Bank Notes

  • September 12, 2016
    On Monday, September 12, 2016, the CFPB entered into a consent order with Bridgepoint Education, Inc., a for-profit, post-secondary education company based in San Diego, for allegedly deceiving students into taking out private student loans which cost more than advertised. The Bureau is ordering Bridgepoint to discharge all outstanding private loans made by the institution to its students and to...
  • September 9, 2016
    Next week, House Financial Services Committee Chairman Jeb Hensarling (R-TX) plans to hold a markup of his alternative to Dodd-Frank, The Financial CHOICE Act. Committee consideration of the bill and amendments are likely to begin next Tuesday with votes possible on Wednesday. The CHOICE Act includes key provisions to reform the CFPB, including transitioning the structure at the Bureau to a...
  • September 8, 2016
    On Thursday, September 8, 2016, Wells Fargo entered into a consent order with the CFPB to settle allegations it illegally opened consumer deposit and credit card accounts, and enrolled consumers in online bank services in violation of Dodd-Frank’s ban on Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). The bank also entered into a consent order with the OCC to settle allegations it...
  • September 7, 2016
    On Wednesday, September 7, 2016 the House passed H.R. 5063 , the Stop Settlement Slush Funds Act of 2016, which would prohibit U.S. government officials from allowing civil action settlement payments to be made to third-party groups, other than to the Treasury or to those who have experienced actual harm from the alleged misconduct. House Judiciary Committee Chairman Bob Goodlatte (R-VA)...
  • September 7, 2016
    On Wednesday, September 7, 2016, the Wall Street Journal reported the findings from a forthcoming FDIC “Unbanked and Underbanked” survey, to be released in October 20, 2016. A product of 36,189 respondents, the survey explored underbanked households, which saw little change at 19.9 percent in 2015, compared to 20 percent in 2013.
  • September 7, 2016
    On Wednesday, September 7, 2016, the CFPB unveiled new resources for financial educators. A report entitled: “Building Blocks to Help Youth Achieve Financial Capability,” offered a financial capability developmental model and recommendations for financial education. Based on the developmental framework described in the report, the Bureau also released a personal finance pedagogy , a teaching tool...
  • September 6, 2016
    On Tuesday, September 6, 2016, FinCEN issued an advisory to help financial institutions guarding against a growing number of email fraud schemes in which criminals deceive banks and their customers into conducting wire transfers. The advisory also provides red flags—developed in consultation with the FBI and the U.S. Secret Service—available to financial institutions to help identify and prevent...
  • September 6, 2016
    ITT Technical Institute announced it would close its more than 130 campuses on Tuesday, September, 6, 2016. Recently, the organization has faced considerable scrutiny and sanctions from the U.S. Department of Education (DOE), including a ban on enrolling new students receiving federal student aid. The closure will force more than 40,000 students to either continue their studies at another school...
  • August 31, 2016
    On Wednesday, August 31, 2016, Holly Petraeus announced her retirement from the CFPB where she has overseen work on consumer protection issues related to the military for five years. Sen. Elizabeth Warren, who headed the agency in 2011, hired Petraeus after the Bureau’s creation as part of the Dodd-Frank Act. "In her time at the Bureau, she has traveled to all corners of the country to work with...
  • August 31, 2016
    On Wednesday, August 31, 2016, the U.S. District Court for the Central District of California granted partial summary judgment to the CFPB in a 2013 lawsuit against CashCall, Inc., an online loan servicer, turning a violation of state usury law into a federal violation of unfair, deceptive and abusive acts and practices (UDAAP). The Court ruled CashCall engaged in UDAAP by using a "tribal model"...

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