Category Archives: Consumer Financial Services

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Do You Venmo? FTC Spotlight on Peer-to-Peer Payments and Crowdfunding

The FTC recently examined peer-to-peer (P2P) payment systems and crowdfunding in the second forum of its FinTech series.  P2P payment systems are online services that allow consumers to share money electronically.  These platforms enable the immediate transfer of money between consumers, typically for free or for a small fee.  In the panel discussion of P2P … Continue Reading

D.C. Circuit Rules that CFPB is Unconstitutionally Structured

Earlier today, the U.S. Court of Appeals for the D.C. Circuit issued a landmark decision against the CFPB, finding that the agency was unconstitutionally structured because it concentrates “enormous executive power in a single, unaccountable, unchecked Director.”  However, the court stopped short of ordering a shutdown of the Bureau and instead held that the President … Continue Reading

CFPB Issues Final Rule to Regulate Prepaid Products; Prepaid Providers Given One Year to Comply

Yesterday the CFPB released a final rule that will impose a variety of consumer protection requirements on prepaid products, such as requiring specified disclosures before product purchase and compelling financial institutions to limit consumer losses for lost or stolen cards.  The CFPB had previously released a proposed rule, which we discussed here, and the final … Continue Reading

Protected: 2016 Advertising and Privacy Law Summit Attendee Follow up

There is no excerpt because this is a protected post.

Agree to Disagree? CFPB Rule Would Prohibit Mandatory Arbitration Clauses, Require Submission of Arbitral Records

The Consumer Financial Protection Bureau released a proposed rule last week that would prohibit providers of consumer financial products and services from using pre-dispute arbitration agreements to prevent consumers from filing a class action.  In its press release announcing the proposed rule, the CFPB used strong language to condemn mandatory arbitration provisions as permitting “companies … Continue Reading

CFPB, “Please”: Judge Rebuffs CFPB’s Attempt to Compel Documents Regarding For-Profit College Accreditation

books_appleLast Thursday, a federal district court judge in D.C. denied the Consumer Financial Protection Bureau’s (CFPB) attempt to compel documents from the Accrediting Council for Independent Colleges and Schools (ACICS).  Rejecting the CFPB’s motion to enforce the Civil Investigative Demand (CID) against ACICS, the court held that “the CFPB lacks authority to investigate the process … Continue Reading

CFPB’s First Data Security Action; Fines Online Platform Dwolla for Alleged Weak Security Practices

On March 2, the CFPB settled its first data security enforcement action against Iowa-based Dwolla Inc.  Launched as a startup in 2009, Dwolla is an online payment platform that enables customers to transfer money directly to/from their bank accounts.  Since its inception, Dwolla had been collecting customers’ sensitive personal information, including their name, address, date … Continue Reading

The Regulatory Landscape for Indirect Auto Lenders After Ally

In December 2013, the Consumer Financial Protection Bureau (CFPB) announced its first settlement in the indirect auto lending industry. The target company was Ally Financial Inc. and Ally Bank (Ally). The CFPB alleged that Ally had engaged in discriminatory pricing by charging minority consumers higher dealer markups for their auto loans. Ally was ordered to … Continue Reading

CFPB Obtains $13M FCRA Settlement with Employee Background Screening Providers

The CFPB recently initiated an enforcement action against General Information Services (GIS) and its affiliate, e-Background-checks.com, Inc. (BGC) for allegedly violating the Fair Credit Reporting Act (FCRA) by failing to implement required safeguards while providing background screening reports to employers about job applicants. The CFPB found that certain background screening reports provided by GIS and … Continue Reading

Reauthorization of MOU Between CFPB and FTC Promotes Regulatory “Harmony”

The Federal Trade Commission (“FTC”) and the Consumer Financial Protection Bureau (“CFPB”) announced on March 12 the reauthorization of the Memorandum of Understanding (“MOU”) entered into by the two agencies on January 20, 2012.  As in the original, the new MOU addresses coordinated efforts in the areas of law enforcement, rulemaking and guidelines, research, consumer … Continue Reading

NY AG Settlement with Three Largest National Credit Reporting Agencies Promises Critical Reform to Credit Reporting Industry

On March 9, 2015, New York Attorney General Eric Schneiderman announced its settlement with the nation’s three largest national credit reporting agencies (“CRAs”): Experian, Equifax, and TransUnion.  This announcement underscores the recent heightened state and federal regulatory scrutiny in this area, and likely is the first of a wave of broad consumer-facing reforms to the … Continue Reading
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