Last week, the Consumer Financial Protection Bureau issued a Policy Statement announcing a new designation for CFPB guidance, which will be known as “Compliance Aids.” In its announcement, the CFPB explained the legal status and effect of this designation. The full Policy Statement can be located here and became effective on February 1.
The Policy
On January 24, the Consumer Financial Protection Bureau issued a policy statement that limits the “abusive acts and practices” standard created by the 2010 Dodd-Frank Act. While the policy statement does not define what constitutes an “abusive” act or practice, and in fact leaves many important questions unanswered, it plainly limits the scope of the
Is the Consumer Financial Protection Bureau constitutional? Soon we will know. But what happens to the CFPB’s day-to-day work in the meantime? A student loan relief company decided to find out, and learned that the issue of the CFPB’s constitutionality will have no effect on the company’s obligation to respond to a civil investigative demand.
Wire fraud cases, arising from what the Federal Bureau of Investigation calls “business email compromise,” are on the rise. In 2018, the FBI reported that business email compromise and other internet-enabled theft, fraud, and exploitation resulted in $2.7 billion of financial loss. See FBI – IC3 Annual Report Released. Surprisingly, even sophisticated parties and
We are pleased to announce that Troutman Sanders’ attorneys David Anthony and Ethan Ostroff will be presenting during the RMAI Annual Conference at the Aria Resort & Casino in Las Vegas, Nevada. The RMAI Conference is the premier event for the receivables management industry. Debt buyers, originating creditors, collection agencies, law firms, brokers and affiliates
In a recent decision, the United States District Court for the Southern District of New York found that the inclusion of a collection fee in a post-default collection letter sent by a debt collection company did not violate the Fair Debt Collection Practices Act.
In Ossipova v. Pioneer Credit Recovery, Inc., et al., No.
On December 11, PayPal, Inc. filed suit against the Consumer Financial Protection Bureau in the United States District Court for the District of Columbia alleging that the CFPB’s Prepaid Card Rule (“the Rule”) represents a “category error” and violates the First Amendment. At issue is the applicability of the Rule to digital wallets compared to
Massachusetts is proposing a bill to regulate student loan servicers and bring the Commonwealth in line with other states, including Connecticut, Colorado, Illinois, Maine, Maryland, Nevada, New Jersey, New York, Rhode Island, and Washington, all of which have passed new legislation to regulate the student loan industry. Similar legislation recently has been introduced, but not
In August 2017, the Consumer Financial Protection Bureau issued a Civil Investigative Demand (“CID”) to Libre by Nexus, Inc. and Nexus Services, Inc. (collectively, “Nexus”) seeking documents and information to investigate whether the companies were engaging in any unfair or deceptive business practices prohibited by the Consumer Financial
On September 19, the Stop Debt Collection Abuse Act of 2019 was introduced by Reps. Emanuel Cleaver (D-Mo.) and French Hill (R-Ark.) in the House and Sens. Cory Booker (D-N.J.) and Mike Lee (R-Utah) in the Senate. This is the third iteration of the proposed bill, which was previously introduced in November 2015 and March