News & Analysis as of

Consumer Financial Protection Bureau (CFPB) Borrowers

Ballard Spahr LLP

CFPB reaches settlement with FirstCash in connection with alleged MLA Violations

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The CFPB has reached a settlement in its lawsuit against FirstCash, Inc. and its 19 subsidiaries alleging violations of the Military Lending Act (MLA). The parties have jointly filed a stipulated final judgment and proposed...more

Mayer Brown

CFPB Settles First Action Under New Leadership: Current State of the CFPB and a Look Ahead

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The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) has seen significant changes since President Donald Trump fired former Director Rohit Chopra in January 2025. Under Acting Director Russell Vought, the CFPB has...more

Orrick, Herrington & Sutcliffe LLP

CFPB rescinds COVID-related protections under RESPA Regulation X

On May 16, the CFPB published a Federal Register notice withdrawing its COVID-19-era mortgage servicing protections for borrowers. The CFPB identified two reasons for rescinding this measure: first, the rule was intended to...more

Skadden, Arps, Slate, Meagher & Flom LLP

Servicemember Financial Protections Emerge as a Trump Enforcement Priority

Key Points - - The CFPB and DOJ have recently prioritized enforcement of federal servicemember protections. - The Servicemembers Civil Relief Act and Military Lending Act provide key protections such as interest rate caps,...more

Sheppard Mullin Richter & Hampton LLP

White House Executive Order Eliminates Disparate-Impact Liability Enforcement

On April 23, the White House issued an Executive Order entitled Restoring Equality of Opportunity and Meritocracy, directing federal agencies to “eliminate the use of disparate-impact liability in all contexts to the maximum...more

Sheppard Mullin Richter & Hampton LLP

CFPB Plans Limited Enforcement of Payday Lending Rule

On March 28, the CFPB announced that it will not prioritize enforcement or supervision of the remaining provisions of its Payday, Vehicle Title, and Certain High-Cost Installment Loans Regulation, which were set to take...more

Orrick, Herrington & Sutcliffe LLP

U.S. SDNY dismisses some claims and allows Bureau to file amended complaint in military lending case

On March 24, U.S. SDNY released its opinion and order granting dismissal, in part, with respect to counts two through five (and related claims under count six) in a case the CFPB brought against a loan company group (the...more

Bradley Arant Boult Cummings LLP

Litigation Risk for Mortgage Lenders with a Less Active CFPB

With the recent developments at the Consumer Financial Protection Bureau (CFPB), many mortgage lenders have been left wondering about the extent to which the CFPB will enforce federal laws governing the mortgage lending...more

Orrick, Herrington & Sutcliffe LLP

CFPB study examines cash-out refinancing and nonmortgage debts

On January 24, the CFPB published a report titled “Cash-Out Refinances and Paydown Behavior of Non-mortgage Debt Balances,” which examined the use of proceeds by borrowers who obtained cash-out refinancing between 2014 and...more

Ballard Spahr LLP

CFPB, National Collegiate Student Loan Trusts resolve case that Supreme Court declined to consider

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The CFPB and the National Collegiate Student Loan Trusts—a group of fifteen securitization trusts that acquire, pool, and securitize student loans—have entered into a proposed final consent judgment that, if approved, would...more

Orrick, Herrington & Sutcliffe LLP

CFPB highlights challenges faced by social security recipients carrying student loan debt

On January 8, the CFPB published an Issue Spotlight describing the challenges faced by student loan borrowers affected by the forced collection of Social Security benefits due to defaulted federal student loans. After a...more

Ballard Spahr LLP

Borrowers with poor credit ratings make up majority of BNPL borrowers

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Borrowers with subprime or deep subprime credit scores make up the majority of Buy Now, Pay Later (BNPL) originations, the CFPB said, in a new report. From 2021 to 2022, borrowers with deep subprime credit scores accounted...more

Orrick, Herrington & Sutcliffe LLP

Ninth Circuit upholds CFPB’s restitution order against lending company, affirming waiver of jury trial rights

On January 3, the U.S. Court of Appeals for the Ninth Circuit published an opinion in a case involving a consumer lending company’s appeal of the district court’s order to pay more than $134 million in legal restitution,...more

Sheppard Mullin Richter & Hampton LLP

CFPB Report Highlights Widespread Violations in Student Loan Sector

On December 16, the CFPB released a special edition of its Supervisory Highlights, which detailed findings from the Bureau’s recent examinations of student loan markets. The report identifies a range of violations related to...more

Sheppard Mullin Richter & Hampton LLP

New CFPB Rule Applies Mortgage Standards to Residential PACE Financing

On December 17, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a rule applying standard mortgage protections to Residential Property Assessed Clean Energy (PACE) loans. The rule amends Regulation Z to clarify...more

Orrick, Herrington & Sutcliffe LLP

CFPB examiners report deceptive practices and compliance violations in the student loan market

On December 16, the CFPB released its Supervisory Highlights: Special Edition Student Lending, Issue 36 (Winter 2024) which examined federal and private student loans and identified alleged violations in student loan...more

Ballard Spahr LLP

CFPB says examiners have uncovered a variety of illegal practices in student loan markets

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CFPB examiners have identified a variety of illegal practices across student loan markets, the bureau said, in a special edition [add the link here] of its Supervisory Highlights. The report covers alleged violations related...more

Ballard Spahr LLP

CFPB Student Loan Ombudsman: servicer errors plague student loan program

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The CFPB’s Student Loan Ombudsman has released his annual report, again emphasizing complaint volume without investigating all complaints, suggesting that states should acquiesce when the Department of Education promulgates...more

Troutman Pepper Locke

CFPB Releases Supervisory Highlights Focusing on Student Loan Practices

Troutman Pepper Locke on

On December 16, the Consumer Financial Protection Bureau (CFPB or Bureau) released a special edition of its Supervisory Highlights, detailing a range of activities identified by CFPB examiners across the student loan...more

Sheppard Mullin Richter & Hampton LLP

CFPB Bans Debt Collection Agency Over Student Loan Abuses

On December 9, the CFPB entered into a consent order with a debt collection agency for alleged unlawful student loan debt collection practices against defaulted borrowers. The debt collection agency’s allegedly improper...more

Orrick, Herrington & Sutcliffe LLP

CFPB analyzes borrower challenges in the first seven months of student loan repayments

On November 26, the CFPB published a report that provided an analysis of the first seven months following the resumption of federal student loan repayments after the Covid-19 forbearance ended on September 1, 2023. ...more

Orrick, Herrington & Sutcliffe LLP

District Court orders auto loan servicing company to pay $42M to CFPB

On November 26, the U.S. District Court for the Northern District of Georgia granted the CFPB’s motion for default judgment against the defendant, an auto loan servicing company, determining that the defendant’s bankruptcy...more

Orrick, Herrington & Sutcliffe LLP

CFPB proposed judgment seeks to bar individuals from debt-relief services, dissolve companies

On December 4, the CFPB filed a proposed stipulated judgment against a student loan debt-relief company and its owner to resolve its 2021 action against defendants for allegedly charging borrowers more than $3.5 million in...more

Orrick, Herrington & Sutcliffe LLP

CFPB survey reveals student loan repayment struggles and relief

On November 13, the CFPB released findings from the 2023-2024 Student Loan Borrower Survey, which aimed to understand borrowers’ student loan repayment difficulties and demographics of those applying for and receiving loan...more

Orrick, Herrington & Sutcliffe LLP

CFPB publishes ombudsman report on student loan borrower challenges

On November 15, the CFPB published its 2024 Annual Report of the CFPB Student Loan Ombudsman, highlighting the challenges and changes in the student loan system during 2023-2024. Among other things, the report described...more

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