Senate Narrowly Confirms Kathy Kraninger as New CFPB Head

The Senate voted 50-49 along party lines last week to confirm Kathleen "Kathy" Kraninger to a five-year term as the newest director of the Consumer Financial Protection Bureau (CFPB). She will succeed Acting CFPB Director Mick Mulvaney. Prior to her appointment, Kraninger served as an associate director in the Office of Management and Budget. She also previously held posts in the departments of Homeland Security and Transportation. More ›

Is CFPB's Constitutionality Headed for the U.S. Supreme Court?

At the close of a 108 page decision filed in response to motions to dismiss a CFPB enforcement action, Consumer Financial Protection Bureau v. RD Legal Funding, LLC, C.A. No. 17-cv-890, Judge Loretta Preska of the U.S. District for the Southern District of New York (within Second Circuit jurisdiction) granted the motions by concluding the CFPB's structure was unconstitutional. This is significant because the D.C. Circuit had determined en banc earlier this year that the CFPB was constitutional in PHH Corp. v. CFPB. More ›

The CFPB is not going anywhere—Except Maybe the U.S. Supreme Court—Following DC Circuit en banc Decision

We've been following PHH's longstanding challenge of the CFPB's imposition of a fine against it for alleged RESPA kickback violations, through which elemental questions regarding the Bureau's constitutionality were tested. More ›

Department of Education Announces Award of Student Loan Collections Contracts: the Latest Chapter in a Long-Running Saga

The Headlines

After much anticipation, on January 11, 2018, the Department of Education filed its Notice of Completion of Corrective Action. The filing announced its hotly contested award of unrestricted contracts for collection of federal student loans to two primary private collection agencies, Performant Recovery, Inc. and Windham Professionals, Inc. Several other small business contractors will also receive portions of the business.

According to the Department of Education, the total contract award amount for the base period and option period is not to exceed $400,000,000, and the base period of performance for this contract is January 11, 2018 through January 10, 2023. More ›

State and Local Governments Prepare to Fill the Consumer Regulatory Enforcement Void

Last week, the Democratic Attorneys General sent a letter to President Trump expressing concern over his choice for CFPB director, Mick Mulvaney and the future of consumer protection, more generally. As was expected, the states are preparing to take on more aggressive roles in consumer protection given the significant weakening of the CFPB. "State attorneys general have express statutory authority to enforce federal consumer protection laws, as well as the consumer protection laws of our respective states," the group said in its letter. "We will continue to enforce those laws vigorously regardless of changes to CFPB’s leadership or agenda." More ›

CFPB Director Richard Cordray Resigning

In news that is still breaking, the first and only Consumer Financial Protection Bureau director, Richard Cordray, has announced he will be resigning at the end of this month. He announced his departure in an email to staff that was reported out by several news agencies. His term was set to expire in July, 2018. Many predict Cordray will make a run for Ohio governor. More ›

Illinois Student Loan Bill of Rights Becomes Law

Yesterday, the Illinois House of Representatives voted 98-16 to override Governor Bruce Rauner's veto of the Illinois Student Loan Bill of Rights. The IL student loan bill provides for the licensing of student loan servicers and imposes numerous, detailed requirements concerning the servicing of student loans. Among other things, the bill sets forth certain information that must be provided to borrowers, some of which must be provided through a trained repayment specialist. Non-exempt servicers have until December, 2018 to become compliant. Illinois is the 4th jurisdiction to create such a law, following Connecticut, California and the District of Columbia. More ›

Take Note: Employers are Helping Pay Student Loans and Consumer Advocates are Watching Closely

A growing number of employers are offering student loan repayment assistance as a means of attracting and retaining talent. Industries like tech, financial services, and health services are among the early adopters, offering variations of the same general benefit:  the employer agrees to pay a certain amount—either a set figure or a percentage of salary—toward their employee’s student loan debt. Since student loan repayment benefits are relatively novel, the rules for both employers offering the benefit, and the student loan servicers administering it, are not yet explicit. More ›

In a Bind about CFPB's Arbitration Rule?

Don't be. At least Republican lawmakers are certainly not. On Tuesday, the U.S. House of Representatives voted overwhelmingly, 231-190, to eliminate the CFPB's final rule arbitration rule using a procedural mechanism called the Congressional Review Act.

The Congressional Review Act allows both houses of Congress to vote on resolutions of disapproval within 60 legislative days of a proposed rule being published in the Federal Register. Under the CRA, the resolution can be brought to the House floor without going to a committee vote, and does not need a filibuster-proof, 60 vote majority to pass in the Senate. If the President signs the resolution, the CFPB would be barred from developing a regulation that is substantially similar to the one disapproved unless Congress specifically authorizes it. More ›

CFPB Releases State by State Report on Consumer Complaints

This week, the Consumer Financial Protection Bureau (CFPB) released its June 2017 complaint report. The format is different than usual. Normally, the report spotlights complaints from a particular industry and state. This month, the report provides a state by state overview of what consumers are complaining about across the country. You can see the top 5 industries receiving complaints by volume and quarterly percent change for each state. More ›