CFPB floats plan to add narratives to consumer complaint database
The Consumer Financial Protection Bureau is seeking comment on a proposed policy change that would see the bureau add consumer narratives to its complaint database. The CFPB said publishing the narratives would aid consumer decision making and drive improved customer service among industry participants. However, the policy is likely to face pushback from industry participants who have vigorously opposed such a move. Read on to learn about the bureau’s proposed policy and the debate over publicizing consumer complaint narratives.
CFPB should expand QM small creditor definition, industry commenters say
Earlier this year, the Consumer Financial Protection Bureau sought feedback on a limited proposal to amend some of its new mortgage rules. The bureau also asked for public comment on its “small creditor” definition, which intersects with rule provisions intended to preserve consumers’ ability to access credit from community banks and credit unions. Industry commenters responded by urging the CFPB to expand the small creditor definition. They also discussed the impact the bureau’s rules are having on community institutions.
CFPB alleges UDAAP trifecta in payday lending enforcement action
The Dodd-Frank Act gave the Consumer Financial Protection Bureau authority to root out unfair, deceptive and abusive acts or practices in the consumer financial markets, and the agency has fined a payday lender it said engaged in all three in order to drive consumers into a cycle of debt. Irving, Texas-based Ace Cash Express agreed to pay $10 million to resolve CFPB claims that the company used illegal debt collection tactics — including harassment and false threats of lawsuits or criminal prosecution — to pressure overdue borrowers into taking out additional loans they could not afford. Read on to learn about the CFPB’s UDAAP claims.
CFPB failed to make sound business case for headquarters project, IG finds
The inspector general for the Federal Reserve and the Consumer Financial Protection Bureau determined that the CFPB has not provided a sound business case to support the funding of its controversial headquarters renovation project. Republicans on the U.S. House Financial Services Committee said the IG’s report is further evidence that the CFPB is unaccountable and should be restructured. Read on to learn about the report.
OCC top supervisory concerns outlined in new report
Competitive pressures and strategic and operational risks top a semiannual list of supervisory concerns released by the Office of the Comptroller of Currency. The OCC’s spring Semiannual Risk Perspective report indicates that while conditions overall showed improvement in the second half of 2013, credit risk is building. Read on to learn about the issues OCC examiners plan to focus on in the coming months as they supervise mid-size and community banks.
Cordray, lawmakers discuss QM, advisory opinions and CFPB employee issues
Richard Cordray, director of the Consumer Financial Protection Bureau, recently appeared before the House Financial Services Committee to discuss his agency’s latest semi-annual report.Cordray fielded lawmakers’ questions on several topics including the CFPB’s qualified mortgage rule and the possibility that the bureau may consider issuing advisory opinions to help regulated industry participants better understand their compliance obligations.