Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

State Attorneys General, CFPB, & FTC

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President Likely Has Authority To Appoint Acting Director To Replace Cordray At CFPB

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s announced yesterday (as covered here) that he will be resigning from his position by the end of this month. The Administration appears poised to announce Office of Management and Budget Director Mick Mulvaney as an interim replacement until a permanent director can be selected by the President and… Continue Reading

CFPB Director’s Resignation Sparks Conjecture About Future Leadership

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 15, as has been widely reported, the Director of the Consumer Financial Protection Bureau, Richard Cordray, announced by email to his staff that he would be resigning at the end of the month.  While he did not state the reason for his departure, it is believed that Cordray, a former Ohio attorney general,… Continue Reading

CFPB Director Richard Cordray to Step Down

Posted in Featured Posts, State Attorneys General, CFPB, & FTC
Richard Cordray, the Director of the Consumer Financial Protection Bureau (“CFPB”), announced today that he plans to step down from that post by the end of the month. Cordray’s term was otherwise set to expire in July of 2018. Cordray, who was appointed by the Obama Administration after the CFPB was created in 2011, issued… Continue Reading

Oklahoma AG Sides with Tribal Defendants, Assails CFPB’s Expansive Interpretation of Enforcement Powers

Posted in State Attorneys General, CFPB, & FTC
In an amicus brief filed last week in the U.S. District Court for the District of Kansas, Oklahoma Attorney General Mike Hunter assailed the expansive interpretation of enforcement powers against state and tribal sovereigns adopted by the Consumer Financial Protection Bureau. The case is CFPB v. Golden Valley Lending, Inc., et al., No. 2:17-cv-02521 (D. Kan.). The… Continue Reading

New York AG Proposes Changes to Data Breach Law

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman has introduced a bill that would expand that state’s existing data breach laws. This proposed legislation, called the Stop Hacks and Improve Electronic Data Security Act, or the SHIELD Act, is sponsored by two Democratic members of the state legislature (Senator David Carlucci and Assembly member Brian Kavanagh). Schneiderman stated in… Continue Reading

Illinois General Assembly Overrides Veto of Illinois Student Loan Servicing Rights Act

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
With both houses of the Illinois General Assembly overriding the veto of Governor Bruce Rauner, the Illinois Student Loan Servicing Rights Act will become law.  Surpassing the three-fifths supermajorities needed for an override, the Senate voted by a margin of 37-19 and the House of Representatives by 98-16.  The Act takes effect on December 31,… Continue Reading

Tax Preparation Firm Settles FTC Claims Flowing from Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On November 8, the Federal Trade Commission announced that it had approved a final order settling claims arising out of a data breach at Georgia-based tax preparation firm TaxSlayer, LLC. In late 2015, hackers hit TaxSlayer with a “list validation” or “credential stuffing” attack.  With that type of attack, hackers attempt to use login credentials… Continue Reading

Cordray Discusses CFPB’s Priorities During November Consumer Advisory Board Meeting

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 2, Consumer Financial Protection Bureau Director Richard Cordray delivered remarks during the Consumer Advisory Board meeting in Tampa.  Cordray’s public pronouncements reflect and foreshadow the CFPB’s regulatory priorities, and his recent comments indicate the CFPB’s focus on reverse mortgages, consumers with limited English proficiency, and short-term loans. Cordray mentioned the CFPB’s recently-released report… Continue Reading

President Trump Officially Kills Arbitration Rule

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 1, President Donald J. Trump signed a resolution passed by Congress to nullify the Consumer Financial Protection Bureau’s Arbitration Rule.  As we reported here, the Senate narrowly passed a resolution to repeal the Rule in late October, ensuring that the controversy would make its way to the President’s desk.  Trump’s signature ensures that… Continue Reading

FTC Settles Lawsuit with Company that Promotes Post-Secondary Schools to Military Families

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The FTC has reached a proposed consent agreement with Victory Media, Inc., resolving allegations that Victory violated Section 5 of the FTC Act.  The allegations stem from Victory’s promotion of post-secondary schools to members of the armed forces. Victory advertises to members of the armed forces in a variety of ways, including through its publications… Continue Reading

Join Us on November 27 for an ABA Webinar – Defending Consumer Protection Actions on Multiple Fronts: Coordinating Joint CFPB and State AG Investigations and Settlements

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partner Ashley Taylor will moderate a webinar panel discussion hosted by the American Bar Association on “Defending Consumer Protection Actions on Multiple Fronts: Coordinating Joint CFPB and State AG Investigations and Settlements.” The event will take place on November 27, 2017 from 1:00 – 2:30 p.m. ET.… Continue Reading

Join Us November 8-9 for the Third Party Payment Processors Association Executive Summit

Posted in ALL CFS Blog Entries, CFS Events, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders attorneys David Anthony, Keith Barnett, Ashley Taylor and Melanie Witte will be featured speakers at the upcoming Third Party Payment Processors Association (TPPPA) Executive Summit in Scottsdale, Arizona on November 8-9, 2017. Troutman Sanders attorneys will participate in panels on topics including: The Supposed End to Operation… Continue Reading

Join Us on November 9 for the VBA Administrative Law Conference

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partner Ashley L. Taylor, Jr. will be moderate a panel at the Virginia Bar Association’s 23rd Annual Administrative Law Conference at the Troutman Sanders Richmond Office on November 9, 2017. Ashley will moderate a panel entitled, “The New Look of Financial Regulation,” where the panelists will discuss… Continue Reading

Join Us on November 14 for a Complimentary Webinar: Autonomous Vehicles – An Overview of the Regulatory Pileup

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
Autonomous vehicles, or self-driving cars, will revolutionize the way people and products move. But the technologies that have made autonomous vehicles a reality raise novel safety, data privacy, and cybersecurity concerns for federal and state regulators. Addressing these issues will pave the road for other integrated technologies in the internet of everything. Please join Troutman… Continue Reading

Congress Kills CFPB’s Arbitration Ban for Financial Services Companies, Returning Focus to State v. Federal Court Wars

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On Tuesday, October 24, 2017, the Senate voted to nullify the Consumer Financial Protection Bureau’s (“CFPB”) arbitration rule (the “Rule”) in a 51-50 vote. Only two Republicans voted against the measure – Lindsey Graham (SC) and John Kennedy (LA). President Trump praised the vote, saying that he will sign the resolution when it reaches his… Continue Reading

U.S. Treasury Criticizes Arbitration Rule

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On October 23, the U.S. Department of the Treasury released a report objecting to the Consumer Financial Protection Bureau’s arbitration rule.  As we previously reported, the rule prevents class action waivers in arbitration provisions for covered entities and also requires covered entities to provide information to the Bureau regarding any efforts to compel arbitration.  The… Continue Reading

New York AG Announces Settlements with Two Motor Vehicle Dealer Groups

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman announced two settlements with motor vehicle dealer groups that provide for over $900,000 in restitution to approximately 6,400 New York State consumers.  The settlements also require the dealers to pay $135,000 in penalties and costs to the state for the unlawful sale of credit repair and identity theft protection services… Continue Reading

FTC and State AGs Announce Crackdown on Student Loan Debt Relief Scam

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Federal Trade Commission, along with 11 states and the District of Columbia, just announced “Operation Game of Loans.”  This is the first coordinated federal-state initiative targeting deceptive student loan debt relief scams.  The nationwide crackdown encompasses 36 actions by the FTC and state attorneys general against bad actors that are alleged to have used deception and false promises… Continue Reading

FTC and State AGs to Announce Major Coordinated Consumer Fraud Enforcement Initiative

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
The Federal Trade Commission (FTC) issued a press release earlier today alerting the media and other interested parties that it will announce a “major coordinated consumer fraud enforcement initiative” Friday, October 13 at 11:30 a.m. EST. The Acting Director of the FTC’s Bureau of Consumer Protection, Thomas Pahl, and Illinois Attorney General Lisa Madigan will headline… Continue Reading

California Adds Fraudulently Created Accounts to List of Exclusions from Compelled Arbitration

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
California Governor Jerry Brown has signed legislation creating a new exception to mandatory arbitration within the California Arbitration Act.  SB 33, introduced by Sen. Bill Dodd in December 2016, permits an existing customer of a bank to sue a depository bank when a fraudulent account is opened unknowingly in the consumer’s name.  The exception specifically… Continue Reading

House Financial Services Committee Chairman Urges National Data Breach and Data Security Standards

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On October 5, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) called for national standards for data breach notification and data security. While voicing concerns about a “Washington-forced technology solution,” Hensarling said, “We do need a consistent national standard for both data security and breach notification in order to better protect our consumers, hold companies… Continue Reading

CFPB Rule Requires Payday Lenders to Apply “Ability to Repay” Standard to Loans

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Today the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a new rule that will have a significant impact on the payday lending market. The CFPB will now require lenders to conduct a “full-payment test” to determine upfront whether the borrower will have the ability to repay the loan when it becomes due. Lenders… Continue Reading

Massachusetts AG Accuses Used Car Dealer of Deceptive Practices

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On September 26, Massachusetts Attorney General Maura Healey’s office filed a complaint against used car dealer JD Byrider, accusing the dealership of using predatory practices in its sale of allegedly defective vehicles.  The AG’s Office contends that JD Byrider sold allegedly defective vehicles with high cost loans to Massachusetts consumers in the “JD Byrider Program,”… Continue Reading

CFPB Proposes Modifications to Home Mortgage Law to Protect Borrowers’ Privacy

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On September 20, the Consumer Financial Protection Bureau issued proposed policy guidance that would modify a mortgage disclosure law in an effort to protect applicants’ and borrowers’ privacy. In 2015, the CFPB finalized changes to the Home Mortgage Disclosure Act (“HMDA”), which requires lenders to report and disclose to the public certain information about their… Continue Reading