Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Tag Archives: CFPB

Third Circuit Says CFPB May Investigate the Totality of a Target’s Business Conduct

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
Earlier this week, the Third Circuit rejected student loan servicer Heartland Campus Solutions, ECSI’s challenge to a CFPB civil investigative demand (CID), which sought information concerning ECSI’s “servicing of student loans, including processing payments, charging fees, transferring loans, maintaining accounts, and credit reportin… Read the rest

Is Kraninger’s Nomination to Head Bureau a Tactical Choice to Continue Mulvaney’s Policy Trajectory?

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
President Trump formally nominated Kathy Kraninger to become the new head of the Consumer Financial Protection Bureau (the “Bureau”) on June 18, 2018. While this nomination was a surprise to many due to Kraninger’s apparent lack of financial or consumer regulatory experience, the timing of the nomination and associated tactical considerations… Read the rest

What the Security Group Consent Order Suggests About the CFPB’s Direction

Posted in Regulatory and Compliance
For many months, the Consumer Financial Protection Bureau (Bureau) has hinted it would focus its enforcement efforts on debt collection conduct. The Bureau’s settlement earlier this month with Security Group Inc., Security Finance Corporation of Spartanburg, and Professional Financial Services Corp. (collectively, “Security Group”) is th… Read the rest

Fintech Sandboxes – Update on State Approaches

Posted in Deals and Technology, Regulatory and Compliance
Arizona’s Fintech Sandbox Last month Arizona became the first U.S. state to enact a law allowing for the establishment of a fintech regulatory sandbox program (H.B. 2434) to facilitate the growth of innovative financial products and services. The Arizona law charges the Attorney General to “establish a regulatory sandbox program” which would, i… Read the rest

Rumors of UDAAP’s Demise May be Exaggerated

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
New Priorities at the CFPB… On February 12, 2018, Acting Director of the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) and Director of the Office of Management and Budget (“OMB”), Mick Mulvaney, released two documents that provide further insight into the future of the Bureau. But while one describes an out of control Bure… Read the rest

CARD Act Report: The CFPB Departs from Precedent

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
Editors’ Note: The following is one part of DWT’s ongoing coverage of the 2017 CARD Act Report.  Other parts include our prior PLA post The Consumer Credit Market: The CFPB’s 2017 CARD Act Report and a recent FSR webinar. This article also appears in The Review of Banking & Financial Services. On December 27, 2017, as required by law, the Consumer… Read the rest

The Consumer Credit Market: The CFPB’s 2017 CARD Act Report

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
The Consumer Financial Protection Bureau recently published its biennial assessment of the consumer credit card market, titled “The Consumer Credit Card Market.” This report is based in part on responses provided by market participants to the CFPB’s request for information on the consumer credit card market, which we discussed here. The CFPB… Read the rest

Next Steps for the CFPB

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
Richard Cordray, the director of the U.S. Consumer Financial Protection Bureau (CFPB), resigned from this post at the close of business last Friday, November 24.  In a statement to staff, he said that Leandra English, the CFPB’s chief of staff, had been named deputy director and would take over as acting director of the agency upon his exit.  On that Fri… Read the rest

Webinar: Exploring the Data Aggregation Market

Posted in Regulatory Compliance/Federal Agencies Resources
Wednesday, November 29, 2017 2:00 p.m. – 3:00 p.m. EST We invite you to join us for a discussion that will explore how consumer financial data aggregators are driving innovation in financial technology and analyze how the CFPB’s recent principles on data aggregation will affect this growing market. We will be discussing: The mechanic… Read the rest

CFPB Highlights Supervisory Findings Related to Credit Cards

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
The Consumer Financial Protection Bureau’s (CFPB) most recent Supervisory Highlights report identified a number of areas of non-compliance by credit card issuers that were confidentially resolved in the supervisory process. These periodic reports are intended to identify potential areas of non-compliance observed in the marketplace by the CFPB… Read the rest

CFPB’s First No-Action Letter: Supporting Innovation AND Supervision for Fair Lending

Posted in Regulatory and Compliance
The Consumer Financial Protection Bureau (the “Bureau”) issued its first no-action letter (“NAL”) to Upstart Network, Inc. (“Upstart”), a marketplace lender that sought to clarify that its automated model for underwriting unsecured, non-revolving loans does not present a violation of the Equal Credit Opportunity Act (“ECOA”) and… Read the rest

Regulatory Alert: Debt Collection

Posted in Regulatory and Compliance
Among the announcements in its Spring 2017 rulemaking agenda, which was just released on July 20, the Consumer Financial Protection Bureau (CFPB) announced that later this year it plans to issue a Notice of Proposed Rulemaking (NPRM) regarding debt collectors’ communications and disclosure practices. The CFPB’s guidance is notable both for indic… Read the rest

Supreme Court Narrows FDCPA’s Definition of Debt Collector

Posted in Regulatory and Compliance
Debt buyers generally are considered “debt collectors” under the Fair Debt Collection Practices Act (“FDCPA”).  However, on June 12, 2017, the Supreme Court decided Henson v. Santander Consumer USA Inc., which resolved an existing circuit split and unanimously affirmed a Fourth Circuit holding that a company that collects debts that it had p… Read the rest

Consumer Financial Data Aggregation & the Potential for Regulatory Intervention

Posted in Regulatory and Compliance
I. Introduction A confluence of regulatory activity and policy debates seem to be laying the groundwork for future regulation of consumer financial data aggregation activities. The outcome of these activities could significantly affect how financial data may be shared by financial institutions, controlled by third-party data aggregators, and used… Read the rest

FRB Governor Indicates Data Aggregators Could Impact Bank Safety & Soundness as Part of the “Fintech Stack”

Posted in Regulatory and Compliance
In a recent speech at the Northwestern Kellogg Public-Private Interface Conference, Federal Reserve Board Governor Lael Brainard indicated that the relationships between banks and data aggregators within the “fintech stack” may present safety and soundness concerns that warrant oversight by the FRB (and perhaps other prudential regulators).… Read the rest

CFPB Seeks Comments on the Credit Card Market for Its 2017 CARD Act Report

Posted in Regulatory and Compliance
The Consumer Financial Protection Bureau recently issued a request for information (the RFI) regarding the consumer credit card market. The CARD Act (Pub. L. No. 111–24, 123 Stat. 1734 (2009)) requires the CFPB to publish a biennial report on the state of the credit card market, and responses to the RFI will inform the CFPB’s findings in its forthcomin… Read the rest

RFI on Consumer Data Sharing Shows CFPB Interest in Data Aggregators

Posted in Regulatory and Compliance
The Consumer Financial Protection Bureau (CFPB or the “Bureau”) has recently expressed interest in how consumer financial information aggregators and financial services companies interact to share and protect financial data about consumers. Below we provide background on this growing industry, summarize the CFPB’s recent Request for InforRead the rest

CFPB Establishes Standards for the Marketing of Educational Credit Scores

Posted in Deals and Technology
In simultaneous enforcement actions against TransUnion and Equifax, the Consumer Financial Protection Bureau settled charges against the credit reporting agencies for, among other things, allegedly deceptive marketing practices involving proprietary “educational credit scores” that the agencies had advertised  were used by lenders in ma… Read the rest

Regulators and Innovation – an Update on Key Developments

Posted in Deals and Technology, Regulatory and Compliance
Innovation in the delivery of financial products and services continues at a rapid rate.  We discuss below some recent developments at the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency that illustrate the ways in which two key financial services regulators are working to keep up. CFPB’s Innovation Insights ReRead the rest

Assessing the Utility of CARD Act Disclosures

Posted in Regulatory and Compliance
PLA has for many years posted elite academic research questioning the utility of CARD Act disclosures.  For example, in 2013 we posted Regulating Consumer Financial Products: Evidence from Credit Cards by Sumit Agarwal from Georgetown University, Souphala Chomsisengphet from the Office of the Comptroller of the Currency, Neale Mahoney from the… Read the rest