Will CFPB unintentionally limit consumers’ abilities to resolve disputes?
The Consumer Financial Protection Bureau released its official proposed rulemaking on pre-dispute arbitration. As the name implies, a pre-dispute arbitration agreement is created when the contracting parties agree to use arbitration to resolve a dispute before a dispute has even risen. Concerns were discussed at a House Financial Services Committee hearing about the possibility that proposed class-action waiver bans may harm consumers’ choice in dispute resolution. Read on to learn more.
Here are the CFPB’s plans for the rest of Obama’s term
As part of its Regulatory Flexibility Act requirements, the Consumer Financial Protection Bureau has released its latest rulemaking agenda, detailing the progress it has made and expects to make regarding arbitration; payday, auto title and similar lending products; prepaid accounts; mortgage servicing; the TRID rule; overdraft; debt collection; larger participants and non-depository lender registration; and women-owned, minority-owned and small business data collection.
A small victory: SCOTUS looks at injury in fact in Spokeo
In a 6-2 vote, the U.S. Supreme Court reversed the Ninth Circuit’s opinion in Spokeo, Inc. v. Robins, determining that a plaintiff cannot satisfy the Constitution’s Article III standing requirements by alleging a bare procedural violation but that a plaintiff must satisfy the injury-in-fact requirements by demonstrating both particularity and concreteness, even under the Fair Credit Reporting Act. Read on to learn more.
CFPB takes aim at cash checking, payday lenders
The Consumer Financial Protection Bureau filed a complaint against cash checkers and payday lenders All American Check Cashing, Inc. and Mid-State Finance, Inc. for alleged unfair, deceptive and abusive acts or practices (UDAAP). This isn’t a case of a company lacking sufficient written policies and procedures but, in fact, allegedly using training guides that say, “NEVER TELL THE CUSTOMER THE FEE.” Read on for more details.
Recent developments in mobile financial services industry
The Federal Deposit Insurance Corp. is seeking feedback on the use of mobile financial services as a means to reaching underserved consumers; the Federal Trade Commission has issued orders to eight mobile device manufactures to provide information about how they issue security updates and the Federal Financial Institutions Examination Council (FFIEC) revised its Retail Payment Systems booklet to include a new appendix on mobile financial services. Find out what you need to know about these developments.
Advocates spar on arbitration proposal to eliminate class action waivers
The Consumer Financial Protection Bureau has unveiled its long-awaited proposal on arbitration, seeking to eliminate the use of class action waivers to prevent consumers from joining class action lawsuits. The Small Business Regulatory Enforcement Fairness Act (SBREFA) panel has reported that some small business representatives indicated that class action exposure may reduce their compliance budgets. Read on to learn more.