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.

Republicans File Congressional Review Act Challenge to CFPB's Arbitration Rule

As LenderLaw Watch previously reported, on July 10, 2017 the Consumer Financial Protection Bureau (CFPB) released its Arbitration Rule, which blocks the use of mandatory arbitration clauses in consumer financial products and services contracts that prohibit class action lawsuits.  On July 19, 2017, the CFPB published this Rule in the Federal Register,…

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CFPB Publishes State-by-State Snapshot of Consumer Complaints

On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) published a state-by-state breakdown of consumer complaints that have been filed with the CFPB.  The snapshot—which is contained in the June 2017 edition of the CFPB’s Monthly Complaint Report—compiled data from the CFPB’s Consumer Complaint Database about the number of…

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CFPB Finalizes Arbitration Rule, Paving the Way for More Class Action Litigation

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) announced the release of its anticipated Arbitration Rule, opening the door for more consumer class actions against financial institutions concerning financial products and services.  Many consumer contracts, such as credit card and bank agreements, contain mandatory arbitration clauses.  These clauses…

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CFPB Imposes Hefty Fine on Mortgage Servicer for Alleged Violations of Servicing Rules

On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against mortgage servicer Fay Servicing, LLC (Fay), requiring Fay Servicing to pay $1.15 million to borrowers and to cease activities that the CFPB contended violated the Real Estate Settlement Procedures Act (RESPA), its implementing regulation, Regulation X,…

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CFPB Examines Complaints Filed By Older Consumers

On May 31, 2017, the Consumer Financial Protection Bureau (CFPB) issued its Monthly Complaint Report, this month’s complaints by consumers aged 62 and older.   The CFPB drew its analysis of more than 103,100 complaints from its Complaint Database, which can be found here.  The complaint report is an illuminating view…

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Financial CHOICE Act Passes Committee

On May 4, 2017, the U.S. House of Representatives Financial Services Committee passed the Financial CHOICE Act, H.R. 10, with a 34-to-26 vote down party lines.  The legislation, co-sponsored by Chairman Jeb Hensarling (R-TX), seeks to overhaul the 2010 Dodd-Frank Act, including restructuring the Consumer Financial Protection Bureau (CFPB).  LenderLaw…

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