Search Results: CFPB

Fifth Circuit Issues Decision Holding that the Funding Mechanism for the Consumer Financial Protection Bureau Is Unconstitutional

On October 19, 2022, the Fifth Circuit Court of Appeals (Fifth Circuit) held that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional and violates the Appropriations Clause of the Constitution.  Community Fin. Services Assoc. of Am. Ltd., No. 21-50826 (5th Cir. Oct. 19, 2022).  In light…

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CFPB Releases Supervisory Highlights Regarding Practices of Student Loan Servicers and University-Owned Lenders

In September 2022, the Consumer Financial Protection Bureau (CFPB) released a special edition of Supervisory Highlights regarding recent examination findings related to student loan servicing.  The Supervisory Highlights focus on three sets of “significant supervisory findings:”  (i) blanket policies to withhold transcripts in connection with an extension of credit are abusive…

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CFPB Enters Into $950,000 Consent Order With Non-Bank Remittance Transfer Provider

On October, 4, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it reached a settlement with a non-bank remittance transfer provider to resolve alleged violations of the Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., and its implementing Regulation E, 12 C.F.R. Part 1005, including Subpart B (known as the Remittance…

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CFPB Issues Circular Confirming that Financial Companies May Violate Consumer Financial Protection Law by Failing to Protect Consumer Data

In August 2022, the Consumer Financial Protection Bureau (CFPB) published a circular confirming that, under certain circumstances, entities may “violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security.”  The circular sets forth the CFPB’s analysis…

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CFPB Launches Lawsuit Against Online Lender Alleging Violations of the Military Lending Act

​On September 29, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit in the United States District Court for the Southern District of New York against an online lender and 38 of its subsidiaries for alleged violations of the Military Lending Act (MLA), 10 U.S.C. § 987, and its implementing regulation, 32…

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CFPB Requires Bank to Pay Over $190 Million for Overdraft Fees

On September 28, 2022, the Consumer Financial Protection Bureau (CFPB) an​nounced that it ordered an Alabama bank to pay over $190 million to resolve allegations that it charged its customers surprise overdraft fees between August 2018 and July 2021. The CFPB alleges that the bank was charging consumers surprise overdr​aft fees, known as authorized-positive ​fees, on…

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CFPB Fines Bank for Accessing Customer Credit Reports and Opening Accounts, Credit Cards, and Lines of Credit Without Customers’ Permission

On July 28, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against a large bank (the Bank), claiming that the Bank created sales pressure on its employees that encouraged employees to illegally access customer credit reports and to open checking and savings accounts, credit cards, and lines…

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CFPB Enters Into Consent Order with Fintech Company for $2.7 Million

​On August 10, 2022, the Consumer Financial Protection Bureau (CFPB) announced ​that it entered into a consent order with a California Fint​ech company for allegedly engaging in deceptive acts and practices in violation of the Consumer Financial Protection Act. According to the CFPB, the company offered an automatic savings tool to customers through which customers would grant the…

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CFPB and DOJ Order Mortgage Company to Pay Over $22 Million for Advertising and Marketing Discrimination

On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) filed a complaint and proposed consent order in a federal district court alleging that a mortgage company intentionally discriminated against families living in majority-minority neighborhoods around Philadelphia in violation of the Fair Housing Act…

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CFPB Enters Into $37.5 Million Penalty With Large National Bank

On July 28, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a large national bank to resolve alleged violations of the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., and its implementing regulation, Regulation Z (Reg Z), 12 C.F.R. part 1026; the Fair Credit…

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CFPB and DOJ Reach $24.4 Million Settlement with Mortgage Originator for Alleged Lending Discrimination

On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) announced that they reached a settlement with a nonbank residential mortgage lender to resolve allegations of race-based lending discrimination in violation of the Fair Housing Act (FHA), 42 U.S.C. §§ 3601-3619; the Equal Credit Opportunity Act…

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CFPB Settles with Auto Lender for $19 Million to Resolve Alleged FCRA Violations

​On July 26, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it settled with a California-based auto lender who purchases and services retail installment contracts and vehicle leases for an affiliated automaker.  The settlement resolves alleged violations of the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681 et seq., and…

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CFPB and NY AG Reach $4 Million Settlement with Debt Collectors

On May 23, 2022, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NY AG) announced that they have settled a case filed against six New York debt collection companies and affiliated individuals, resolving a one-and-a-half year enforcement action.  The original complaint ​was filed on September 20, 2020 in the U.S. District Court for the Western…

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CFPB Orders Debt-Relief Payment Processors to Pay $11 Million in Redress and Penalties

​On May 11, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had resolved an enforcement action against two debt-relief payment processors and one of their co-founders. The CFPB alle​ged the processors improperly collected debt relief fees from consumers, misled consumers about timing of fee payments, and sent illegal fee advancements to debt-relief companies….

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CFBP and NY AG Sue Global Payment Company

On April 21, 2022, the Consumer Financial Protection Bureau (CFPB) anno​unced ​a joint enforcement action with the New York Attorney General (NY AG) against one of the largest international remittance providers in the United States. The seven-count complaint, filed in U.S. District Court for the Southern District of New York, challenges the Dallas-based company’s remittance…

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CFPB Sues TransUnion and Senior Executive for Violating Law Enforcement Order Prohibiting Deceptive Marketing

On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in federal court against TransUnion, two of its subsidiaries, and its longtime executive for failing to implement requirements of the CFPB’s 2017 law enforcement  order to TransUnion, and for violating Regulation V, which…

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CFPB Proposes Rule to Assist Survivors of Human Trafficking in Obtaining Credit

On April 7, 2022, the Consumer Financial Protection Bureau (CFPB) announced it is proposing a rule that would assist survivors of human trafficking in achieving financial independence.  The proposed rule would aid survivors of human trafficking seeking to open bank accounts, access credit, and gain employment, by preventing credit reporting…

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CFPB Files Lawsuit Against TransUnion for Deceptive Marketing

On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced ​that it filed a lawsuit against TransUnion and the company’s former executive.  The complaint​, filed in the U.S. District Court for the Northern District of Illinois, alleges that TransUnion violated a 2017 CFPB consent order which resolved allegations that the company deceptively marketed credit scores…

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