the CFPB put credit card issuers and servicers on notice that it was planning to investigate consumer experience with mandatory arbitration agreements. With the proposed survey, the CFPB planned to elicit feedback regarding the effect of dispute resolution provisions on consumer choice of credit cards and consumers’ default assumptions regarding their dispute resolution rights, including their awareness, understanding, and valuation of certain resolution options. The information would be gathered through a telephone survey of 1,000 credit card holders. Dodd-Frank Act section 1028 mandates the CFPB conduct an arbitration study and the finding could result in new and far-reaching regulation of consumer financial products. The CFPB is authorized to regulate the use of dispute resolution agreements in the context of consumer financial products and services. Based on public comments, a revised proposed survey was published in May 2014. Read More ›

New Bill Would Change CFPB Information Gathering Process for Smaller Financial Institutions

A new bill, introduced on April 10th by Senator Dan Coates of Indiana, could provide smaller financial institutions relief from financial regulations enacted after the 2008 financial crisis. Read More ›

CFPB Continues to Ramp Up Oversight and Protection for Students

On December 3, 2013, the CFPB announced that it would begin supervising certain non-bank student loan servicers. Two weeks later, on December 17, 2013, it called on financial institutions to publicly disclose their agreements with colleges and universities to market debit and credit products to students. Read More ›

CFPB Takes First Action Against Online Loan Servicer

On December 16, 2013, the CFPB initiated its first action against an online loan servicer. CashCall, Inc. allegedly engaged in unfair, deceptive, and abusive practices. The CFPB investigation uncovered evidence that the company had violated either licensing requirements or interest-rate caps in at least eight states: Arizona, Arkansas, Colorado, Indiana, Massachusetts, New Hampshire, New York, and North Carolina. According to the CFPB, the loans included amounts ranging from $850 to $10,000, with annual interest rates between 90% and 343%. As a result of the violations, the loans were rendered void or nullified in whole or in part. In this case, a third-party lender allegedly made usurious loans and CashCall then undertook servicing and collecting on those void or nullified loans.  Because the usurious loans were void or nullified, the CFPB alleged that CashCall was attempting to collect on a debt that borrowers did not owe.  The goal of the action is to make CashCall refund money it received from void or nullified loans and pay additional damages and penalties. Read More ›