On November 20, Consumer Financial Protection Bureau Director Richard Cordray urged financial institutions to develop faster systems for processing electronic funds transfers (EFTs). In his prepared remarks, however, he insisted that these faster systems must offer robust consumer protections.
According to Cordray, the U. S. banking system needs improvement in the ability to process
After facing speculation as to whether Uber sufficiently screens the backgrounds of its drivers, Uber is now facing a class action under the Fair Credit Reporting Act for allegedly failing to conduct background checks in accordance with the FCRA. This lawsuit provides another example of the minefield companies face when conducting pre-employment background checks.
According
Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet. The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.
The suit
Florida Attorney General Pam Bondi and the Federal Trade Commission filed two complaints against multiple companies operating “multi-million dollar schemes to sell tech support services to consumers nationwide,” according to a news release by the State Attorney General’s office.
According to Bondi and the FTC, the first complaint alleges that Inbound Call Experts LLC, Super
One of the most controversial and significant federal regulatory initiatives in consumer finance is the view of the Consumer Financial Protection Bureau that credit discrimination can be proven by statistical disparities.
We previously reported here on the U.S. Supreme Court’s decision to hear a disparate impact case in Texas Department of Housing & Community Affairs
On November 14, Maine’s Attorney General Janet T. Mills issued a warning to the state’s residents regarding calls from “scammers” demanding immediate payment on supposed debts. Mills’ warning stemmed from many recent reports to her office of aggressive calls from “scammers” attempting to get consumers to make payments by wire transfer or pre-paid debit card.
On November 13, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks regarding electronic funds transfers (EFTs). Although Cordray noted the benefits of EFTs to consumers, he cautioned that the potential for abuse necessitates aggressive policing of the industry.
According to the CFPB, the nationwide system for EFTs allows consumers to receive their paychecks,
On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages. The new mortgage rules can
Earlier this month, the Department of Housing and Urban Development announced a revision to its definition for FHA-insured Qualified Mortgages (QMs) that applies to Section 501(c)(3) nonprofits that originate and service mortgages. However, HUD decided it would not adopt the CFPB’s post-consummation QM limited cure mechanism, which we discussed here, for purposes of HUD’s
In October, the CFPB issued a final rule amending the 2013 mortgage rules that took effect in January 2014, including a post-consummation points and fees cure mechanism for qualified mortgage loans, which became effective on November 3, when it was published in the Federal Register.
These new amendments to the mortgage rules include: