CFPB Issues Draft Rule Banning Arbitration Clauses Preventing Class Actions

On May 5, 2016, the Consumer Financial Services Bureau issued a proposed rule that would ban consumer financial services providers from including arbitration clauses in new contracts that prevent customers from filing or joining class actions. The proposed rule does not prevent companies from requiring consumers to arbitrate individual disputes. In a statement accompanying the … Continue Reading

CFPB Issues First Enforcement Action Under New Mortgage Servicing Rules

On September 29, 2014, the Consumer Financial Protection Bureau (CFPB) announced it had issued its first enforcement order under the agency’s new mortgage servicing rules that went into effect in January 2014.  The action claims that the servicer, a Michigan-based federal savings bank and loan servicer, did not comply with the agency’s servicing rules concerning loss mitigation efforts … Continue Reading


On May 22, 2014, the Consumer Financial Protection Bureau (CFPB) issued its Spring 2014 Supervisory Highlights Report — its fourth such report since the agency’s founding.  The report includes a review of recent rulemaking, guidance, and enforcement activity.  The CFPB used its fourth report to focus on the importance of compliance management systems.  “In this … Continue Reading

CFPB to pay its employees affected by performance rating disparities

Following an internal review that found it consistently gave higher performance ratings to whites, younger employees and higher-paid workers, the Consumer Financial Protection Bureau (CFPB) said that it will distribute additional pay to the negatively affected employees, according to a Wall Street Journal report.   The CFPB plans to distribute up to $5.5 million in additional pay to … Continue Reading

U.S. Chamber asks CFPB to clarify auto-lending rules

A February 12, 2014 letter from the U.S. Chamber of Commerce to the Consumer Financial Protection Bureau (CFPB) asks the agency to write new rules governing the auto-lending industry to eliminate ambiguity regarding fair lending and abusive practices standards.  The Chamber identified three areas of particular concern:  the test for disparate impact in indirect auto lending; the definition of abusive … Continue Reading

CFPB and DOJ file first joint-agency fair lending case against indirect auto finance company

December 21, 2013 –  The United States Department of Justice and Consumer Financial Protection Bureau announced the filing of their first joint fair lending enforcement action and settlement regarding allegations that an auto finance company’s dealer compensation policy resulted in a disparate impact for certain minority borrowers.  The $98 million settlement announced by the agencies … Continue Reading

DOJ and CFPB reach $35 million settlement in lending discrimination case

December 23, 2013 –  The United States Department of Justice and the Consumer Financial Protection Bureau announced that they have settled allegations that National City Bank engaged in discriminatory lending practices by charging African American and Latino home loan borrowers higher interest rates between 2002 and 2008.  The settlement was filed in the U.S. District Court … Continue Reading

CFPB to Expand Debt Collection Rules

On November 6, 2013, the Consumer Financial Protection Bureau (CFPB) published an advanced notice of proposed rulemaking announcing its intent to issue debt collection regulations that restrict how companies may contact consumers using mobile phones and other modern technologies.  The CFPB also announced that it intends to expand the types of firms that will be governed by … Continue Reading

CFPB Referral Results in DOJ Criminal Action

On May 7, the U.S. Attorney for the Southern District of New York  announced the filing of criminal mail and wire fraud charges against a debt settlement firm (Mission Settlement Agency), along with the firm’s owner and three  employees. The government alleges that the defendants engaged in a multi-million dollar scheme involving more than 1,200 customers who … Continue Reading

CFPB Releases Unverified Consumer Complaint Database

On March 28, 2013, the Consumer Financial Protection Bureau (CFPB) published a database containing over 90,000 consumer complaints lodged with the agency.  According to the CFPB press release announcing the publication, the public may search the complaints through the CFPB’s website database portal.  The database includes more than 1 million data points covering 450 companies. The information … Continue Reading

Consumer Financial Protection Bureau Plans to Increases Student Lending Oversight

On March 14, 2013, the Consumer Financial Protection Bureau (CFPB) announced that it had proposed a new regulation that, if it becomes final, will give the CFPB authority to directly supervise non-bank entities that service over one million student loans.  According to a legaltimes.com article, the new rule would cover seven companies that combined service 70% of the … Continue Reading

CFPB Issues Reg Z Ability-to-Repay. Qualified Mortgage Rules

On January 10, 2013, the Consumer Financial Protection Bureau  (CFPB) issued a final "Ability-to-Repay" rule amending Regulation Z, which implements the Truth in Lending Act.  The new rule implements Sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which generally require creditors to make reasonable, good faith efforts to determine a consumer’s … Continue Reading

CFPB, FTC Targeting “Misleading” Mortgage Ads

On November 19, 2012, the Consumer Financial Protection Bureau (CFPB) and Federal Trade   Commission (FTC) warned mortgage lenders and brokers about publishing "misleading" mortgage advertisements.  According to a CFPB press release, the two agencies have been working together to evaluate compliance with the 2011 Mortgage Acts and Practices Advertising Rule.  The rule prohibits companies from … Continue Reading

Three State AGs Join Constitutional Challenge to Dodd-Frank

Oklahoma, South Carolina and Michigan have joined a lawsuit challenging the 2010 Dodd-Frank Act.  The three states claim in the action that the Orderly Liquidation Authority (OLA) provision in the act, which attempts to deal with troubled financial institutions, is a threat to financial stability.  The OLA allows the Treasury secretary to seize a financial firm if the secretary … Continue Reading

CFPB Files First Court Enforcement Action–Targets Loan Modification Law Firm

On July 23, the U.S. District Court for the Central District of California unsealed  the first ever enforcement complaint filed by the Consumer Financial Protection Bureau.  The complaint (PDF)alleges that a Los Angeles law firm charged borrowers advance fees for loan modification services and then did "little or nothing to assist consumers." Kent Markus, the … Continue Reading

CFPB Reviews Dodd-Frank Compliance Costs

On May 15, 2012, the Consumer Financial Protection Bureau (CFPB) published a Notice and Request for Comment regarding its collection of data about industry compliance costs associated with Dodd-Frank rules and regulations promulgated by the CFPB. A number of Federal laws require agencies to consider the benefits, costs and impacts of rulemaking actions. … Furthermore, Section 1022(b)(2)(A) of … Continue Reading

Busy CFPB Studying Mandatory Arbitration Clauses

April 24, 2012– The Consumer Financial Protection Bureau announced a study into mandatory arbitration clauses in consumer financial product contracts.  The CFPB is required under the Dodd-Frank Wall Street Reform and Consumer Protection Act to submit a study to Congress regarding the use of arbitration clauses in credit agreements, including contracts for credit and debit cards, bank accounts … Continue Reading

ABA Urges Congress to Protect Privileged Information Given to CFPB

The American Bar Association (ABA) has sent letters to the United States Congress advocating for passage of legislation requiring the Consumer Financial Protection Bureau (CFPB) to protect privileged information that the agency receives from banks.  The letter from the ABA to Senate and House leaders raises the same concerns expressed by banks that now fall under the new bureau’s … Continue Reading

Perkins Coie’s Financial Services Bulletin: CFPB and FTC Issue MOU Regarding Consumer Protection Enforcement Efforts

On February 2, 2012, Perkins Coie issued its weekly Financial Services Bulletin, including an article discussing the Memorandum of Understanding between the Federal Trade Commission and the Consumer Financial Protection Bureau regarding coordinated efforts to enforce consumer protection laws.  Section 1024(c)(3) of the Dodd-Frank Act requires the CFPB and the FTC to work together to … Continue Reading

CFPB Publishes Rules for Nonbank Mortgage Lenders

On January 11, 2012, the Consumer Financial Protection Bureau (CFPB) released new procedures for regulating nonbank mortgage lenders.  The Mortgage Origination Examination Procedures apply to independent lenders, brokers, servicers, and others unaffiliated with banks and depository institutions, the bureau said in a statement. The rules are a requirement of the Dodd-Frank Wall Street Reform and Consumer Protection … Continue Reading

Federal Agencies Issue Joint Statement on Responsibility for Federal Consumer Financial Laws

On Thursday, November 17, 2011, the Board of Governors of the Federal Reserve System the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency  issued a joint statement describing how the total assets of an insured bank, thrift or credit union … Continue Reading

Summary of Consumer Financial Protection Bureau’s New Authority

An August 9, 2011 Law360 article ("Consumer Financial Protection Bureau:  Open for Business") by attorney Gregory J. Pulles of Briggs and Morgan PA provides an overview of the Consumer Financial Protection Bureau’s (CFPB) new powers as of the July 21, 2011 "designated transfer date."  The article summarizes a number of functions transferred to the CFPB from other … Continue Reading