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In March, complaints to the CFPB soared.
@cfpb says it "has aggressively utilized [its] tools of regulation, supervision, consumer education and enforcement to protect consumers."
What did the CFPB do in March? https://www.marketwatch.com/story/consumer-complaints-to-the-cfpb-are-skyrocketing-as-the-coronavirus-outbreak-continues-2020-07-17
@cfpb says it "has aggressively utilized [its] tools of regulation, supervision, consumer education and enforcement to protect consumers."
What did the CFPB do in March? https://www.marketwatch.com/story/consumer-complaints-to-the-cfpb-are-skyrocketing-as-the-coronavirus-outbreak-continues-2020-07-17
March 6, proposal to Congress for payments to whistleblowers & says it will go easy on corporations that try to comply with the law + an advisory opinion program for companies.
Same CFPB asking $ for whistleblowers seldom seeks $ for consumers.
https://financialservices.house.gov/uploadedfiles/cfpb_report_settling_for_nothing.pdf
Same CFPB asking $ for whistleblowers seldom seeks $ for consumers.
https://financialservices.house.gov/uploadedfiles/cfpb_report_settling_for_nothing.pdf
March 9, sues Fifth Third for opening unauthorized bank accounts.
March 12, the acting deputy director of @cfpb is recused from overseeing the Fifth Third litigation b/c he was Fifth Third's deputy general counsel. https://www.americanbanker.com/news/cfpb-official-will-be-recused-from-agencys-suit-against-fifth-third
March 12, the acting deputy director of @cfpb is recused from overseeing the Fifth Third litigation b/c he was Fifth Third's deputy general counsel. https://www.americanbanker.com/news/cfpb-official-will-be-recused-from-agencys-suit-against-fifth-third
March 22, issues interagency guidance that says companies won't be violating consumer protection laws if they work with consumers.
Good to know.
Good to know.
March 26, busy day:
suspends reporting & data collection for HMDA, credit & prepaid cards, small business lending, PACE loans
encourages payday lending by banks
Director says that consumers should only complain to the CFPB "as a backstop." https://www.consumerfinance.gov/about-us/newsroom/director-kraninger-remarks-during-financial-stability-oversight-council-meeting/
suspends reporting & data collection for HMDA, credit & prepaid cards, small business lending, PACE loans
encourages payday lending by banks
Director says that consumers should only complain to the CFPB "as a backstop." https://www.consumerfinance.gov/about-us/newsroom/director-kraninger-remarks-during-financial-stability-oversight-council-meeting/
Mar 27, asks how to change the entire 50 year old structure of consumer financial protection, including reducing state's rights to protect their consumers, and the structure of the not-yet-10-year old CFPB https://www.acslaw.org/expertforum/radical-far-right-cfpb-taskforce-threatens-consumer-protection/
Maybe expecting the CFPB to respond to the surge in complaints in March is too much. Maybe they needed more time.
What did the CFPB do in April?
What did the CFPB do in April?
April Fools' Day, settles with payday lender Cash Store, who violated debt collection, credit reporting, and disclosure laws, engaged in egregiously misleading advertising.
Tells Cash Store to be a good company & follow the law going forward & pay consumers $286K.
Tells Cash Store to be a good company & follow the law going forward & pay consumers $286K.
April 1, tells lenders no need to respond in a timely way to complaints about credit reporting & "reminds" them that they don't have to investigate disputes at all if they think the disputes are "frivolous." "Not one iota of assistance" per @ChiChiWu8. https://www.nclc.org/media-center/national-consumer-law-center-advocate-slams-trump-administration-credit-reporting-guidance-for-giving-relief-to-creditors-and-credit-bureaus-but-not-consumers-during-covid-19-pandemic.html
April 3, w/ with other regulators, says it won't enforce the rules, created out of the last crisis, requiring mortgage servicers to provide timely and accurate information to homeowners who are having problems paying their mortgage & are asking for help. https://www.nclc.org/media-center/new-cfpb-mortgage-guidance-does-more-for-servicers-than-consumers.html
April 7, re-issues interagency guidance, affirming a go-easy approach on consumer protection & fair lending supervision & enforcement.
https://files.consumerfinance.gov/f/documents/cfpb_interagency-statement_loan-modifications-reporting-covid-19_2020-04.pdf
https://files.consumerfinance.gov/f/documents/cfpb_interagency-statement_loan-modifications-reporting-covid-19_2020-04.pdf
April 10, CFPB says it's waiving price disclosures from a small part of the remittance market, b/c what ppl need in a pandemic is not to know how much a money transfer will cost.
Still haven't figured out the argument for why that was even kinda responsive to COVID-19.
Still haven't figured out the argument for why that was even kinda responsive to COVID-19.
April 13, greenlights putting stimulus payments on prepaid cards to "speed" stimulus payments.
3 months later, reports of ppl queuing to access an ATM that doesn't charge fees, plus concerns re privacy & arbitration clauses & fees for replacement cards. https://www.nytimes.com/2020/06/05/nyregion/keybank-nyc-coronavirus.html
3 months later, reports of ppl queuing to access an ATM that doesn't charge fees, plus concerns re privacy & arbitration clauses & fees for replacement cards. https://www.nytimes.com/2020/06/05/nyregion/keybank-nyc-coronavirus.html
April 14, no appraisals or home value required until 4 months after closing during COVID. Helps speed closings, for sure, but not clear that not having any independent valuation of property is a good thing for consumers.
Last 2 banking crisises led to stricter appraisal rules.
Last 2 banking crisises led to stricter appraisal rules.
April 15, CFPB and FHFA announce the "Borrower Protection Program."
I don't think they've yet answered the letter from @SenateBanking asking what protection exactly would be extended to borrowers. Or even said yet how they would monitor compliance. https://www.banking.senate.gov/newsroom/minority/brown-colleagues-seek-answers-from-trump-administration-on-the-borrower-protection-program
I don't think they've yet answered the letter from @SenateBanking asking what protection exactly would be extended to borrowers. Or even said yet how they would monitor compliance. https://www.banking.senate.gov/newsroom/minority/brown-colleagues-seek-answers-from-trump-administration-on-the-borrower-protection-program
April 16, CFPB issues a rule raising reporting limits for Home Mortgage Disclosure Act data, making it harder for the public and the government to find #fairlending violations, especially in rural and other underserved areas.
April 24, explains how risky mortgage servicing transfers are to homeowners, flags that now is a time of increased risk of harm from mortgage servicing transfers gone bad, & says can't really expect mortgage servicers to follow best practices now. https://www.nclc.org/media-center/cfpb-guidance-for-mortgage-servicing-transfers-lacks-crucial-consumer-protections-especially-during-covid-19-crisis.html
April 29, relaxes timing requirements on mortgage disclosure rules, ostensibly so ppl can get credit more quickly--but doesn't cite any evidence or complts from consumers that this is a problem.
Weirdly, separately relaxes time for lenders to provide payoff statements.
Weirdly, separately relaxes time for lenders to provide payoff statements.
This is just March & April. But May, June, July weren't full of wins for consumers.
There's the Harbour settlement, for example.
https://twitter.com/DianeEThompson1/status/1275566590218637313
Or the announcement of a program to give corporations a pass from complying with the law. https://twitter.com/DianeEThompson1/status/1273686397401141254
There's the Harbour settlement, for example.
https://twitter.com/DianeEThompson1/status/1275566590218637313
Or the announcement of a program to give corporations a pass from complying with the law. https://twitter.com/DianeEThompson1/status/1273686397401141254
And I skipped the videos & consumer ed. Ppl don't usually call @cfpb asking for consumer education. Ppl call for help with a debt collector or lender or mortgage company. Consumer education is important, but it isn't "aggressive" consumer protection.
In March & April,
16 public actions by CFPB in rulemaking, enforcement, & supervision
2 enforcement actions
0 regulatory actions that protected consumers
Some of the regulatory actions pbly didn't hurt consumers. Some were reasonable. They just didn't protect consumers.
16 public actions by CFPB in rulemaking, enforcement, & supervision
2 enforcement actions
0 regulatory actions that protected consumers
Some of the regulatory actions pbly didn't hurt consumers. Some were reasonable. They just didn't protect consumers.
March & April 2020
2 enforcement actions
1 supervisory bulletin rptng on consumer harm & excusing noncompliance
March & April 2017
7 enforcement actions
2 supervisory bulletins, telling companies to follow the law
2020 @cfpb isn't doing "aggressive" consumer protection.
2 enforcement actions
1 supervisory bulletin rptng on consumer harm & excusing noncompliance
March & April 2017
7 enforcement actions
2 supervisory bulletins, telling companies to follow the law
2020 @cfpb isn't doing "aggressive" consumer protection.
