Links in “CFPB”

The CFPB is releasing a study on how financial institutions handle debts that charged off or sold and how ability-to-repay standards are being applied to credit card applicants. Industry observers expect that the study is a precursor to a crack down in the credit card market. [3/18/15]

In a comment letter to the CFPB, CUNA has asked that the Bureau consider additional regulatory relief from the TILA/RESPA mortgage servicing requirements in the form of adding exceptions to the 120-day delinquency rule, clarifying the process for force-placing insurance, raising the loan limit for “small institutions” from 5,000 to 10,000 loans, and expanding the scope of the successors in interest rule. [3/17/15]

Citing a need for more information about "consumer friendly” practices, NAFCU has filed a Freedom of Information Request to obtain the supporting documentation for the CFPB’s recent report on overdraft practices.  The CFPB’s report focused on findings of deceptive practices, but, according to NAFCU, credit unions want to know what practices the CFPB found to be beneficial to consumers. [3/17/15]

The CFPB recently released a report on its much-anticipated Arbitration Study. The study addresses the use of pre-dispute arbitration provisions in connection with consumer financial products and services. The CFPB may use this report in the future to enact regulations to restrict, or even ban, the use of pre-dispute arbitration clauses. [3/17/15]

Chart presented by former CFPB deputy assistant director shows the different tolerance buckets that come with the new TILA/RESPA integrated disclosure rule. [3/17/15]

It’s probably no surprise that Senator Elizabeth Warren opposes any changes that she believes might retrain the CFPB, but her reasoning might surprise you.  Citing credit unions as model financial institutions, she said that one of her goals when she set up the CFPB was to create transparency and a level playing field where all institutions could compete more effectively and where big financial institutions would not be able to continue to cheat their customers. [3/16/15]

CFPB's field hearing on credit card arbitration agreements features panelists who favor that agreements as cheaper and faster than litigation, with consumers receiving a better outcome. Other panelists argued that consumers typically only get something small without a finding that the corporation violated consumer law or acted fraudulently. [3/16/15]

Recap of several key points of CFPB Director Richard Cordray's remarks before the House Financial Services Committee, including the five-year review of ability-to-repay rules, the latest on the Small Business Review Panel to analyze rule-making regarding payday lenders, and whether he plans to bring the hammer down on day one of TILA-RESPA integrated disclosure rules on Aug. 1. [3/10/15]

The CFPB recently released a study showing that arbitration clauses hinder consumer relief from disputes. The study shows that while millions of consumers are eligible for class action lawsuits each year, very few seek individual restitution through arbitration methods. The report also showed that more than 75% of consumers did not know whether they were subject to an arbitration clause.  [3/10/15]

Will the CFPB consider a "60-day nonenforcement window" or a "five-month restrained enforcement period" following the Aug. 1 effective date of the TILA-RESPA Integrated Disclosure Rule? The bureau's director seems less than enthused about the idea. "People will have had close to two years to get ready for this. Nobody should be surprised by this." [3/10/15]