Consumer Finance Law Blog

Consumer Finance Law Blog

Developments and Analysis of Consumer Financial Services Laws, Rules, and Regulations

Category Archives: Consumer Financial Protection

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CFPB Proposes Rule on Prepaid Products to Extend Certain Credit Requirements and Mandate Disclosures

Posted in Consumer Financial Protection, Data Security, Regulatory Developments
The Consumer Financial Protection Bureau released last week a proposed rule that would impose an array of new requirements on prepaid accounts. The proposed new definition of “prepaid account” would include general purpose reloadable cards, electronic or mobile accounts that can store funds such as PayPal accounts, payroll cards, and certain government benefit cards, but … Continue Reading

CFPB Director Cordray Testifies Before House Financial Services Committee

Posted in Consumer Financial Protection, Gift Cards, Privacy
CFPB Director Richard Cordray testified before the House Financial Services Committee today, fielding questions and comments on an array of issues from the CFPB’s data collection practices to the Qualified Mortgage Rule, which went into effect on January 10, 2014. The hearing was scheduled in response to the CFPB’s release of its fourth Semi-Annual Report … Continue Reading

CFPB Director Addresses Enforcement Strategy for New Mortgage Rules before Senate Banking Committee

Posted in Consumer Financial Protection
On Tuesday November 12, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the fourth Semi-Annual Report of the Consumer Financial Protection Bureau (CFPB or Bureau). The hearing came amid growing concerns about enforcement of the CFPB’s mortgage lending and servicing rules taking effect on January 10, 2014. The rules implement … Continue Reading

CFPB Releases Advanced Notice of Proposed Rulemaking on Debt Collection Practices

Posted in Consumer Financial Protection, Fair Debt Collection Practices Act (FDCPA), Regulatory Developments
On Wednesday November 6, the CFPB released an Advanced Notice of Proposed Rulemaking (ANPR) seeking comment on debt collection practices and noting that the Bureau is considering proposing rules regarding debt collection. The CFPB simultaneously announced that it was adding approximately 5,000 consumer debt collection complaints to its public Consumer Complaint Database. According to the … Continue Reading

FTC Issues Guidance to Clarify Scope and Requirements of Red Flags for Identity Theft Prevention Rule

Posted in Consumer Financial Protection, Fair and Accurate Credit Transactions Act (FACTA)
The FTC has released a guidance document that clarifies the scope of its Red Flags for Identity Theft Prevention Rule (“the Red Flags Rule”) and provides a practical four step guide for covered entities to assess compliance. The Red Flags Rule requires certain businesses and organizations to have in place a written identity theft program … Continue Reading

Industry Stakeholders, Government Officials and Consumer Advocates Discuss Data Use in Debt Collection at CFPB-FTC Roundtable

Posted in Consumer Financial Protection, Fair Debt Collection Practices Act (FDCPA)
As initially reported, the CFPB and FTC held a public roundtable last week that brought together industry stakeholders, government officials and consumer advocates to discuss the use of consumer data throughout the debt collection process. Participants acknowledged that the transfer and sale of debt presents unique obstacles for the use of consumer data across the … Continue Reading

FTC and CFPB Announce Public Roundtable on Data Integrity in Debt Collection

Posted in Consumer Financial Protection, Fair Debt Collection Practices Act (FDCPA)
The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) will co-host a roundtable on June 6, 2013 to examine how consumer data is used and maintained in the debt collection process, according to an FTC news release issued yesterday. The roundtable will include a discussion of such topics as: • the amount … Continue Reading

CFPB to Begin Accepting Consumer Complaints Regarding the Debt Collection Industry in 2013

Posted in Consumer Financial Protection, Fair Debt Collection Practices Act (FDCPA)
The Consumer Financial Protection Bureau (CFPB) plans to begin accepting consumer complaints regarding the debt collection industry in the second quarter of this year, according to a report issued yesterday by Bloomberg News. The CFPB presently accepts complaints regarding a limited number of CFPB-regulated products and services, including bank accounts, credit cards, credit reporting, money … Continue Reading

FTC & CFPB Announce Partnership to Warn and Investigate Mortgage Advertisers

Posted in Consumer Financial Protection
On Monday, the Federal Trade Commission (“FTC”) announced that it had, in partnership with the Consumer Financial Protection Bureau (“CFPB”), sent warning letters to 20 real estate agents, home builders, and lead generators, advising them to review their advertisements to ensure compliance with the Mortgage Acts and Practices-Advertising Rule, Regulation N (“MAP-AD Rule”) and the … Continue Reading

The CFPB’s Enforcement Strategy Gleaned From Consumer Complaint Analytics

Posted in Consumer Financial Protection
On August 2, 2012, the Consumer Financial Protection Bureau (CFPB) issued its second Semi-Annual Report to Congress. The report provides an update on the CFPB’s activities since its first report in January 2012 as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Many of the agency’s initiatives have been previously discussed, such … Continue Reading

CFPB Defines “Larger Participants” of the Consumer Reporting Market

Posted in Consumer Financial Protection
On July 16, 2012, the Consumer Financial Protection Bureau (CFPB) issued a final rule granting it supervisory authority over leading credit reporting agencies. Those firms newly subject to the CFPB’s oversight include the big three consumer reporting agencies, Equifax, Experian, and TransUnion, as well as nonbank entities engaging in consumer reporting activities with more than $7 … Continue Reading

CFPB Issues Final Rules of Practice Governing the Agency’s Adjudication and Investigational Proceedings and an Interim Final Rule Pursuant to the Equal Access to Justice Act

Posted in Consumer Financial Protection
On June 29, 2012, the CFPB issued two Rules of Practice separately governing the agency’s adjudication proceedings and investigational, nonadjudicative matters. In addition, the CFPB issued its final State Official Notification Rule. These rules codify the interim final rules promulgated on July 28, 2011, previously discussed here, and have an immediate effective date. Also on … Continue Reading

FTC Settles Landmark FCRA Case Involving the Sale of Social Media Data for Employment Screening

Posted in Consumer Financial Protection
The Federal Trade Commission (FTC) today announced its settlement with Spokeo, Inc. for alleged violations of the Fair Credit Reporting Act (FCRA) and Section 5(a) of the FTC Act. As part of the FTC’s ongoing enforcement of the FCRA to regulate the collection, dissemination, and use of consumer credit information, this is the first case … Continue Reading

CFPB Announces Final Enforcement Action Rules

Posted in Consumer Financial Protection
Last week, the Consumer Financial Protection Bureau (“CFPB”) finalized three rules and issued one interim rule outlining procedures related to violations of consumer protection laws. The press release announcing the final and interim rules is available here. The final rules take effect upon publication in the Federal Register. Rule on Investigations. The CFPB drew heavily … Continue Reading

CFPB Releases Proposed Rule for Supervision of Non-Bank Persons Based on “Reasonable Cause”

Posted in Consumer Financial Protection
On May 25, 2012, the CFPB released a proposed rule outlining its process for determining whether a covered person has engaged, or is engaging in, conduct that poses risks to consumers related to the offering or provision of consumer financial products or services. The proposed rule sets out the procedures under which the CFPB may … Continue Reading

CFPB Holds Field Hearing on General Purpose Reloadable Prepaid Cards

Posted in Consumer Financial Protection
On May 23, 2012, the Consumer Financial Protection Bureau (CFPB) officially launched its prepaid card initiative. In addition to issuing an Advance Notice of Proposed Rulemaking (ANPR), the CFPB hosted a field hearing in Durham, North Carolina, on general purpose reloadable prepaid cards, a rapidly growing segment of prepaid cards. Current and entering industry members … Continue Reading

CFPB Issues Advance Notice of Proposed Rulemaking for Prepaid Cards

Posted in Consumer Financial Protection
Continuing its recent activity on prepaid cards, the CFPB released an Advance Notice of Proposed Rulemaking today seeking comment, data, and information about general purpose reloadable prepaid cards (GPR cards). The CFPB intends to issue a proposal extending Regulation E to cover GPR cards and, as a result, the ANPR seeks information on ten broad … Continue Reading

FTC Advisory Opinion Affirms Broad Consumer Rights Under Holder Rule

Posted in Consumer Financial Protection
Earlier today, the Federal Trade Commission (FTC) issued an advisory opinion affirming broad consumer rights under the Holder in Due Course Rule ("Holder Rule"). The National Consumer Law Center (NCLC), joined by Public Citizen, the Center for Responsible Lending, the National Association of Consumer Advocates, and the federation of state Public Interest Research Groups, requested … Continue Reading

CFPB Extends Time For Comments on Overdraft Programs

Posted in Consumer Financial Protection
The CFPB has extended the amount of time for comments on overdraft programs from the end of April to June 29, 2012. The original Notice and Request for Information, published on February 22, 2012, asked for information from the public, including consumers, overdraft program processors, and financial institutions, on how overdraft programs work, including information … Continue Reading

CFPB Warns that Banks and Nonbanks Could Be on the Hook for Vendor’s Misconduct

Posted in Consumer Financial Protection
On Friday, the Consumer Financial Protection Bureau (“CFPB”) issued a bulletin warning that it will seek to hold supervised banks and nonbanks liable for their vendors’ misconduct.  Banks and nonbanks often hire service providers to process credit cards, handle data, operate call centers, or address customer service issues.  The CFPB also emphasized that it has … Continue Reading

CFPB’s Proposal for Truth in Lending (Regulation Z) Rule Garners Attention in New York Times Article

Posted in Consumer Financial Protection
A New York Times article on Friday questioned the CFPB’s approach to credit card fees, stating that "[i]n one of the first tests of its willingness to show its muscle, [the CFPB] declined on Thursday to put up a fight." Analyzing the CFPB’s Truth in Lending (Regulation Z) proposal released on Thursday, April 12th, the article noted … Continue Reading