The Consumer Financial Protection Bureau has issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models. The agency explains: “The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers. This means that creditors cannot simply use CFPB sample adverse […]
Bloomberg Law’s Evan Weinberger has the story here (may be behind paywall), including a link to the petition. Weinberger later posted on what used to be called Twitter the CFPB’s response to his request for comment. The petition relies heavily on Roseanna Sommers’ study, which we discussed here.
The CFPB today issued a report finding that “payment plans” offered by various postsecondary schools can carry risks to students, as they often include high fees, confusing and inconsistent disclosures, forced arbitration agreements, and snowballing interest. The Bureau also found that the third-party service providers schools partner with can engage in abusive debt collection practices. […]
On Friday, a Texas district judge held that the CFPB’s authority to prohibit “unfair, deceptive, or abusive acts or practices” does not authorize the agency to regulate discrimination as one such practice, invoking the major questions doctrine. As such, in a win for the Chamber of Commerce, he vacated the CFPB’s March 2022 update to […]
This week, the Consumer Financial Protection Bureau entered into a proposed settlement with a ring of corporate entities operating some of the largest credit repair brands in the country, including Lexington Law and CreditRepair.com. The agreement follows a court ruling that the companies collected illegal advance fees for credit repair services through telemarketing in violation […]
We have been asked to announce the following webinar (I am definitely looking forward to hearing this one): The U.S. Supreme Court’s Decision in CFSA v. CFPB: Who Will Win and What Does It Mean?A special webinar roundtable featuring analysis of the oral argument by several renowned attorneys who filed amicus briefs on all sides […]
The Consumer Financial Protection Bureau is taking applications for Honors Attorneys. Read about the job here. Applications will be accepted through September 11. Apply through USAJobs here.
Ever since the Fifth Circuit Court of Appeals held last year in Community Financial Services Association (CFSA) v. CFPB that the Consumer Financial Protection Bureau’s funding structure violates the Constitution’s Appropriations Clause and the Supreme Court agreed to review the decision, the CFPB’s ability to complete its work has been stalled. In just the last […]
Regular readers of the blog will recall that after the CFPB announced that it interpreted its power to proscribe unfair practices as reaching discriminatory conduct, the Chamber of Commerce and various banking trade organizations sued the Bureau in the Eastern District of Texas (it’s always Texas) challenging the Bureau’s determination. Both sides later moved for […]
The Consumer Financial Protection Bureau has released a new Supervisory Highlights report describing unfair, deceptive, and abusive acts or practices across many consumer financial products. For example, auto lenders have originated loan balances above the real value of the car being purchased and engaged in illegal collection practices while servicing these loans. The latest edition […]