In NLRB v. Canning, the U.S. Supreme Court struck down three of President Obama’s recess appointments to the National Labor Relations Board (NLRB) in a unanimous 9-0 decision. Why does that matter here? In the same set of appointments, President Obama appointed Richard Cordray to be the Director of the Consumer Financial Protection Bureau. Read More
In a Bulletin and Report, the CFPB warned furnishers of consumer data information to consumer reporting agencies that they must comply with FCRA's re-investigation requirements. And, in a shot across the bow, the CFPB stated that merely deleting a trade-line does not by itself comply with FCRA's reinvestigation requirements. The CFPB warned: A furnisher should not assume that it ceases to… Read More
Watch the CFPB conference on auto finance here: http://www.consumerfinance.gov/blog/live-from-the-cfpb/ "It makes no difference if the lender intended to discriminate: the outcome and the result is the same". Richard Cordray, 11.14.13 Cordray says that the CFPB does not have jurisdiction over auto dealers, but it does have jurisdiction over auto lenders. Cordray says that the lender's allowing the dealer discretion to… Read More
"The way in which proposed rules might define “collectors” would be critical to determining the scope of the proposed rules. The Bureau is especially interested in information bearing on whether a rule under the Dodd-Frank Act would be useful to protect consumers from the conduct of creditors collecting in their own names on debts arising out of consumer credit transactions." … Read More
CFPB Director Cordray responded yesterday to the Senate's request for information on the Bureau's methodology for determining discrimination in auto lending. Cordray's 11.4.2013 Letter The CFPB's methodology uses surname and geographical approaches, and "makes case-by-case assessments of whether to pursue supervisory or enforcement activity in response to statistically significant disparities”. Read More
Today, the CFPB issued a bulletin stating its intention to monitor complaints lodged against furnishers of credit information to consumer reporting agencies. (here) The CFPB explained how it expects furnishers to comply with FCRA: In general, with respect to disputes received by furnishers from CRAs, the CFPB expects each furnisher to comply with the FCRA by: (1) Maintaining a system… Read More
The CFPB published two bulletins today purporting to hold all entities under its jurisdiction accountable for unlawful debt collection practices. The first bulletin, here, proclaims that “It doesn’t matter who is collecting the debt — unfair, deceptive, or abusive practices are illegal", and emphasizes that both third-party collectors and creditors are responsible. The CFPB will be examining (1) Collecting additional amounts, such as interest,… Read More
The CFPB's Annual Report on the FDCPA is here and the compliance bulletin titled “Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act,” which provides guidance regarding their concerns with fair lending and dealer participation under the disparate impact theory, is here. Read More
In Canning v. NLRB, here, the U.S. Court of Appeals for the D.C. Circuit held that President Obama did not have the power to make three recess appointments last year to the National Labor Relations Board because the Senate was officially in session — and not in recess — at the time. The decision could invalidate many decisions made by the NLRB. … Read More
[liveblog]Presentation on Indirect Auto Finance, Discretionary Pricing, by Richard Hackett, Installment and Liquidity Lending Markets - Consumer Financial Protection Bureau; John C. Redding, BuckleySandler . Read More
On January 2, 2013 the Consumer Financial Protection Bureau (CFPB) starts its supervision of large debt collection firms that account for 63 percent of the market. The CFPB announced Final Rule on Wednesday. The CFPB will regulate 175 debt collection firms that each bring in more than $10 million in annual receipts. See the live-blog entries from the CFPB's roundtable as to what… Read More
The CFPB's and FTC's amicus brief urges the Supreme Court to overturn the Marx decision of the U.S. Court of Appeals for the Tenth Circuit, where Ms. Marx sued General Revenue Corporation under the FDCPA. Marx lost. The 10th Circuit ruled that Marx was responsible for paying more than $4,500 to cover the debt collector’s litigation costs, even though she… Read More
Today, the CFPB issued its Proposed Rule Defining Larger Participants in Certain Consumer Financial Product and Service Markets. The CFPB explained the background of the Proposed Rule and CFPB's authority for issuing it: The Consumer Financial Protection Act of 2010 (Act)1 established the Bureau of Consumer Financial Protection (Bureau) on July 21, 2010. One of the Bureau’s key responsibilities under… Read More
To quote the Church Lady: "Well isn't that special". The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have signed an agreement to coordinate efforts to protect consumers and avoid duplication of federal law enforcement and regulatory efforts. “The FTC has always been committed to protecting consumers and legitimate companies from bad actors in the financial marketplace,”… Read More
The FRB issued a proposed rule under Reg B that car dealers need not comply with certain data collection requirements in Dodd-Frank until the FRB issues final regulations. Dodd-Frank amended ECOA to require creditors to collect and report information concerning credit applications made by women-owned or minority-owned businesses and small businesses. Public comment on the proposed rules must be submitted by… Read More
On Wednesday, March 16, 2011, Special Advisor to the Secretary of the Treasury for the Consumer Financial Protection Bureau, Elizabeth Warren, will testify before the House Financial Servies Committee on the subject of "Oversight of the Consumer Financial Protection Bureau". This follows on the heals of Ms. Warren's letter exchange with the Committee regarding the CFPB, here. The hearing… Read More
The Federal Trade Commission and the Federal Reserve Board are seeking public comment on proposed amendments to the Risk-Based Pricing Rule that would require creditors, as of July 21, 2011, to disclose credit score information to consumers when a credit score is used in setting or adjusting credit terms. The Notice is set forth here and is summarized as follows: On… Read More
