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3 Takeaways (a Litigator’s Perspective) from CFPB Supervisory Highlights

June 27, 2016

Authors

Douglas Thompson

3 Takeaways (a Litigator’s Perspective) from CFPB Supervisory Highlights

June 27, 2016

by: Douglas Thompson

The CFPB recently issued its newest edition of Supervisory Highlights Mortgage Serving Special Edition, Issue 11 (June 2016).

From a litigator’s perspective, the Supervisory Highlights do more than summarize recent supervisory findings, they also shine a light on future examination and putative class action risks that are emerging. The CFPB is providing key insights into what it believes should be industry standards. Banks and mortgage servicers should read carefully both the specific findings summarized and slightly more subtle clues to evolving future CFPB requirements.  Here are three takeaways on the Highlights from a financial services class action litigator’s perspective:

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Will 2014 be the year of UDAP and UDAAP?

February 11, 2014

Authors

Seyi Iwarere

Will 2014 be the year of UDAP and UDAAP?

February 11, 2014

by: Seyi Iwarere

Expect 2014 to be a banner year for enforcement actions under the Unfair or Deceptive Acts or Practices law (UDAP) and the new Unfair, Deceptive or Abusive Acts and Practices law (UDAAP).  While predicting regulatory trends can be difficult, we believe this to be a safe bet in light of the trends in 2013 and early indications in bank examinations already this year.

Below are some of the enforcement trends from last year and tips highlighting what can be done to reduce the risks of UDAP and UDAAP enforcement actions in 2014.

In 2013, the FDIC imposed civil money penalties

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CFPB Issues First Enforcement Action

October 4, 2012

Authors

Bryan Cave

CFPB Issues First Enforcement Action

October 4, 2012

by: Bryan Cave

In its first public enforcement action, the Consumer Finance Protection Bureau (CFPB) found that Capital One Bank, (USA) N.A. engaged in deceptive marketing practices, which the CFPB says mislead customers into buying credit card “add-on products.” The large size of the total payment required under this action ($210 million) has raised speculation that the CFPB will be seeking larger penalties than bank regulators in the past, because such previous penalties have not stopped banks from using unfair tactics to seek profits.

The CFPB found through its supervision process that Capital One’s call-center vendors engaged in deceptive tactics to sell its credit card

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Interest Rate and Brokered Deposit Restrictions

January 28, 2009

Authors

Robert Klingler

Interest Rate and Brokered Deposit Restrictions

January 28, 2009

by: Robert Klingler

On January 27, 2009, the FDIC proposed to amend its regulation relating to interest rate restrictions on institutions that are less than well capitalized.  The proposed regulation would tie the interest rate caps to published national interest rates and eliminate the concept of local deposit market areas.

Section 29 of the Federal Deposit Insurance Act places statutory limitations on the ability of any insured depository institution that is not well capitalized to accept funds obtained by or through any deposit broker.  Because of the statutory definition of a deposit broker, these limitations also limit the interest rates which may

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