CFPB Studies How Student Loan Borrowers Transition Out Of Debt. The CFPB recently issued a report on student loan payments and broader household borrowing. The report provides a close look at borrowers’ use of credit as they approach and make their final student loan payments and what follows in the months beyond. One key finding: Most borrowers pay off a student loan before the final installment is due, often with a single large payment. Further [Includes Four Briefs] ...

The CFPB fined a South Carolina-based installment lender $5 million for unlawful debt collection practices, including threatening consumers with jail, shoving them and physically blocking a consumer from leaving private property. It is the second enforcement action since Mick Mulvaney, the White House budget director, took the reins of the CFPB last year. The Security Group and its subsidiaries own and operate approximately 900 locations in 20 states across the country ...

The CFPB is expected to move more quickly to reconsider its payday-lending rule after a federal court denied the delay of the rule’s compliance date that had been requested in a joint motion filed by the CFPB and two trade groups. Two payday-lending trade groups – the Community Financial Services Association of America and the Consumer Services Alliance of Texas – in April filed a lawsuit in Texas federal district court, alleging the agency’s payday-lending rule is unlawful ...

The CFPB and two payday-lending trade groups filed a joint motion seeking a stay of a lawsuit challenging the CFPB payday-lending rule, and to delay the compliance date set by the rule. The lawsuit at issue was filed by the Community Financial Services Association of America and Consumer Services Alliance of Texas in April in a Texas federal district court. The two groups alleged that the consumer agency’s payday-lending rule is unlawful because ...

The CFPB payday lending rule has survived Congress, but Acting Director Mick Mulvaney suggested that the bureau will work with the Office of the Comptroller of the Currency to change it. “The bureau will strive to expand consumer choice, and I look forward to working with the OCC and other partners on efforts to promote access and innovation in the consumer credit marketplace,” Mulvaney said in a statement. The acting director applauded an OCC ...

The House last week voted to kill the CFPB’s auto lending guidance, but the chances of a similar override of the bureau’s payday rule are fading, attorneys said. In a 234-175 vote, the House repealed Obama-era CFPB guidance on indirect auto lending that subjected auto dealers and others to liability for discriminatory price markups. The Senate passed the Congressional Review Act resolution last month, and President Trump is expected to sign the rollback. Congress used the CRA ...

The nature of the CFPB is completely in the eyes of the beholder. In hearings on Capitol Hill last week, Acting CFPB Director Mick Mulvaney was grilled by Democrats while Republicans praised his efforts to reform the bureau. Mulvaney appeared before the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee last week to testify on the CFPB’s semi-annual report. The major changes he proposed included: giving Congress authority to approve ...

After rounds of exchanging increasingly nasty letters, Sen. Elizabeth Warren, D-MA, finally got a face-to-face opportunity to question Mick Mulvaney, the acting director of her brainchild – the CFPB. In Mulvaney’s testimony before the Senate Banking, Housing, and Urban Affairs Committee last week, Warren turned her five-minute questioning time into a passionate speech generally claiming that Mulvaney is hurting the American people “Here’s what you don’t get, Mr. Mulvaney – this isn’t about me,” Warren said ...

Two payday-lending trade groups filed a lawsuit against the CFPB, seeking to invalidate the bureau’s payday lending rule and challenge its constitutionality. The Community Financial Services Association of America and the Consumer Service Alliance of Texas alleged that the agency’s payday lending rule, titled “Payday, Vehicle Title, and Certain High-Cost Installment Loans,” violates the Administrative Procedure Act. The two groups said the final rule was based on “unfounded” presumptions of consumer harm ...

Congressional lawmakers are seeking ways to ease restrictions on payday loans and rescue the industry from what some lenders feel are onerous CFPB rules promulgated under past agency leadership. Sen. Lindsey Graham, R-SC, introduced a Congressional Review Act resolution to repeal the agency’s payday rule, and the House Financial Services Committee gave a green light to bank payday lending. The CFPB finalized its payday rule in October under former Director Richard Cordray with ...