by Jeff Sovern The story is headlined 'Plague on both your houses': Cordray, Noreika get scolding from statisticians. Excerpt: " * * * There isn’t strong evidence either way,” said Bruce Meyer, a professor at the University of Chicago. “There is weak evidence that says more than likely there is a positive effect on the cost […]
Category Archives: Consumer Financial Protection Bureau
by Jeff Sovern The WSJ article is here. Excerpt: Rep. Patrick McHenry of North Carolina introduced a bill to require the three major credit firms—Equifax, Experian PLC and TransUnion—to submit to regular federal cybersecurity reviews for the first time. All three companies also would have to phase out their use of Social Security numbers to verify consumers’ […]
by Jeff Sovern Acting Comptroller of the Currency and former bank lawyer Keith Norieka has an op-ed in The Hill, Senate should vacate the harmful consumer banking arbitration rule, that is seriously flawed. I'm going to write about two of those flaws here. First, Norieka concludes by writing: Instead of mandating only one way to resolve […]
by Jeff Sovern Here. Lots of irony in this one, as you can tell from the headline. A sample: Eighteen groups representing thousands of corporations and banks filed the lawsuit against the Consumer Financial Protection Bureau last Friday in federal court in Dallas. Oddly, they did not attempt to individually resolve the dispute through an arbitration process, […]
by Jeff Sovern There's been a steady drumbeat of criticism for the CFPB from certain members of Congress for not moving sooner on the Wells Fargo unauthorized account scandal. These critics also tend to support legislation, like the Financial Choice Act, which would take away the power the CFPB used to fine Wells Fargo for […]
In an editorial titled President Cordray Strikes Again. This time, it's the payday lending rule that has the WSJ up in arms. Here's the conclusion: The recent rule-makings give the President more cause to dismiss the director, and a D.C. Circuit Court of Appeals panel has held that he can be removed at will. Mr. […]
According to the press release: "The Consumer Financial Protection Bureau (CFPB) today finalized a rule that is aimed at stopping payday debt traps by requiring lenders to determine upfront whether people can afford to repay their loans. These strong, common-sense protections cover loans that require consumers to repay all or most of the debt at […]
by Jeff Sovern The ABA Banking Journal (that's the banking ABA, not the lawyers' ABA) has the story here. Except: The OCC has conducted a study finding that the Consumer Financial Protection Bureau’s arbitration rule is likely to increase the cost of credit by about 25 percent once lenders factor in the cost of class action litigation, […]
by Jeff Sovern Why this week? Deepak Gupta speculated on Twitter: Why is GOP pushing this vote now? Possibly to get ahead of hearings next week at which Equifax and Wells Fargo execs will have to testify. But if that's true, that means that arbitration supporters expect that those hearings will generate opposition to arbitration. […]
The letter is here. Marketwatch has a report headlined 400 college professors say you should be able to sue Equifax and other financial institutions. Excerpt from the report: The professors are sending the letter Monday because it is Sept. 25, the anniversary of when Congress passed the Seventh Amendment to the U.S. Constitution in 1791, which states: […]