On March 2, a class of job applicants requested that the U.S. District Court for the Middle District of North Carolina approve a nearly $3 million settlement they had reached with Delhaize America LLC, Food Lion LLC’s parent company. The applicants had sued Delhaize – which owns Food Lion, Hannaford, and Bottom Dollar – for
Groundbreaking: Cordray Heads Inaugural CFPB Appeal Hearing
On March 9, a regulatory milestone occurred. Consumer Financial Protection Bureau Director Richard Cordray presided over oral arguments in the first ever appeal of a CFPB administrative enforcement action. As this blog reported on December 31, 2014, this appeal concerns the first “recommended decision” issued by an Administrative Law Judge in a contested CFPB enforcement
The United States Supreme Court Hears Oral Arguments on Availability of “Strip Off” Remedies for Chapter 7 Debtors
On March 24, in a case that has captured the attention of commercial lenders, the United States Supreme Court heard oral arguments on the issue of whether a Chapter 7 debtor can “strip off” junior liens on residences that are already underwater.
Most courts agree that debtors filing under Chapter 13 of the Bankruptcy Code
CFPB Announces Public Inquiry to Review Card Act
On March 17, the Consumer Financial Protection Bureau announced it is seeking public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers. This public inquiry will focus on issues including credit card terms, the use of consumer disclosures, credit card debt collection practices, and
Multiple Bills to Reform CFPB Again Pending in House of Representatives
Following up on the failure in 2014 to implement changes to the CFPB through legislative action, on March 5, U.S. Rep. Sean Duffy (R-Wis.) reintroduced a package of bills seeking to make changes to the CFPB’s leadership structure, how data is collected from consumers, and more.
Representative Duffy is the Chairman of the House Financial
Did You Hear That? CFPB Report to Congress Sounds Death Knell for Arbitration Clauses
As anticipated, yesterday the CFPB announced the release of its report to Congress following the CFPB’s study of arbitration agreements in connection with offering or providing consumer financial products or services. According to the CFPB, the study’s results “indicat[e] that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class
CFPB’s Field Hearing on March 10, 2015 on Arbitration Expected to Coincide With Release of Its Report to Congress on the Use of Pre-Dispute Arbitration Clauses
On March 10, the CFPB will hold a field hearing on arbitration at 11 a.m. in Newark, New Jersey.
The event will include remarks by Richard Cordray, head of the Consumer Financial Protection Bureau, and will be held at the J. Harry Smith Lecture Hall at Essex Community College, 303 University Avenue. Tomorrow’s field hearing
CFPB Director Cordray Speaks to Consumer Advisory Board About Regulating Credit Reporting Industry
On February 19, Richard Cordray, Director of the Consumer Financial Protection Bureau, addressed the agency’s Consumer Advisory Board. In this speech, he highlighted the CFPB’s ongoing oversight of the credit reporting industry. He noted first that the three biggest credit reporting agencies maintain files on over 200 million consumers. These credit reports and scores
CFPB Proposes Rule to Temporarily Suspend Credit Card Agreement Submissions
On February 19, the CFPB proposed a rule that would suspend the requirement that creditors submit agreements for open-end consumer credit plans to the Bureau under section 1632(d) of the Truth in Lending Act and section 1026.58 of Regulation Z. The temporary suspension would last one year, making it applicable to the next three quarterly
West Virginia Legislature Considering Amendments to its Consumer Credit Protection Act
On February 23, legislation was introduced in the West Virginia Senate to amend the state’s Consumer Credit Protection Act. Senate Bill 542 would revise sections 46A-2-121, -122, -125, -126, and -128, sections 46A-5-101 and -106, and add new section 46A-5-107.
Among these proposed changes, the Bill seeks to:
- Modify section 46A-2-121(1) regarding a claim for