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We recently reported that, upon remand from the Supreme Court (after it ruled that the CFPB’s funding mechanism is Constitutional), the plaintiff-trade groups filed a petition for rehearing en banc in the Fifth Circuit in the CFSA v. CFPB case. In the petition, they requested the Fifth Circuit en banc to rehear other claims in their case attacking the remnants of the CFPB’s payday lending regulation which had earlier been rejected by the same Fifth Circuit panel of judges who held that the CFPB was unconstitutionally funded.… Continue Reading

On July 18, 2024, in the lawsuit challenging the CFPB’s credit card late fee rule (Rule), the CFPB refiled its notice of supplemental authority in support of its motion to dismiss or transfer the case, motion to dissolve the preliminary injunction, and brief in support its motion. The filings were previously stricken due to the district court’s lack of jurisdiction.… Continue Reading

In a major win for the CFPB, in CFPB v Touchstone Financial, a panel of the U.S. Court of Appeals for the Seventh Circuit (7th Circuit) recently held that the Regulation B provision prohibiting discrimination under the Equal Credit Opportunity Act (ECOA) against prospective applicants is consistent with the statute.… Continue Reading

After the Supreme Court’s long-awaited 7-2 decision in CFSA v. CFPB that the Consumer Financial Protection Bureau’s (“CFPB’s”) funding mechanism did not violate the appropriations clause of the U.S. Constitution, the case was remanded to the Fifth Circuit, which affirmed the judgment of the district court and reinstated its own judgment in favor of the CFPB on plaintiffs’ three other challenges to the Payday Lending Rule (the “Rule”) that the Fifth Circuit panel had previously rejected:

  1. That the payday lending rule’s promulgation violated the Administrative Procedure Act;
  2. That the rule was promulgated by a CFPB Director unconstitutionally insulated from presidential removal; and
  3. That the CFPB’s UDAAP rulemaking authority violates the Constitution’s separation of powers.
… Continue Reading

On July 11, 2024, the CFPB filed its unopposed Motion for the Immediate Issuance of the Mandate, the CFPB stated that they do not intend to seek a rehearing before the same panel or en banc and requested the Fifth Circuit to issue its mandate forthwith to allow the District Court to entertain further proceedings in the case.… Continue Reading

The complexity of loss mitigation programs designed to assist distressed mortgage borrowers during the COVID-19 pandemic may have been too daunting for many borrowers to seek help, the CFPB said, in a report released last week.

“Many respondents faced challenges accessing these programs even among those who reported communicating with their servicer,” the CFPB said.… Continue Reading

On July 11, 2024, the CFPB filed Respondent’s Motion for the Immediate Issuance of the Mandate. In the motion, the CFPB states that they do not plan to seek a rehearing before the same Fifth Circuit or En Banc and requests the Fifth Circuit to issue its mandate forthwith to allow the District Court to entertain further proceedings in the case.… Continue Reading

On July 8, 2024, in the lawsuit challenging the CFPB’s credit card late fee rule (Rule), the CFPB filed a notice of supplemental authority in support of their motion to dismiss or transfer the case, a motion to dissolve the preliminary injunction, and a brief to support their motion.

On July 10, 2024, without addressing the merits of the CFPB’s motions, Judge Pittman issued an order to the Clerk to “STRIKE and UNFILE” the above mentioned filings from the docket due to the district court’s lack of jurisdiction until after the Fifth Circuit issues its mandate.… Continue Reading

Shortly after the Supreme Court issued its 7-2 opinion in CFSA v. CFPB, holding that the funding mechanism for the CFPB created in the Dodd-Frank Act (a capped amount each year from the “combined earnings of the Federal Reserve System”) is Constitutional, several scholars, one practitioner (me) and legislators began to focus on a different statutory and constitutional infirmity —namely, the fact that since September 2022, the Federal Reserve System had no combined earnings out of which it could lawfully fund the CFPB.… Continue Reading

The CFPB soon plans to issue a final rule that would require certain supervised nonbank entities to register with it and provide information about their use of certain terms and conditions in standard-form contracts for consumer financial products or services that seek to waive or limit consumer rights or legal protections (“Covered Terms”).… Continue Reading