Bank Notes

  • December 19, 2016
    On Friday, December 19, 2016, the CFPB released a short statement about its intended fair lending priorities for 2017. The Bureau indicated it plans to focus on redlining, mortgage and student loan servicing, and small business lending. Notably, the statement indicated the Bureau is not going to focus on auto lending and credit cards in the coming year because it has “achieved important progress...
  • December 19, 2016
    On Monday, December 19, 2016, the CFPB took action against four Virginia pawnbrokers for allegedly deceiving consumers about the actual annual costs of their loans. The pawnbrokers are Spotsylvania Gold & Pawn , Inc.; Fredericksburg Pawn, Inc . ; Pawn U.S.A., Inc. ; and A to Z Pawn, Inc. In lawsuits filed in federal court, the agency alleged the four companies broke the law by misstating the...
  • December 19, 2016
    On Monday, December 19, 2016, in its second action against the company, the CFPB announced a consent order reached with Military Credit Services, LLC (MCS) resulting from alleged improper contractual disclosures. Specifically, the Bureau alleged violations of the Electronic Fund Transfer Act and Truth in Lending Act, and their implementing regulations – E and Z respectively. According to the...
  • December 19, 2016
    On Monday, December 19, 2016, the OCC announced the selection of Andrew M. Pugh to be the agency’s Deputy Comptroller for Administrative Operations. Previously, Pugh was Director, Business Management and Planning at the Commodity Futures Trading Commission. Pugh will supervise the OCC’s Office of Security, and its Workplace Services and Acquisition Management functions. “Drew’s experience and...
  • December 19, 2016
    On Tuesday, December 19, 2016, the OCC issued a final rule on the receivership of uninsured national banks. Banks covered by this rule would be subject to OCC receivership under the National Bank Act rather than the FDIC under the Federal Deposit Insurance Act. While it was once common for the OCC to resolve uninsured banks, the agency has not appointed a receiver for such institutions since the...
  • December 15, 2016
    On Thursday, December 15, 2016, at the 2016 CFPB Research Conference, Director Richard Cordray announced a web-based tool to help the public monitor developments in consumer lending and track trends over time. The “ Consumer Credit Trends ” tool, which currently is in the beta stage, covers mortgage, credit card, auto loan, and student loan markets, and uses data from one of the top three...
  • December 15, 2016
    On Thursday, December 15, 2016, the U.S. Court of Appeals for the District of Columbia denied a request from businesses to stop the U.S. Department of Labor’s "fiduciary" rule, which is set to take effect in April of 2017. The fiduciary rule requires financial brokers to consider only their client’s best interest when providing retirement investing advice. The National Association of Fixed...
  • December 14, 2016
    On Wednesday, December 14, 2016, the Federal Reserve issued a press release regarding the December 13-14 meeting of the Federal Open Market Committee (FOMC). At the meeting, the FOMC determined economic conditions in the U.S. have strengthened enough to warrant an increase in the federal fund target range to ½ to ¾ percent. The ten members voted unanimously to raise the rate. The Committee noted...
  • December 14, 2016
    On Wednesday, December 14, 2016, a bipartisan group of Senators, led by Sen. Jeff Merkley (D-OR), sent a letter to the head of the Financial Crimes Enforcement Network (FinCEN), requesting clarification for banks and vendors doing business with companies in states having legalized recreational and medical marijuana. The lawmakers raised concerns that conflicting federal law have created safety...
  • December 14, 2016
    On Wednesday, December 14, 2016, the CFPB released a report raising new concerns about fees and features attached to certain college-sponsored accounts. The Bureau analyzed roughly 500 marketing deals between schools and banks, finding many allow for risky features which may lead students to incur burdensome fees. The report also examines trends in school-sponsored credit card market and issued a...

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