CNBC has the story here. Three of the top four are the big three credit bureaus. The Consumer Bankers Association is dismissive of the findings. Quoting now from Marketplace: “They're basically in the shaming of banks business by providing what I call a ‘David Letterman Top 10 List’ of complaints,” says Richard Hunt, president of […]
Category Archives: Consumer Financial Protection Bureau
Jacob Hale Russell of Stanford has written Misbehavioral Law and Economics: Separating and Pooling in Responses to Consumer Financial Mistakes. Here is the abstract: Consumers’ choices in financial contracts do not always tell us what they really want. Put differently, revealed preferences are sometimes unreliable indicators of actual preferences. For instance, consider two consumers who […]
Here. Excerpt: * * * Congressmen Steve Womack (AR-3) and Tom Graves (GA-14) wrote an amendment to an appropriations bill that ignores all the evidence in the [2015 CFPB Arbitration] report. Unsurprisingly, they both have received consistent financial support for years from banking lobbyists. Adopted by voice vote within a matter of minutes, the amendment […]
Here. (HT: Gregory Gauthier)
by Jeff Sovern CFPB Monitor is reporting: [T]he House Appropriations Committee has approved an amendment to the FY 2016 Financial Services Appropriations bill that would impose new requirements on the CFPB before it can issue a rule governing arbitration agreements. The amendment, which was introduced by Republican Representatives Steve Womack and Tom Graves, reportedly would […]
Here. (HT: Matt Bruckner). Excerpt: After studying overdraft fees for more than three years, the Consumer Financial Protection Bureau is leaning against subjecting banks to tough new rules that would cap the size of charges or limit how frequently they can be imposed on consumers, said two people briefed on the agency’s work. More likely, […]
Here. An excerpt: The American Bankers Association, however, says its members aren’t ready. And it blames the vendors who supply the software and system upgrades needed for regulatory compliance. In a survey released earlier this month, 79 percent of responding banks said their vendors either had not verified a delivery date for the software updates […]
by Deepak Gupta One of the most important but under-appreciated features of the Dodd-Frank Act was its establishment of the Financial Stability Oversight Council—a new entity with a clear statutory mandate to identify and respond to systemic risks to the entire U.S. economy. The authority was inspired by the failures of entities like the insurance […]
Lauren E. Willis of Loyola Los Angeles has written what looks like another important article, The Consumer Financial Protection Bureau and the Quest for Consumer Comprehension. Here is the abstract: To ensure that consumers “understand [financial products’] costs, benefits, and risks,” the CFPB has been redesigning mandated disclosures, primarily through iterative lab testing. But no […]
by Jeff Sovern Senator Shelby, chair of the Senate Banking Committee, Housing and Urban Affairs Committee, has released a discussion draft of “The Financial Regulatory Improvement Act of 2015.” The draft provides in Section 117, that the CFPB's new mortgage disclosures (sometimes called the "TRID Rule"), promulgated way back in November of 2013 and scheduled […]