News & Analysis as of

Consumer Financial Protection Bureau (CFPB) Borrowers

Orrick, Herrington & Sutcliffe LLP

CFPB survives challenge based on improper funding as court denies plaintiff’s motion to dismiss

On October 17, the U.S. District Court for the Central District of California denied a peer-to-peer lending platform’s motion to dismiss a lawsuit brought by the CFPB. The Bureau had filed a First Amended Complaint alleging...more

Troutman Pepper

Unpacking the Increasingly Popular Fair Credit Billing Act

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The Fair Credit Billing Act is not nearly as well-known to creditors and their counsel as its “fair credit” brother, the Fair Credit Reporting Act. But the FCBA is becoming increasingly popular among litigants — often pro se...more

Ballard Spahr LLP

CFPB bans private dispute resolution platform Ejudicate from arbitrating consumer financial product disputes

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The CFPB has banned private dispute resolution platform Ejudicate from arbitrating disputes about consumer financial products, saying that the company had misled student borrowers about the company’s neutrality and initiated...more

Locke Lord LLP

Proposed Mortgage Assistance Rule: Tips for Servicers

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On July 10, the Consumer Financial Protection Bureau issued a proposed rule that would alter the current Regulation X mortgage servicing procedures in favor of a system that broadly construes requests for assistance, and...more

Troutman Pepper

CFPB’s Fall Edition of Supervisory Highlights Focuses on Auto-Finance Market

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On October 7, the Consumer Financial Protection Bureau (CFPB or Bureau) published the Fall edition of its Supervisory Highlights, focusing on examinations of the auto-finance market completed between November 1, 2023, and...more

Ballard Spahr LLP

Case in which CFPB came to financial institutions’ defense dismissed

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An Illinois federal judge has dismissed a proposed class action lawsuit that alleged that two Midwestern banks failed to provide repayment disclosures to borrowers, in a case that was unique because the CFPB came to the...more

Orrick, Herrington & Sutcliffe LLP

CFPB says 2024 federal student loan interest rates will cost borrowers

On September 13, the CFPB published a blog post stating that higher student loan interest rates could cost students over $3 billion in the aggregate in additional interest for loans taken out in 2024. The Bureau reported that...more

Husch Blackwell LLP

CFPB Allegations Result in $120 Million Settlement with Navient

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Earlier this month, the Consumer Financial Protection Bureau (CFPB) resolved its long-running lawsuit against Navient Corporation. The enforcement action culminated in a $120 million settlement of which $100 million was in...more

Orrick, Herrington & Sutcliffe LLP

CFPB publishes BNPL FAQs

On September 18, the CFPB issued Frequently Asked Questions (FAQ) guidance on Buy Now, Pay Later (BNPL) products. The FAQs are organized into three sections: (i) a general description of BNPL products and “Pay-in-Four” BNPL...more

Orrick, Herrington & Sutcliffe LLP

CFPB to ban servicer from federal student loan servicing and pay $120M

On November 12, the CFPB filed a proposed stipulated final judgment and order against a student loan servicer (the defendant) for alleged violations of the CFPA, the FCRA and the FDCPA. As previously covered by InfoBytes, the...more

Ballard Spahr LLP

CFPB’s Frotman: Companies are using technology to squeeze more out of those who can least afford it

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Innovation and technology are not the magic wands that will help low-income Americans climb out of debt; they often are tools used to prey on the neediest people, Seth Frotman, the CFPB’s general counsel told the Poverty Law...more

Sheppard Mullin Richter & Hampton LLP

CFPB Settles Action Against Student Loan Servicer with Industry Ban

On September 12, 2024, the Consumer Financial Protection Bureau (CFPB) filed a proposed order which, if entered by the court, will ban a student loan servicer from servicing federal student loans and require it to pay $120...more

Sheppard Mullin Richter & Hampton LLP

CFPB Penalizes VA Lender for Misrepresenting Cost of Cash-Out Refinance Loans

On August 29, the CFPB issued a consent order against a non-bank direct mortgage lender for misrepresenting the cost of its cash-out refinance loans, which are guaranteed under the VA home loan program, to active-duty...more

Orrick, Herrington & Sutcliffe LLP

CFPB granted default judgment against auto loan servicer

On August 28, the U.S. District Court for the Northern District of Georgia entered an order and opinion granting the CFPB a default judgment in a case against an auto loan servicer (the defendant)....more

GeoDataVision

Section 1071 Rule: The Big Gap Between Small Business Lending and “Covered” Loans

GeoDataVision on

I’ve written articles critical of the Section 1071 Rule and the CFPB’s implementation of the new rule. For example, the scheduled “applicable dates” for data recording and reporting make no sense at all. As currently...more

Cozen O'Connor

CFPB Settles With Mortgage Servicer About Allegedly Misleading Foreclosure Options

Cozen O'Connor on

The CFPB reached a settlement with mortgage servicer Fay Servicing, LLC, to resolve allegations that the company took prohibited foreclosure actions against borrowers and prevented borrowers from taking advantage of loss...more

Orrick, Herrington & Sutcliffe LLP

CFPB offers additional guidance for BNPL lenders during compliance transition

On August 16, the CFPB published a blog post on the CFPB’s approach to working collaboratively with the buy now pay later (BNPL) industry to develop an effective regulatory approach to BNPL loans. The blog post stated the...more

Cadwalader, Wickersham & Taft LLP

CFPB Updates on Buy Now, Pay Later Lending

On August 16th, the Consumer Financial Protection Bureau ("CFPB") Director, Rohit Chopra, published a blog post entitled “What Buy Now, Pay Later lenders are doing to be upfront with borrowers” that follows up on its proposed...more

Ballard Spahr LLP

Regulators Focus on Solar Lending Industry

Ballard Spahr LLP on

On August 7, 2024, the CFPB published an Issue Spotlight on the solar lending industry. In conjunction with the CFPB’s Issue Spotlight, the CFPB, U.S. Department of Treasury, and the Federal Trade Commission also issued a...more

Orrick, Herrington & Sutcliffe LLP

CFPB: Credit card delinquencies can be credited to loosened lending standards

On August 6, the CFPB published a blog post regarding a rise in credit card delinquencies since the Covid-19 pandemic. The Bureau reported an increase in credit scores and a decrease in credit card delinquencies during the...more

Ballard Spahr LLP

CFPB files and prosecutes yet another enforcement lawsuit using funds obtained in violation of the CFPB’s enabling statute...

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The Introduction to the Complaint which was filed by the CFPB on May 17, 2024 against Solo Funding, Inc. in the United States District Court for the Central District of California – Western Division Los Angeles (Judge R. Gary...more

Ballard Spahr LLP

Lender Fights Back Against CFPB Lawsuit, Arguing Unconstitutional Delegation of Power and Other Constitutional Violations

Ballard Spahr LLP on

On July 30, 2024, Heights Finance Holding Co. f/k/a Southern Management Corporation and a group of its wholly-owned, state-licensed subsidiaries (collectively, “Southern”) filed a motion for judgment on the pleadings (the...more

Ballard Spahr LLP

CFPB: Payday Plaintiffs Not Entitled to En Banc Rehearing

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The plaintiffs challenging the CFPB payday lending rule should not be entitled to an en banc rehearing because the issues they cite already have become final and the time for rehearing has lapsed, the CFPB said last week...more

Manatt, Phelps & Phillips, LLP

Why The CFPB’s Earned Wage Access Rule Is Subject To Challenge

Earned wage access (“EWA”) programs are financial products that allow workers to receive payment for wages they have already earned before their next scheduled payday. Many of these programs are integrated into their...more

Ballard Spahr LLP

FirstCash Files Motion for Partial Summary Judgment in Case Filed by CFPB

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FirstCash, a national pawnshop chain, is asking a federal judge to confirm that it has a statutory defense to all of the CFPB’s claims that it violated the Military Lending Act (MLA) while also asking the judge to drop three...more

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