In less than a year, pre-dispute arbitration agreements will be clearly permissible again now that the Department of Education has finalized its proposal to rescind the Obama administration’s “Borrower Defense” rule issued in...more
9/16/2019
/ Arbitration ,
Arbitration Agreements ,
Borrower Defense Rule ,
Class Action ,
Class Action Arbitration Waivers ,
Consumer Financial Products ,
Department of Education ,
Federal Family Education Loan Program (FFEL) ,
Federal Funding ,
Final Rules ,
Financial Institutions ,
Financial Responsibility Standards ,
Labor Regulations ,
Pre-Dispute Arbitration ,
Student Loans ,
Title IV
The CFPB’s fourth biennial report on the credit card market was issued at the end of August.
The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) requires the CFPB to perform periodic market...more
9/9/2019
/ CARD Act ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
Credit Security Freeze ,
Debit and Credit Card Transactions ,
Debt Collection ,
Fraudulent Charges ,
Point of Sale Terminals ,
Rewards Programs ,
Risk Management ,
Third-Party Service Provider
The CFPB has filed an amicus brief in the U.S. Court of Appeals for the Third Circuit in the Pennsylvania Attorney General’s lawsuit against Navient Corp. The PA AG’s lawsuit includes claims that Navient violated the...more
9/6/2019
/ Amicus Briefs ,
Appointments Clause ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Actions ,
Financial Institutions ,
Financial Services Industry ,
Motion to Dismiss ,
Navient ,
Regulatory Violations ,
State Attorneys General ,
Student Loans ,
Take Care Clause ,
UDAAP ,
Unfair or Deceptive Trade Practices
HUD’s proposed revisions to its disparate impact rule were published in today’s Federal Register. Comments on the proposal are due on or before October 18, 2019. ...more
8/19/2019
/ Affordable Housing ,
Burden-Shifting ,
Comment Period ,
Disparate Impact ,
ECOA ,
Fair Housing Act (FHA) ,
Federal Register ,
Housing Discrimination ,
Housing Market ,
HUD ,
Proposed Regulation ,
Race Discrimination ,
Rulemaking Process ,
Texas Dept of Housing v Inclusive Communities
The CFPB has announced the appointment of Robert G. Cameron to serve as the Bureau’s private education loan ombudsman. Mr. Cameron joins the Bureau from the Pennsylvania Higher Education Assistance Agency where he was a...more
The DOJ has filed an amicus brief in support of the defendant debt collector in Rotkiske v. Klemm, the case before the U.S. Supreme Court that hopefully will resolve a circuit court split over whether the FDCPA one-year...more
The New York Department of Financial Services (NYDFS) has issued proposed regulations to implement the legislation enacted in April 2019 that requires servicers of student loans to be licensed, imposes servicing standards,...more
8/13/2019
/ Comment Period ,
Consumer Financial Products ,
Cybersecurity ,
Financial Services Industry ,
Licensing Rules ,
Loan Servicer ,
NYDFS ,
Popular ,
Proposed Regulation ,
Regulatory Agenda ,
Regulatory Requirements ,
Rulemaking Process ,
Student Loans ,
Unfair or Deceptive Trade Practices
A new CFPB blog post titled “An update on credit access and the Bureau’s first No-Action Letter” provides a boost to lenders using alternative data and machine learning in their underwriting models....more
On July 30, 2019, Acting New Jersey Governor Sheila Oliver signed into law SB 1149, which requires student loan servicers to be licensed, creates an Office of the Student Loan Ombudsman within the NJ Department of Banking and...more
A bipartisan group of U.S. Senators have introduced the “ISA Student Protection Act of 2019” that would create a legal framework for income share agreements (ISA) offered to students. ...more
8/7/2019
/ ECOA ,
EFTA ,
Electronic Fund Transfer Act ,
Fair Credit Reporting Act (FCRA) ,
FDCPA ,
Legislative Agendas ,
Military Lending Act ,
Proposed Legislation ,
Qualifying Income ,
Servicemembers Civil Relief Act (SCRA) ,
Student Loans ,
Students ,
Tuition
The U.S. Court of Appeals for the Eighth Circuit found that unwanted, prerecorded phone messages to consumers, even without any other alleged harm, met the injury-in-fact requirement for Article III standing to bring a...more
7/24/2019
/ Article III ,
Due Process ,
Financial Services Industry ,
Injury-in-Fact ,
Prior Express Consent ,
Putative Class Actions ,
Reduction of Damages ,
Standing ,
Statutory Damages ,
TCPA ,
Telemarketing
The CFPB has issued a new report on tradelines reported by third-party debt collectors as reflected on credit reports compiled by nationwide consumer reporting agencies. The third-party collector tradelines consist of those...more
7/23/2019
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Reporting Agencies ,
Credit Reports ,
Debt Buyers ,
Debt Collection ,
Debt Collectors ,
Financial Services Industry ,
Medical Debt ,
Regulatory Oversight ,
Third-Party Service Provider
The CFPB has issued an update to its 2016 advisory that contained recommendations for banks and credit unions on how to prevent, recognize, report, and respond to financial exploitation of older Americans....more
Three more bills dealing with credit reporting were passed on Tuesday by the House Financial Services Committee. Like the four bills passed by the Committee last week, none of the bills passed yesterday received any...more
7/18/2019
/ Borrowers ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Reporting Agencies ,
Credit Reports ,
Credit Scores ,
Financial Services Committee ,
Financial Services Industry ,
Legislative Agendas ,
Proposed Legislation ,
Rulemaking Process ,
Special Access Services ,
Students
Four bills dealing with credit reporting were passed last Thursday by the House Financial Services Committee. While there has been bipartisan support for credit reporting reform, none of the bills received any Republican...more
The CFPB’s annual fair lending report covering its 2018 activities was published in today’s Federal Register. While most of the report recycles information about which we have previously blogged, it does contain the...more
7/8/2019
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit ,
Data Points ,
Debt Collection ,
Disparate Impact ,
ECOA ,
Fair Lending ,
Information Reports ,
Mortgage Loan Originators ,
Mortgages ,
Student Loans
The Consumer Education Foundation, a California-based nonprofit consumer advocacy organization, has filed a petition with the FTC asking it to investigate the use of “secret surveillance scores” in the U.S. marketplace....more
7/2/2019
/ Algorithms ,
Analytics ,
Artificial Intelligence ,
Consumer Financial Products ,
Data Collection ,
Data Management ,
Data Points ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
FTC Act ,
Investigations ,
Section 5 ,
Unfair or Deceptive Trade Practices
A group of 20 education organizations and individuals have sent a letter to the leaders of the House Financial Services Committee and Senate Finance Committee urging Congress to pass legislation that would provide a legal...more
The FTC has issued a final rule to implement a 2018 amendment to the FCRA made by the Economic Growth, Regulatory Relief, and Consumer Protection Act that requires nationwide consumer reporting agencies (CRAs) to provide...more
In November 2018, the U.S. Supreme Court had granted certiorari in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., to decide whether the Hobbs Act required the district court to accept the Federal Communications...more
6/25/2019
/ Administrative Orders ,
Administrative Procedure ,
Appellate Courts ,
Binding Precedent ,
Dismissals ,
Due Process ,
Exclusive Jurisdiction ,
FCC ,
Hobbs Act ,
Interpretive Rule ,
Judicial Review ,
Legislative Rule ,
PDR Network LLC v Carlton & Harris Chiropractic Inc ,
Remand ,
Reversal ,
SCOTUS ,
Set-Asides ,
TCPA ,
Unsolicited Advertisements ,
Unsolicited Faxes ,
Vacated
On June 14, 2019, Texas Governor Greg Abbott signed HB 996, which amends Chapter 392 of the Texas Finance Code dealing with debt collection. The amendments are effective September 1, 2019. ...more
6/24/2019
/ Consumer Financial Products ,
Debt Buyers ,
Debt Collection ,
Debt Collectors ,
Fair Credit Reporting Act (FCRA) ,
Financial Regulatory Reform ,
Financial Services Industry ,
New Legislation ,
Rulemaking Process ,
State and Local Government ,
Third-Party Service Provider
A new (and perhaps final) chapter was added to the tale of ITT Educational Services, Inc. last week with the CFPB’s announcement that it had settled the lawsuit it filed against Student CU Connect CUSO, LLC (CU Connect), a...more
6/20/2019
/ Abusive Acts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Actions ,
Financial Services Industry ,
Interest Rates ,
Loan Forgiveness ,
Private Student Loans ,
Settlement Agreements ,
Special Purpose Entities ,
Unfair or Deceptive Trade Practices
The U.S. Department of Justice announced last Thursday that it had reached an agreement with First Merchants Bank, an Indiana state-chartered bank, to settle the redlining lawsuit that the DOJ filed against the bank on June...more
6/19/2019
/ Banks ,
Community Reinvestment Act ,
Consumer Financial Products ,
Department of Justice (DOJ) ,
Discriminatory Lending Practices ,
ECOA ,
Enforcement Actions ,
Fair Housing Act (FHA) ,
Fair Lending ,
Financial Services Industry ,
HELOC ,
Mortgage Lenders ,
Mortgages ,
Race Discrimination ,
Redlining ,
Settlement Agreements
The Federal Reserve Board has issued a report, “Perspectives from Main Street: Stakeholder Feedback on Modernizing the Community Reinvestment Act,” that summarizes the feedback it received during a series of roundtable...more
Several civil rights groups have sent a letter to Director Kraninger questioning whether the CFPB is engaging in the oversight of the student loan market that they believe is necessary to “root out potentially discriminatory...more