On November 13, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks regarding electronic funds transfers (EFTs). Although Cordray noted the benefits of EFTs to consumers, he cautioned that the potential for abuse necessitates aggressive policing of the industry.
According to the CFPB, the nationwide system for EFTs allows consumers to receive their paychecks,
On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages. The new mortgage rules can
Earlier this month, the Department of Housing and Urban Development announced a revision to its definition for FHA-insured Qualified Mortgages (QMs) that applies to Section 501(c)(3) nonprofits that originate and service mortgages. However, HUD decided it would not adopt the CFPB’s post-consummation QM limited cure mechanism, which we discussed here, for purposes of HUD’s
Following lawsuits filed against it this month by the Federal Trade Commission and Florida Attorney General Pam Bondi, Consumer Collection Advocates Corp. (CCA) and its principal agreed to suspend operations in Florida, pending the outcome of the litigation.
According to the complaints by the FTC and the Florida Attorney General, CCA contracted with fraud
An $8 million settlement announced November 19, 2014, between the Consumer Financial Protection Bureau (CFPB) and the nation’s largest “buy here pay here” auto dealer represents yet another warning coming out of Washington, D.C. that:
1. Compliance with the requirements of the Fair Credit Reporting Act (FCRA) when businesses furnish credit information to consumer reporting
The Federal Trade Commission has stopped an online program that allegedly lured consumers with “free” access to their credit scores and then billed them a recurring fee of $29.95 per month for a credit monitoring program they never ordered. The defendants are One Technologies LP (also doing business as ScoreSense, One Technologies Inc., and MyCreditHealth);
On November 10, the Supreme Court declined to review an appeal by debt collection law firm Phelan Hallinan & Shmieg LLP over a Third Circuit decision in a class action that held that debtors are not required to dispute a debt under the Fair Debt Collection Practices Act before filing an FDCPA lawsuit.
On June
On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product. The proposed rules (found here) are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100
On November 13, the U.S. District Court for the Eastern District of New York ruled that a debt collector’s voicemail message did not violate the Fair Debt Collection Practices Act when it never mentioned that plaintiff owed a debt or conveyed any information about the debt, despite being overheard by the plaintiff’s son. In Zweigenhaft
On November 13, Doug Bower, President and Director of the Network Branded Prepaid Card Association (NBPCA), issued the following statement regarding the CFPB’s comprehensive slate of consumer-protection rules for prepaid debit cards:
We appreciate the CFPB’s earnest efforts to gather information, analyze data, and draft a proposed rule that acknowledges that prepaid cards are a