News & Analysis as of

Consumer Financial Protection Bureau (CFPB) Civil Investigation Demand Enforcement Actions

Sheppard Mullin Richter & Hampton LLP

CFPB Wins at the Supreme Court

On May 16, the United States Supreme Court, in a 7-2 ruling, held that the CFPB’s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution. As we previously discussed in greater detail, under the...more

Hudson Cook, LLP

"OVER THE LINE!"  Where Banking and Gaming Intersect, the CFPB Has Something to Say.

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The line between virtual and reality is getting thinner. Gamers pay gaming companies real currency for virtual in-game currency to buy skins, create the world they want to live in (virtually), or purchase loot that aid in...more

Cadwalader, Wickersham & Taft LLP

Second Circuit Rules CFPB Funding Mechanism Is Constitutional, Deepening Split with Fifth Circuit

On March 23, the U.S. Court of Appeals for the Second Circuit ruled that the CFPB’s funding mechanism is constitutional. The case, CFPB v. Law Offices of Crystal Moroney, is significant for two reasons. First, the Second...more

Orrick, Herrington & Sutcliffe LLP

CFPB says ruling on funding structure doesn’t affect debt collector’s CID

In December, the CFPB denied a petition by a debt collection agency to set aside a civil investigative demand (CID) issued last October. The company challenged the Bureau’s authority to issue the CID on the grounds that the...more

Sheppard Mullin Richter & Hampton LLP

CFPB Opts Not to Take Action Against Banking App

Ahead of an upcoming merger between a digital banking platform and a special purpose acquisition company, both parties disclosed in a regulatory filing last week that the platform received a Civil Investigative Demand (“CID”)...more

Goodwin

CFPB Investigating Digital-Payment Company’s Collection Practices

Goodwin on

​On February 5, 2021, a digital-payment company disclosed in a filing with the Securities Exchange Commission (SEC) that they received​ a Civil Investigative Demand (CID) from the Consumer Financial Protection Bureau (CFPB)...more

Ballard Spahr LLP

Ninth Circuit rules CID issued to Seila Law was validly ratified by Director Kraninger

Ballard Spahr LLP on

Less than six weeks after hearing oral argument, a unanimous panel of the U.S. Court of Appeals for the Ninth Circuit ruled that the CID issued to Seila Law was validly ratified by Director Kraninger and affirmed the district...more

Ballard Spahr LLP

CFPB announces significant reorganization prioritizing supervision over enforcement

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In an internal memorandum recently circulated at the CFPB, Bryan Schneider, who leads the Bureau’s Division that houses its supervision, enforcement, and fair-lending functions, announced a major internal reorganization....more

Ballard Spahr LLP

NY Federal District Court Grants CFPB Petition To Enforce CID Ratified By Director Kraninger

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On August 18, Judge Kenneth M. Karas of the Southern District of New York, granted the CFPB’s petition to enforce a civil investigative demand that it issued to the Law Offices of Crystal Moroney prior to the U.S. Supreme...more

Ballard Spahr LLP

CFPB files ratification with Ninth Circuit in Seila Law; Ninth Circuit orders supplemental briefing on ratification

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The CFPB has filed a declaration with the Ninth Circuit in which Director Kraninger stated that she has ratified the Bureau’s decisions to issue a civil investigative demand to Seila Law, deny Seila Law’s request to modify or...more

Hudson Cook, LLP

CFPB, FTC Open for Business: Investigations and Exams Continue (Remotely) During COVID-19 Pandemic

Hudson Cook, LLP on

March 30, 2020 Lucy E. Morris As the public health crisis spreads and worsens, one might think that law enforcement agencies like the Consumer Financial Protection Bureau and Federal Trade Commission would pause enforcement...more

Manatt, Phelps & Phillips, LLP

Savior or Saboteur? The CFPB’s Kraninger Maintains Her Independent Streak

Or perhaps savant? As the Consumer Financial Protection Bureau (CFPB or Bureau) prepares for the most significant challenge to its existence, Director Kathy Kraninger maintained her independent streak this past week, refusing...more

Hudson Cook, LLP

Actions Speak Louder than Words

Hudson Cook, LLP on

One of my all-time favorite sayings is “actions speaker louder than words.” Or, in other words, what you do has a stronger impact on people than what you say.  I can think of no better application of that maxim than to the...more

Burr & Forman

Supreme Court to Decide Whether Structure of the Consumer Finance Protection Bureau is Constitutional

Burr & Forman on

On October 18, 2019, the Supreme Court granted the petition for a writ of certiorari filed in Seila Law LLC v. Consumer Financial Protection Bureau. In granting the petition, the Court agreed to take up two distinct issues....more

ArentFox Schiff

A Common Thread in 2019 CFPB Enforcement Activity: Denials of Petitions to Set Aside CIDs

ArentFox Schiff on

As promised, we return now to provide an overview of the CFPB’s petition activity for the year to-date. In addition to the Bank of America (BofA) petition denial we discussed last month, the CFPB has issued a series of...more

ArentFox Schiff

CFPB Denies Bank of America’s Request to Quash Probe Into Unauthorized Consumer Account Openings

ArentFox Schiff on

As recently as last week, the Consumer Financial Protection Bureau has continued on its campaign of federal consumer protection and enforcement decisions. Namely, we have been sharing with our readers and constituents the...more

Ballard Spahr LLP

Director Kraninger enforces another CID

Ballard Spahr LLP on

A new decision and order from Director Kraninger that, with minor changes, strictly enforces another CFPB civil investigative demand is a further indication that the CFPB’s enforcement activities remain robust under her...more

Ballard Spahr LLP

CFPB to Provide More Specific Notifications of Purpose in Civil Investigative Demands

Ballard Spahr LLP on

On April 23, 2019, the CFPB announced that it will provide more transparency to recipients of Civil Investigative Demands (“CIDs”) on what the investigation is about. ...more

Ballard Spahr LLP

Longstanding BCFP Tactic in Jeopardy After Two Circuits Strike Down CIDs

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The BCPB has historically taken the position that it can use investigations to conduct compliance “sweeps” of entire industries. Indeed, a version of the BCFP’s Enforcement Policies and Procedures Manual made available to the...more

Ballard Spahr LLP

CFPB refuses to set aside or modify CID

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The CFPB, in a decision and order signed by Acting Director Mulvaney, has denied the petition filed by Firstsource Advantage, LLC (Firstsource) to modify or set aside a civil investigative demand (CID) (Petition) that was...more

Ballard Spahr LLP

Democratic state AGs comment on CFPB CID process

Ballard Spahr LLP on

A group of 16 Democratic state attorneys general have sent a letter to the CFPB in response to its Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes. ...more

Ballard Spahr LLP

Ballard Spahr provides comments to CFPB on CID process

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Ballard Spahr attorneys have submitted comments to the CFPB in response to its Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes....more

Ballard Spahr LLP

CFPB seeks comment on consumer financial education programs

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The CFPB has issued a request for information that seeks comment on its consumer financial education programs. Comments on the RFI must be received on or before 90 days after the date the RFI is published in the Federal...more

Ballard Spahr LLP

FTC files comments on CFPB’s CID RFI

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The FTC has filed comments on the CFPB’s Request for Information regarding its civil investigative demands and investigational hearings. ...more

Ballard Spahr LLP

CFPB seeks comment on its guidance and implementation support

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The CFPB has issued a request for information that seeks comment on its guidance and implementation support. Comments on the RFI must be received on or before 90 days after the date the RFI is published in the Federal...more

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