Archive for May, 2020

Bank Regulators Issue New Interim Final Rule Addressing COVID-19-Created Stressors

On May 15, 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, Regulators), proposed a new final interim rule “that temporarily revises the supplementary leverage ratio calculation for depository institutions,” in order to “strengthen…

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CFPB Settles with Lender and Student Loan Debt Relief Companies Over Alleged Misuse of Credit Reports

Piggy Bank with a Graduation Cap

On May 14, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a proposed stipulated judgment and final order with a California-based mortgage lender and several affiliated individuals and companies (collectively, the “lender”) resolving allegations that the lender had obtained consumer credit reports for an improper…

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Fair Lending Considerations in a COVID-19 World: Fair Servicing and Consumer Relief in the U.S.

The sudden financial impact of the COVID-19 pandemic on consumers has led to calls for loan servicers and other interested parties to provide temporary or permanent relief for borrowers who are unable to continue making loan payments.  The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), guidance in the…

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Federal Court Enjoins Enforcement of Massachusetts Attorney General’s COVID-19 Debt Collection Regulation

On May 6, 2020, the U.S. District Court for the District of Massachusetts, in ACA International v. Healey, Case No. 1:20-cv-10767-RGS, enjoined Massachusetts Attorney General Maura Healey (AG Healey) from enforcing provisions of the emergency regulation, 940 CMR 35.00, et seq. (Regulation), prohibiting debt collection calls and initiating lawsuits during…

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CFPB Settles with Colorado Mortgage Servicer for $1.52M for Alleged RESPA Violations


On May 11, 2020, the Consumer Financial Protection Bureau (CFPB) settled with a Colorado-based mortgage servicer that serviced a portfolio of mortgage loans worth approximately $112.69 billion.  According to the CFPB, the Bureau found that the servicer violated the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2601 et seq., and its implementing…

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CFPB Holds Public Advisory Committees Meeting on Impact of COVID-19

On May 1, 2020, the Consumer Financial Protection Bureau (Bureau or CFPB) held a joint virtual meeting of its four advisory committees:  the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council.  The meeting—the Bureau’s first public event since the onset…

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COVID-19 and State Debt Collection Restrictions: What States Are Doing to Curb Debt Collection and the Industry’s Response

A number of state officials and regulators have taken steps to decrease the economic burdens stemming from COVID-19 on consumers in their states, including by placing additional restrictions on debt collection practices.  Among the more notable of these efforts took place on March 26, 2020, when Massachusetts Attorney General (AG)…

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Minnesota AG Settles with Out-of-State Student Loan Debt Settlement Company for Full Restitution of Illegal Fees

​On April 29, 2020, the Minnesota Attorney General’s Office (AG) announced that it had settled its claims against a California-based student loan debt settlement company for alleged violations of Minnesota’s Debt Services Settlement Act, Prevention of Consumer Fraud Act, and Uniform Deceptive Trade Practices Act.  Specifically, the AG alleged that the company…

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California Department of Business Oversight Announces Settlement with Point-of-Sale Lender Over Allegedly Illegal Loans

On April 22, 2020, the California Department of Business Oversight (DBO) announced a settlement with a point-of-sale lender that offered consumers a “buy now, pay later” option for payment.  ​The DBO alleged that these products were akin to lending, but were illegal loans because the lender did not have the…

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