Category Archives: Consumer Financial Protection Bureau

CFPB proposes rules on fees for instantaneously declined transactions and on overdraft fees

The Consumer Financial Protection Bureau yesterday proposed a rule to block banks and other financial institutions from charging non-sufficient funds fees on transactions declined at the time the consumer swipes, taps, or clicks — that is, transactions that the financial institution declines in real time. These types of transactions include declined debit card purchases and […]

CFPB reports on borrowers’ experiences after resumption of student-loan payments

The Consumer Financial Protection Bureau has published a report on student-loan servicing practices since the resumption of federal student loan repayments in the fall, after a three-year payment pause in light of the COVID-19 pandemic. The CFPB report finds that borrowers are “encountering long hold times when trying to reach their student loan servicer, experiencing […]

Baltimore Sun Guest Essay: You’re giving away your rights in those online contracts you don’t read

Here, with Myriam Gilles of Cardozo, Prentiss Cox of Minnesota, and David Vladeck of Georgetown. Excerpt: Perhaps the most consequential documents ever produced in this country are the Constitution and the Declaration of Independence. The Constitution identifies our most important rights, while the Declaration explains why the deprivation of those rights justified the fight for independence. […]

Buy Now Pay Later and Regulation

Buy Now Pay Later, or BNPL, probably would never exist in its current form but for regulation. The Truth in Regulation Act does not apply to loans which are to be repaid in no more than four installments, and BNPL usually provides for repayment in exactly four installments. In other words, BNPL was created to […]

Two CFPB reports find more fee surprises

The Consumer Financial Protection Bureau this week published two reports that show fees on financial products continue to shock consumers. Overdraft and non-sufficient funds fees still trouble vulnerable households. Excess charges from some college-marketed financial products still don’t appear to be in the best interest of students. In building on its continued research on overdraft […]

Nearly 100 members of Congress urge the CFPB to issue a new arbitration rule

More information here. Here’s an excerpt: Consumers must be given a meaningful opportunity to choose how to proceed when disputes arise. Take-it-or-leave-it terms and conditions imposed in a consumer contract, through use of a product, or by signing up for a service does not allow that opportunity. Restoring consumers’ ability to make the choice about […]

The arbitration debate continues: a reply to Mark Levin and Alan Kaplinsky

As regular readers of the blog know, last month some 160 law academics filed with the CFPB a comment supporting the issuance of a new arbitration regulation (disclosure: I served on the drafting committee). Mark J. Levin & Alan S. Kaplinsky of Ballard Spahr recently posted a critique of the law professor comment on the Consumer Finance […]

CFPB critics complain that Bureau is political after fighting to subject it to the political branches

When Congress created the Consumer Financial Protection Bureau, it tried to insulate it from the political branches. Critics of the Bureau have fought to eliminate that insulation. For example, industry actors asserted that the president should have the power to fire the CFPB director without cause, a position that the Supreme Court agreed with in […]

CFPB orders BofA to pay $12 million for reporting false mortgage data

This week, the Consumer Financial Protection Bureau ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government under a long-standing federal law. For at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions as required under […]

Court approves CFPB settlement re training provider’s abusive loan practices

In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged […]