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Expect To Feel Aftershocks Of Chopra's CFPB Shake-Up

The future of the Consumer Financial Protection Bureau — and federal enforcement of consumer financial laws more generally — is uncertain. The Trump administration has ordered the CFPB to freeze all enforcement activity,...more

CFPB Fines Wall Street Bank and Big Tech Company for Alleged Violations of the CFPA and TILA in Connection with Credit Card...

On October 23, 2024, the CFPB filed two separate consent orders, one against the Tech Company and the other against the Bank, alleging violations of the Consumer Financial Protection Act (CFPA) and the Truth in Lending Act...more

CFPB Takes Action Against Mortgage Servicer for Alleged Order Violations and Servicing Errors

On August 21, 2024, the CFPB issued a Consent Order against the Company citing alleged failure to provide accurate information about loss mitigation options and improper handling of loan modifications. The Consent Order...more

CFPB Issues Order Against Student Loan Debt Relief Telemarketer

On May 20, 2024, the CFPB announced a settlement with a telemarketing company that offers student loan debt relief services to resolve allegations that it violated the Telemarketing Sales Rule ("TSR") and the Consumer...more

CFPB Updates Supervision Designation Procedures for Nonbanks Posing Risks

On April 16, 2024, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued a rule to update its procedures for designating nonbank covered persons for supervision. Section 1024(a)(1)(C) of the Consumer Financial...more

CFPB Issues First Risk-Based Supervision Order

On February 23, the Consumer Financial Protection Bureau announced its first decision designating a nonbank lender for supervision based on potential risk to consumers. As the CFPB emphasized in its press release, however,...more

CFPB Orders National Bank to Pay Nearly $21 Million For Alleged Misconduct Relating to COVID-era Unemployment Payments

On December 19, 2023, the CFPB issued an administrative consent order alleging that a Minneapolis-based National Bank inappropriately froze the accounts of "tens of thousands" of recipients of unemployment benefits via...more

FTC Fines Wisconsin-Area Auto Group $1.1 Million for Unfair, Deceptive, and Discriminatory Sales Practices.

Without admitting any wrongdoing, a Wisconsin-area auto dealer group settled a lawsuit brought by the FTC alleging it violated the Federal Trade Commission Act and Equal Credit Opportunity Act by charging American Indian...more

CFPB Sues Lease-To-Own Finance Company

The Consumer Financial Protection Bureau filed a lawsuit against a lease-to-own-finance company and several related companies (collectively, the "Company"), alleging that the Company violated various federal consumer...more

CFPB Orders Payment Processor to Implement Information Security Program and Pay $25 Million Penalty

On June 27, 2023, the CFPB filed an administrative consent order against a payment processor headquartered in Elkhorn, Nebraska. The order alleges that on a single date in 2021, the processor erroneously initiated about 1.4...more

CFPB Orders National Bank to Pay $3.7 Billion

On December 20, 2022, the CFPB filed an administrative consent order against a National Bank headquartered in Sioux Falls, South Dakota. In the order, the CFPB detailed three ways that the Bank allegedly violated the Consumer...more

CFPB Sues Online Lender for Alleged Military Lending Act and UDAAP Violations

HIGHLIGHTS: The lawsuit alleges that the lender charged more than the allowed 36% rate cap under the Military Lending Act on loans to servicemembers and their dependents, through interest rates and monthly membership fees....more

CFPB Fines National Bank $37.5 Million for Misappropriating Customer Data to Open Unauthorized Accounts

HIGHLIGHTS: The bank must pay a $37.5 million civil penalty to the CFPB. The bank neither admitted nor denied the allegations but must forfeit unlawfully charged fees and costs to consumers and develop a remediation plan for...more

CFPB Sues Payday Lender for Allegedly Concealing Free Repayment Plans and Withdrawing Borrowers' Funds without Authorization

HIGHLIGHTS: The CFPB announced that it is filing a lawsuit against a payday lender for allegedly concealing free repayment plans and making unauthorized debit-card withdrawals. With its allegations of unfair, deceptive, and...more

Two CFPB Announcements Bolster Parallel State Enforcement Efforts

Since October 2021, when Rohit Chopra took over as Director, the Consumer Financial Protection Bureau ("CFPB") has taken a number of steps to assert its leadership role in the patchwork of regulatory jurisdiction and...more

CFPB Orders Debt-Relief Payment Processors to Pay More Than $11 Million and Imposes Industry Bans

The CFPB announced an $11 million resolution of Telemarketing Sales Rule and Consumer Financial Protection Act claims against debt-relief payment processors and two individuals for allegedly collecting improper fees from...more

CFPB Fines Very Large Bank $10 Million for Allegedly Unlawful Garnishments

Highlights: One of the nation's largest banks agreed to entry of a consent order to settle CFPB allegations that the bank unlawfully froze customer accounts, charged them garnishment fees, and turned over funds to creditors...more

CFPB Obtains Bans Against Student-Loan Debt Relief Companies and CEO

CFPB filed a proposed stipulated final judgment to resolve allegations against affiliated debt relief companies and their top executive concerning alleged wrongful fee-charging practices and deceptive telemarketing in...more

CFPB Flexes Supervisory Authority Over Nonbanks

Nonbank lenders, fintech firms, and smaller entities that do not meet the CFPB's threshold of a "larger participant" in defined areas have avoided CFPB supervision, but that is changing. On Monday, the CFPB issued a press...more

CFPB Files Lawsuit Against Nationwide Credit Reporting Agency and Senior Executive for Allegedly Violating 2017 Order

HIGHLIGHTS: CFPB announced that it is filing a lawsuit today against a nationwide credit reporting agency, two related companies, and a top executive for violating a January 2017 consent order with the CFPB. ...more

FTC Announces Settlement with Multistate Auto Dealership and General Manager Over Alleged Unauthorized Charges for Optional...

HIGHLIGHTS: The Federal Trade Commission (FTC), jointly with Illinois, announced a $10 million resolution of allegations that a multistate auto dealership group and General Manager violated the FTC Act, Equal Credit...more

CFPB Continues Aggressive Focus on Student Lending

Last week, the Consumer Financial Protection Bureau (CFPB) announced that it will examine colleges' in-house lending practices. According to the press release, the CFPB decided to examine institutional lenders because of the...more

CFPB Bites of the Month - Q&A with Lucy Morris: Takeaways from 10 Years

Each month, we host a 30-minute webinar outlining the month's key announcements and takeaways from the Consumer Financial Protection Bureau (CFPB) for financial services providers to consider. With July 21, 2021 marking...more

FTC Commissioner Rohit Chopra to be Named CFPB Director - A Strong Consumer Advocate and Aggressive Law Enforcer

This week, we learned that President-elect Biden intends to nominate FTC Commissioner Rohit Chopra to serve as the Director of the Consumer Financial Protection Bureau. Chopra is a smart, articulate, and strong consumer...more

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