Financial services companies - banks, non-bank lenders and loan servicers, auto finance companies, student loan companies, debt collectors, credit card issuers, non-traditional finance companies, and other market participants - face numerous legal challenges today, including government investigations and enforcement actions, a shifting regulatory landscape, novel civil litigation theories and other litigation risks. Especially as the Consumer Financial Protection Bureau and other regulators issue guidance and promulgate new rules and regulations impacting the consumer finance industry, it is now more critical than ever that corporate counsel stay abreast of these developments and related enforcement and litigation trends in order to manage institutional risks. Recognizing this need, Goodwin's LenderLaw Watch monitors, chronicles and analyzes news and legal issues impacting our clients and the consumer finance industry.

Bipartisan FDCPA Servicemembers Act Passes Through House

The U.S. House of Representatives unanimously passed a bipartisan bill, H.R. 5003 — also referred to as the Fair Debt Collection Practices for Servicemembers Act — aimed to enhance protections for servicemembers against debt collector harassment. The bill would amend the Fair Debt Collection Practices Act (FDCPA) by adding servicemember-specific…

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Louisiana District Court Finds TCPA Robocall Prohibition Unconstitutional Prior to July 2020

On September 28, 2020, Judge Martin C. Feldman of the United States District Court for the Eastern District of Louisiana issued an important decision that could impact Telephone Consumer Protection Act (TCPA) litigation involving alleged robocalls across the United States.  See Creasy v. Charter Commc’ns, Inc., No. 20-cv-1199, 2020 WL…

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White House Issues Memorandum Urging Federal Agencies to Adopt Protections for Subjects of Enforcement

On August 31, 2020, the Office of Information and Regulatory Affairs (OIRA), an arm of the Office of Management and Budget (OMB) within the Executive Branch, issued a memorandum (M-20-31 memorandum) directing the heads of federal executive departments and agencies to revise their procedures and practices in light of “the…

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CFPB, FTC, Federal and State Law Enforcement Crackdown on Corrupt Debt Collectors

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On September 29, 2020, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), along with more than 50 federal and state law enforcement partners, announced a nationwide law enforcement and outreach initiative designed to protect consumers from phantom debt collection, and abusive and threatening debt collection practices….

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CFPB Continues to Target Misleading VA Mortgage Loan Advertisements

On September 14, 2020, the Consumer Financial Protection Bureau (CFPB) announced a settlement in its eighth case arising out of the CFPB’s “sweep of investigations” of mortgage companies allegedly mailing deceptive advertisements for VA-guaranteed mortgages to servicemembers and veterans.  According to the CFPB, the “ongoing sweep of investigations reflects the…

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California Legislature Passes Bill Expanding Consumer Financial Protection Oversight

On August 31, 2020, the California Legislature passed Assembly Bill No. 1864 (AB-1864), sending the bill to California Governor Gavin Newsom for his expected approval.  Below is an overview of some of AB-1864’s key provisions. As LenderLaw Watch reported earlier this year, Governor Newsom’s 2020-2021 Budget Summary proposed expanding the…

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CFPB Pilots Advisory Opinion Program to Address “Regulatory Uncertainty”

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On June 18, 2020, the Consumer Financial Protection Bureau (CFPB) announced the launch of its pilot advisory opinion (AO) program.  The CFPB quickly followed this announcement by publishing a procedural rule implementing the pilot AO program, as well as a proposed procedural rule that would establish a permanent AO program…

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CFPB Issues Statement on Temporary Supervisory and Enforcement Practices for Credit Card Electronic Disclosures in Response to COVID-19

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In response to the ongoing impact the COVID-19 pandemic has had on the financial industry, on June 3, 2020, the Consumer Financial Protection Bureau (CFPB) issued a statement (CFPB Statement) announcing that it would provide temporary flexibility for credit card issuers in connection with certain written disclosure requirements. Under Regulation…

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U.S. Paycheck Protection Program Lenders: Risks of False Claims Act Enforcement Actions

Congress has recently updated the Paycheck Protection Program (PPP) to stabilize the economy in response to the troubling economic impact of the COVID-19 pandemic.  Lenders should be aware that the federal government’s efforts to provide loans to small businesses in the wake of the pandemic may also result in increased…

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