Search Results: Consumer Protection

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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Washington Attorney General Announces Recovery in Student Debt Adjuster Investigations

On October 17, 2023, the Washington State Attorney General (AG) announced that over the course of 2023, they had recovered approximately $360,000 in restitution from three out-of-state debt adjusters for alleged predatory student debt adjustments in violation of the Debt Adjustment Act.​ The Debt Adjustment Act limits the amount of fees a debt adjuster…

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48 States Settle with Payment Processor Over Unauthorized Withdrawal Claims for $10 Million

On October 17, 2023, the California Attorney General announced that 48 states, Washington D.C., and Puerto Rico had reached a $10 million settlement with a payment processing company related to allegations of attempted unauthorized withdrawals related to a testing error on the part of the processing company. According to the press release,…

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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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CFPB and Justice and Consumer Protection of the European Commission Announce Plans for an "Informal Dialogue"

On July 17, 2023, Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission and Rohit Chopra, Director of the Consumer Financial Protection Bureau, announced the start of an “informal dialogue” between their two agencies. Reynders and Chopra indicated that the dialogue would cover a variety of important…

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Bureau Sues Lease-to-Own Company for its Financing Options to Asset Limited Consumers

On July 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) sued Snap Finance LLC, Snap R TO LLC, Snap Second Look LLC, Snap U.S. Holdings LLC, and Snap Finance Holdings LLC (collectively, the Snap Defendants or Snap).  The complaint alleged that the Snap Defendants violated the: Consumer Financial Protection Act…

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CFPB and States Launch Enforcement Action Related to Student Loans

On July 13, 2023, the CFPB and various state attorneys general, along with California’s Department of Financial Protection and Innovation, filed an adversary proceeding against a sales training company for deceptive marketing and debt collection practices relating to the company’s allegedly illegal student loan program. The eight-count complaint, filed in the United States Bankruptcy Court…

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CFPB, U.S. Department of Health and Human Services, and U.S. Department of Treasury Initiate Public Inquiry into Financial Products Targeted at Healthcare Costs

On July 7, 2023, the Consumer Financial Protection Bureau (CFPB), U.S. Department of Health and Human Services (DOH), and U.S. Department of Treasury (DOT) initiated a public inquiry into certain financial products, such as medical credit cards and installment loans that the CFPB characterized as “high-cos specialty products.”  The CFPB,…

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Minnesota AG Sues For-Profit Educational Provider for Deceptive Marketing and Lending Practices

On July 13, 2023, Minnesota Attorney General Keith Ellison filed an enforcement action against a for-profit educational provider alleging the educational provider engaged in deceptive marketing and lending practices.  The suit was filed in Delaware Bankruptcy Court in partnership with the Consumer Financial Protection Bureau, California’s Department of Financial Protection and Innovation,…

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CFPB Highlights Risks Arising from Chatbot Usage in Banking Industry

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…

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CFPB Warns Banks that Unilaterally Opening Closed Bank Accounts Could Be a Federal Law Violation

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]…

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