Links in “CFPB”

CFPB attention on payday lending zeroing in on "loan sequences," a series of loans taken out within 14 days of repayment of a prior loan. [3/26]

In response to an article describing racial disparities in internal staff reviews, the CFPB released the internal report on which the article was based. It shows that for a review of more than 1,000 employees last year, 20.7% of its white employees received the highest possible performance rating, as did 9.1% of its Hispanic employees, 10.5% of its African American employees, and 15.5% of its Asian American employees. [3/25]

Representatives from a variety of industries regulated by the CFPB are meeting to form a Research Integrity Council, a proposed voluntary coalition to review research released by the CFPB to identify areas of improvement. [3/25]

CFPB's Cordray's remarks on released report focuses on negative impact of payday lending citing both report findings and actual examples and notes various actions taken by Bureau against large payday concluding that Bureau is "in the late stages of our considerations about how we can formulate new rules to bring needed reforms to this market." [3/25]

CFPB's scathing report on payday lending released that finds that 80% of payday loans default and/or are rolled over or renewed. 60% of all payday loans borrowers have fees and expenses that exceed the amount borrowed. This means that 20% of payday borrowers, many of whom are elderly or on disability, and are essentially trapped in the payday debt cycle. [3/25]

Bureau seeks to "develop its debt collection program over the coming year, and will work actively to protect consumers from the unfair, deceptive, abusive, and other unlawful conduct of some debt collectors." 64-page report notes that debt collection complaints are highest received by CFPB and details aspects of complaints received by Bureau. [3/24]

CFPB declines to provide 335 of the 350 documents it located in response to a Freedom of Information Act request by the company that publishes the Washington Examiner seeking information related to the escalating costs of the renovation of the agency's headquarters. The publishing company has now filed a lawsuit. [3/24]

The CFPB enjoys a level of freedom from public scrutiny afforded only the CIA and Federal Open Market Committee. A bill, introduced in the House would apply the Federal Advisory Committee Act to the CFPB, is unlikely to pass this year, but may have more success next year. [3/24]

CFPB Director Richard Cordray stated, "If these borrowers could refinance, their debt would be much more manageable." In this article, Credit Union Student Choice delineates what credit unions can do to help their members. [3/21]

Association of credit and collection professionals finds the CFPB's report on debt collection complaints "seeks to justify the CFPB's existence, but falls short in looking at the underlying causes." Key points raised include CFPB's definition of complaint, consumer unwillingness to communicate with debt collectors, the Catch-22 of not leaving messages that could divulge the existence of consumer debt to others vs. calling back again and being criticized for call frequency. [3/21]