On June 10, the Consumer Financial Protection Bureau (CFPB) issued a final rule extending the compliance deadline for key provisions of its controversial Payday Lending Rule. The new compliance deadline is November 19, 2020, but the CFPB – despite sharp criticism from consumer advocates and leading Democrats – is expected to rescind the most controversial provisions of its Payday Lending Rule before that deadline.   The deadline extension applies to the Payday Lending Rule’s mandatory underwriting…

Consumer Financial Protection Bureau Director Kathy Kraninger is proving to be more aggressive than her predecessor, Mick Mulvaney. In recent weeks, Kraninger has issued seven orders strictly enforcing the Bureau’s civil investigative demands, or “CIDs,” demonstrating that she intends to be a vigorous consumer advocate: In re Synchrony Financial (May 31, 2019): Kraninger rejected a challenge asserting that a CID sought information that lacks “reasonable relevance to a legitimate investigative purpose,” noting that the petitioner’s arguments…

On May 6, a Ninth Circuit panel held that the Consumer Financial Protection Bureau’s single-director structure does not violate the Constitution, rejecting a California law firm’s argument that it should not be required to comply with a civil investigative demand issued by the agency. The CFPB issued the CID to Seila Law as part of its investigation of whether the firm violated the Telemarketing Sales Rule in the course of providing debt-relief services to consumers.…

On February 25, the Federal Trade Commission and the Consumer Financial Protection Bureau reauthorized their Memorandum of Understanding, or “MOU.” The MOU, which governs the FTC’s and CFPB’s joint operations, focuses on five key areas of cooperation: Joint law enforcement efforts – The agreement requires one agency to give notice to the other prior to commencing an investigation. Both agencies are required to give the other details about the proceedings they are initiating, including the…

On February 13, the U.S. Chamber of Commerce released model data privacy legislation and urged Congress to pass a federal data privacy law. “Technology has changed the way consumers and businesses share and use data, and voluntary standards are no longer enough,” said Tim Day, senior vice president of the Chamber’s Technology Engagement Center, or “C TEC.” “New rules of the road are necessary and it is time for Congress to pass a federal privacy…

2018 was a busy year in the consumer financial services world. As we navigate the continuing heavy volume of regulatory change and forthcoming developments from the Trump administration, Troutman Sanders is uniquely positioned to help its clients successfully resolve problems and stay ahead of the compliance curve.   In this report, we share developments on consumer class actions, background screening, bankruptcy, FCRA, FDCPA, payment processing and cards, mortgage, auto finance, the consumer finance regulatory landscape, cybersecurity…

Over the last few years, an increased focus continues on the right to privacy and the debate on how to best implement privacy tools that are balanced with business and technological innovation.  In the United States, the debate to adopt policies like those in the European Union has recently intensified as consumer advocates view data collection as being intrusive and offensive; however, these criticisms fail to appreciate the key factors driving the debate. Notably, in…