Category Archives: Consumer Financial Protection Bureau

My Latest American Banker Op-ed: CFPB Arbitration Plan Provokes Dubious Industry Claims

 by Jeff Sovern Here.  Excerpt: [C]ompanies can use class action waivers to block consumer protection laws unless consumer protection laws find a way to block class action waivers. * * * Last month, the bureau made public a proposal to block class action waivers in arbitration clauses. A leading advocate for arbitration in the financial […]

American Banker: Why that Orwellian Anti-CFPB Ad Could Backfire

Allison posted yesterday about the anti-CFPB ad.  The American Banker's Rachel Witkowski and Rob Blackwell have more here. Among their reasons for saying it could backfire: "the ad is over the top;" "Consumer credit isn't tighter since the CFPB's creation;" and "The ad's sponsor has connections to a company under investigation by the CFPB."

Elizabeth Warren in HuffPo: The Banking Industry’s Transparent Attempt to Weaken the CFPB

Here. The entire essay is worth reading, but here's an excerpt to whet your appetite:   The latest industry-sponsored bill would fundamentally change the structure of the CFPB by replacing the agency's single, independent director with a commission of political appointees. * * * [T]he agency is working, which may be exactly why the big […]

Experts Disagree Over Whether Earth is Flat and CFPB Has Power to Regulate Arbitration Clauses

by Jeff Sovern Did Congress give the CFPB the power to ban or regulate arbitration clauses in consumer financial contracts?  Not according to a Pepper Hamilton partner, according to a pair of recent reports.  Here's an excerpt from a piece at credit.com. The CFPB’s Arbitration Ban Could Be the Next Supreme Court Showdown: “It comes down […]

Michael Barr Article on Arbitration

Michael S. Barr of Michigan has written Mandatory Arbitration in Consumer Finance and Investor Contracts, 11 New York University Journal of Law and Business (2015). Here is the abstract: Mandatory pre-dispute arbitration clauses are pervasive in consumer financial and investor contracts — for credit cards, bank accounts, auto loans, broker-dealer services, and many others. These […]

Housing Wire: House passes bipartisan TRID grace period bill 303-121

by Jeff Sovern Here. The first paragraphs read: Defying the threat of a White House veto, the House on Wednesday afternoon passed bipartisan legislation to help homebuyers avoid delays and disruptions when closing on their new homes by a bipartisan vote of 303-121. The bill, the Homebuyers Assistance Act, provides a four-month grace period for businesses that […]

CFPB Considering Ban on Class Action Waivers in Arbitration Clauses

The Bureau's announcement is here.  An excerpt: Today the Consumer Financial Protection Bureau (CFPB) announced it is considering proposing rules that would ban consumer financial companies from using “free pass” arbitration clauses to block consumers from suing in groups to obtain relief. Buried in many contracts for consumer financial products like credit cards and bank […]

WSJ: Dodd-Frank’s Effect on Small Banks is Muted; Law has raised costs, but by some measures community banks are quite healthy; low interest rates pose bigger hit to profits, observers say

Despite complaints from some that Dodd-Frank has led to the closing of community banks, the Wall Street Journal reports something different here. Some excerpts: It's a favorite lament of community banks: The 2010 Dodd-Frank law is squeezing small financial firms and crimping access to credit for Main Street, all in the name of protecting the […]

MarketWatch: Dodd-Frank is not killing mortgage access for home buyers

The story, based on a Fed study, is here. Excerpt: New rules designed to make sure borrowers can repay their mortgages haven’t curtailed the ability to buy a home, a Federal Reserve study says. * * * The Fed study didn’t find any evidence of credit restriction as a result of the rules. For instance, […]