On June 12, 2023, an Eleventh Circuit panel issued an opinion affirming a sanctions order against the Consumer Financial Protection Bureau (CFPB) premised on the CFPB’s “derail[ment]” of multiple depositions in contravention of the district court’s instructions. See Consumer Financial Protection Bureau v. Brown, Case 21-14468 (11th Cir. June 12,…
On June 6, 2023, the Consumer Financial Protection Bureau (CFPB) issued a Spotlight on financial institutions’ growing use of “chatbots” as a means to provide cost-effective customer service. The use of chatbots in customer service has been gaining popularity among financial institutions in recent years. The ten largest commercial banks…
On June 8, the CFPB announced it had entered into a consent order with a third-party debt collector over allegations of illegal medical debt collecting practices and unfair credit reporting. The CFPB asserted that the company attempted to collect on unsubstantiated debt in over a thousand cases. According to the CFPB, its…
On May 31, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an Indiana-based non-bank installment lender. The consent order alleges that the lender engaged in unfair, deceptive, and abusive acts or practices concerning the “marketing, sales, and financing of optional ancillary products” that it offered. Specifically, the…
On Tuesday May 23, the CFPB announced it had reached a settlement with a large bank to resolve allegations that the bank had violated consumer protection laws in connection with credit card transactions. The CFPB alleged that the bank “failed to properly manage and respond to customers’ credit card disputes and…
On Monday May 10, 2023, the Consumer Financial Protection Bureau (CFPB or the Bureau) released a circular regarding the Bureau’s newest guidance that if a “financial institution unilaterally reopens [deposit] accounts to process debits or deposits, it can constitute an unfair practice under the [Consumer Financial Protection Act of 2012]…
On May 4, 2023, the CFPB issued a report titled Medical Credit Cards and Financing Plans (the “Report”) that summarized the new developments in medical financing and the associated risks with these products. The Report complements the CFPB’s April 26, 2023 report that analyzed a sample of final medical collection…
On May 5, 2023, the CFPB announced it would be sending $22.3 million in refund checks to consumers who lost money in credit card relief schemes. The CFPB sent 6,523 refund checks to damaged consumers. The relief is part of a settlement the CFPB reached with a Maryland-based debt-relief and credit-repair…
On May 1, 2023, the Consumer Financial Protection Bureau (CFPB) issued a report and a proposed rule to clarify and strengthen its regulation of so-called Property Assessed Clean Energy (PACE) financing. PACE. PACE financing is home improvement financing secured by a tax lien, rather than a mortgage. See 15 U.S.C. 1639C(b)(3)(C)(i)….
Last fall, the United States Court of Appeals for the Fifth Circuit found that the CFPB’s independent funding through the Federal Reserve was in violation of the Appropriations Clause and the underlying separation of powers principles. Community Financial Services Ass’n of America, Ltd. v. CFPB, 51 F.4th 616 (5th Circ….
On April 3, 2023, the Consumer Financial Protection Bureau (CFPB) filed a notice to appeal a district court’s decision to dismiss its complaint against Townstone Finance, Inc. (Townstone), a nonbank mortgage lender, and its owner Barry Sturner, for allegedly violating the Equal Credit Opportunity Act (ECOA). Relying on the language…
On April 3, 2023, the Consumer Financial Protection Bureau (CFPB) issued a policy statement with guidance on what constitutes “abusive conduct” under the Consumer Financial Protection Act (CFPA). The CFPA, enacted in 2010 in response to the financial crisis, prohibits “abusive conduct” in consumer financial markets and identifies two categories…
On Thursday March 23, 2023, a three-judge panel of the Second Circuit unanimously ruled that the Consumer Financial Protection Bureau’s (CFPB) funding structure is constitutional, creating a circuit split between the Second Circuit and the Fifth Circuit on the issue. CFPB v. Law Offices of Crystal Moroney, P.C., No. 20-3471 (decided…
On March 2, 2023, the Consumer Financial Protection Bureau (CFPB) issued a report (Report) exploring the financial profiles of consumers of Buy Now, Pay Later (BNPL) products. The Report is based on the CFPB’s 2022 Making Ends Meet survey, which included data from 2,036 consumers and data from credit bureaus. …
On February 27, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a mortgage lender, resolving allegations that the lender engaged in “a series of repeat offenses,” including violating a 2015 order prohibiting the lender from engaging in allegedly deceptive advertising. According to the CFPB, the lender sent advertisements to…
On February 23, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with an auto lender based in Georgia. The order resolves allegations that the lender engaged in unfair practices and predatory lending as to military families on auto title loans in violation of the Consumer Financial Protection Act (CFPA), 12…
Global law firm Goodwin today announced the release of its seventh annual Consumer Finance Year in Review. Produced by the firm’s Consumer Financial Services Litigation and Enforcement + Government Investigations practices, and authored by partners Anthony Alexis, Sabrina Rose-Smith, Kyle Tayman, Levi Swank, Matt Riffee, and Christina Hennecken, the in-depth…
On February 1, 2023, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule with request for public comment to amend Regulation Z, the implementing regulation of the Truth in Lending Act (TILA), to “better ensure that the late fees charged on credit card accounts are ‘reasonable and proportional’ to…
On February 3, 2023, the U.S. Court of Appeals for the District of Columbia Circuit (DC Circuit) issued a decision regarding the disclosure requirements of the Consumer Financial Protection Bureau’s (CFPB) Prepaid Rule. In PayPal, Inc. v. CFPB, No. 21-5057 (D.C. Cir. 2023) (PayPal), a unanimous panel of the DC…
On February 3, 2023, the United States District Court for the Northern District of Illinois granted Defendants Townstone Financial, Inc., a mortgage broker/lender, and Barry Sturner’s, Townstone’s owner, motion to dismiss the Consumer Financial Protection Bureau’s (CFPB or Bureau) redlining complaint brought under the Equal Credit Opportunity Act (ECOA), ECOA’s…