House subcommittee to hold hearing on CFPB’s constitutionality

House subcommittee hearing CFPBOn March 21, 2017, the Subcommittee on Oversight and Investigations of the House Committee on Financial Services will hold a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” Based on the title of the hearing, isn’t hard to guess where the committee stands on the issue of the CFPB’s authority and constitutionality.

According to the memorandum from the Committee’s Majority Staff to Committee Members, the hearing “will examine whether the structure of the Bureau of Consumer Financial Protection (“Bureau”) violates the Constitution as well as structural changes to the Bureau to resolve any constitutional infirmities.”


FTC orders telemarketing scheme operators to pay $7.5 million in consumer redress

FTC telemarketing scheme settlement On March 13, 2017, the FTC issued a press release announcing that it reached a settlement with the operators of a telemarketing scheme that had allegedly harmed thousands of consumers across the country. According to the FTC, many of the consumers targeted by the scheme were elderly individuals or military veterans living on fixed income.

Under the terms of the stipulated final order, the defendants must pay approximately $7.5 million in consumer redress. The defendants are also prohibited from telemarketing, marketing investment opportunities, and selling or otherwise benefiting from consumers’ personal information.


CFPB fines Nationstar $1.75 million for HMDA violations

nationstar CFPB fineOn March 15, 2017, Nationstar Mortgage entered into a consent order with the CFPB to resolve alleged violations of the Home Mortgage Disclosure Act (HMDA). Nationstar will pay a $1.75 million civil money penalty for what the CFPB has termed “persistent and substantial reporting errors” that occurred between 2012 and 2014. According to the Bureau, this is the largest penalty for HMDA violations that the CFPB has imposed to date.

According to the consent order, Nationstar has “a history of HMDA non-compliance” which dates back to November 2011 when Nationstar entered into a consent order with the Massachusetts Division of Banks for violations related to HMDA and Regulation C.


North Carolina court enters $35 million judgment against illegal debt relief companies

North Carolina AG debt reliefOn March 9, 2017, the North Carolina Attorney General (AG) issued a press release announcing that a North Carolina Superior Court had issued a ruling against three debt relief companies. The court permanently banning the companies from advertising or performing any debt relief services, legal services or any related services in North Carolina and entered final judgments and assessed civil penalties.


image/svg+xml