Bank Notes

  • March 18, 2016
    On Friday, March 18, 2016, a federal district court entered final judgment against debt relief company Morgan Drexen, Inc., resolving a lawsuit filed by the CFPB in August of 2013. The Bureau’s lawsuit against Morgan Drexen alleged the company charged illegal upfront fees and deceived consumers. The court found the company violated federal law, prohibited Morgan Drexen from collecting any further...
  • March 18, 2016
    On Friday, March 18, 2016, Comptroller of the Currency Thomas Curry delivered remarks at the National Community Reinvestment Coalition (NCRC) conference where he addressed how national banks and federal savings associations can more effectively serve the credit needs of rural communities, especially those who are economically distressed. During his remarks, Comptroller Curry mentioned changes to...
  • March 17, 2016
    On Tuesday, March 15, 2016, the CFPB requested a federal district court enter a final judgment and order the shutdown of Student Loan Processing.US, a student debt relief operation. The company allegedly charged customers millions of dollars in illegal upfront fees for federal student loan services. If the proposed consent judgment is entered by the court, Student Loan Processing must close...
  • March 17, 2016
    On Thursday, March 17, 2016, Senators Bernie Sanders (I-VT), Patty Murray (D-WA), and Dick Durbin (D-IL) introduced legislation to expand Servicemembers Civil Relief Act (SCRA) protections. Specifically, the bill would lower the cap on all loan interest rates to three percent for those on active duty. If servicemembers are eligible for hostile fire or imminent danger pay, no interest will be...
  • March 16, 2016
    On Wednesday, March 16, 2016, Federal Reserve (Fed) Chair Janet Yellen announced the Federal Open Market Committee did not increase the federal funds rate, keeping it at 0.25-0.5 percent. The decision means the rate remains the same as it was in December 2015. The Fed previously predicted the rate to rise by one percentage point in 2016, however, with this announcement, only expect the rate to...
  • March 16, 2016
    On Wednesday, March 16, 2016, President Obama nominated federal appeals court judge Merrick Garland to fill the Supreme Court seat left vacant by the late Supreme Court Justice Antonin Scalia. The nomination of Judge Garland must be confirmed, and Senate Republicans have indicated there are no plans to continue forward with the process until after the election. "The American people may well elect...
  • March 16, 2016
    On Wednesday, March 16, 2016, the House Financial Services Committee held a hearing on the Consumer Financial Protection Bureau’s (CFPB) Semi-Annual Report to Congress featuring testimony from CFPB Director Richard Cordray. Like previous encounters, Republican members of the committee expressed considerable frustration with the Bureau and its leader throughout the hearing. Save comments from Reps...
  • March 15, 2016
    On Tuesday, March 15, 2016, the FDIC issued a final rule on recapitalization of its insurance fund according to the Dodd-Frank Act and the FDIC's authority under section 7 of the Federal Deposit Insurance (FDI) Act. Under the final rule, the FDIC imposed a surcharge on the quarterly assessments of insured depository institutions with total consolidated assets of $10 billion or more. The surcharge...
  • March 15, 2016
    On Tuesday, March 15, 2016, the FDIC Office of Inspector General (OIG) issued a critical review of the agency’s actions several years ago in preventing three banks from offering refund anticipation loans (RAL), and establishing a policy of “moral suasion” to prevent banks from offering them. The OIG blasted the agency for its use of supervisory powers to impose “high costs” on institutions...
  • March 15, 2016
    On Tuesday, March 15, 2016, House Financial Services Committee Chairman Jeb Hensarling (R-TX) released a preview of the committee’s alternative to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The financial regulatory reform plan includes increased accountability for both financial institutions and regulatory agencies, loosening of regulations for banks meeting high capital...

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