We recently wrote about two studies, one by Professor Ronald Mann and the other by Professor Jennifer Lewis Priestley, that cast serious doubt on the benefit to payday loan borrowers of an ability-to-repay requirement and limits on rollovers for payday loans, two elements that the CFPB is expected to include in its payday loan proposal.
As he has done in prior years, Director Cordray spoke earlier this week to the National Association of Attorneys General. His prepared remarks focused on the familiar theme of “the four Ds” that create obstacles for consumers in the financial services marketplace–deceptive marketing, debt traps, dead ends, and discrimination.
CFPB Proposes Temporary Suspension of TILA Requirement for Credit Card Issuers to Submit Card Agreements Quarterly
The CFPB has issued a proposal to suspend for one year the Truth in Lending Act/Regulation Z requirement for issuers of open-end credit cards to send their credit card agreements to the CFPB quarterly for posting in a public database on the CFPB’s website.
On February 19, 2015, the CFPB released its credit report study, entitled “Consumer voices on credit reports and scores.”
Last week, Director Cordray spoke at a National Credit Union Administration town hall webinar. While his prepared remarks were not particularly revealing, the American Banker reported that Director Cordray was unusually candid during the Q&A part of the program.
According to a report in The New York Times’ Dealbook, the payday lending regulations the Consumer Financial Protection Bureau is drafting would govern a broader range of short-term loans than some may like, with car title loans and installment loans falling under the guidelines, and would create measures aimed at curbing what the Bureau has been calling the payday lending “cycle of debt.”
The CFPB’s payday loan rulemaking was the subject of a NY Times article this past Sunday which has received considerable attention.
Is your financial institution or company subject to the Consumer Financial Protection Bureau’s (CFPB) supervision?
CFPB Orders Subprime Credit Card Company to Pay Estimated $2.7 Million in Refunds for Alleged Illegal Credit Card Fees
Today, the CFPB entered a consent order that requires subprime credit card company, Continental Finance Company, LLC (“Continental”), to refund an estimated $2.7 million to consumers who were charged alleged illegal credit card fees.