Category Archives: CFPB

Subscribe to CFPB RSS Feed

CFPB Employs “Mystery Shoppers” to Investigate Allegations of Discrimination

With the Consumer Financial Protection Bureau (“CFPB”) now employing mystery shoppers, financial institutions must ensure that their branches are actually putting non-decimation policies into practice.  As we reported here on July 1, BancorpSouth, a Mississippi-based bank, recently entered into a $10.6M settlement with the CFPB regarding alleged redlining in the Memphis market.  That investigation was the … Continue Reading

CFPB Announces $10.6M Settlement with Mississippi Bank over Redlining

In a case that demonstrates the scope of the Consumer Financial Protection Bureau’s (“CFPB’s”) reach, the CFPB and Department of Justice (“DOJ”) have entered into a settlement with BancorpSouth totaling almost $10,600,000 over alleged redlining.  Redlining is the practice of denying services or raising prices to residents of certain geographic areas based upon their racial … Continue Reading

CFPB Files Enforcement Action Against Mississippi Payday Lender

The CFPB is showing that its enforcement actions are not limited to larger companies and that it will file actions in federal courts across the country.  On May 11, 2016, it filed an enforcement action against Mississippi payday lender All American Check Cashing in the United States District Court for the Southern District of Mississippi.  … Continue Reading

New Proposed Rule from the CFPB Paves Way for Massive Increase in Class Actions Suits Against Financial Institutions

Last week, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule which would prohibit mandatory arbitration provisions in millions of banking contracts, including contracts with consumers for credit cards and bank accounts. While financial institutions would still be allowed to offer arbitration as an option to customers individually, they would no longer be able … Continue Reading

CFPB Proposal Could Open the Door for Class Action Litigation

On October 7, 2015, the Consumer Financial Protection Bureau (“CFPB”) proposed a rule that would severely limit the use of arbitration clauses in many consumer financial agreements and likely increase class action litigation in the consumer financial arena. The proposed arbitration ban applies to various consumer accounts, including credit cards, checking accounts, auto title loans, … Continue Reading

Small Lenders Score a Needed Win before the CFPB: New Regs for Small Lenders Serving Rural and Underserved Areas Offers New Promise for 2016

When many small and community bankers serving rural and underserved areas prepare for their New Year’s Eve toast this year, they will be able to make a major New Year’s Resolution: make more home loans.  The Consumer Financial Protection Bureau (“CFPB”) has introduced welcome new rules scheduled to take effect next year, which will raise … Continue Reading

The CFPB Details Recent Supervisory Activities Regarding Mortgage Servicing

The Consumer Financial Protection Bureau recently published the eighth edition of its Supervisory Highlights, in which the Bureau “shares recent supervisory observations” touching on several legal topics under its jurisdiction. One of the principal areas covered in this edition is mortgage servicing. Ensuring compliance with the CFPB mortgage servicing rules that went into effect on … Continue Reading

CFPB Arbitration Study May Be First Step in Unlocking Floodgates of Consumer Class-Actions

Banks already looking over one shoulder to maintain compliance with regulatory reforms coming at them from the Dodd-Frank Wall Street Reform and Consumer Protection Act may soon need to start looking over the other. Class action lawsuits by customers are likely coming, despite contracts to the contrary. Many banks and other financial service providers include … Continue Reading

CFPB Signals Debt Purchaser Industry In Its Sights With New Lawsuit Against Georgia Law Firm

On July 14th, the Consumer Financial Protection Bureau filed suit against a debt collection law firm in federal district court in Atlanta, alleging in broad strokes that its practices— including some which are fairly common in the debt purchaser industry– systematically violate the Fair Debt Collection Practices Act (“FDCPA”) and the Consumer Financial Protection Act … Continue Reading

CFPB Fines Alabama Real Estate Agency for Failing to Properly Disclose Its Affiliate Relationship with Title Company under RESPA Section 8(c)(4).

A May 28, 2014 consent order against an Alabama company serves as a warning to the residential real estate industry to be careful about properly disclosing its affiliate relationships with closing service providers. In March, the Consumer Financial Protection Bureau (“CFPB”) brought an administrative proceeding against JRHBW Realty, Inc., which does business as RealtySouth, and … Continue Reading
LexBlog