On July 25, the United States District Court for the Northern District of Mississippi signed a consent order among BancorpSouth, the United States Department of Justice, and the Consumer Financial Protection Bureau, whereby BancorpSouth agreed to pay an aggregate of $10.6 million and to adhere to non-monetary penalties arising out of the DOJ’s and CFPB’s
Join Us on August 30 for Timely Discussion of Proposed CFPB Debt Collection Rules
On July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules seek to curb “excessive or disruptive” communications by restricting collectors from calling debtors numerous times a day, requiring debt collection companies to have “more and better
Marketplace Lender Challenges Scope of CFPA and What Constitutes UDAAP
In 2015, the Consumer Financial Protection Bureau filed a lawsuit against CashCall, Inc., a marketplace lender, alleging that it violated the Consumer Financial Protection Act’s (“CFPA”) prohibition on unfair, deceptive, or abusive acts and practices (“UDAAP”) by making usury loans in violation of the state laws in which the consumers were located.
On
CFPB Outlines Overhaul of Acceptable Debt Collection Practices
On July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules seek to curb “excessive or disruptive” communication by restricting collectors from calling debtors numerous times a day, require debt collection companies to have “more and better
CFPB Files Amicus Brief Before Ninth Circuit in Spokeo
On May 16, the Supreme Court in Spokeo, Inc. v. Robins found that the Ninth Circuit had not adequately addressed whether the named plaintiff had sufficiently alleged a “concrete” injury in connection with his putative FCRA class action against Spokeo, Inc. In Spokeo, the plaintiff (Robins) sued the “people search engine” for alleged violations of
Senate Committee Letter to Federal Agencies Indicates Likelihood of More Federal Supervision and Regulation Over Fintech Companies
In a letter dated July 21, Senators Sherrod Brown (D-Ohio) and Jeffrey Merkley (D-Ore.), on behalf of the Committee on Banking, Housing, and Urban Affairs (the “Committee”), asked the heads of several federal agencies to provide the Committee with information concerning their understanding of the role of fintech in the consumer financial services
FTC Consent Order With Two Ohio Auto Dealers Resolves Misleading Advertising Claims
On July 14, the Federal Trade Commission announced that it had entered into a final consent order with Ohio auto dealers Progressive Chevrolet Company and Progressive Motors Inc. (collectively, the “Progressive Dealers”), which the FTC had “charged with deceiving consumers by using advertising that touted low monthly car lease payments and down payments but failed
CFPB Reaches $107M Settlement Related to Corporate Consumer Debt Defrauding Scheme
On July 19, the Consumer Financial Protection Bureau reached a $107 million settlement agreement with three individuals who conspired with World Law Group to swindle millions of dollars from consumers in a debt-relief scheme.
In August 2015, the CFPB brought suit in U.S. District Court for the Southern District of Florida against several defendants, including
Federal Judge Rejects Challenge to CFPB Director’s Recess Appointment
On July 13, a federal judge tossed out a challenge to the recess appointment of Consumer Financial Protection Bureau Director Richard Cordray.
In State National Bank of Big Spring et al. v. Lew et al., the State National Bank of Big Spring, Texas, joined by conservative advocacy groups The Competitive Enterprise Institute and
House Financial Services Committee Releases Draft of Bill to Replace Dodd-Frank
On June 23, a discussion draft of “The Financial CHOICE Act” was released by the House Financial Services Committee. A primary purpose of this bill is to replace the Dodd-Frank Act, including reforming financial institution regulations and significantly changing the structure and authority of the Consumer Financial Protection Bureau.
Specifically, the