Tagged: cfpb

House Republicans Introduce Bill to Challenge Controversial CFPB Rule on Arbitration

Republicans members on the House Financial Services Committee have introduced legislation (H.J. Res 111) designed to nullify a controversial rule published by the Consumer Financial Protection Bureau (CFPB). The resolution is cosponsored by all 34 Republican Members of the Financial Services Committee and mirrors a resolution… Read More

CFPB Ruling on Arbitration May “Transfer Wealth from Consumers to Wealthy Attorneys”

The Consumer Financial Protection Bureau (CFPB) announced a new rule to ban financial companies from using mandatory arbitration clauses. The CFPB said these rules have denied people their day in court. Many consumer financial products like credit cards and bank accounts have arbitration clauses in… Read More

CFPB Investigates Availability of Loans for Small Business in RFI

The Consumer Financial Protection Bureau (CFPB) has initiated an inquiry into to best identify the financing needs of small businesses, especially those owned by women and minorities. The agency says that public information on this lending market is inconsistent and incomplete. The Request for Information… Read More

CFPB Sues Four Online Lenders Operated by a California Indian Tribe

The Consumer Financial Protection Bureau (CFPB) has sued four online lenders for collecting debt from consumers they allegedly did not owe. The four lenders include: Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. – The suit… Read More

Congressman Patrick McHenry Slams CFPB, Labels Project Catalyst a Failure

The Consumer Financial Protection Bureau (CFPB) was created out of the ashes of the Great Recession. A knee jerk-reaction crafted by elected officials attempting to fix what went wrong, the controversial agency has since earned much criticism while having its structure deemed unconstitutional. At a… Read More

Harvard Kennedy School Study Recommends P2P Marketplace Policy Overhaul

The proliferation of P2P marketplace, and most importantly online lending brings a competitive challenge for existing financial institutions that is here to stay. Its meteoric rise has provoked regulators around the world to deliberate on the new models of oversight needed to benefit consumers and… Read More

Financial Innovation Now Tells CFPB to Examine, Not Regulate, Consumer Access to Digital Financial Records

The Consumer Financial Protection Bureau (CFPB), launched an inquiry into consumers seeking access to their financial records.  At the time of the announcement, CFPB Director Richard Cordray stated; “Consumers should be able to use their financial records and account information and securely share access in… Read More

What to Watch For in Marketplace Lending During 2017

Predicting what will transpire in the coming year is always challenging, particularly in relatively nascent and growing industries such as marketplace lending. While surprises are undoubtedly in store for 2017, indications are that certain trends—the growth of bank partnerships and industry consolidation—will continue and accelerate… Read More

CFPB Changes Senior Leadership But Director Cordray Stays Put

The Consumer Financial Protection Bureau (CFPB) has announced several high level leadership changes within the Bureau. The positions announced today are: the Chief of Staff; the Chief Information Officer; the Chief Financial Officer; the Assistant Director of Consumer Lending, Reporting, and Collections Markets; and the… Read More

Karen Mills, Harvard: Regulate, But Allow Online Lending Market Space to Innovate

Senior Fellow at Harvard Business School Karen Gordon Mills along with VP of Strategy at Fundera, Brayden McCarthy, have recently posted a working paper on SME lending. Mills is also the former Administrator of the Small Business Administration – a post she held during the Obama administration just… Read More

CFPB Publishes Report Entitled “Project Catalyst” on Financial Innovation

The Consumer Financial Protection Bureau (CFPB) has published a report on financial innovation. Entitled “Project Catalyst Report: Promoting Consumer Friendly Innovation”, the document is an effort to position the young regulatory agency as embracing changes in the financial industry that are deemed beneficial. The CFPB… Read More

Federal Court Calls CFPB Structure Unconstitutional

The Consumer and Financial Protection Bureau (CFPB) has been labeled “unconstitutional” by a federal appeals court.  The ruling addressed specifically the agency’s structure and the amount of control exercised by its director – currently Richard Cordray.  The ruling allows for the CFPB to continue to… Read More

Brian Korn Says CFPB on the Offensive with CashCall Action & More

Brian Korn, a prominent attorney in the alternative finance sector, says the Consumer Financial Protection Bureau (CFPB) is on the offensive. Korn pointed to recent settlements with LendUp and CashCall as indicative of its aggressive approach towards financial service enforcement. At the end of 2013,… Read More

CFPB Orders LendUp to Pay-up $3.63 Million in Refunds & Penalties

The Consumer Financial Protection Bureau (CFPB) has ordered LendUp to pay approximately $1.83 million in refunds and pay a civil penalty of $1.8 million. The enforcement action was taken as the “online lender did not help consumers build credit or access cheaper loans” as the… Read More

Brief: CFPB Quashes So-Called Tribal Lender Western Sky, US District Court Calls CashCall “True Lender”

In a decision filed in the U.S. District Court for the Central District of California, U.S. District Judge John Walter ruled in favor of the Consumer Financial Protection Bureau when he determined that the Californian online loan platform CashCall Inc. was the “true lender” behind the transactions… Read More

CFPB Publishes Complaint Report for Banks/Financial Services

The US Consumer Financial Protection Bureau (CFPB) has filed a monthly complaint report for banks and other financial services. The monthly report uses a three-month rolling average, comparing the current average to the same period in the prior year. CFPB Director Richard Cordray commented on… Read More

Will CFPB Move to Limit Arbitration Undermine Alternative Finance?

The Consumer Financial Protection Bureau (CFPB)recently proposed banning arbitration regarding certain  consumer financial agreements and to allow the legal process to take hold in the case of a dispute. The CFPB posted the proposal this past May, outlined as follows: First, the proposed rule would… Read More

CFPB Announces Advisory Board/Council Members. Heavy on Banks. Light on Alternative Finance

The youngest financial regulatory agency of them all, the Consumer and Financial Protection Bureau (CFPB), has announced its new Advisory Board and Council Members. The CFPB, established under Dodd-Frank, was mandated to create these advisory boards and councils. While the various groups were represented by many… Read More

CFPB Rallies Support for Proposed Payday Rules as Congressman Hensarling Questions Limiting Access to Credit

The Consumer Financial Protection Bureau announced a proposed set of rules today designed to curtail abuses within the Payday lending industry. CFPB Director Richard Cordray released a prepared statement on the proposal explaining; “..our research has shown that too many of these loans trap borrowers… Read More

CFPB Targets “Payday Debt Traps” in New Rules for Payday Lenders

The Consumer Financial Protection Bureau (CFPB) has proposed rules targeting the Payday lending industry requiring lenders to assure consumers have the ability to repay the loans.  The CFPB described the proposal as “ending payday debt traps.”  The rules would impact not just Payday lenders but… Read More