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 […]
Category Archives: Consumer Financial Protection Bureau
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 […]
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 […]
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 […]
Reuters’s Allson Frankel has the story here, and also reports on industry opposition. The original petition, as well as the comments, can be read here. Here’s an excerpt from the law professor comment (disclosure: I served on the drafting committee): Multiple studies have demonstrated that consumers do not understand arbitration clauses. In contrast, no study […]
The Consumer Financial Protection Bureau announced today that it has ordered Citi to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. The CFPB explains: “From 2015 through 2021, Citi singled out for discrimination applicants for certain credit card products, based […]
The Consumer Financial Protection Bureau is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps. The CFPB explains: “Driven largely by Big Tech and other large technology firms, digital payment apps and wallets continue to grow in popularity, but many of the companies are not subject to CFPB supervisory […]
More about the lower court opinion here. Given the Fifth Circuit’s politics, I’m not sure things will fare any better there, but hope is the thing with feathers. Even the Fifth Circuit must reach the correct decision sometimes.
The Consumer Financial Protection Bureau just announced a proposed rule under section 1033 of the Consumer Financial Protection Act of 2010 to address personal financial data rights that would ensure consumers have certain protections and control over their information. Among other things the rule would: Require financial institutions to share data with other entities at […]