D.C. Circuit Rebukes CFPB in PHH Case
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CFPB Announces New Set of Advisory Board Members
On September 18, 2015, the CFPB announced that it was appointing new members to the Consumer Advisory Board, Community Bank Advisory Council, and the Credit Union Advisory Council. These three bodies advise CFPB leadership on consumer financial issues and emerging market trends. However, these advisory groups can only provide nonbinding recommendations and cannot make determinations of fact or policy.
According to CFPB Director Richard Cordray, “These advisory bodies play a crucial role in ensuring that…
CFPB Signals Future Regulation in the Payment Processing Industry
On July 9, 2015, the Consumer Financial Protection Bureau (CFPB) issued a set of “consumer protection principles” for the financial industry as it develops new, faster payment processing systems. Last November, CFPB Director Richard Cordray gave a speech that expressed concerns over lack of consumer protection for loss or theft, a general lack of transparency, and exclusionary effects on some consumers in the payment processing industry. These guidelines − which are not…
Proposed New Legislation Would Extend CFPB Oversight Over SCRA
On June 11, 2015, Sen. Jack Reed [D-RI] introduced a bill amending the Consumer Financial Protection Act to extend CFPB oversight and protection to include key provisions of the Servicemembers Civil Relief Act (SCRA). The SCRA provides an array of protections to members of the military, including postponing civil obligations so that servicemembers can better fulfill their military obligations. SCRA oversight is currently the responsibility of the Department of Justice and Office of the Comptroller of…
National Mortgage Servicer Pays CFPB and FTC $63 Million to Settle Claims Over Alleged Servicing Violations
On April 21, 2015, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) announced a joint enforcement action and joint order with a national mortgage servicer. The CFPB and FTC alleged that the servicer failed to honor loan modifications transferred from other servicers and insisted that borrowers pay their original, higher monthly payments; demanded payments before providing loss mitigation options; delayed decisions on short sales; harassed and threatened overdue borrowers; and used…
CFPB’s Position on Confidential Supervisory Information
Is your financial institution or company subject to the Consumer Financial Protection Bureau’s (CFPB) supervision? If so, take note of a recent bulletin warning supervised entities – both banks and non-banks – about the treatment of confidential supervisory information.
There are two main takeaways from the bulletin:
Disclosure of confidential supervisory information (CSI) is prohibited, with limited exceptions.
The CFPB broadly defines CSI in its bulletin. Not surprisingly, the CFPB takes the position that its…
CFPB Issues Sweeping Proposal to Regulate Prepaid Financial Products
On November 13, 2014, the CFPB proposed expansive federal regulations establishing requirements for prepaid financial products. The proposed regulations cover “traditional” prepaid cards that can be loaded with money and used to store funds, make payments, withdraw cash, receive direct deposits, and send funds to others. According to the CFPB , consumers are expected to load nearly $100 billion onto general purpose reloadable cards in 2014. In addition, the proposed new regulations also cover payroll…
