Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

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United States Supreme Court to Resolve Circuit Split Involving the Constitutionality of “No Surcharge” Laws

On September 29, 2016, the United States Supreme Court granted certiorari in the matter of Expressions Hair Design et al. v. Schneiderman, on appeal from the Second Circuit Court of Appeals, in order to resolve a circuit split involving whether state “no-surcharge” laws violate the First Amendment.   Read More ›

Seventh Circuit Holds That Filings in Court Can Fall Within the FDCPA

Last month, the Seventh Circuit reversed the dismissal of a putative class action alleging that debt collector defendants used misleading language in their state court collection complaints in violation of the federal Fair Debt Collection Practices Act (FDCPA). In so ruling, the Seventh Circuit joined the numerous other circuits that have already addressed the issue in concluding that “pleadings or filings in court can fall within the FDCPA.” Read More ›

Lenders Beware: Settlement Suggests Illinois Attorney General Is Cracking Down on Interest Fees

A court settlement involving Illinois lenders suggests that Illinois Attorney General Lisa Madigan is making good on her promise to crack down on lenders’ attempts to charge excessive fees to debtors. The settlement in Illinois v. CMK Investors, Inc., which the Attorney General’s office announced this week, requires CMK Investors, Inc. to both cease efforts to collect on accounts with excessive fees and reimburse customers who overpaid. The settlement also permanently and immediately prohibits CMK from making loans with an interest rate above the state’s 36 percent limit.  Read More ›

Supreme Court to Hear Case Involving Interplay Between Fair Debt Collection Practices Act and Bankruptcy Code

On October 11, 2016, the United States Supreme Court granted certiorari in the matter of Johnson v. Midland Funding LLC, on appeal from the Eleventh Circuit Court of Appeals, in order to resolve whether a conflict exists between the Fair Debt Collection Practices Act (“FDCPA”) and the Bankruptcy Code. In Midland Funding, the appellate court found a debt collector to have violated the FDCPA by filing a proof of claim on time-barred debt in a Chapter 13 bankruptcy. Read More ›

D.C. Circuit Panel Rules CFPB Structure Unconstitutional

Court Also Interprets RESPA Section 8 Anti-Kickback Provisions and Rules that the CFPB Is Subject to RESPA Statute of Limitations

RESPA issues may be the most relevant aspect of the October 11, 2016, ruling by a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit in PHH Corp. v. Consumer Financial Protection Bureau, 15-1177 (D.C. Cir. Oct. 11, 2016). While the opinion’s strongly worded 2-1 holding that the CFPB is unconstitutionally structured is quite noteworthy—to say the least—further consideration by the entire D.C. Circuit seems likely. And en banc consideration could result in the panel’s opinion on the unconstitutionality of the CFPB being vacated, if the court can avoid reaching that issue at this juncture.  Read More ›

In Brief: CFPB Issues Long-Awaited Final Prepaid Rule

After more than four years of anticipation and speculation from the financial services community, the Consumer Financial Protection Bureau (CFPB) unveiled its final prepaid rule on October 5 (accompanied by an animated video explaining highlights of the rule). Read More ›

Don’t Ask, Don’t Discriminate: CFPB States That ECOA Prohibits Creditor Discrimination Based on Gender Identity and Sexual Orientation

The Consumer Finance Protection Bureau has stated that discrimination by creditors based on gender identity or sexual orientation violates the Equal Credit Opportunity Act. As Slate online magazine put it, when providing the first widespread coverage of this issue in an article published last week,“[t]he federal government just accomplished a decades long goal of LGBTQ advocates with a single letter.” The letter referred to was actually sent on August 30, 2016, from the CFPB to Services and Advocacy for GLBT Elders (“SAGE”), a national social service and advocacy organization for gay, lesbian, bisexual, and transgender elders.  Read More ›

New CFPB Mortgage Servicing and Loss Mitigation Rules to Take Effect in 2017 and 2018; New FDCPA Safe Harbor CFPB White Paper May Signal More to Come from CFPB on Loss Mitigation

The Consumer Financial Protection Bureau has issued yet another suite of regulatory changes related to mortgage servicing. The rules add additional protections for borrowers—and therefore increased requirements for servicers—as well as clarify certain issues that have been the subject of questions and confusion by servicers. Read More ›

CFPB Issues Latest TRID Proposal for Comment

On Friday, July 29, the Consumer Financial Protection Bureau (CFPB) issued a much-anticipated proposal to amend its TILA-RESPA Integrated Disclosure Rule (TRID), with public comments due October 18, 2016. Read More ›

CFPB Releases Outline of Proposals for Debt Collection Rules

The Consumer Financial Protection Bureau (“CFPB”) announced yesterday at a field hearing in Sacramento, California, that it is considering several potential approaches to issuing rules on debt collection. The CFPB would take this action pursuant to its authority under the Dodd-Frank Act to issue regulations implementing the Fair Debt Collection Practices Act (“FDCPA”) as well as to issue regulations prohibiting unfair, deceptive, and abusive acts and practices. This rulemaking would mark the first time regulations would be issued to implement the FDCPA, and it is likely to have significant effects on the debt collection industry. Read More ›