Recently, the Consumer Financial Protection Bureau released its Supervisory Highlights, No. 21 (Winter 2020) (“the Report”). The Report discusses findings related to many of the CFPB’s examinations regarding debt collection, mortgage servicing, payday lending, and student loan servicing that were completed between April and August 2019.
Key takeaways from the Report are as follows:
Debt
Creditors and debt collectors are often held to high standards when it comes to consumer protection laws. On December 17, however, the United States Bankruptcy Court for the Northern District of Illinois issued a Memorandum Opinion in In re: Charles V. Cook, Sr., No. 1:14-bk-36424, evincing that debtors’ counsel can be subject to
Legislation aimed at curbing illegal robocalls that are sweeping the nation has been on the minds of lawmakers for most of 2019, with both chambers of Congress passing their own versions of legislation by overwhelming majorities. In May, the Senate passed the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, S. 151, by
On October 22, the Court of Appeals for the Fifth Circuit issued a ruling in Crocker v. Navient Solutions that could have mixed consequences for student loan borrowers and creditors alike. The Court determined that a bankruptcy court lacks the authority to enforce discharge injunctions issued by bankruptcy courts in other districts. It also ruled,
In Kinnick v. Med-1 Solutions, LLC, the District Court for the Southern District of Indiana found that sending a collection letter to a bankruptcy debtor provided that debtor with standing to file a claim based on the Fair Debt Collection Practices Act against the creditor outside of the bankruptcy case. For a creditor,
On October 7, California Governor Gavin Newsome signed SB 616 into law. This new law, which goes into effect on September 1, 2020, includes changes to California law regarding garnishments. SB 616 amends California Code of Civil Procedure (CCCP) § 699.520, revising requirements for a writ of execution. The content of a notice of
The Consumer Financial Protection Bureau published its quarterly consumer credit trends report on September 25. In the Report, the CFPB gave an in-depth look at bankruptcy trends and the impact of filing for the period 2001-2018, which includes the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) and the Great Recession.
The
The U.S. Department of Education finalized its proposal to rescind the Obama administration’s “Borrower Defense” rule issued in November 2016, replacing it with “Institutional Accountability Regulations” (the “Regulations”) effective July 1, 2020. The Regulations will significantly change the “Borrower Defense” rule. Such changes include once again allowing pre-dispute arbitration agreements.
The Regulations will apply to
Despite the Federal Communications Commission currently deliberating as to the meaning of “autodialer” under the Telephone Consumer Protection Act, a California federal judge found that the Ninth Circuit has resolved the issue, denying a defendant’s attempt to pause a spam-text suit. Not only does the ruling by U.S. District Judge Haywood S. Gilliam Jr. counter
For the past ten years, financial institutions have been working under the framework of the Consumer Financial Protection Bureau’s Overdraft Rule. This rule limits the ability of financial institutions to charge overdraft fees on ATM and one-time debit card transactions that overdraw consumers’ accounts. In recent months, the CFPB has sought comment on whether to