Tag Archives: CFPB

CFPB Releases Data Sharing Principles for Fintechs and Financial Institutions

On October 18, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) entered  into the long simmering debate over consumer-authorized data sharing.  This debate pits mainstream financial institutions, which are typically reticent to share customer data with third parties, against data aggregators and other fintechs.  Those newer companies provide services directly to consumers—or to enhance the … Continue Reading

CFPB Takes Enforcement Action Against FinTech Lender

Robert Jaworski reviews the September 27, 2016, Consumer Financial Protection Bureau (CFPB) Consent Order (the “Order”) with Flurish, Inc d/b/a LendUp (LendUp), a startup online lending company based in San Francisco that offers single-payment loans and installment loans in 24 states. The Order sends a powerful message to online lenders to make sure their legal houses … Continue Reading

What has the CFPB said about that?

As an early “holiday gift,” to help you more easily search for a particular piece of guidance from the CFPB, we’ve put together two CFPB guidance documents. The first is a compilation of all nine issues of the CFPB’s Supervisory Highlights, from 2012 to 2015. The second is a compilation of all the CFPB’s Bulletins, … Continue Reading

CFPB Files Lawsuit Alleging Deceiving Consumers About the Cost of Short-Term Loans

The Consumer Financial Protection Bureau (CFPB) announced this week that it has filed an administrative lawsuit against defunct online lender Integrity Advance and its CEO for allegedly deceiving consumers about the cost of short-term loans. Integrity Advance was a Delaware-based online lender which originated and serviced short-term, small-value, loans to consumers. The CFPB alleges that … Continue Reading

Georgia Court Rules B2B Companies Within CFPB’s Regulatory Power

On September 1, 2015, the Consumer Financial Protection Bureau (“CFPB”) won an important decision in which a federal court, for the first time, interpreted the meaning of “recklessly provid[ing] substantial assistance” under the Consumer Financial Protection Act (“CFPA”). Perhaps since it was an order denying the defendants’ motions to dismiss released just before the Labor … Continue Reading

CFPB Warns About Marketing Services Agreements

On October 8, 2015, following up on a series of enforcement actions against industry participants engaged in “marketing services agreements” (“MSAs”), the CFPB issued a Compliance Bulletin (No. 2015-15) entitled ““RESPA Compliance and Marketing Services Agreements.”   The thrust of the Bulletin is again warning companies that “many MSAs necessarily involve substantial legal and regulatory … Continue Reading

CFPB Moves to Ban Class Action Waivers in Consumer Financial Services Contracts

In a move long anticipated by the industry, the Consumer Financial Protection Bureau (CFPB) on October 7, 2015 proposed to ban class action waivers in consumer financial contracts. Although the proposed ban would not take effect for a few years, it could lead to an increase in consumer class action lawsuits—some of which  have been … Continue Reading

Treasury Seeks Comments on FinTech Lending

On August 14, 2015, the U.S. Department of the Treasury extended the comment period to give the public more time to respond to a Request for Information (RFI) on marketplace lending titled “Public Input on Expanding Access to Credit through Online Marketplace Lending.” The public now has through September 30, 2015 to provide comments. What’s … Continue Reading

CFPB Touts Benefits of Online Mortgage Closing Disclosures

On August 5, 2015, CFPB Director Richard Cordray lauded the results of a pilot project that explored online mortgage closings. The project found that consumers who closed their mortgage using an electronic platform were better off on measures of understanding, efficiency, and feeling empowered. In addition, Cordray noted that eClosings hold much promise of greater … Continue Reading

CFPB’s Vision for FinTech Payment Systems

On July 9, 2015, the Consumer Financial Protection Bureau continued its focus on payment processing and joined the Federal Reserve’s efforts to develop faster and more secure payment systems by releasing its “Vision of Consumer Protection in New Faster Payment Systems”. The CFPB recognized the added benefits to consumers that evolving payment technology provides, including: … Continue Reading
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