Category Archives: Financial Services/CFPB

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What Advertisers of Consumer Financial Services Need to Know About State Attorneys General – a Venable hosted Webinar

State attorneys general have become increasingly involved in consumer financial services investigations and enforcement, a trend that is expected to continue into the next presidential administration. Whether involving a single state attorney general or multiple attorneys general, investigations and litigation can lead to high costs, administrative burdens, distractions, and reputation damage. Often there may be … Continue Reading

Post-Election Consumer Financial Services Regulatory Landscape FAQs

Since the election, several questions have emerged about the near future of the consumer financial services federal regulatory landscape. We’ve gathered some of the most common questions below. The FAQs, based on input received from members of our consumer financial services team, are intended to help provide basic information to help place the results into … Continue Reading

CFPB Supervision and Enforcement: Thinking About Overlap

Thursday, October 27, 2016 2:00 p.m. – 3:00 p.m. ET A Venable LLP Webinar Since opening its doors, the Consumer Financial Protection Bureau has conducted dozens of examinations of banks and, for the first time for a federal regulator, non-bank financial services providers. As a result of this supervisory activity, the CFPB has ordered more … Continue Reading

Sweeping New Federal Regulations for the Prepaid Industry

Note: We have revised the description of the terms of the settlement in our recent blog post on the Carribean Cruise Line TCPA matter. Click here to read the corrected post. Having trouble sleeping and need something to read? Lucky for you the Consumer Financial Protection Bureau (the Bureau) recently released its 1700+ page final rule … Continue Reading

D.C. Circuit Addresses CFPB’s Constitutionality, RESPA Interpretation, and Statute of Limitations Issues in PHH Decision

The United States Court of Appeals for the D.C. Circuit today issued a highly anticipated decision in PHH Corp. v. CFPB (Case No. 15-1177). In a 110-page decision, the D.C. Circuit held that the CFPB’s structure as a single-director independent agency is unconstitutional. The decision on the constitutional issue, however, may have “important but limited … Continue Reading

A Look Inside the Official CFPB Enforcement Policies and Procedures Manual

Since its launch in 2011, the Consumer Financial Protection Bureau (CFPB or Bureau) has developed a reputation for its aggressive investigation and litigation tactics. The Bureau’s Enforcement Policies and Procedures Manual for its enforcement staff provides a peek behind the curtain at how CFPB enforcement actions unfold. Despite the CFPB’s push for transparency, a copy … Continue Reading

FTC Releases Staff Perspectives on Lead Generation

The staff of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection released a much-anticipated paper on lead generation on September 15, 2016. The 13-page report provides staff perspectives on the information covered at the FTC’s October 2015 workshop on lead generation, “Follow the Lead.” Below are a few of the paper’s themes: The paper … Continue Reading

Marketplace Lending Under the FTC Microscope

FinTech remains a hot topic for government regulators. The Federal Trade Commission (FTC) threw its hat into the ring yesterday with a half-day discussion of marketplace lending and its implications for consumers. The forum included panels on the current state of marketplace lending, potential future consumer protection issues as the market evolves, and a presentation … Continue Reading

The CFPB’s Proposed Rule Will End Mandatory Arbitration Clauses

Any company that is regulated and examined by the Consumer Financial Protection Bureau (CFPB) knows how expansive the Bureau’s reach is. Despite challenges in the Congress and the courts, the CFPB is not slowing down. On May 5, 2016, the CFPB released a notice of proposed rulemaking that would ban consumer financial companies from using … Continue Reading

FinTech and Marketplace Lenders under Scrutiny

FinTech and marketplace lenders are fast realizing that the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and even state regulators are focused on their activities. Recent announcements that the CFPB is taking consumer complaints on marketplace lenders and has established an office of small business lending means that lenders and service providers should prepare for … Continue Reading

President Obama Encourages Use of Behavioral Science

President Obama appears to be taking a page out of the performance marketing handbook by signing an executive order promoting the use of behavioral science in federal government decision making and programs.  The New York Times ran an insightful opinion piece last weekend looking at President Obama’s endorsement of federal government agencies’ use of behavioral … Continue Reading

Understanding Federal and State AG Financial Services Enforcement Trends

Looking to avoid being caught in the crosshairs of increased scrutiny by the U.S. Department of Justice (DOJ), Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), federal banking regulators, and state Attorneys General? It’s no secret that consumer financial services providers and their vendors are being heavily scrutinized by federal and state enforcement agencies.  … Continue Reading

The FTC and CFPB are Coordinating, but How Closely?

The Federal Trade Commission (“FTC”) and Consumer Financial Protection Bureau (“CFPB”) have renewed their vow to continue to coordinate their activities and avoid duplication of federal law enforcement and regulatory efforts.  The FTC and CFPB have recently announced they reauthorized their ongoing Memorandum of Understanding (“MOU”), under the terms of the Consumer Financial Protection Act … Continue Reading

Who’s on First? The CFPB’s Recent Focus on First-Party Collections

Successful marketing leads to sales, but sometimes those sales don’t result in customers making timely payments.  When that happens merchants and lenders often try to recover the cost of goods sold or loans through collections.  But what are the risk for merchants seeking to collect outstanding payments?  A lot, apparently, if two recent Consumer Financial … Continue Reading

Compliance Trends for Online Marketers

Looking back 2014 was a year of increased government scrutiny and compliance obligations for lead generators and online marketers, and so, for 2015, advertisers will need to ramp up compliance.  Avoiding banned terms, better use of disclosures, and other web and contact center compliance enhancements – with at least some reports of 66% of website … Continue Reading

CFPB Proposes Rule for Prepaid Products and Releases Study on Prepaid Account Agreements

On November 13, 2014, the Consumer Financial Protection Bureau (CFPB) released a proposed rule regulating prepaid products. The proposed rule would amend parts of Regulation E, implementing the Electronic Fund Transfer Act (EFTA) and Regulation Z, implementing the Truth in Lending Act (TILA). The CFPB’s proposed rule is accompanied by a study on prepaid account agreements.… Continue Reading

0% Interest!* Is Your Advertising Sending the Wrong Message? (*kind of)

Deferred and waived interest programs, convenience checks, promotional rates, and grace periods are popular credit card features with consumer, creditors, and retailers – as well as the Consumer Financial Protection Bureau (CFPB). Last year the CFPB signaled to the industry that it had concerns about use of these loan features and doubts regarding consumer understanding … Continue Reading

Striking Stats About Internet Marketing and Online Lead Generation

Online advertisers and marketers, including lead generators, and their service providers, have long had to contend with scrutiny from the FTC, state Attorneys General, competitors, and customers.  And, since 2012, advertisers of consumer financial products and services have had to contend with the CFPB.  Regardless of what you are promoting, bedrock advertising law says an … Continue Reading

Mortgage Lending: Important Lessons about Advertising, Affiliates, and Authorizations

On August 12, the Consumer Financial Protection Bureau (CFPB or Bureau) entered into a consent order with an online mortgage company, its affiliated appraisal company, and its chief executive officer; they agreed to pay $20.8 million to settle allegations of deceptive advertising and illegal lending practices. This particular action, In the Matter of Amerisave Mortgage … Continue Reading

The CFPB at Year Three: A Look Back, and a Look Forward

The Consumer Financial Protection Bureau (CFPB) turns 3 on Monday, July 21, 2014.   Created under Dodd-Frank, the CFPB already has made a significant impact on the consumer protection legal landscape and, more specifically, on how consumer financial services providers advertise and market their services.  Nevertheless, the CFPB’s track record continues to be controversial, despite the … Continue Reading

What’s Good for the Goose Is Not Good for the Gander: The CFPB and the Endorsement Guides

A company holds a press event to tout the success of its newly introduced product. Someone in the audience asks a question, which the Company subsequently uses in its advertising for the product. However, the Company fails to disclose that it actually paid for the audience member to fly into the press event. Is this … Continue Reading

Top 10 Considerations In Litigating Against The CFPB

If you have not encountered the Consumer Protection Bureau odds are you will as the CFPB has authority over virtually every type of consumer financial transaction.  With a lengthy confirmation and constitutional battle over the recess appointment of its Director now behind it, the CFPB has ramped up an already active regulatory and enforcement agenda. … Continue Reading

Private Sector Schools and Third-Party Student Recruitment under FTC and CFPB Scrutiny

Private Sector Schools and Third-Party Student Recruitment under FTC and CFPB Scrutiny The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are intensifying their regulatory and enforcement focus on proprietary schools and third-party marketing companies. In the fall of 2013, the FTC released revised Vocational School Guides (School Guides), which advise against … Continue Reading