Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

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Christine Emello

Latest from Consumer Finance Monitor

Consumer Finance Monitor

DOJ enters into consent order with NJ student lending authority to settle claim of alleged SCRA violations

By John L. Culhane, Jr.

September 23, 2021

The Department of Justice announced earlier this week that it has entered into a consent order with the New Jersey Higher Education Student Assistance Authority (HESAA) to settle the DOJ’s claim that HESAA violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two military servicemembers for amounts owed on student loans. The settlement requires HSEAA to pay $15,000 each to the two servicemembers who had default judgments entered against them, and…

Consumer Finance Monitor

Chopra nomination to serve as CFPB Director advances

By Alan S. Kaplinsky

September 23, 2021

On Tuesday, in a party line vote of 49-48, the Senate voted to advance Rohit Chopra’s nomination to serve as CFPB Director from the Senate Banking Committee to consideration by the full Senate. (The Committee had voted 12-12, also along party lines, which meant the Senate received Mr. Chopra’s nomination without a recommendation by the Committee.) Three Senators did not vote on the advancement of Mr. Chopra’s nomination to full Senate consideration: Republican Senators Burr…

Consumer Finance Monitor

CFPB sues software company and owner for allegedly assisting credit-repair businesses that charge unlawful advance fees

By Christopher J. Willis

September 23, 2021

The CFPB has filed a lawsuit in a California federal district court against Credit Repair Cloud (CRC), a software company, and its owner, in which the Bureau alleges that the defendants provided substantial assistance to credit-repair businesses charging unlawful advance fees in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA). In addition to injunctive relief, the lawsuit seeks monetary relief, including refunds, restitution, disgorgement, or compensation for unjust enrichment,…

Consumer Finance Monitor

This week’s podcast: A look at recent developments related to marketing by nonbanks of products and services offered with bank partners

By Barbara S. Mishkin

September 23, 2021

Marketing by nonbanks of products and services offered with bank partners is coming under increasing scrutiny that focuses on the potential for consumers to be led to believe that the nonbank is a bank, or is FDIC insured. We discuss recent state and federal regulatory and enforcement developments, including the FDIC’s proposed rule addressing false advertising, misuse of the FDIC logo, and misrepresentation of insured status, and state regulators’ and federal lawmakers’ interest in the…

Consumer Finance Monitor

Sixth Circuit rules unconstitutionality of 2015 TCPA amendment did not invalidate claims for post-2015 TCPA violations not involving the collection of government debt

By Stefanie Jackman

September 22, 2021

The U.S. Court of Appeals for the Sixth Circuit recently ruled that the unconstitutionality of the 2015 TCPA amendment that created an exception to the robocall restriction for calls made to collect debts owed to the federal government did not invalidate the plaintiff’s claims for TCPA violations based on robocalls he received in 2019 and 2020 advertising utility services. The TCPA was amended in 2015 to create an exception from the TCPA’s robocall restriction for…

Consumer Finance Monitor

Financial trade associations oppose proposed IRS tax reporting requirement

By Kim Phan

September 20, 2021

On September 17th, the Consumer Bankers Association, the American Bankers Association, and a large number of other financial trade associations sent a letter to Speaker of the House Nancy Pelosi (D-CA), Majority Leader Kevin McCarthy (R-CA) and other House Members opposing a proposal under consideration as part of the budget reconciliation package that would require financial institutions and other providers of financial services to track and submit to the Internal Revenue Service (IRS) information on…

Consumer Finance Monitor

FTC successfully uses Section 19 of FTC Act to obtain restitution as alternative to Section 13(b)

By Kim Phan

September 20, 2021

An Illinois federal district court has ruled that Section 19 of the FTC Act provided an alternate route for the FTC to obtain restitution after its prior restitution award under Section 13(b) of the FTC Act was vacated by the Fifth Circuit because it concluded that monetary relief is not available under Section 13(b). In FTC v. Credit Bureau Center, LLC, the FTC filed suit against Credit Bureau Center (CBC) for operating a website that…

Consumer Finance Monitor

Adam Wright joins CA DFPI’s Office of Financial Technology Innovation; meetings available during weekly office hours

By James Kim

September 20, 2021

AB-1864, which took effect on January 1, 2021 and significantly expanded the powers of the California Department of Financial Protection and Innovation, required the DFPI to establish a “Financial Technology Innovation Office.” Adam Wright, Senior Counsel, recently joined the Department’s new Office of Financial Technology Innovation, having previously served as an enforcement attorney with the DFPI. In his new role, Adam will be hearing feedback from companies doing business in California and engaging with industry…

Consumer Finance Monitor

Seventh Circuit vacates restitution award to CFPB in action against mortgage-assistance relief companies and lawyers

By Christopher J. Willis

September 20, 2021

In a decision issued earlier this summer, the U.S. Court of Appeals for the Seventh Circuit vacated the district court’s order awarding restitution, mandating civil penalties, and issuing an injunction in an action brought by the CFPB against two mortgage-assistance relief companies and four lawyers associated with the companies. The decision imposes significant limitations on the Bureau’s ability to recover both monetary and injunctive relief in enforcement actions. In CFPB v. Consumer First Legal Group, …

Consumer Finance Monitor

Trade groups file appeal from federal district court’s award of summary judgment to CFPB in challenge to payday loan rule

By Jason M. Cover

September 16, 2021

The two trade groups challenging the payment provisions in the CFPB’s 2017 final payday/auto title/high-rate installment loan rule have filed an appeal with the Fifth Circuit from the Texas federal district court’s final judgment granting the CFPB’s summary judgment motion and staying the compliance date for the payment provisions until 286 days after August 31, 2021. The trade groups have also filed a motion asking the district court to extend its stay of the compliance …

Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

Blog Authors

DOJ enters into consent order with NJ student lending authority to settle claim of alleged SCRA violations

Chopra nomination to serve as CFPB Director advances

CFPB sues software company and owner for allegedly assisting credit-repair businesses that charge unlawful advance fees

This week’s podcast: A look at recent developments related to marketing by nonbanks of products and services offered with bank partners

Sixth Circuit rules unconstitutionality of 2015 TCPA amendment did not invalidate claims for post-2015 TCPA violations not involving the collection of government debt

Financial trade associations oppose proposed IRS tax reporting requirement

FTC successfully uses Section 19 of FTC Act to obtain restitution as alternative to Section 13(b)

Adam Wright joins CA DFPI’s Office of Financial Technology Innovation; meetings available during weekly office hours

Seventh Circuit vacates restitution award to CFPB in action against mortgage-assistance relief companies and lawyers

Trade groups file appeal from federal district court’s award of summary judgment to CFPB in challenge to payday loan rule

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