The CFPB issued a bulletin last week that details the kind of “responsible conduct” by a regulated institution that the agency may “favorably consider in exercising its enforcement discretion.”The factors include the nature, extent and severity of the violations identified; the actual or potential harm from those violations; whether there is a history of past violations; and a party’s effectiveness in addressing violations. The bureau said the guidance was being issued to inform those subject to its enforcement...

Last week, the CFPB came out with a final rule that establishes procedures to extend its supervision to certain nonbanks whose activities it has reasonable cause to determine pose risks to consumers. Nonbanks subject to the rule are companies that offer or provide consumer financial products or services but do not have a bank, thrift or credit union charter. The CFPB has the authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act to supervise, after following certain procedures, any nonbank...

The U.S. Chamber of Commerce wrote CFPB Director Richard Cordray to take issue with the bureau’s increasing number of requests that companies provide huge quantities of data about individual consumers’ financial transactions on an ongoing, real-time basis. “We agree with you that data are important in determining whether there is a sound basis for regulation and how regulation should be structured, and recognize that Congress conferred specific authority on the bureau to collect data to inform the bureau’s use of its regulatory...

The self-styled watchdog organization Judicial Watch said records obtained from the CFPB under the Freedom of Information Act reveal the bureau’s “warrantless collection of citizens’ personal financial data.” They also provide some nitty-gritty details about the agency’s data collection contract expenditures. The documents obtained by Judicial Watch include: An “indefinite delivery, indefinite quantity” contract with Experian worth up to $8.42 million to track daily consumer habits of select individuals “without...

Auto lender U.S. Bank and one of its nonbank partner companies, Dealers’ Financial Services, have agreed to pay about $6.5 million to service members the CFPB said were harmed by the allegedly deceptive marketing and lending practices associated with the companies’ Military Installment Loans and Educational Services (MILES) auto loans program. “The bureau has a special mission to protect service members,” said CFPB Director Richard Cordray. “The MILES program failed to properly disclose costs associated with repaying auto...

Responding to queries from Democratic members of the House Committee on Financial Services about the CFPB’s activities related to auto fair lending, bureau Director Richard Cordray said that indirect auto lenders have poor fair lending compliance programs, and that failure to monitor auto loans for fair lending compliance “has been a contributing factor in discrimination.” Back in May, several House Democrats asked how the CFPB would determine fair lending violations for auto loans. In his written response to the lawmakers, Cordray...

Last month, the CFPB made what it characterized as a significant update to its proposed policy to encourage trial disclosure programs, part of its Project Catalyst, an initiative to support innovators in creating consumer‐friendly financial products and services. After obtaining and sifting through feedback with various stakeholders, the bureau made a number of revisions and clarifications, including: Iterative testing. Companies can conduct iterative testing during disclosure trials, making small adjustments throughout the trial...

Politico reports that Richard Hackett, the bureau’s assistant director for installment and liquidity lending markets, is planning to leave the agency later this summer. Hackett works in the CFPB’s research, markets and regulations group, where he has been overseeing the agency’s work on installment loans, such as auto and student loans, as well as small dollar loans, including payday and auto title loans. “We know Rick well from his many years in private practice representing industry prior to his joining the CFPB and have great...

The CFPB and the Federal Deposit Insurance Corp. recently released “Money Smart for Older Adults,” an instructor‐led training module designed to help senior citizens and their caregivers protect themselves from financial exploitation and make informed financial decisions. “Older Americans lose an estimated $2.9 billion annually to financial exploitation, and it’s estimated that for each case that is reported, 43 others go unrecognized,” the bureau said. “With 50 million older people in this country, and 10,000 more reaching...

In response to a significant amount of public input – and private bellyaching – from the mortgage finance industry, the CFPB last week issued a number of proposed clarifications and revisions to several mortgage rulemakings finalized in January 2013, including changes to those having to do with loan originator compensation. The proposed changes would, among other things, clarify the definition of a loan originator. Under the CFPB’s January 2013 loan originator compensation final rule, persons classified as loan originators...