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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Showing 11 posts in Fair Debt Collection Practices Act.

CFPB Releases Annual Report on Fair Debt Collection Practices Act

On March 20, 2014, as mandated in the Dodd Frank Act, the CFPB released its annual report to Congress concerning the Fair Debt Collection Practices Act (FDCPA).  The CFPB reported on more than 30,000 consumer complaints concerning the debt collection market. The three most frequent complaints were collectors forcefully following up with consumers about a debt they do not owe, aggressive communication tactics used by debt collectors, and taking or threatening illegal actions.   Read More ›

Third Circuit Says Technical Procedural Slip-Up in Bankruptcy Proceeding Is Grounds for FDCPA Claim

A recent Third Circuit reversal paves the way for Fair Debt Collection Practices Act (FDCPA) lawsuits based on minor procedural mishaps in bankruptcy court.  This contradicts the law in the Second and Ninth Circuits and in many district and bankruptcy courts that previously have found that participation in bankruptcy proceedings is not an attempt to collect a debt and thus not grounds for an FDCPA claim.    Read More ›

CFPB Issues Advance Notice of Proposed Rulemaking Concerning the Collection of Consumer Debt

The Consumer Financial Protection Bureau (CFPB) intends to promulgate rules governing the collection of consumer debt.  On November 6, 2013, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) in which it indicates that “the Bureau is interested in learning through responses to this advance notice of proposed rulemaking (ANPR) about the debt collection system, about consumer experiences with the debt collection system, and about how rules for debt collectors might protect consumers without imposing unnecessary burdens on industry.”  Read More ›

CFPB Releases Bulletin and Interim Final Rule Clarifying its Mortgage Servicing Regulations

On October 15, the Consumer Financial Protection Bureau released a bulletin and interim final rule concerning mortgage servicing regulations that take effect in January 2014.  The bulletin and interim final rule seek to clarify outstanding issues related to servicing. Read More ›

Supreme Court Rejects CFPB Position and Holds That Prevailing Defendants May Recover Costs in FDCPA Actions Not Filed in Bad Faith

In a 7-2 vote, the Supreme Court held that a prevailing defendant in a Fair Debt Collection Practices Act (FDCPA) suit may be awarded costs even where the lawsuit was not brought in bad faith and for the purpose of harassment. Section 1692k(a)(3) of the FDCPA limits a court’s authority to award costs to cases where a defendant proves that the plaintiff filed the suit in bad faith and for the purpose of harassment In Marx v. General Revenue Corporation, --- S. Ct. ---, 2013 WL 673254 (February 26, 2013), the Supreme Court ruled that this limitation does not affect a court’s ability to award of costs under Rule 54(d) of the Federal Rules of Civil Procedure. This ruling is good news for defendants of FDCPA claims because it permits them to seek costs under the Federal Rules of Civil Procedure without meeting the high burden of proving bad faith and harassment.  Read More ›

CFPB Investigates Banks for Violations of Consumer Protection Laws

The Consumer Financial Protection Bureau (“CFPB”) has initiated investigations into the practices of various financial institutions.  According to director Richard Cordray (“Cordray”), the CFPB is currently searching for violations of consumer protection laws by banks and non-banks alike.  Since the CFPB’s inception in July 2011, the CFPB has enlisted examiners to probe for violations at banks and other financial companies, such as payday lenders. Read More ›

Court Grants Preliminary Injunction That Prevents CFPB From Enforcing TILA Rules on Credit Card Fees

A federal district court in First Premier Bank v. U.S. Consumer Financial Protection Bureau (D.S.D.) granted a preliminary injunction to First Premier Bank (“Premier”) to block the CFPB’s enforcement of an amendment to Regulation Z, which would narrow the scope of fees credit card companies can impose on the type of cards typically offered to subprime borrowers. The injunction, based in part on the finding that the Federal Reserve Board (“FRB”) had exceeded its authority, prevents the CFPB from enforcing the amendment until a final decision is made in the case. Read More ›

Senate Committee Approves Cordray to Head Consumer Financial Protection Bureau

The Senate Banking Committee voted 12-10 to approve Richard Cordray’s nomination to be the first director of the CFPB. Cordray is a former Ohio attorney general who currently leads the Bureau’s enforcement division. The committee voted along party lines, with no Republican committee member voting to approve the nomination. Cordray’s nomination now proceeds to the full Senate for a vote. Read More ›

Date Calls for Greater Transparency in Checking Account Fees

On the heels of Bank of America’s announcement that it will impose a monthly fee on debit card users, the Consumer Financial Protection Bureau (“CFPB”) has signaled that it will work toward increasing transparency regarding checking account fees and might require more simplified checking account disclosures. Raj Date, special advisor to the Secretary of the Treasury on the CFPB, recently issued a statement noting that “checking accounts often come with a wide variety of unexpected costs that can quickly add up for consumers.” Read More ›

CFPB Drafting Qualified Mortgage Regulations in Hopes of Expanding Mortgage Loan Originations

The CFPB is currently drafting regulations that define the requirements of a Qualified Mortgage (“QM”) and the benefits to lenders whose loans fall within the QM parameters. Recognizing that “[t]here can be little or no access to credit unless suppliers of capital are willing to finance home mortgages,” Patricia McCoy, the CFPB’s assistant director for mortgage markets, is appreciative of the hundreds of extremely thoughtful comment letters received that will inform this “critical and difficult rulemaking.” Read More ›