Until October 10, none of the constitutional or scope of enforcement authority challenges to the Consumer Financial Protection Bureau’s (“CFPB” or Bureau”) power have been successful. That changed on October 11 when the U.S. Court of Appeals for the District of Columbia held the Director of the Bureau has too much unilateral, unchecked power and
Navy Federal Credit Union Ordered to Pay $28.5M for Debt Collection Violations
The nation’s largest credit union, Navy Federal Credit Union, has been ordered to pay $28.5 million for alleged violations of the Consumer Financial Protection Act of 2010.
Navy Federal Credit Union limits its membership to military personnel and their immediate family members. According to the Consumer Financial Protection Bureau, during January 2013 and July 2015,
CFPB Issues Final Prepaid Card Rule
On October 5, the Consumer Financial Protection Bureau issued its much anticipated final rules regulating prepaid card accounts. The final rules follow the proposed rules that the Bureau issued in December 2014, and are mostly unchanged from the proposed rules. The new rules apply to “prepaid accounts,” which the Bureau defines as accounts that are
CFPB Orders First National Bank of Omaha to Pay $32 Million for Credit Card Add-On Products
On August 25, the Consumer Financial Protection Bureau ordered First National Bank of Omaha to pay more than $32 million for alleged unlawful credit card practices related to add-on products and services. In addition to a penalty of $4.5 million, the bank must provide $27.75 million in relief to nearly 257,000 consumers.
The CFPB’s order
LendUp to Pay $6.3M in CFPB-California Deal
On September 27, LendUp, an online payday lending company based in San Francisco, entered into a Consent Order with the Consumer Financial Protection Bureau and the California Department of Business Oversight over allegations that LendUp violated the Consumer Financial Protection Act and Regulation Z of the Truth In Lending Act by
House Finance Committee Approves CFPB Reforms
On September 13, the U.S. House of Representatives Financial Services Committee passed an amended version of the Financial CHOICE Act, which will result in significant changes to the Consumer Financial Protection Bureau if it becomes law. The amended CHOICE Act would reform the CFPB’s structure and limit its regulatory authority, while also repealing several sections
Federal Court Finds for CFPB in Tribal Lending Case
In an opinion issued in a case previously discussed on this blog, a federal district court has found that a California loan company violated federal law by issuing high-interest loans through a separate company based on tribal lands. The company made the loans to consumers in states where the usury law would ordinarily bar the
Recent CFPB Supervisory Highlights Address FCRA Compliance Issues
The Consumer Financial Protection Bureau has continued to address FCRA-related compliance issues in its most recent Supervisory Highlights publications from March and June 2016. The Supervisory Highlights once again reiterate the importance of FCRA compliance for a broad spectrum of FCRA-regulated entities, including mortgage originators, furnishers of consumer information, and nationwide specialty consumer reporting agencies
CFPB Introduces New Protections for Borrowers
On August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule
Payment Processor Group Files Amicus Brief in CFPB v. Intercept Case
On August 15, the Third Party Payment Processors Association (“TPPPA”), a national, not-for-profit organization of payment processors, payroll processors, and banks, this week filed a brief, amicus curiae, in support of the defendants’ motion to dismiss in the Consumer Financial Protection Bureau’s lawsuit against Intercept. The TPPPA filed the amicus brief in the United States