The New York Times reports that members of a special team at the Education Department that had been investigating widespread abuses by for-profit colleges have been marginalized, reassigned or instructed to focus on other matters, according to current and former employees. The unwinding of the team has effectively killed investigations into possibly fraudulent activities at […]
by Jeff Sovern Acting CFPB Director Mick Mulvaney doubles as OMB director, meaning that he is doing two full-time jobs, and that therefore the CFPB does not have a full-time director. But the next director may be at the Bureau even less often than Mulvaney. As Allison has noted, reports indicate that the president intends […]
by Jeff Sovern One of my students told me about Tinder's new retroactive arbitration clause which, of course, includes a class action waiver. As with many such contracts, consumers accept it by using the service, regardless of whether they have read it or not–and we know few consumers actually read such things. The arbitration clause, […]
Federal consumer watchdog plays down changes to its student protection unit From the Washington Post: A federal consumer watchdog Thursday played down controversial plans to fold the student arm of the agency into another office, following the leak of a memo outlining the move. Mulvaney sent a memo Wednesday informing staffers of a reorganization that […]
by Jeff Sovern Alan Kaplinsky and Chris Willis, on the one hand, and Adam Levitin, on the other, have been dueling over the impact of Congress’s use of the Congressional Review Act to disapprove of the CFPB’s Indirect Auto Lending Guidance. Those of us interested in consumer financial law are lucky to have these titans […]
by Jeff Sovern Glen Thrush has an article in the Times headlined Mulvaney Demotes Unit That Polices Student Loans in Consumer Bureau Reshuffle. Excerpt: The change comes at a critical moment in the agency’s effort to rein in abuses in the student loan industry. The program, started under the Obama administration, has clawed back about $750 […]
The Sixth Circuit today decided Health One Medical Center v. Mohawk, a mighty strange case under the Telephone Consumer Protection Act (the federal anti-junk-fax statute). The first paragraph of Judge Kethledge's opinion sums it up: Some questions seem to arise only in class-action lawsuits. Here, a seller of prescription drugs sent junk faxes to various medical […]
by Jeff Sovern It sounds like the House will vote on, and presumably pass, the Senate bill as is. In return, the Senate will take up certain as-yet-unidentified House bills that passed by a margin of at least two-thirds, meaning that at least some Democrats voted for them. It's not clear, but it looks like […]
Joseph Lawler reports in the Washington Examiner. Excerpt: [T]he resolution passed Tuesday raises a tricky legal question regarding what it means for Congress to disapprove of informal guidance that an agency sends to businesses. When Congress disapproves of a rule enforced by an agency, the meaning is clear: The agency is not allowed to enforce […]
American Banker reports that the "White House is dragging out the nomination of a permanent director for the Consumer Financial Protection Bureau to ensure that acting CFPB Director Mick Mulvaney calls the shots at the agency until the end of the year or longer." President Trump is expected to name J. Mark McWatters, the chairman […]