Category Archives: Consumer Financial Protection Bureau

CFPB director reports to Congress on agency’s activities and yes, its funding

Consumer Financial Protection Bureau Director Rohit Chopra appeared before the U.S. Senate Banking Committee Wednesday, and the U.S. House Committee on Financial Services on Thursday, to testify on the CFPB’s semi-annual report to Congress. The hearings took place a few weeks after the Supreme Court confirmed that the Bureau’s congressionally-designated funding via the Federal Reserve […]

CFPB proposes rule removing medical bills from credit reports

Yesterday, the CFPB announced a proposed rule that would remove medical bills from most credit reports and add other limitations on the use of medical debt in lending. The agency’s press release is available here, and the proposed rule is available here. Comments will be open until at-least mid August.

Is the CFPB facing still another challenge?

Shortly after the Supreme Court upheld the CFPB’s constitutionality in the CFSA case, Harvard Emeritus Professor Hal Scott published an op-ed in WSJ, The CFPB’s Pyrrhic Supreme Court Victory (behind paywall) claiming that the CFPB has still another problem to deal with. Professor Scott’s essay, along with another piece posted on a Federalist Society website […]

Is payday lending the fentanyl of consumer lending?

Some years back, I had major surgery. When I woke up after the surgery, I was on fentanyl for pain relief. The following day, I was stepped down to morphine. Morphine was less effective at blocking the pain, but the staff explained that it was too risky to keep me on fentanyl. And in the […]

CFPB finalizes rule requiring companies report adverse orders

The CFPB today announced a final rule that will require nonbank financial companies subject to Dodd-Frank to register and report if they have been subject to certain final orders from agencies or courts based on violations of certain consumer laws, and imposing injunctive or remedial relief. In the agency’s press release, it indicated it will […]

How would the CFPB fare under Heritage’s Project 2025?

The Heritage Foundation has created what it describes as “the conservative movement’s unified effort to be ready for the next conservative Administration to govern” in a document titled Mandate for Leadership: The Conservative Promise, with a subheading of Project 2025; Presidential Transition Project. As far as I know, no presidential candidate has adopted it. It […]

NCLC’s Lauren Saunders on payday lenders’ vow to continue battling the CFPB rule: “It’s a sign of how fundamentally predatory your business model is, that after they’ve made unaffordable loans and put people into a debt trap, they can’t even comply with a rule that merely prevents them from continuing to hit people’s accounts.”

That quote appears in an article by Polo Rocha in the American Banker headlined After loss at Supreme Court, payday lenders vow to keep fighting CFPB (behind paywall but available on Lexis). As the article explains “The CFPB rule, which has never taken effect, would prohibit payday lenders from making another attempt after a payment fails […]

Report describes problems with credit-card rewards programs

The Consumer Financial Protection Bureau analyzed several hundred consumer complaints relating to the administration of credit card rewards programs and identified four recurring themes that resulted in consumers not receiving the rewards they were promised: (1) unexpected promotional conditions, (2) devaluation, (3) redemption problems, and (4) revocation. The report is here.

Supreme Court upholds CFPB funding

The U.S. Supreme Court today, in a 7-2 decision, ruled in favor of the Consumer Financial Protection Bureau, rejecting a challenge brought by payday lenders to Congress’s decision about how to fund the agency. The case came to the Court after the Fifth Circuit Court of Appeals’ unprecedented ruling that funding for the Bureau’s violates […]

Federal district court in Texas enters preliminary injunction against CFPB’s $8 credit card late fee safe harbor.

Bloomberg’s Evan Weinberger has the story, as well as a link to the opinion, here. (Behind a paywall.) Addendum from Allison: The order granting an injunction is here. CNBC’s story is here.