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CFPB Customer Complaint Data: Seeing What the Plaintiffs’ Bar Sees

February 1, 2017

Authors

Douglas Thompson

CFPB Customer Complaint Data: Seeing What the Plaintiffs’ Bar Sees

February 1, 2017

by: Douglas Thompson

CFPB watchers know that since 2013 customer complaints have been solicited and complaint data has been made available on the CFPB website. January is ubiquitous with New Year’s resolutions (perhaps you’ve already broken all of yours, but hopefully not). It is a great time to review the 2016 customer complaint data and see what the Plaintiffs’ Bar sees about your customers and your institution.

Undoubtedly, in due course, the CFPB has contacted your compliance and legal teams directly about these consumer complaints on an individualized basis. And undoubtedly, you have investigated the issue and provided responsive information to the CFPB and the consumer. Hopefully, each individual customer complaint matter is resolved and closed.

As a class action litigator, however, it is important to highlight that there is more here than

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Complying with the Rules When Posting Privacy Notices Online

March 16, 2015

Authors

Bryan Cave

Complying with the Rules When Posting Privacy Notices Online

March 16, 2015

by: Bryan Cave

On October 28, 2014, the CFPB amended the consumer privacy rules of Regulation P to allow financial institutions to post privacy notices online rather than mailing the required annual notice each year.  Some institutions are already taking advantage of this alternate delivery method.  There are conditions to this option, however, and some institutions might not be satisfying those conditions.  It is important to confirm that your institution is meeting the following conditions if you have decided to take advantage of the new rule:

  • No Opt Outs.  The alternate delivery method can be used only if you do not share your customers’ information in any way for which the customer has the right to opt out under Regulation P or Section 603(d)(2)(A)(iii) of the Fair Credit Reporting Act (FCRA).  This provision of the FCRA is the one under which information that otherwise would be a “consumer report,” such as credit
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  • New CFPB Disclosure Requirements Come Up Short

    February 26, 2015

    Authors

    Bryan Cave

    New CFPB Disclosure Requirements Come Up Short

    February 26, 2015

    by: Bryan Cave

    On October 28, 2014, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule amending Regulation P (the “Amendment”), which implements the consumer privacy provisions of the Gramm-Leach-Bliley Act (“GLBA”).  In most cases prior to the amendment, Regulation P required financial institutions to mail paper copies of the annual privacy disclosure, which many in the financial industry felt was overly costly and needlessly burdensome.  The new rule permits covered institutions to publish privacy notices electronically on their websites, but only after satisfying the following conditions:

  • The financial institution does not disclose nonpublic personal information to nonaffiliated third parties other than for the exception purposes that do not allow for consumer opt-outs, such as for servicing or processing the consumer’s account;
  • The financial institution’s information sharing practices do not trigger opt-out rights pursuant to Regulation P or Section 603 of the Fair Credit Reporting Act (“FCRA”);
  • The requirements of the affiliate
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  • Welcome to 2015: Another Big Year for Consumer Financial Services Regulation

    January 9, 2015

    Authors

    Seyi Iwarere

    Welcome to 2015: Another Big Year for Consumer Financial Services Regulation

    January 9, 2015

    by: Seyi Iwarere

    As we begin 2015, it is worth noting the various federal regulations that will or might take effect. This article summarizes the key regulations that took effect late in 2014, that will take effect in 2015, and that have at least some potential of taking effect in 2015. We focus here on those regulations directly impacting consumer financial services.

    Rules Taking Effect in 2015 (and Late 2014)

    Integrated Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z)

    Perhaps the most significant new consumer regulations to take effect in 2015 are the integrated disclosure regulations under the Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) (the Final Integrated Disclosure Rule). Released on November 20, 2013, by the CFPB, the Final Integrated Disclosure Rule will be effective on August 1, 2015. 78 Fed.Reg. 79730, December 31, 2013. For

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    CFPB Releases Revisions to International Remittance Transfer Regulations

    April 30, 2013

    Authors

    Bryan Cave

    CFPB Releases Revisions to International Remittance Transfer Regulations

    April 30, 2013

    by: Bryan Cave

    The Consumer Financial Protection Bureau has just released its much anticipated revisions to the Regulation E provisions governing international remittance transfers.

    According to the bureau’s press release, the revised rule makes optional the requirement to disclose foreign taxes and recipient institution fees (unless the recipient institution is the remittance transfer provider’s agent). It also makes clear that a remittance transfer provider does not bear the cost of funds deposited into the wrong account because the sender provided the wrong account number or routing number and certain other conditions are satisfied, although the provider is required to attempt to recover such funds.

    The final rule will become effective October 28, 2013.

    We are reviewing the full text of the revisions and will provide a more detailed analysis in the coming days.

    The revised rule is available here.

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    CFPB Proposes Amendments to Remittance Transfer Rules

    January 8, 2013

    Authors

    Bryan Cave

    CFPB Proposes Amendments to Remittance Transfer Rules

    January 8, 2013

    by: Bryan Cave

    The CFPB released its proposal to make several amendments to its remittance transfer rules and to briefly extend the effective date of the rule. The bureau’s proposal is “narrow in focus and intended to preserve the new consumer protections while facilitating compliance with the rule.” The proposed changes address:

    —-Effective date.  The rules are currently slated to become effective on February 7, 2013. The bureau is proposing to temporarily delay the effective date of the rules until it finalizes changes made as a result of the proposal. The new effective date would be 90 days after the bureau finalizes the proposal.

    According to the bureau, the extension should be sufficient for remittance transfer providers to implement necessary systems changes. The bureau also indicates that the extension “might also enable providers (and their vendors) to build solutions that cost less than those that might otherwise have been possible.” In

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    CFPB International Remittance Transfer Rules Create Substantial Compliance Hurdles

    September 7, 2012

    Authors

    Bryan Cave

    CFPB International Remittance Transfer Rules Create Substantial Compliance Hurdles

    September 7, 2012

    by: Bryan Cave

    One provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) that generated comparatively little concern when it was passed was section 1073 entitled “Remittance Transfers.” Closer examination and subsequent issuance of regulations has now drawn scrutiny to this provision, which was already so detailed and lengthy when it was inserted into the Dodd-Frank Act that there was little room for modification by the CFPB when the bureau issued its implementing regulations. To assist Bryan Cave’s client and friends in efforts to comply with the new law and regulations in time for its February 7, 2013 effective date, we’ve prepared a Bryan Cave Client Alert on the Final Remittance Transfer Rules.

    The CFPB’s new regulations are clearly “comprehensive.” Among other things, they:

  • mandate certain disclosures, including the amount of the exchange rate and the amount to be received, prior to and at the
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  • CFPB Proposes Rule to Supervise Nonbanks Posing Risks to Consumers

    May 30, 2012

    Authors

    Bryan Cave

    CFPB Proposes Rule to Supervise Nonbanks Posing Risks to Consumers

    May 30, 2012

    by: Bryan Cave

    The CFPB recently released a proposed rule outlining its procedures for supervising nonbanks engaging in “conduct posing risks to consumers.” The CFPB is authorized to require reports from and conduct examinations of nonbanks subject to its supervision.

    Under the Dodd-Frank Act, the CFPB has the authority to supervise several categories of nonbanks:

    (1) nonbanks in specific markets (mortgage companies, payday lenders and private education lenders);

    (2) nonbanks that are larger participants in other financial products and services markets; and

    (3) nonbanks that it may have reasonable cause to determine are posing risks to consumers based on complaints or other information received.

    This proposal is pursuant to the third category of such supervisory authority, although the CFPB notes that the Dodd-Frank Act does not require it to issue this rulemaking. Rather, it is doing so to be “transparent in its

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    CFPB Creates Ombudsman’s Office

    January 10, 2012

    Authors

    Bryan Cave

    CFPB Creates Ombudsman’s Office

    January 10, 2012

    by: Bryan Cave

    The Consumer Financial Protection Bureau has created an ombudsman’s office to help resolve individual and systemic problems that banks, nonbanks and consumers have with the bureau. The announcement states that depository or non-depository entity that the CFPB supervises may use the Ombudsman’s Office when they have not had success with the existing CFPB processes, or to achieve an informal resolution. Further information may be found at http://www.consumerfinance.gov/ombudsman/#FAQ.

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    CFPB Issues Guidance on Confidential Supervisory Info

    January 9, 2012

    Authors

    Bryan Cave

    CFPB Issues Guidance on Confidential Supervisory Info

    January 9, 2012

    by: Bryan Cave

    The CFPB recently issued guidance on the treatment of confidential supervisory information.  CFPB Bulletin 12-01 states that once the bureau issues a request for information, supervised financial institutions (i.e., those with total assets of more than $10 billion) are required to provide all documents and other information responsive to the request.  The bulletin adds:

    Supervised institutions may not selectively withhold responsive documents based on their judgment that such materials are not necessary to the Bureau’s execution of its responsibilities or that other materials would be sufficient to suit the Bureau’s needs. The supervisory process is based on the supervisor’s full and unfettered access to information, and the supervisor is entitled – indeed, duty bound–to ensure that it thoroughly understands the institution in question and has access to all information that, in its independent judgment, may bear on its supervisory responsibilities.

    The Bulletin argues that providing requested information to the

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