On December 11, the Consumer Financial Protection Bureau issued an advisory warning to consumers about student loan debt relief companies. While the CFPB warns all student borrowers, in distress or otherwise, to steer clear of companies with aggressive marketing tactics that make promises that they can save student borrowers thousands of dollars on student loan
Debt Consulting Firm Settles with CFPB for $69,075
On December 4, the Consumer Financial Protection Bureau asked a federal district court to approve a settlement with a New Jersey debt settlement firm that would require the firm to pay a fine of $69,075 for allegedly charging consumers illegal upfront fees for debt-settlement services they never received.
The proposed consent order was filed in
First Large Auto Lender to Move to Flat Rate Financing Experiences Sharp Drop in Originations
As we have been reporting since 2013, the Consumer Financial Protection Bureau’s attacks on what it considers discriminatory and subjective dealer pricing of finance rates should be seen as nothing less than an outright attempt to reshape the auto finance industry. These regulatory actions have continued in earnest through the present, as we’ve discussed
New York Announces Sweeping New Regulation of the Debt Collection Industry
On Wednesday, December 3, 2014, New York Governor, Andrew Cuomo, announced new regulations aimed at “protect[ing] consumers against abusive and deceptive debt collection practices.” The press release issued by Governor Cuomo can be found here.
These regulations come from the New York Department of Financial Services and were first proposed in July 2013 and
Honda Becomes Latest CFPB Indirect Lending Target
The lending arm of Honda Motor Co., America Honda Finance Corp., has just revealed in a recent public filing that the U.S. Department of Justice and the Consumer Financial Protection Bureau have authorized an enforcement action against the company for violations of law arising out of its indirect lending practices. Honda stated that the CFPB
CFPB Set to Hold Public Hearing on Medical Debt Collection in OKC
The Consumer Financial Protection Bureau has announced that it will hold a field hearing on medical debt collection in Oklahoma City, Oklahoma on December 11 at 11:00 a.m. CST.
According to the CFPB, the hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of
CFPB Charges Yet Another Mortgage Lender With Violations of the Loan Originator Compensation Rule
On November 13, the Consumer Financial Protection Bureau ordered a California mortgage lender to pay $730,000 for allegedly paying its loan originators compensation based on loan terms. The CFPB has asked the United States District Court for the Central District of California to approve a consent order requiring the company to end its allegedly illegal
FTC Issues New Bulletin Regarding Employment Background Screening Regulations
In March 2014, the Federal Trade Commission issued a bulletin entitled Background Checks: What Job Applicants and Employees Should Know, which set forth and summarized a number of the laws and regulations on the use of employment background checks, both prior to and subsequent to hiring.
In November, the FTC issued a second such
State AGs Urge CFPB to Take Immediate Action to Crack Down on Consumer Arbitration Clauses
A group of 16 state attorneys general recently wrote Richard Cordray, head of the Consumer Financial Protection Bureau, a letter encouraging the CFPB to take immediate action to crack down on pre-dispute mandatory arbitration clauses in consumer agreements for financial products or services. Specifically, while acknowledging that additional actions may be necessary to “fully address
Study by Consumer Credit Group Takes Issue with CFPB Method of Finding Auto Lending Bias
The American Financial Services Association (AFSA), a consumer credit industry trade association, released a study this month that took issue with the Consumer Financial Protection Bureau’s method of measuring discrimination in the automotive lending business.
The study, which was carried out by Charles River Associates and based on over eight million vehicle finance contracts issued