Last month, Republican staff members on the Committee of Financial Services in the U.S. House of Representatives issued a Report criticizing tactics used by the Consumer Financial Protection Bureau in the auto finance area. The Staff Report generally questions the CFPB’s disparate-impact claims under the Equal Credit Opportunity Act (“ECOA”) and the Bureau’s use of
CFPB Takes Action Against Online Lender for Deceiving Borrowers
On November 18, the Consumer Financial Protection Bureau filed an administrative action against online lender Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans.
According to a press release, the CFPB alleges that Integrity Advance violated the Truth in Lending Act and the
CFPB Revises Appeals Policy
On November 3, the Consumer Financial Protection Bureau announced that it has revised its appeals process and issued a new appeals policy. The announcement was made in conjunction with the release of the CFPB’s Fall 2015 Supervisory Highlights. According to the Bureau, the “revisions reflect experience gained in the appeals process so far, and
Foreclosure Firms Fight CFPB’s Claim That They Don’t Practice Law
On October 27, two law firms accused by the Consumer Financial Protection Bureau of violating the Consumer Financial Protection Act responded to the CFPB’s allegations that they failed to provide consumers with promised legal representation by accusing the CFPB of “improperly [attempting] to create a new federal common law definition of the practice of law.”
Protecting the Attorney-Client Privilege: Companies Sue CFPB For Not Allowing Them to Attend Their Former Counsel’s Investigatory Testimony
In July 2015, several companies that were the targets of non-public Consumer Financial Protection Bureau investigations sued the Bureau after it refused to allow their current counsel to attend the Bureau’s investigative testimony of one of the companies’ former attorneys. The companies wanted one of their current attorneys to attend the testimony and assert the
CFPB Director’s Remarks at MBA Annual Convention: Progress, Updated HMDA Reporting, and Warning to Parties Engaged in Marketing Services Agreements
Consumer Financial Protection Bureau Director Richard Cordray addressed the Mortgage Bankers Association at its Annual Convention on October 19. In his remarks, Cordray:
- Summarized the progress the CFPB has made in addressing the serious problems confronting consumers in the mortgage market and steps taken by the Bureau to restore the American Dream of homeownership;
Illinois Supreme Court Expands the Definition of “Consumer” Under TILA for Purposes of Right to Rescind
On September 24, the Illinois Supreme Court reversed trial and appellate courts’ decisions and held that land trusts are considered “consumers” for purposes of exercising a right to rescind the loan transaction under the federal Truth in Lending Act (TILA).
At issue in this case was a reverse mortgage transaction in which the borrower was
CFPB Plans to Pave the Way for Yet More Class Actions Against Financial Services Companies
According to remarks made by Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray on October 7, 2015 (and a subsequent press release), the CFPB is planning to issue regulations that would prohibit many financial services companies from requiring consumers to waive their right to bring a class action lawsuit via a pre-dispute arbitration agreement
Federal Court in Illinois Holds That Display of Debtor’s Account Number on Envelope Violates FDCPA
On September 30, Judge Joan B. Gottschall of the Northern District of Illinois issued a decision stating that the display of a debtor’s account number through an envelope window violated the Fair Debt Collection Practices Act.
In Adkins v. Financial Recovery Services, Inc., the plaintiff filed a class action suit in Illinois on behalf
U.S. Government Sues Five Mortgage Lenders for False FHA Claims
On September 28, the U.S. government filed a lawsuit alleging that a purported charitable “counseling fund,” five mortgage lenders, and their principals defrauded the United States and various banks insured by the Federal Deposit Insurance Corporation in actions that resulted in millions of dollars of mortgage losses as well as the payment of over $5.6