Consumer Protection

The Consumer Financial Protection Bureau (CFPB) has four tools at its disposal to accomplish its main objective of preventing consumer harm, Kathy Kraninger said during her first public presentation since becoming director.

She also announced plans for a new series to facilitate dialogue with stakeholders, starting with a discussion about how to define “abusive” in Section 1031 of the Dodd-Frank Act.

Find out what specifics she offered as to how the bureau can achieve its objectives.

Regulation by enforcement has not been a major concern for the financial industry since former Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s departure in November 2017.

However, the term was broached regarding a recent settlement by another federal agency – the Federal Trade Commission (FTC).

Find out why commissioners dissented from two charges levied against an online lender as a result of “regulatory overreach.”

When it comes to shaping the regulatory and business environment to best serve the needs of banks and consumers, shortsightedness and lack of consistency may be two of the greatest obstacles facing the financial industry today.

In a 1-on-1 sitdown with Dodd Frank Update at CBA LIVE 2019 in Washington D.C., Consumer Bankers Association President and CEO Richard Hunt detailed his views on the need for cooperation among federal regulators.

Read on for all the details from our interview with Hunt.

Citing some of the historic difficulties that have plagued federal banking agencies, Consumer Financial Protection Bureau (CFPB) acting deputy director Brian Johnson suggested that the best regulator for the financial industry may be the marketplace itself during a recent speaking engagement.

Johnson’s philosophy stands in stark contrast to the approach championed by one of his predecessors from the Richard Cordray era at the bureau.

Find out more details about Johnson’s views and how they compare to the bureau’s previous philosophies.

The Federal Reserve Board recently began receiving applications from parties interested in serving on its Community Advisory Council (CAC).

Since its establishment in 2015, the committee has advised the Fed on issues facing consumers and communities, according to a press release.

Find out more information about the council and the selection criteria.

The proprietors of a debt relief service accused of charging customers illegal fees have settled for disgorging only a fraction of their resulting ill-gotten gains and paying virtually nothing in civil money penalties in a deal with the Consumer Financial Protection Bureau (CFPB).

The defendants provided financial records which the CFPB deemed sufficient to suspend and substantially reduce the fines and redress they would be obligated to pay.

Find out more details about the operation and the bureau’s settlement requirements.

Apple announced that it has partnered with Goldman Sachs and Mastercard to release a credit card built into Apple’s digital wallet app on iPhone.

An entrance into the credit card business will make Apple a “covered person” under the Consumer Financial Protection Act and it will be required to comply with all applicable disclosure requirements and Fair Credit Reporting Act requirements, among others.

Learn more about the regulatory implications of Apple’s new product.

Pointing to key highlights in regulatory efforts to stop unlawful debt collection practices, the Consumer Financial Protection Bureau (CFPB) stated that it intends to issue a new notice of proposed rulemaking (ANPR) on debt collection addressing issues such as communication practices and disclosure requirements.

The announcement comes more than five years after the CFPB’s first ANPR and nearly three years after the CFPB originally issued proposals. The report details what actions the CFPB and the Federal Trade Commission (FTC) have taken to thwart violations of the Fair Debt Collection Practices Act.

Find out more details about the rulemaking and the information included in the report.

Although the past year-and-a-half have seen several changes to the Consumer Financial Protection Bureau’s policies and practices that have resonated positively with lenders and financial institutions of all business models, trade advocates still see room for improvement.

The Mortgage Bankers Association and the Consumer Bankers Association recently spelled out in writing a slew of recommended changes to the bureau’s rulemaking, enforcement and supervisory policies and practices.

Find out more details about what the banking industry’s largest trade organizations are recommending.

With the Consumer Financial Protection Bureau (CFPB) focusing on preventing consumer harm, as CFPB Director Kathy Kraninger stated in her annual report to Congress, companies may be tempted to assume that means the bureau will be spending more time distributing educational materials than looking for compliance violations.

However, that likely is not the case. In fact, the opposite may be true, Garris Horn PLLC Richard Horn told Dodd Frank Update.

Find out how the bureau is likely to go about its revised mission of preventing consumer harm.