On September 10, Consumer Financial Protection Bureau Director Richard Cordray refused an appeal by members of Florida’s congressional delegation and the state’s top financial regulator to use Florida’s payday-lending rules as a model for planned federal regulation. According to one source, Cordray indicated in a private meeting that he disagreed with certain aspects of Florida’s
Better Business Bureau Data Show Sharp Decline in Debt Collection Complaints
The Better Business Bureau recently released data from 2014 regarding the number of complaints received pertaining to registered debt collection agencies. The statistics show a sharp decrease in the number of complaints lodged against debt collection agencies. This number is contrary to data released by the Consumer Financial Protection Bureau, which show an increase in
Trade Groups’ Comment Letters Urge CFPB to Fix Complaint Database Before Trying to Normalize Data
In response to the CFPB’s request for information (RFI) regarding “best practices” for normalizing the data in the Consumer Complaint Database, issued on June 30, 2015, the American Bankers Association (ABA) submitted a comment letter that argues any efforts made by the CFPB to “normalize” data in its consumer complaints database – that is,
Snapshot Reveals Numbers and Trends of Consumer Credit Reporting Complaints to CFPB
On August 25, the Consumer Financial Protection Bureau released its monthly consumer complaint snapshot, which included a focus on complaints regarding credit reporting. According to the snapshot, the CFPB has handled 105,000 credit reporting complaints, making them the third most popular type of complaint received by the CFPB. The CFPB received nearly 7,000 credit
CFPB and FTC File Joint Amicus Brief in FDCPA Case Challenging Level of “Attorney Review” Required Before Filing Debt Collection Complaint
The Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief with the United States Court of Appeals for the Third Circuit in Bock v. Pressler & Pressler, LLP. In the case, a U.S. district court previously ruled that a debt collection law firm violated the Fair Debt Collection
CFPB Requesting More Information Regarding Its Debt Collection Rulemaking
The Consumer Financial Protection Bureau sent a questionnaire with almost 60 questions to randomly selected debt collectors and service providers as part of its potential rulemaking regarding debt collection, a process that began almost two years ago.
The CFPB received 23,000 comments in response to its Advance Notice of Proposed Rulemaking (ANPR) for debt collectors,
California Supreme Court Upholds Validity of Standard Auto Sale Arbitration Clause
On August 3, to the relief of car dealerships and auto finance companies, the California Supreme Court upheld a standard arbitration clause from an automotive purchase agreement by a 6-1 majority decision in Sanchez v. Valencia Holding Co., LLC, which reversed both the trial court and Court of Appeal’s rulings invalidating the entire arbitration
Hanna Seeks Interlocutory Appeal in Lawsuit Filed by CFPB
As previously reported, a federal judge in Atlanta denied a law firm’s motion to dismiss a claim against it filed by the Consumer Financial Protection Bureau for violations of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act or the Dodd-Frank Act. On July 27, Frederick J. Hanna & Associates filed
CFPB Fines Mortgage Servicer $1.5 Million for Failing to Honor Loan Modifications after Service Transfers
On July 30, the Consumer Financial Protection Bureau announced that it reached an agreement with Residential Credit Solutions, Inc., a national mortgage servicing company, whereby the mortgage loan servicer agreed to pay $1.5 million in restitution to borrowers and a $100,000 civil penalty. The CFPB alleged that the Residential Credit Solutions had failed to honor
Auto Finance, Credit/Debt Practices, and Identity Theft Top Consumer Protection Complaints
On July 29, the Consumer Federation of America and the North American Consumer Protection Investigators released their annual survey of consumer complaint data from state and local consumer agencies, which is based on 280,000 claims to thirty-seven agencies from twenty-one states and the District of Columbia.
Just as in 2013, the most common complaints arose