Over the past few years, Regulation E, which implements the Electronic Fund Transfer Act, has been cited by federal regulators in rulemaking, enforcement actions and bulletins. The CFPB has not only used the EFTA in its rulemaking concerning prepaid accounts, but it has filed enforcement actions for alleged violations of EFTA and issued bulletins concerning
On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case.
CFPB’s Single Director Structure
The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in
Republicans in Congress have moved to repeal recently issued Consumer Financial Protection Bureau regulations governing the prepaid card industry. Rep. Tom Graves (R-Ga.) introduced a bill in the House in early February that would submit the rules to a vote of disapproval under the Congressional Review Act. A
On February 24, the Consumer Financial Protection Bureau asked a federal district court in Florida to approve a $107 million settlement to resolve claims against Orion Processing LLC. The Bureau alleged the bankrupt company engaged in a debt-relief scheme that cost consumers millions.
The CFPB filed suit against Orion in August
The Consumer Financial Protection Bureau recently sued three law firms in the United States District Court for the Central District of California for collecting advance fees from consumers seeking debt relief. CFPB Director Richard Cordray stated that “[t]he defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees.”
The Consumer Financial Protection Bureau maintains an online portal for consumers to submit complaints across a wide variety of regulated industries, including credit reporting, background screening, and debt collection. The CFPB has announced that it will upgrade its online portal system in early 2017. The CFPB has released a preview document, which states that the
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson, Ron Raether, and Ashley Taylor will be featured panelists at the National Association of Professional Background Screeners (“NAPBS”) 2017 Mid-Year Legislative & Regulatory Conference to be held March 20-21 in Arlington, Virginia.
In an interview-style format, David will have
On February 28, the Consumer Financial Protection Bureau released its monthly snapshot highlighting consumer complaints about credit reporting. A copy of the CFPB’s report can be found here.
Debt collection, student loan, and credit reporting were the top three most-complained about consumer financial products and services, representing about 60 percent of complaints submitted in
On February 13, the Federal Trade Commission sent a letter to Consumer Financial Protection Bureau director Richard Cordray summarizing its 2016 debt collection activities for inclusion in the CFPB’s annual report to Congress on the Fair Debt Collection Practices Act.
In its letter, the FTC describes “its aggressive law enforcement activities against abusive, unfair, and
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