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.

CFPB Solicits Comments on CID Process

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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

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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 Sys., Inc., 879 F.3d 52 (2d Cir. 2018), 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…

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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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NCUA Issues List of Primary Areas of Supervisory Focus for 2018

This December, the National Credit Union Administration (NCUA) released a letter to credit unions detailing its primary areas of supervisory focus for 2018.  The NCUA intends for credit unions to rely on the letter to better prepare for their examinations by the NCUA throughout 2018.  The seven areas of focus…

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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

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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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Ninth Circuit Reverses CAFA Remand in Call Recording Case

On October 20, 2017, the Ninth Circuit reversed the Southern District of California’s remand of a putative class action alleging that defendant Monterey Financial Services improperly recorded calls to individuals in California and Washington.  In Brinkley v. Monterey Financial Services, Inc., the Ninth Circuit held that the plaintiff had not…

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House Prioritizes Housing Finance Reform

On October 3, 2017, the U.S. House of Representatives’ Financial Services Committee conducted a hearing on possible housing finance reform measures titled “Sustainable Housing Finance: An Update from the Director of the Federal Housing Finance Agency.”  The hearing specifically addressed housing finance reform as it pertains to government-sponsored entities (GSEs)…

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