CFPB NEWS, UPDATES

 

(Aug. 4, 2017) CFPB releases overdraft coverage disclosure prototypes
Overdraft disclosure prototypes designed to improve the model form that credit unions and banks already provide to consumers weighing overdraft coverage were released by the Consumer Financial Protection Bureau (CFPB) overnight. In a release, CFPB said that it is testing four prototypes, each with a one-page design, which the bureau said is aimed at making the costs and risks of opting in to overdraft coverage easier to understand and evaluate. CFPB stated that, according to a study published in conjunction with the prototypes, persons who frequently attempt to overdraw their checking accounts typically pay almost $450 more in fees if they opted in to debit card and ATM overdraft coverage. The study, CFPB stated, found that most of these frequent overdrafters are financially vulnerable, with lower daily balances and lower credit scores than people who do not overdraft as often. (Click here for Director Richard Cordray's comments about the prototypes.) READ


(Aug. 2, 2017) Bank charged $4.6 million for checking account reporting failures
A $4.6 million penalty has been assessed against JPMorgan Chase Bank, N.A. for failures related to information it provides for checking account screening reports, the CFPB reported Aug. 2. According to the bureau, Chase did not have proper processes in place for reporting accurate information, “and kept consumers in the dark about the results of their reporting disputes and key aspects of their checking account application denials.” In addition to the fine, the bank has been ordered to implement policy changes to prevent future violations. READ
(July 20, 2017) Bureau posts spring (or midsummer) rulemaking agenda
Mortgage rules, fair lending for small business, arbitration clauses, payday/auto title/simiar lending products, debit colleciton, overdraft protection, prepaids and more are all on the CFPB's latest "rulemaking agenda" issued today. READ


(July 14, 2017) CFPB proposes raising home equity loan reporting threshold
Credit unions and banks making 500 or fewer home equity loans annually would not be required to report the loans to the Consumer Financial Protection Bureau (CFPB) under a proposal issued Friday by the agency. READ


(July 10, 2017) CFPB bans arbitration clauses on credit cards, accounts
A ban on mandatory arbitration clauses – such as those covering consumer financial products, including credit cards and bank accounts, and which block consumers from joining in class actions to sue for alleged wrongdoing – was announced Monday by the CFPB. READ


(July 7, 2017) ‘Know Before You Owe’ rules updated
Updates to the “Know Before You Owe” mortgage disclosure rule from CFPB, with amendments intended to formalize guidance in the rule, were released by the bureau Friday. READ


(June 29, 2017) Report details consumer complaints state by state
State-by-state statistics on consumer complaints about financial services, including volume, the products and services generating the most, company response rates, and a look at complaints from servicemembers and older Americans are summarized in a special report released this week by the CFPB. READ


(June 20, 2017) CFPB Seeks Comment on Proposed Changes to Prepaid Final Rule
The Consumer Financial Protection Bureau (CFPB) is seeking comment on proposed updates to its prepaid rule.  The prepaid final rule, issued in 2016, required financial institutions to limit consumers’ losses when funds were stolen or card were lost, investigate and resolve errors, give consumers free and easy access to account information, and provide protections if credit is offered.  The proposal would adjust requirements for resolving errors on unregistered accounts and provide greater flexibility for credit cards linked to digital wallets.  READ


(June 7, 2017) Mortgage servicer fined $1.15 million for keeping borrowers 'in the dark'
Mortgage servicer Fay Servicing was fined $1.15 million by the bureau for failing to provide mortgage borrowers with the protections against foreclosure that are required by law, the bureau announced June 7 in a release. The Bureau found that Fay violated the CFPB’s servicing rules by keeping borrowers in the dark about critical information about the process of applying for foreclosure relief. The Bureau also found instances where the servicer illegally launched or moved forward with the foreclosure process while borrowers were actively seeking help to save their homes. Fay Servicing was also ordered to stop its illegal practices, CFPB stated. READ


(May 31, 2017) Complaints from older consumers focus of latest Snapshot
Complaints submitted by older consumers -- who are frequently reporting servicing problems with reverse mortgages, difficulties recovering money after financial scams, confusion around deferred interest credit cards, and charges for unauthorized add-on products -- is the focus of the bureau's May '17 Snapshot. READ


(May 26, 2017) Plan to assess ability to repay/qualified mortgage rule released
A plan to assess the effectiveness of the Ability-to-Repay/Qualified Mortgage rule (ATR/QM rule) has been released, with a 60-day comment period emphasizing requests from the public for sources of data, and generally to provide information that would help with the assessment. In a blog posting, the bureau stated that it is conducting the assessment as an opportunity to “advance our knowledge of the benefits and costs of the key requirements of the ATR/QM rule. The assessment will also provide the public with information on the mortgage lending market, and help us to fulfill our commitment to be an evidence-based and effective agency.” READ


(May 10, 2017) Inquiry will seek to identify financial needs of small business (especially those of women, minorities)
An inquiry has been launched by the bureau – including a request for information -- into ways to gather and use new and existing information to identify the financing needs of small businesses, especially those owned by women and minorities. According the agency, small businesses typically need access to credit to take advantage of growth opportunities, yet public information on this lending market is inconsistent and incomplete. The request for information, the bureau notes, asks for public feedback to help the bureau better understand how to bridge this information gap. READ


(May 5, 2017) Bureau issues plan for asessing RESPA; seeking comment over 60 days
A plan to assess the effectiveness of CFPB’s Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule has been released by the bureau for a 60-days comment period (which commences once the plan is published in the Federal Register). The agency stated in a blog posting that it is seeking comments from consumers, consumer advocates, housing counselors, mortgage loan servicers, industry representatives, and others, to suggest sources of data, offer other recommendations, and generally provide information that would help the bureau understand the rule’s effectiveness or improve the work. “We are committed to well-tailored and effective regulations and have sought to carefully calibrate our efforts to ensure consistency with respect to consumer financial protections across the financial services marketplace,” CFPB stated. READ


(April 27, 2017) Online lenders sued for collecting on debts not owed
Deceiving consumers by collecting debt they were not legally owed is charged against four online lending organizations in a lawsuit filed by the bureau April 27. The lawsuit – which CFPB says seeks to stop the alleged unlawful practices, recoup relief for harmed consumers, and impose a penalty – was brought against Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. In its filing, the agency alleges that the four lenders could not legally collect on the debts because the loans were void under state laws governing interest rate caps or the licensing of lenders. The CFPB alleges that the lenders made deceptive demands and illegally took money from consumer bank accounts for debts that consumers did not legally owe. READ


(April 26, 2017) Servicemember lender fined $1.25M for violating order
An auto lender specializing in loans to servicemembers has been fined $1.25 million by the CFPB for violating a consent order, the bureau announced April 26. According to the agency, the Security National Automotive Acceptance Company (SNAAC) was told by the bureau in 2015 to pay both redress and a civil penalty for illegal debt collection tactics, including making threats to contact servicemembers’ commanding officers about debts and exaggerating the consequences of not paying. “SNAAC violated the 2015 order by failing to provide more than $1 million in refunds and credits, affecting more than 1,000 consumers,” CFPB stated. “Today’s consent order requires SNAAC to make good on the redress it owes to those consumers and pay an additional $1.25 million penalty.” READ


(April 26, 2017) Private, federal student loan borrowers report persistent servicing breakdowns
April CFPB snapshot shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment, including management of their loan debt. READ


(April 26, 2017) Mortgage servicing/origination, student lending, fair lending outlined in Spring 'highlights'
Examination findings in the areas of mortgage servicing, mortgage origination, student loan servicing, and fair lending are outlined in the Spring 2017 issue of Supervisory Highlights, which also includes information about recent public enforcement actions that were a result, at least in part, of bureau supervisory work, as well as information on recently released examination procedures and bureau guidance. READ


(April 20, 2017) Large mortgage loan servicer sued for 'failing borrowers'
Failing borrowers at every stage of the mortgage servicing process is the basis of a lawsuit filed against Ocwen Financial Corp. and subsidiaries, announced today by the CFPB. Ocwen, of West Palm Beach, Fla., according to the bureau, is one of the country’s largest nonbank mortgage loan servicers. "The Bureau alleges that Ocwen’s years of widespread errors, shortcuts, and runarounds cost some borrowers money and others their homes," the bureau said in a statement. "Ocwen allegedly botched basic functions like sending accurate monthly statements, properly crediting payments, and handling taxes and insurance." READ


(April 14, 2017) Report outlines Fair Lending activities in '16 -- and what's ahead
Because of emerging fair lending risks in other areas, CFPB is increasing its focus on redlining, mortgage and student loan servicing, and small business lending, according to its 2016 Fair Lending Report. READ


(April 13, 2017) Proposal amends Reg C (HMDA) with clarifications
A proposal to amend Regulation C (implementing the Home Mortgage Disclosure Act (HMDA)) to provide certain clarifications that would help companies comply with their data reporting requirements was released by the bureau. READ


(April 5, 2017) Report gives overview of 290,000+ complaints received
An overview of the more than 290,000 consumer complaints received by the CFPB in 2016 (a 7% increase over the number of complaints handled in the previous year) is provided in the bureau’s Consumer Response Annual Report, published today. Debt collection, credit reporting and mortgages were the top three most-complained-about consumer financial products and services, the bureau reported, collectively representing about two-thirds (67%) of complaints submitted in 2016. READ


(April 5, 2017) Highlights looks at consumer reporting
Examination findings in the area of consumer reporting, including findings from examinations at consumer reporting companies and at companies that furnish information to consumer reporting companies, is the focus of Supervisory Highlights, scheduled for publication by the bureau April 6, the 14th edition of the publication, according to DFPB. READ


(March 28, 2017) Disputed credit card charges highlighted in monthly snapshot
Consumer complaints about credit cards, particularly problems they face when they attempt to dispute charges on their cards, are highlighted in this month’s monthly complaint snapshot from the CFPB. According to the bureau, it has fielded 116,200 credit card complaints since it opened its doors in July 2011 (about 10% of all complaints across all products). READ

(March 28, 2017) Proposal seeks more flexibility in mortgage lending info collection
-- Providing additional flexibility to some mortgage lenders concerning the collection of consumer demographic information is the aim of a proposed amendment to Regulation B (Equal Credit Opportunity Act/ECOA) issued by the CFPB last week. READ


(March 27, 2017) Experian orderd to pay $3 million, 'truthfully represent' how scores used
Credit reporting company Experian was fined $3 million for deceiving consumers about the use of credit scores it sold to consumers, the CFPB announced. According to the bureau, Experian claimed the scores it marketed and provided to consumers were used by lenders to make credit decisions, when In fact, the agency asserted, lenders did not use Experian’s scores to make those decisions. Experian was ordered to truthfully represent how its credit scores are used and pay a civil penalty of $3 million.


(March 22, 2017) ‘Assessment’ of remittance rule opens comment period
Comments are being sought by CFPB on the effectiveness of its rule on remittances, as required by law, including a request for suggestions of sources of data and to generally provide information that “would help with the assessment,” the agency recently announced. Under the Dodd-Frank Act, CFPB is required to review rules within five years after taking effect (known as “assessments”). A report on assessment of the remittance rule , the agency said, will be issued in the fall of 2018, and will (as required by law) address the rule’s effectiveness in “meeting the purposes and objectives of Title X of the Dodd-Frank Act and the specific goals of the remittance rule, using available evidence and data.” READ


(March 15, 2017) Bureau assesses largest penalty to date for HMDA violations
Nationstar Mortgage LLC of Coppell, Texas, has been ordered to pay a $1.75 million civil penalty for violating the Home Mortgage Disclosure Act (HMDA) -- the largest ever assessed by the agency for violations of the disclosure law -- by alledgedly failing to report accurate data consistently about mortgage transactions for 2012 through 2014, the CFPB announced today. READ


(March 15, 2017) Comments due April 5 on extended prepaid rule effective date
Comments on a delayed effective date (to April 1, 2018) for a CFPB rule on prepaid accounts are due April 5, a three-week (21 days) comment period that began with the publication today of the notice in the Federal Register.. The bureau is proposing the delayed effective date because, it states, “some industry participants believe they will have difficulty complying with certain provisions of the Prepaid Accounts Final Rule.” The bureau states that it wants to assess whether any additional adjustments to the rule are appropriate. The six-month extension, the bureau stated, would help assist industry participants in addressing certain “packaging-related” logistics for prepaids sold at retail locations.

LINK:

Notice of request for public comment/extension of prepaid rule effective date


(March 13, 2017) Credit Union Advisory Council to meet
The bureau's Credit Union Advisory Council (CUAC) has scheduled a meeting for March 30 at 3:15 p.m. in Washington, to discuss alternative data and consumer access to financial records. READ


(March 10, 2017) Information on consumer credit card market sought
As part of requirements under the CARD Act (Credit Card Accountability Responsibility and Disclosure Act of 2009), the bureau is conducting a review of the of the consumer credit card market, "within the limits of its existing resources available for reporting purposes," and is seeking infomration from the public about a number of aspects of the consumer credit card market. READ


(March 10, 2017) Delay proposed for prepaid effective date
The CFPB is proposing a delay of the effective date for its rule on prepaid accounts for six months to facilitate compliance by “industry participants.” Comments will be taken on the proposal for three weeks (21 days) after the notice is published in the Federal Register. READ


(March 3, 2017) Report details credit reporting industry problems, corrections
A report detailing the problems in the credit reporting industry that the bureau has uncovered and corrected through its oversight work was released Thursday, outlining actions taken to address ongoing problems such as fixing data accuracy at credit reporting companies, repairing the broken dispute process, and cleaning up information being reported. READ


(Feb. 16, 2017) Bureau seeks info on using ‘alternative data’ for credit worthiness
“Alternative data” to determine credit-worthiness of consumers who lack enough credit history to obtain a credit score is the subject of a “request for information” issued this week by the CFPB. Comments are due May 19. READ


(Feb. 8, 2017) Mortgage problems continue to be reported by consumers
Consumers continue to report experiencing problems with mortgage servicers, as noted in the February issue of the Bureau's monthly snapshot, noting that consumer report running into issues when making payments on their mortgages or when trying to overcome obstacles to keep themselves in their homes. This month’s report also highlights trends seen in complaints coming from Tennessee. READ 


(Feb. 2, 2017) 'Small entity compliance guide' on prepaids released
The bureau recently released its “Small Entity Compliance Guide” on prepaid products, which the bureau says is aimed at providing “ an easy-to-use summary of the Prepaid Rule and to highlight information that may be helpful implementing the Prepaid Rule,” which takes effect in October. READ

(Jan. 30, 2017) Suit alleges illegal fees sought from debt relief law firms, attorneys
Law firms and individual attorneys offering debt relief services were sued today by the CFPB for collaborating to allegedly charge “illegal fees” to consumers seeking debt relief, the consumer agency announced today. READ


(Jan. 23, 2017) Bureau fines mortgage servicers for ‘giving runaround’ to consumers
“Giving the runaround” to homeowners seeking options to save their homes is cited as the impetus behind a $28.8 million order by the CFPB to two mortgage servicing subsidiaries of one of the nation’s largest financial companies. READ


(Jan. 20, 2017) Action taken bank for 'tricking' consumers into overdraft services
CFPB filed suit against TCF National Bank, a Minnesota-based bank with operations in seven states asserting that the bank tricked consumers into costly overdraft services, alleging that TCF designed its application process to obscure the fees and “make overdraft seem mandatory for new customers to open an account,” among other things. READ


(Jan. 18, 2017) Compliance bulletin focuses on ‘production incentives
“Production incentives” are the topic of a compliance bulletin published today by the CFPB, which highlights examples where incentives “contributed to substantial consumer harm” and which describes compliance management steps CFPB-supervised entities should take to “mitigage risks posed by incentives.” The compliance bulletin is the latest in a series of items (including reports and studies) issued by the consumer bureau focusing on the incentives. The bureau defines “production incentives” as programs that tie outcomes to certain benchmarks, both required and optional. The incentives may be applied to employees, service providers or both, according to CFPB. READ


(Jan. 12, 2017) CFPB survey: ‘troubling problems’ in debt collection industry
More than one in four consumers contacted by debt collectors feel threatened – and three in four of consumers report that debt collectors do not honor their request that collectors leave them alone, according to a new report from the CFPB, released early today. READ


(Jan. 4, 2017) Credit rating agencies fined, ordered to ‘truthfully’ represent value
Declaring that two credit rating agencies “lured consumers into costly recurring payments for credit-related products with false promises,” the CFPB Tuesday ordered Equifax, Inc., and TransUnion to pay fines and restitution totaling $23.1 million and to “truthfully represent” the value of the credit scores they provide, and the cost for obtaining the scores and other services. READ


(Jan. 3, 2017) Nominations for CFPB’s CU Council open Jan. 16
Nominations for appointment to the CFPB’s Credit Union Council (CUAC) will open in about two weeks (Jan. 16), with an application due by an interested candidate on or before March 1 to be considered for a slot on the council, READ


(Jan. 3, 2017) Debt collection complaints outlined in Snapshot

Attempts to collect on a debt that has already been paid is the source of the most common complaint about collections, according to the CFPB’s latest monthly complaint snapshot released Dec. 27. According to the agency, it has handled approximately 285,800 debt collection complaints since July 21, 2011, making that topic the most-complained-about product, representing 27% of total complaints. CFPB reported that consumers  reported being contacted by collectors for debts that were no longer owed and not being provided documentation to verify the debt, even after some of the consumers submitted requests for verification of the purported debts. READ


(Dec. 19, 2016) Bureau outlines focus for Fair Lending in New Year
Redlining, mortgage and student loan servicing, and small business lending are among the key areas where CFPB will focus in 2017, according to a recent posting by the bureau. READ


(Dec. 15, 2016) Report details bank marketing deals with colleges
Costly fees and risky features that can be attached to certain college-sponsored accounts are detailed in a new report from the CFPB, based on analysis of roughly 500 marketing deals between these schools and large banks. READ


(Dec. 5, 2016) Status of debt collection, arbitration, overdraft updated
Dec. 5, 2016 -- A report on findings of a consumer survey related to a proposed rule regulating debt collection – and other actions – are outlined in the Consumer Financial Protection Bureau’s Fall 2016 rulemaking agenda, published Friday by the agency. READ


(Nov. 28, 2016) Bulletin looks at detecting, preventing consumer harm via incentives
Compliance management steps to mitigate risks posed by incentives that supervised entities (including credit unions and banks) should take are outlined in a new compliance bulletin from the CFPB, which also compiles guidance given previously by the bureau in other contexts. Titled “Detecting and Preventing Consumer Harm from Production Incentives,” the bulletin was issued Nov. 28. READ


(Nov. 10, 2016) Complaint snapshot outlines VA home loan refinancing issues
In its third semi-annual Servicemember Complaint Snapshot, the bureau notes that it has received more than 12,500 mortgage complaints from servicemembers, veterans, and their families since 2013, and reviews and analyzes about 1,800 of those complaints related to mortgage refinancing in the snapshot. READ


(Oct. 31, 2016) Student loan servicer violations prompts updated procedures for exams
Student loan servicer violations, such as failing to enroll qualified borrowers in affordable federal loan repayment plans, has prompted the CFPB to issue updated procedures for student loan servicing exams,. the agency announced today in its Supervisory Highlights. The report also outlines violations found in auto loan origination and servicing, debt collection, and mortgage origination. It additionally provides information on compliance with CFPB rules and regulations, new exam policies, and best practices for better communication with non-English-speaking consumers. READ


(Oct. 25, 2016) Pre-paid complaints focus on unauthorized transfers, registration, problem resolution
Consumers continue to experience issues trying to manage their accounts and access funds through pre-paid products, according to the CFPB’s latest monthly snapshot highlighting consumer complaints about prepaid products. According to the Bureau, as of Oct. 1, it had handled approximately 6,000 prepaid product complaints, focusing on unauthorized transactions, registering prepaid cards and resolving problems. The most complained-about prepaid companies, the Bureau stated, included American Express, PayPal Holdings, Inc., and NetSpend Corporation. READ


(Oct. 5, 2016) Agency finalizes 'prepaid accounts' rule
A new rule providing federal consumer protections for prepaid account users was announced by the CFPB this week, which agency Director Richard Cordray said “closes loopholes and protects prepaid consumers when they swipe their card, shop online, or scan their smartphone.” In a conference call, Cordray said that the new rule (issued Wednesday) has three key new requirements that financial institutions must meet in order to be in compliance. They are (1) they must limit consumer losses when funds are stolen or cards are lost; (2) they must investigate and resolve errors that occur; and (3) they must give consumers free and easy access to their account information. Cordray also said that the bureau has finalized new “Know Before You Owe” disclosures for prepaid accounts that give consumers the clear information they need, up front, about the fees they can be charged and other key details. READ


(Sept. 28, 2016) 1 million complaints over five years about money transfers

More than 1 million complaints have been handled by the CFPB about money transferssince 2011, the bureau stated in its September monthly complaint snapshot -- in particular prompted by consumer attempts to resolve problems with disputed transactions. READ


(Sept. 14, 2016) Summary outlines proposed mortgage disclosures
A summary of proposed CFPB amendments to federal mortgage disclosure requirements required under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) has been published by NASCUS. READ


(Aug. 31, 2016) Consumer Financial Protection Bureau Monthly Complaints Snapshot Spotlights Bank Account and Service Complaints
The Consumer Financial Protection Bureau (CFPB) released a monthly complaint snapshot highlighting consumer complaints about bank accounts and services. The report shows that consumers continue to experience problems managing their accounts. This month’s report also highlights trends seen in complaints coming from Ohio. As of Aug. 1, 2016, the Bureau has handled approximately 954,400 total complaints across all products. 


(Aug. 24, 2016) Wells Fargo named, fined for illegal student loan servicing practices
Action against Wells Fargo Bank for illegal private student loan servicing practices that increased costs and unfairly penalized certain student loan borrowers has been taken by the bureau, it stated today, after identifying breakdowns throughout Wells Fargo’s servicing process including failing to provide important payment information to consumers, charging consumers illegal fees, and failing to update inaccurate credit report information. The CFPB’s order requires Wells Fargo to improve its consumer billing and student loan payment processing practices. The company must also provide $410,000 in relief to borrowers and pay a $3.6 million civil penalty to the CFPB.


(Aug. 24, 2016) Website aims to help mortgage settlement professionals
A webpage specifically for settlement professionals has been set up by the bureau, which it describes as "designed to be an aid in navigating through the changes that are part of the 'Know Before You Owe' mortgage initiative." "One of the most important results of the Know Before You Owe mortgage initiative is the need for closer collaboration between settlement agents and creditors for both to effectively comply with regulatory disclosure requirements," the Bureau states in the introduction to the website. "Learn what has and has not changed about settlement agent responsibilities, creditor responsibilities, consumer privacy, and electronic delivery."

LINK:
Know Before You Owe: The settlement professional’s guide


(Aug. 19, 2016) Bureau’s ‘Credit Union Advisory Council’ sets Sept. 1 meeting
Youth financial capability and debt collection are topics on the agenda of the Credit Union Advisory Council of the Consumer Financial Protection Bureau at the council’s public meeting Sept. 1 in Washington at the bureau’s headquarters. According to the bureau, individuals who wish to attend the Council meeting must RSVP to: cfpb_cabandcouncilsevents@cfpb.gov by noon, Wednesday, Aug. 31, (no later), and must include “CUAC” in the subject line of the RSVP.

LINK:
CU Advisory Council meeting/notice from CFPB


(Aug. 11, 2016 ) GAO study on CFPB's small business review panel issued
In a report, the Governmental Accountability Office (GAO) analyzed and reviewed CFPB’s rulemaking processes and documents and conducted semi-structured interviews with 57 of the 69 participants on four panels who agreed to be interviewed. The scope was limited to the four Small Business Review (SBREFA) panels that had associated final rules as of April 2016. READ


(Aug. 2, 2016) Consumer protections in foreclosure outlined
As the Government Foreclosure Relief Program is set to expire, CFPB has outlined consumer protection principles to guide mortgage servicers, investors, government housing agencies, and policymakers as they develop new foreclosure relief solutions.The action came as the Department of Treasury’s Home Affordable Modification Program (HAMP) -- a foreclosure relief program put in place in response to the financial crisis -- nears its expiration date. The CFPB’s proposed principles are meant to inform the discussion of potential options to help prevent avoidable foreclosures. READ


(July 29, 2016) Proposals to overhaul debt collection market outlined
Proposals under consideration that would overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt have been outlined by the bureau. Under the proposals being considered, debt collectors would be required to have more and better information about the debt before they collect. As they are collecting, companies would be required to limit communications, clearly disclose debt details, and make it easier to dispute the debt. READ


(July 29, 2016) 'Know before you owe' updates proposed
The Consumer Financial Protection Bureau (CFPB) today proposed updates to its Know Before You Owe mortgage disclosure rule. The proposed amendments are intended to formalize guidance in the rule, and provide greater clarity and certainty. The changes proposed today would augment implementation of the Know Before You Owe rule, which took effect last year, and help facilitate compliance within the mortgage industry. READ


(July 18, 2016) 12th edition of 'Supervisory Highlights' issued
Examination findings in the areas of auto originations, debt collection, mortgage origination, small-dollar lending, and fair lending are included -- plus, another instalment of a recent public enforcement action that was a result of bureau enforcement work, and information on CFPB coordination with state and federal regulators on supervisory matter. READ


(June 29, 2016) Loan management, problems breed complaints, CFPB says
Consumers continue to complain about issues managing their loans and problems they encounter when they are unable to pay off the loans, according to the latest Consumer Complaint Snapshot published by the CFPB this week. READ


(June 28, 2016) Adjustments to TILA dollar amount thresholds set (updated with effective dates)
UPDATED: The bureau announces its annual adjustments to the dollar amounts of various thresholds under the Truth in Lending Act regulations that will apply to certain consumer credit transactions in 2017. Effective dates are Jan. 1, 2017, except for the amendment to Sec. 1026.52(b)(1)(ii)(B) which is effective on June 27, 2016.The adjustments are based on the percentage change in Consumer Price Index. The notice addresses the thresholds related to the minimum interest charge and safe harbor penalty fees under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), the total loan amount and points and fees dollar trigger for high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA), and the maximum points and fees for qualified mortgages under the Dodd-Frank Wall Street Reform and Consumer Protection Act. READ

(June 23, 2016) Comments sought on adjustments to CMP levels
Public comments are being sought on an interim final rule to adjust the civil monetary penalties within the Bureau's jurisdiction for inflation. READ


(June 23, 2016) In response to mortgage servicer violations, CFPB updates exam manual
Some mortgage servicers continue to use failed technology that has already harmed consumers and putting their companies in violation of the Consumer Financial Protection Bureau’s new servicing rules, a new report from the bureau states – leading the agency to release an updated mortgage servicing exam manual. READ


(June 20, 2016) Bureau issues final rule amending Reg Z
Action amends the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). According to the agency, it is required to calculate annually the dollar amounts for several provisions in Regulation Z. The final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). READ


(June 8, 2016) eRegulations updated with Regulations X, C, and more
The bureau has updated its eRegulations platform, which now includes Regulations C, X, and DD -- and has refitted its Regulation Z content on the platform to include all the amendments made to the regulation through March 2016.  READ 


(June 2, 2016) CFPB payday loan proposal includes carve out for PAL loans
Payday and other “small dollar” loan products would be subject to new regulations unveiled by the Consumer Financial Protection Bureau Thursday – and which contain a specific “carve out” for small dollar loans that meet the parameters of NCUA’s payday alternative loan (PALs) program. READ


(June 1, 2016) Consumer board discusses payday loans, auto lending June 9
The bureau's Consumer Advisory Board meets in Little Rock, Ark, June 9 to meet with Director Richard Cordray and discuss an auto lending education initiative, trends and themes, and payday lending. READ


(May 31, 2016) Bureau schedules field hearing June 2 on small-dollar lending
Small-dollar lending -- including payday loans -- is the subject of a CFPB field hearing June 2 in Kansas City, Mo., featuring remarks and testimony by Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. READ


(May 25, 2016) Credit reporting focus of monthly complaint snapshot
Consumers continue to complain about incorrect information on their credit reports as well as difficulty having errors resolved, according to the bureau's latest Monthly Complaint Report which highlightss credit reporting complaints. The CFPB states that, since it began accepting credit reporting complaints in October 2012, approximately 143,700 credit reporting complaints have been fielded. READ



(May 19, 2016) Bureau posts spring rule-making agenda
Arbitration, payday lending, prepaid accounts, mortgage servicing and more are on the bureau's semiannual update of its rulemaking agenda, including rulemaking actions in pre-rule, proposed rule, final rule, long-term, and completed stages. READ



(May 18, 2016) One-in-five single-payment borrowers have car/truck repossessed
One-in-five borrowers who take out a single-payment auto title loan have their car or truck seized by their lender for failing to repay their debt, according to a study released by the bureau. Additionally, the study found, more than four-in-five of these loans are renewed the day they are due because borrowers cannot afford to repay them with a single payment. READ


(May 16, 2016) Findings from recent exams highlighted
May 16, 2016 -- In its Winter edition of Supervisory Highlights, the bureau shares findings from recent examinations in the areas of student loan servicing, remittances, mortgage origination, debt collection, and consumer reporting. READ



(May 16, 2016) Agency releases Fair Lending Report for 2015
May 16, 2016 -- Seventy-four page report details agency actions in enforcing Fair Lending Act, which the bureau calls "shining a light on unfair and discriminatory practices in the financial system." READ



(May 5, 2016) CFPB Proposes Prohibiting Mandatory Arbitration Clauses that Deny Groups of Consumers their Day in Court

May 5, 2016
-- The Consumer Financial Protection Bureau (CFPB) has released a proposal that would prohibit mandatory arbitration clauses that prevent consumers from engaging in class action suits.  Dodd-Frank required the CFPB to study the use of mandatory arbitration clauses in consumer financial markets.  The CFPB’s study, released in March 2015, found that few consumers brought class action suits against financial service providers and the Bureau expressed concerns that mandatory arbitration clauses are being used to prohibit consumers from participating in class action suits.

The Bureau is seeking comment on a proposal to prohibit companies from putting mandatory arbitration clauses in new contracts that prevent class action lawsuits.  Under the proposal, companies would still be able to include arbitration clauses in their contracts.  However, for contracts subject to the proposal, the arbitration clauses would have to make clear that such clauses cannot be used to prohibit consumers from participating in a class action suit. The proposal provides specific language companies must use for their arbitration clauses.  Finally, the proposal would also require companies with arbitration clauses to submit claims, awards and certain related materials that are filed in arbitration cases. 

The proposed rules would apply to most consumer financial products and services overseen by the CFPB, including those related to the core consumer financial markets that involve lending money, storing money and moving or exchanging money. READ



(May 4, 2016) CFPB/Federal Reserve webinar on TILA/RESPA Integrated Disclosures: Post-effective date questions/guidance

May 4, 2016 – On Tuesday, April 12 at 2 p.m. EDT, the Federal Reserve hosted a webinar on the Know Before You Owe mortgage disclosure rule.  A link to a recording of this webinar is now available on the Bureau’s website. The session, presented by the Bureau, addressed specific questions that various stakeholders have raised to the Bureau related to the implementation of the rule’s requirements. You can access the link to the webinar recording at: www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/tila-respa-disclosure-rule/. READ



(April 29, 2016) Summary looks at call for comments for mortgage servicing rule
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April 29, 2016 – A new summary from NASCUS outlines the CFPB’s proposal to reopen the comment period to on a particular aspect of its proposed amendments to certain mortgage servicing provisions under Regulation X and Regulation Z. READ



(April 28, 2016) 'Payback Playbook' outlines path to avoiding student debt distress

April 28, 2016 -- CFPB unveiled the student loan "Payback Playbook", a set of prototype disclosures outlining a path to affordable payments for borrowers trying to avoid student debt distress, which the agency says "provides borrowers with personalized information about their repayment options from loan servicers so they can secure a monthly payment they can afford." READ



(April 27, 2016) Bureau reopens comments to mortgage servicing rules under RESPA
April 27, 2016 -- CFPB has reopened the comment period for its proposed amendments to the 2013 Mortgage Servicing Rules Under RESPA (Reg X) and TILA (Reg Z).  The new comment closing date is May 26, 2016.  The Bureau is seeking comment specifically on the report summarizing consumer testing of sample periodic statement forms for consumers in bankruptcy. (Click here for report summarizing consumer testing.)



(APRIL 26, 2016) Summary outlines Interim Final Rule on ops in rural areas under Reg Z

April 26, 2016 -- A summary has been posted of the bureau's interim final rule amendeding certain provisions of Regulation Z in accordance with the Helping Expand Lending Practices in Rural Communities Act or the “HELP Act," which Act broadens the class of creditors that may be eligible under the Truth in Lending Act (TILA) for provisions that relieve burden for small, rural mortgage creditors. READ



(APRIL 20, 2016) May 5 field hearing to focus on arbitration
April 20, 2016 -- A field hearing on arbitration will be held in Albuquerque May 5, featuring remarks from CFPB Director Richard Cordray as well as testimony from consumer groups, industry representatives, and members of the public. Additionally, the event will be live-streamed via the 'Net. READ


(APRIL 20, 2016) Report: half of online payday borrowers rack up an average of $185 in penalties
April 20, 2016 -- Attempts by online lenders to debit payments from a consumer’s checking account add a steep, hidden cost to online payday loan, with half of online borrowers racking up an average of $185 in bank penalties because at least one debit attempt overdrafts or fails, a CFPB report found.. READ

(APRIL 11, 2016) Time-out on posting credit card agreements ends (per CFPB)
April 11, 2016 -- Credit card issuers must submit their currently offered card agreements to the Consumer Financial Protection Bureau to be posted on the bureau’s website, the agency recently reminded in a notice – marking the end of a one-year suspension of the requirement. READ



(MARCH 29, 2016) 'Non-debt' collection biggest complaint, CFPB notes

March 29, 2016 -- Attempts to collect on a debt a consumer has reported was not owed is the most common complaint related to debt collection, the CFPB reported today in its latest monthly consumer complaint snapshot. READ



(Feb. 10, 2016) Typo corrected in TILA-RESPA supplementary notice

The CFPB published a notice in the Federal Register today to correct a typo regarding tolerances for property taxes and certain other property-related costs that was found in the “Supplementary Information” to the TILA-RESPA Integrated Disclosure rule.

More information in the Federal Register



(JAN. 8, 2016) CFPB Seeks Feedback on HMDA (Regulation C) Mortgage Lending Information Resubmission Guidelines

The Consumer Financial Protection Bureau (CFPB) issued a “Request for Information Regarding Home Mortgage Disclosure Act (HMDA) Resubmission Guidelines.” The CFPB seeks to determine whether changes to its HMDA Resubmission Guidelines may be appropriate in light of recent amendments to Regulation C, which implements HMDA.  The Bureau issued the HMDA final rule in October 2015.  The final rule increased the number of data points certain financial institutions are required to report to regulators.  For example, institutions are now required to report information such as property value, term of loan and duration of teaser or introductory interest rates. The Bureau is seeking detailed responses to twelve questions, as well as feedback on how commenters’ suggested changes to the Resubmission Guidelines will impact HMDA compliance costs and how changes to the Resubmission Guidelines may affect the reliability or usefulness of the HMDA data.  Comments to the CFPB’s Request for Information are due within 60 days of publication of the document in the Federal Register.

The notice can be accessed here


 

(JAN. 7, 2016) CFPB Issues Annual Appropriations Report to House and Senate Committees on Appropriations

In accordance with Section 1017(e)(4) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Consumer Financial Protection Bureau (CFPB) issued its annual report to the House and Senate Committees on Appropriations.  Dodd-Frank requires the CFPB’s Director to prepare and submit an annual report that discloses the CFPB’s financial operating plans and forecasts, financial condition, results of operations and sources and application of the CFPB’s funding. The report also highlights regulation and guidance issued by the Bureau during the last fiscal year; as well as the Bureau’s supervisory and enforcement activities.  For example, the report details supervisory and examination findings that were reflected in the Fall 2014/Summer 2015 editions of the CFPB’s “Supervisory Highlights.”  See page 91.  The report also compiles a detailed list of 59 public enforcement actions taken by the CFPB from October 1, 2014 through September 30, 2015.  See page 97.

The report can be accessed here