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.

Goodwin Releases Annual Review of Key Developments Within the Consumer Financial Services Industry

Goodwin announces the release of its third annual Consumer Finance Year in Review, an in-depth report that analyzes the principal litigation, enforcement actions and regulations that have impacted the consumer finance industry over the prior year. This report synthesizes Goodwin’s consumer finance coverage from 2017 and offers predictions and insights…

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Changes to the CFPB’s Approach to the Payday Lending Industry

The Trump Administration-appointed Acting Director of the Consumer Financial Protection Bureau (“CFPB”), Mick Mulvaney, recently stated in a memo to his staff that under his leadership, the CFPB would significantly change in its approach to regulation and enforcement.  The most concrete example of this thus far is his approach to the payday lending…

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CFPB Solicits Comments on CID Process

The Consumer Financial Protection Bureau (CFPB) has solicited comments to assist it to revise its current Civil Investigative Demand (CID) process.  The “Request for Information Regarding Bureau Civil Investigative Demands and Associated Processes” was published in the Federal Register on January 26, 2018. The CFPB’s power to issue CIDs is derived from…

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Signs of Change at the CFPB

On January 16 and 17, 2018, the Consumer Financial Protection Bureau (CFPB) released two statements signaling that yet more change is on the horizon for the agency.  Close on the heels of similar announcements regarding potential changes to its Home Mortgage Disclosure Act and prepaid card rules, the Bureau announced…

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Second Circuit Affirms TCPA Dismissal, Finding Broadly-Worded Consent Provided on Intake Form Sufficient to Show Prior Express Consent

On January 3, 2018, the Second Circuit decided Latner v. Mount Sinai Health System, Inc., No. 17-99, affirming the U.S. District Court for the Southern District of New York’s decision to dismiss the Telephone Consumer Protection Act (TCPA) suit, and finding that the plaintiff consented to receive an automated text…

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Senate Bill Seeks to Bestow Additional Enforcement Powers on State Attorneys General

On December 22, 2017, four Democratic Senators, Dianne Feinstein (D-CA), Kamala Harris (D-CA), Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT), introduced a bill titled the “Accountability for Wall Street Executives Act of 2017.”  The bill amends the Revised Statutes, 12 U.S.C. § 484, to arm state attorneys general and other law enforcement…

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Consumer Financial Protection Bureau's Enforcement Chief Anthony Alexis Joins Goodwin

Goodwin announced today that Anthony Alexis, the former Head of the Office of Enforcement at the Consumer Financial Protection Bureau, has joined the firm in the Washington, D.C. office as a partner in the Financial Industry Practice and as the head of the firm’s Consumer Financial Services Enforcement Practice. “Tony’s extensive enforcement and compliance…

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CFPB Focusing on Risks in Car Loans

The Consumer Financial Protection Bureau (CFPB) released its quarterly report on credit trends for the third quarter of 2017 last week, focusing on trends in the auto lending industry.  Auto loans are a key sector in the lending market—approximately100 million auto loans are outstanding, valued at more than $1 trillion….

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CFPB Issues Consumer Protection Principles for Sharing Financial Account Information with Third Parties

On October 18, 2017, the Consumer Financial Protection Bureau (CFPB) published guidelines for financial institutions to use when authorizing third-party access to consumers’ financial information.  These guidelines are targeted at protecting consumers who give their consent to allow other companies to access their account information.  Companies—including fintech firms, banks, and…

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