Search Results: CFPB

CFPB Announces New Proposed Rule to Target Junk Fees

On January 24, 2024, the Consumer Financial Protection Bureau (CFPB) announced a new proposed rule as part of the CFPB’s broader strategy of targeting junk fees.  This proposed rule would “prohibit non-sufficient funds (NSF) fees on transactions that financial institutions decline in real time.” These fees apply to “transactions declined…

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CFPB and Several States Order Vocational Education Company to Pay Fines, Cancel Loans, and Cease Operations After Allegedly Deceptive Loan Practices

On November 20, 2023, the Consumer Financial Protection Bureau (CFPB) announced that, in conjunction with 11 states, it entered into a stipulated final judgment with a Delaware-based vocational education company that advertises itself as a “workplace accelerator” and its affiliates for alleged violations of the Consumer Financial Protection Act (CFPA), the Truth…

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CFPB and DOJ Sue Land Developer Over Allegations of Discriminatory Lending

​On December 20, 2023, the CFPB announced that, along with the DOJ, it had filed suit against a Texas-based developer and lender for operating an allegedly illegal land sales scheme that targeted Hispanic borrowers. ​The complaint, filed in the U.S. District Court for the Southern District of Texas, alleges that the lender sells…

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CFPB Issues Consent Order Against Third-Party Debt Collector

On December 15, 2023, the CFPB announced​ that it entered into a consent order​ with a medical debt collector resolving allegation​s that the debt collector tried to collect unverified medical debts after consumers disputed the validity of those debts. The CFPB alleges that the company failed to conduct reasonable investigations of disputed debts and failed to inform consumer reporting companies…

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The Justice Department and Consumer Financial Protection Bureau Issue Joint Statement Focused on Antidiscrimination in Lending Practices

Last month, the Justice Department (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a joint statement that reminded financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics covered by the Equal Credit Opportunity Act (ECOA), regardless of…

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“Open Banking” Promoted in New CFPB Rule

In October 2023, the Consumer Financial Protection Bureau (CFPB) proposed a new rule intended to encourage “open banking”.  “Open banking” is a practice of sharing, with consent, consumers’ banking and financial data (account balances, transaction history, payment due dates, routing numbers, and the like) with third-party vendors who in turn…

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Pursuant to Consent Order with CFPB, National Bank to Pay $25.9 Million for Alleged Discrimination Against Armenian Americans

O​n November 8, 2023, the CFPB and a national bank entered into a consent order​ to resolve allegations that the bank engaged in intentional discrimination against Armenian Americans who had applied for credit cards with said bank. Specifically, the CFPB alleges that between 2016 and 2021, the bank singled out…

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CFPB Updates Exam Manual in Light of the United States District Court for the Eastern District of Texas’s Ruling in the U.S. Chamber of Commerce Litigation

As previously reported, on September 8, 2023, the United States District Court of the Eastern District of Texas granted plaintiff U.S. Chamber of Commerce’s (the “Chamber”) motion for summary judgment, which invalidated the Consumer Finance Protection Bureau’s (“CFPB”) Exam Manual changes from March 2022 that stated that discriminatory conduct may…

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FTC and CFPB Announce $15 Million Settlement Against Credit Reporting Agency For Alleged Inaccuracies In Tenant Screening Reports

​On October 12, 2023, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) announced that they filed a joint complaint​ and obtained a $15 million settlement​ against a parent credit reporting agency and one of its subsidiaries for alleged violations of the Fair Credit Report Act (FCRA) with respect to tenant…

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CFPB Files Complaint Against Mortgage Originator For Allegedly Inaccurate HMDA Reporting

On October 10, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint​ against a residential mortgage loan originator and servicer alleging that the company violated the Home Mortgage Disclosure Act (HMDA), its implementing Regulation C, the Consumer Financial Protection Act (CFPA), and a recent 2019 consent order​. The company allegedly reported HMDA…

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CFPB Issues Consent Order Against Credit Reporting Agency For Alleged Failures to Timely Place Credit Freezes And Locks On Conumser Reports

​​On October 12, 2023, the Consumer Financial Protection Bureau (CFPB) issued a consent order and a stipulation ​against a parent credit reporting agency and two of its subsidiaries for for alleged violations of the Fair Credit Report Act (FCRA) and the Consumer Financial Protection Act (CFPA). The CFPB alleged that as early as…

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The CFPB Proposal to Remove Medical Debt from Credit Report

The Consumer Financial Protection Bureau (CFPB) is moving forward with a rulemaking proposal to change the process of reporting medical debt on consumer credit reports.  Specifically, the rulemaking proposal the Bureau is considering had two main parts.   First, it prohibits credit reporting companies from including medical debts and collection information on…

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U.S. Chamber of Commerce Wins Summary Judgment in Challenge to CFPB’s Update to Its Examination Manual

On September 8, 2023, the United States District Court of the Eastern District of Texas granted plaintiff U.S. Chamber of Commerce’s (the “Chamber”) motion for summary judgment invalidating the Consumer Finance Protection Bureau’s (“CFPB”) Exam Manual changes from March 2022 that stated that discriminatory conduct may be a UDAAP violation….

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CFPB Analyzes Mobile Device Tap-To-Pay Market as Possible Precursor to New Regulation

On September 7, 2023, the Consumer Financial Protection Bureau (CFPB) published its analysis of how smartphone companies are affecting consumers’ use of so-called “tap-to-pay” technology – the wireless transfer of data over very short distances, used in financial transactions conducted at the point of sale.  Concluding that “tech companies are…

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