Consumer Financial Protection

On July 16, 2012, the Consumer Financial Protection Bureau (CFPB) issued a final rule granting it supervisory authority over leading credit reporting agencies. Those firms newly subject to the CFPB’s oversight include the big three consumer reporting agencies, Equifax, Experian, and TransUnion, as well as nonbank entities engaging in consumer reporting activities with more than

On June 29, 2012, the CFPB issued two Rules of Practice separately governing the agency’s adjudication proceedings and investigational, nonadjudicative matters. In addition, the CFPB issued its final State Official Notification Rule. These rules codify the interim final rules promulgated on July 28, 2011, previously discussed here, and have an immediate effective

The Federal Trade Commission (FTC) today announced its settlement with Spokeo, Inc. for alleged violations of the Fair Credit Reporting Act (FCRA) and Section 5(a) of the FTC Act. As part of the FTC’s ongoing enforcement of the FCRA to regulate the collection, dissemination, and use of consumer credit information, this is the first case

Last week, the Consumer Financial Protection Bureau (“CFPB”) finalized three rules and issued one interim rule outlining procedures related to violations of consumer protection laws. The press release announcing the final and interim rules is available here. The final rules take effect upon publication in the Federal Register.

On May 25, 2012, the CFPB released a proposed rule outlining its process for determining whether a covered person has engaged, or is engaging in, conduct that poses risks to consumers related to the offering or provision of consumer financial products or services. The proposed rule sets out the procedures under which the CFPB may subject a nonbank covered person to the CFPB’s supervisory authority, including requiring reports from and conducting examinations of the subject entity. In addition to the CFPB’s specific grant of authority to supervise certain nonbank covered persons, such as those engaged in activity related to residential mortgage loans, the Bureau has the authority to supervise any nonbank covered person that it "has reasonable cause to determine, by order, after notice and a reasonable opportunity to respond" that the person is engaged in conduct posing a risk to consumers based on reasonable cause from complaints or information collected from other sources.

Continue Reading CFPB Releases Proposed Rule for Supervision of Non-Bank Persons Based on “Reasonable Cause”

On May 23, 2012, the Consumer Financial Protection Bureau (CFPB) officially launched its prepaid card initiative. In addition to issuing an Advance Notice of Proposed Rulemaking (ANPR), the CFPB hosted a field hearing in Durham, North Carolina, on general purpose reloadable prepaid cards, a rapidly growing segment of prepaid cards. Current and entering industry members

The CFPB announced today that it will hold a "field hearing" in Durham, North Carolina on the topic of prepaid cards on Wednesday, May 23, 2012. Director Richard Cordray will present remarks and the CFPB will hear testimony from consumer and civil rights groups, industry representatives, and members of the public.

The CFPB has not

Earlier today, the Federal Trade Commission (FTC) issued an advisory opinion affirming broad consumer rights under the Holder in Due Course Rule (“Holder Rule”). The National Consumer Law Center (NCLC), joined by Public Citizen, the Center for Responsible Lending, the National Association of Consumer Advocates, and the federation of state Public Interest Research Groups, requested