Tag Archives: Consumer Financial Protection Bureau (CFPB)

Georgia Court Sheds Light on CFPB’s Power to Sue Companies that ‘Recklessly Provide Substantial Assistance’

On September 1, 2015, the Consumer Financial Protection Bureau (“CFPB”) won an important decision in which a federal court, for the first time, interpreted the meaning of “recklessly provid[ing] substantial assistance” under the Consumer Financial Protection Act (“CFPA”).2 Perhaps since it was an order denying the defendants’ motions to dismiss released just before the Labor … Continue Reading

CFPB Moves to Ban Class Action Waivers But Will Not Ban Individual Arbitration

In a move that the financial industry long anticipated but nonetheless greeted with loud groans, the Consumer Financial Protection Bureau (“CFPB”) on October 7, 2015 proposed to ban class action waivers in contracts for consumer financial products and services. Although the proposed ban would not take effect for a few years, it would have a … Continue Reading

Reed Smith Adds Former CFPB Enforcement Counsel to its Financial Industry Group

Last week, former Consumer Financial Protection Bureau (CFPB) Enforcement Counsel Nicholas Smyth joined Reed Smith's Financial Industry Group, bringing expertise on the CFPB's approach to mortgage lending, auto lending, student lending, debt collection, credit reporting, and military lending. Smyth brings an insider's knowledge of the federal government's fastest-growing and increasingly feared agency. He was one of the longest-serving attorneys at the CFPB prior to joining the Firm, and he helped build the agency's Office of Servicemember Affairs and Office of Enforcement.… Continue Reading

Join Us for ABA Webinar on Social Media in Consumer Finance

As part of the American Bar Association’s Consumer Financial Services Committee monthly webinar series, Reed Smith attorneys Travis P. Nelson and Stacy K. Marcus will be leading a discussion this Wednesday, February 12, 2014, examining the effect of social media on the consumer finance industry, including how social media can and should be used by … Continue Reading

CFPB Issues Guidance on Mortgage Servicing Transfers (CFPB Bulletin 2013-1)

Our colleague in the Financial Industry Group, Colleen H. McDonald, recently wrote about a Guidance issued by the Consumer Financial Protection Bureau (CFPB) on mortgage servicing transfers. With the new mortgage servicing rules under the Real Estate Settlement Procedures Act (Regulation X) (RESPA) scheduled to go into effect January 10, 2014, the CFPB’s decision to … Continue Reading

CFPB Announces its Ability to Repay Rule Baltimore

Direct from Baltimore: I just walked out of Westminster Hall in Baltimore, Maryland where I attended the Consumer Financial Protection Bureau’s (“CFPB”) field hearing where the CFPB announced the issuance of its “ability to repay rule,” a rule required by the Dodd-Frank Act and designed to ensure that prospective borrowers have the ability to repay … Continue Reading

Debt Collectors Now Subject to CFPB Oversight

The CFPB has announced that, effective January 2, 2013, it will assume oversight of debt collection agencies that have more than $10 million in annual receipts from consumer debt collection activities. The CFPB examiners will be determining whether debt collectors: Provide required disclosures Provide accurate information Have a consumer complaint and resolution process Communicate civilly … Continue Reading

FTC and CFPB Take Action to Ensure Compliance with Mortgage Acts and Practices Advertising Rule

Our Advertising, Technology & Media colleagues, Keri S. Bruce and Douglas J. Wood, recently wrote about an announcement made by The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) regarding warning letters sent to more than 30 companies, including lenders, mortgage brokers, real estate agents, home builders and lead generators, notifying them that … Continue Reading
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