On February 1, the Consumer Financial Protection Bureau ordered payment card companies MasterCard and UniRush to pay $10 million in restitution and a $3 million fine related to service breakdowns that left customers unable to access their funds. “MasterCard and UniRush’s failures cut off tens of thousands
CFPB and Dodd-Frank in Republicans’ Crosshairs
On February 3, President Trump signed an executive order directing the Treasury Secretary to review the Dodd-Frank Wall Street Reform and Consumer Protection Act. Trump earlier characterized Dodd-Frank as “a disaster” and said that his administration would work to cut “a lot out of” the 2010 law.
House Financial Services Committee Chairman Jeb Hensarling (R-Tex.)
CFPB and State AGs Sue Largest Student Loan Servicer
On January 18, the CFPB and the state attorneys general for Illinois and Washington filed three separate enforcement actions against Navient Corporation and its related entities for violations of a number of consumer protection laws. Navient is the largest student loan servicer in the United States, servicing the loans of more than 12
Payment Processing Marketer Seeks Sanctions Against CFPB
On January 4, a defendant in a Fair Debt Collections Practices Act case moved for sanctions against the Consumer Financial Protection Bureau, arguing that it never had proof that the defendant acted wrongfully when it filed suit in early 2015. In support of its Motion, Pathfinder Payment Solutions, Inc. stated that the Bureau “knowingly exceeded
FTC Holds Second Annual PrivacyCon
On January 12, the FTC held its second annual PrivacyCon conference in Washington. The day-long event featured presentations and exhibits by a number of scholars and privacy experts offering their research on consumer privacy and security in the digital age.
Chairwoman Edith Ramirez opened PrivacyCon by noting the myriad ways that consumer data is collected,
Republican Senators Press Vice President-Elect Pence for Removal of CFPB Director
On the same day that House Democrats wrote to President-elect Donald Trump to defend controversial Consumer Financial Protection Bureau Director Richard Cordray, two Republican senators sent a letter to Vice President-elect Mike Pence to press for his removal. The letter, signed by Ben Sasse (Neb.) and Mike Lee (Utah), requested that Trump dismiss Cordray “promptly
House Democrats Urge President-Elect Trump Not to Remove CFPB Director
On January 9, twenty-one Democrats from the House of Representatives sent a letter to President-elect Trump in defense of controversial Consumer Financial Protection Bureau Director Richard Cordray, urging Trump not to remove Cordray from his post. The letter began by noting that no President has ever removed an independent agency head for cause and threatened
District Court Rejects TILA Suit as “Litigation Out of Control”
On December 22, the United States District Court for the Eastern District of Pennsylvania entered judgment in favor of the defendant in an action involving a Truth in Lending Act claim, and issued a stern rebuke to the plaintiff and his counsel, instituting Rule 11 proceedings and describing the case as “litigation out of control.”
CFPB Updates Rulemaking Agenda
On December 2, the Consumer Financial Protection Bureau issued a statement highlighting its updated rulemaking agenda for Fall 2016. The Bureau specifically mentioned a number of supervisory and developmental initiatives scheduled for implementation in the coming months.
In the area of mortgages, the CFPB expects to finalize proposed tweaks to the Know Before You Owe
Southern District of New York Relies on Spokeo to Dismiss TILA Credit Card Suit
On December 16, U.S. District Judge Paul A. Engelmayer dismissed a putative class action suit alleging that Nordstrom department store’s credit card account disclosures violated the Truth in Lending Act (“TILA”). Relying on the Supreme Court’s decision in Spokeo, Inc. v. Robins, the Court concluded that the plaintiff did not have standing to bring