Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

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Senate Passes Bill That Would Amend SCRA to Expand Spousal Lease Termination Rights

By Jeremy C. Sairsingh on July 12, 2019

On June 27 the Senate passed the Gold Star Spouses and Spouses of Injured Servicemembers Leasing Relief Expansion Act as part of the Fiscal Year 2020 National Defense Authorization Act (see Sec. 6007). If it becomes law, the bill would amend the SCRA to allow spouses of servicemembers killed or injured during service to terminate certain types of leases. The bill was originally introduced in April by Senators Elizabeth Warren (D-Mass.), Rob Portman (R-OH), Kyrsten…

Consumer Finance Monitor

CFPB settles lawsuit with nation’s largest debt-settlement services provider

By Barbara S. Mishkin on July 11, 2019

The CFPB announced that it has settled the lawsuit it filed in a California federal district court against Freedom Debt Relief (FDR) and its CEO for alleged violations of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR). The CFPB’s press release describes FDR as “the nation’s largest debt-settlement services provider.” The Stipulated Final Judgment and Order requires FDR to pay $20 million in restitution and a $5 million civil money penalty.…

Consumer Finance Monitor

24 State AGs urge CFPB not to change overdraft rule and to consider its expansion

By Alan S. Kaplinsky on July 11, 2019

24 state attorneys general, the D.C. attorney general, and the Executive Director of the Hawaii Office of Consumer Protection have sent a joint comment letter to the CFPB urging it not to make any changes to the Regulation E rule that limits the ability of financial institutions to charge overdraft fees for paying ATM and one-time debit card transactions that overdraw a consumer’s account (Overdraft Rule). The Overdraft Rule prohibits overdraft fees from being charged…

Consumer Finance Monitor

This week’s podcast: A close look at the changes to the FDCPA validation notice in the CFPB’s proposed debt collection rules

By Barbara S. Mishkin on July 11, 2019

In this podcast, we look at the changes to the FDCPA validation notice that the CFPB’s proposed debt collection rules would make and discuss compliance challenges and other issues raised by the changes, including the requirement to itemize the debt, the dispute “tear-off” form, the option to provide Spanish and other foreign language translations of the notice, and electronic delivery of the notice. Click here to listen to the podcast.…

Consumer Finance Monitor

FHFA reverses position (again) on its constitutionality

By Alan S. Kaplinsky on July 11, 2019

In an interesting twist, the FHFA has informed the Fifth Circuit in Collins v. Mnuchin, that despite having previously advised the en banc court that it would not defend the FHFA’s constitutionality, it has reconsidered its position under the leadership of its new Director and will take the position going forward that the agency’s structure is constitutional. The en banc Fifth Circuit held oral argument in the case in January 2019. The plaintiffs, shareholders of…

Consumer Finance Monitor

Congress Passes Legislation Addressing VA Refinance Loan Issues

By Richard J. Andreano, Jr. on July 10, 2019

The Economic Growth, Regulatory Relief, and Consumer Protection Act (Growth Act) enacted last year includes a provision to protect veterans from loan churning by providing, among other requirements, that a loan to a veteran that refinances an existing loan is not eligible for guaranty by the Department of Veterans Affairs (VA) until the date that is the later of (1) the date that is 210 days after the date that the first monthly payment is…

Consumer Finance Monitor

New York Department of Financial Services opens investigation into Facebook advertisers

By Christopher J. Willis on July 8, 2019

Only a few months have passed since the U.S. Department of Housing and Urban Development filed a charge of discrimination against Facebook, alleging that the ad-targeting techniques used to determine which users would see advertising related to housing and housing-related service (like mortgage loans) were based on protected characteristics and “close proxies” for those characteristics, violating the Fair Housing Act. Now, the New York Department of Financial Services has opened a similar investigation,…

Consumer Finance Monitor

CFPB 2019 fair lending report highlights alternative scoring models

By John L. Culhane, Jr. on July 8, 2019

The CFPB’s annual fair lending report covering its 2018 activities was published in today’s Federal Register. While most of the report recycles information about which we have previously blogged, it does contain the following noteworthy information: In September 2018, the CFPB held a symposium to address the issue of access to credit for consumers who are “credit invisible” – that is, those without an established credit history with the three national credit reporting agencies –…

Consumer Finance Monitor

California bill capping consumer loan interest rates moves closer to enactment

By Alan S. Kaplinsky on July 8, 2019

AB 539 was cleared by the California Senate’s Banking Committee on June 26. The bill would change several aspects of the California Financing Law (CFL), including by setting new interest rate caps, imposing new rules governing loan duration, and prohibiting prepayment penalties. For example, while the CFL does not set a maximum interest rate on loans of $2,500 or more, AB 539 would cap the interest rate at 36% plus the federal funds rate on…

Consumer Finance Monitor

This week’s podcast: A close look at Utah’s new regulatory sandbox program

By Barbara S. Mishkin on July 2, 2019

Utah is now taking applications for its new regulatory sandbox program. In this podcast, we interview Rep. Marc Roberts, the sponsor of the bill that created the program, and Bryan Cowley, the Utah regulator who will oversee the program’s administration. Topics discussed include the bill’s history and objectives, implementation plans, reciprocity with other sandbox programs, the physical location requirement, confidentiality of applicant information, and liability exposure. Click here to listen to the podcast.…

Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

Senate Passes Bill That Would Amend SCRA to Expand Spousal Lease Termination Rights

CFPB settles lawsuit with nation’s largest debt-settlement services provider

24 State AGs urge CFPB not to change overdraft rule and to consider its expansion

This week’s podcast: A close look at the changes to the FDCPA validation notice in the CFPB’s proposed debt collection rules

FHFA reverses position (again) on its constitutionality

Congress Passes Legislation Addressing VA Refinance Loan Issues

New York Department of Financial Services opens investigation into Facebook advertisers

CFPB 2019 fair lending report highlights alternative scoring models

California bill capping consumer loan interest rates moves closer to enactment

This week’s podcast: A close look at Utah’s new regulatory sandbox program

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