Consumer finance law and compliance / Sarah Johnson Auchterlonie, Alexandra Everhart Sickler.
2017
KF974 .A79 2017 (Map It)
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Details
Title
Consumer finance law and compliance / Sarah Johnson Auchterlonie, Alexandra Everhart Sickler.
Published
Arlington, VA : Bloomberg BNA, [2017]
Call Number
KF974 .A79 2017
ISBN
9781682675762 (print ; alk. paper)
1682675769
9781682675755 (web ; alk. paper)
1682675750
9781682675755
1682675769
9781682675755 (web ; alk. paper)
1682675750
9781682675755
Description
1 volume (various pagings) ; 26 cm
System Control No.
(OCoLC)1001287850
Bibliography, etc. Note
Includes bibliographical references and index.
Record Appears in
Gift
Purchased from the income of the Edith L. Fisch Fund
Added Author
Gift
The Arthur W. Diamond Law Library
Purchased from the income of the Edith L. Fisch Fund
Table of Contents
ch. 1
Consumer Financial Protection Regulatory Landscape
I.
Consumer Financial Protection Bureau
1-3
A.
Bureau Purposes and Functions, Leadership Structure, and Funding
1-4
B.
Bureau's Statutory Authority
1-5
1.
Rulemaking
1-6
2.
Supervision and Examination
1-10
a.
Overview
1-10
b.
Depository Institutions (Banks)
1-11
c.
Nonbank Covered Persons, Including Larger Participants
1-12
d.
Supervisory Authority for Compliance with Federal Consumer Financial Law
1-15
3.
Enforcement
1-15
a.
Limits on CFPB Authority
1-16
b.
Table of Enforcement Authority for Federal Consumer Financial Law
1-18
II.
Prudential Banking Regulators
1-19
A.
Office of the Comptroller of the Currency (OCC)
1-21
B.
Federal Reserve Board of Governors (The Fed) and Banks
1-22
C.
Federal Deposit Insurance Corporation (FDIC)
1-24
D.
National Credit Union Administration (NCUA)
1-26
III.
Other Federal Agencies
1-27
A.
Federal Trade Commission (FTC)
1-27
1.
Background
1-27
2.
FTC Rulemaking
1-28
a.
Magnuson-Moss Rulemaking
1-28
b.
APA-Style Rulemaking
1-30
i.
Fair and Accurate Credit Transactions Act of 2003 (FACTA)
1-30
ii.
Telemarketing and Consumer Fraud and Abuse Prevention Act
1-31
iii.
Gramm-Leach-Bliley Act of 1999
1-31
iv.
Auto Dealers and the Dodd-Frank Act
1-31
3.
FTC Investigation and Enforcement
1-32
4.
FTC's Exclusive Jurisdiction over Certain Auto Dealers
1-34
5.
FTC's Overlapping Authority with the Bureau
1-35
6.
Memorandum of Understanding Between the FTC and the Bureau
1-35
a.
FTC and CFPB Overlapping Enforcement Authorities
1-36
b.
FTC and CFPB Overlapping Rulemaking Authorities
1-36
c.
CFPB supervision and examination
1-36
d.
Coordinating Consumer Complaints
1-37
B.
United States Department of Justice
1-37
C.
United States Department of Housing and Urban Development
1-38
1.
HUD's Transferred Authorities to the Bureau
1-38
2.
Coordination Between the CFPB and HUD
1-39
3.
Mortgage Data Collection
1-41
D.
Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN)
1-41
IV.
State Supervision and Enforcement
1-43
A.
State Banking Regulators
1-43
1.
State Coordination with the Bureau
1-43
2.
Chart of State Financial Institution Regulators
1-44
B.
State Attorneys General
1-44
C.
State Enforcement of Federal Consumer Financial Law
1-57
1.
State Notification to the CFPB
1-58
a.
Who Gets Notice?
1-59
b.
Deadline for Notice
1-59
c.
Contents of the Notice
1-60
d.
Bureau Response and Intervention
1-60
2.
State Enforcement of Other Federal Consumer Protection Statutes
1-61
D.
Coordinating Federal and State Supervision and Enforcement Activities
1-61
E.
CFPA's New Preemption Regime for State Consumer Financial Services Laws
1-62
1.
Conflict Preemption
1-62
2.
CFPA Limits Federal Preemption of State Laws for National Banks and Federal Thrifts
1-63
3.
Preemption Test Under Barnett Bank
1-64
ch. 2
Bureau Organizational Structure and Authorities
I.
Bureau's Mandated Functions
2-1
II.
Bureau's Divisions
2-2
A.
Supervision, Enforcement & Fair Lending (SEFL)
2-2
B.
Research, Markets & Regulation (RMR)
2-7
C.
Consumer Education & Engagement Division
2-10
D.
Operations, Legal, and External Affairs
2-13
1.
Operations Division
2-13
2.
Legal Division
2-15
3.
External Affairs
2-16
III.
Advisory Boards and Councils
2-16
A.
Consumer Advisory Board
2-17
B.
Community Bank Advisory Council
2-18
C.
Credit Union Advisory Council
2-19
D.
Academic Research Council
2-19
ch. 3
Agency Oversight and Due Process
I.
Introduction
3-1
II.
Director Accountability
3-2
A.
Constitutional Challenges
3-2
1.
Leadership Structure
3-2
2.
Recess Appointment
3-3
B.
Statutory Reporting Obligations
3-4
III.
Rulemaking
3-6
A.
CFPA
3-6
B.
Administrative Procedure Act (APA)
3-7
1.
Notice and Comment Rulemaking
3-7
2.
Judicial Review of Bureau Regulations
3-8
C.
SBREFA
3-8
D.
Congressional Review Act
3-12
E.
Financial Stability Oversight Council
3-14
IV.
Discretionary Enforcement Processes
3-15
V.
Invoked Processes
3-15
A.
Office of the Ombudsman
3-15
B.
Motions to Quash CIDs
3-16
C.
Supervisory Appeals
3-17
ch. 4
CFPB Big Three-Regulations
I.
Introduction
4-1
A.
Statutory Authority for Rulemaking
4-2
B.
Judicial Review of Agency Rules
4-3
1.
Chevron Deference: Step One
4-4
2.
Chevron Deference: Step Two
4-4
C.
Regulatory Discretion
4-6
D.
Judicial Remedies
4-10
II.
Rulemaking Process
4-11
A.
Overview
4-11
B.
Interpretive Rules and General Statements of Policy
4-13
C.
Interim Final Rules
4-13
D.
Interagency Rulemaking
4-16
III.
Navigating the Landscape-The Federal Register and Code of Federal Regulations
4-17
A.
Small Business Advocacy Review Panels
4-20
B.
Format of a Federal Register Notice
4-20
C.
Providing Comments to the CFPB on Proposed Rules
4-26
D.
Regulatory Flexibility Act and SBREFA
4-27
IV.
Non-Judicial Oversight of CFPB Rules
4-29
A.
U.S. Government Accountability Office
4-29
B.
Congressional Review Act (5 U.S.C. [§][§]801-808)
4-30
C.
Unfunded Mandates Reform Act of 1995 (2 U.S.C. [§]1538)
4-31
D.
Paperwork Reduction Act (44 U.S.C. [§][§]3501 et seq.)
4-31
E.
Federal Reserve Inspector General
4-32
V.
CFPB Research, Markets, and Rulemaking Division
4-32
A.
Collecting, Researching & Monitoring
4-33
B.
Ex Parte Presentations During Rulemaking
4-34
VI.
Chart of CFPB Rulemaking
4-36
ch. 5
CFPB Big Three-Supervision
I.
Introduction
5-2
II.
Selection of Supervised Entities
5-2
A.
Very Large Banks and Thrifts
5-3
B.
Supervisory Authority over Nonbanks
5-5
III.
Nondepository Larger Participants
5-6
A.
Challenging Assessments as a Larger Participant
5-8
B.
Markets Selected to Supervise
5-9
C.
Risk-Based Supervisory Authority
5-10
IV.
Supervision Process and Procedure
5-11
A.
Supervision and Examination Manuals
5-1l
B.
Chart of Supervision and Examination Manual Topics
5-12
C.
Selection of Supervised Entities
5-14
D.
Examination Staffing
5-17
E.
Information Request
5-19
F.
Impeding Examinations
5-20
G.
On-Site Exam
5-22
H.
Enforcement Attorney Role in Examinations
5-22
I.
Exit Interview
5-23
J.
PARR Letter
5-24
K.
Reports of Examination and Rating
5-25
L.
Examination Timing
5-28
M.
Appeals
5-32
N.
Role of CFPB Ombudsman Office
5-34
V.
Confidential Supervisory Information
5-34
A.
Statutory Authority for Confidential Treatment
5-36
B.
Non-Disclosure of CSI in Legal Proceedings
5-37
C.
Non-Disclosure Agreements or Sharing Agreement Do Not Supersede the CFPB's Confidentiality Rules
5-39
VI.
Practice Guides
5-40
A.
Chart of Supervised Entities
5-40
B.
List of Agencies' Responsibilities for Assessing Compliance of Very Large Banks, Savings Associations, and Credit Unions
5-40
ch. 6
CFPB Big Three-Enforcement
I.
Introduction
6-2
A.
Covered Persons, Related Persons, and Exempt Persons
6-4
1.
Covered Persons and Service Providers to Covered Persons
6-5
2.
Related Persons
6-6
3.
Substantial Assistance of Violations
6-7
a.
Substantially assisting the violations
6-8
b.
Reckless or knowing assistance
6-8
B.
Enforcement Office Authorities
6-9
1.
Exceptions to CFPA Authority
6-10
2.
CFPB's Broad Authority to Investigate
6-11
II.
CFPB Enforcement Efforts and Statistics
6-12
A.
FY 2016 Selected Enforcement Matters and Summary
6-12
B.
FY 2017 All Enforcement Matters and Summary
6-14
III.
Enforcement Investigation Process
6-23
A.
Research Matters for Potential Investigations
6-24
B.
Resolving Jurisdictional Overlap Issues
6-24
C.
Intra-Bureau Notifications and Authorizations through the Enforcement Action Process
6-25
D.
Investigation Source Material
6-25
IV.
Responding to CFPB Civil Investigative Demands
6-26
A.
CID Statement of Basis and Purpose
6-27
B.
Petition to Modify or Set Aside a CFPB Civil Investigative Demand
6-30
1.
Stated Purpose of 12 C.F.R. [§]1080.6(e)
6-30
2.
CID recipients who do not timely file a petition to modify might waive the right to seek relief from the CID in federal district court
6-31
3.
Prerequisites to filing a petition to challenge a CID
6-32
4.
Bureau's practice of posting petitions on the Internet deviates from its usual confidentiality policies
6-32
5.
Bureau strictly construes "good cause" for keeping petitions to modify confidential.
6-33
6.
Bureau posts petitions challenging CIDs on the Internet.
6-34
a.
CID recipients receive advance notice that their petitions to modify are denied.
6-34
b.
Orders on petitions to modify vary significantly depending on the level of cooperation and external factors.
6-35
c.
Bureau has denied 100 percent of petitions to modify or set aside CIDs.
6-36
d.
Bureau always reveals petitioners' identities.
6-36
e.
CID recipients who appear unlikely to cooperate receive fast decisions.
6-37
C.
Initial Meet and Confer and Modifying Civil Investigative Demands
6-39
1.
Prepare for the Meet and Confer
6-40
2.
CID Modifications
6-41
3.
Tolling Agreements
6-42
V.
Resolving Investigations
6-42
A.
Closing an Investigation
6-42
B.
Notice and Opportunity to Respond and Advise (NORA)
6-44
C.
NORA Submissions or Meetings
6-44
D.
Enforcement Action Settle or Sue Recommendation Memos
6-45
VI.
Forms
6-47
A.
Sample Tolling Agreement
6-47
B.
Sample NORA Letter
6-48
ch. 7
Supervision to Enforcement-The Arc
I.
Introduction
7-1
II.
Free Space for Supervision
7-2
III.
Potential Action and Request for Response Letters
7-3
A.
PARR Letter Timing and Purpose
7-4
B.
PARR Letter Response Audience
7-5
IV.
ARC to Enforcement
7-5
A.
Violation-Focused Factors.
7-6
B.
Institution-Focused Factors
7-7
C.
Policy-Based Factors
7-8
V.
ARC Process and Practice
7-8
VI.
Agency Responsibility for ARC'd Matters
7-9
ch. 8
Remedies and Statutes of Limitations
I.
Introduction
8-1
II.
Relief Available
8-2
A.
Equitable Remedies
8-3
B.
Statutory Authorization of Remedies
8-4
C.
Individual Liability
8-9
D.
Piercing the Corporate Veil
8-11
III.
Statutes of Limitations
8-13
A.
Statute of Limitations Overview
8-13
B.
General Federal Five-Year Limitation of Actions
8-16
C.
Chart of Limitations for Enumerated Statutes
8-19
D.
Accrues as of the Date of Violation
8-22
E.
Accrual Under RESPA
8-23
F.
Theories to Toll or Extend the Limitations Period
8-25
1.
Equitable Tolling.
8-25
2.
Continuing Violations Doctrine
8-25
3.
Discovery Rule
8-27
G.
Tolling Agreements
8-27
ch. 9
Consent Orders and Civil Money Penalties
I.
Introduction
9-1
II.
Anatomy of a Consent Order
9-2
A.
Stipulations
9-2
B.
Definitions
9-3
C.
Findings and Conclusions
9-3
D.
Conduct Provisions
9-3
1.
Remediation
9-4
2.
Chart Containing Summaries of Consent Order Remediation Measures
9-5
3.
Preventing Future Violations
9-6
4.
Ensuring Improved Compliance Going Forward
9-7
E.
Monetary Provisions
9-8
III.
Civil Money Penalties
9-8
A.
Mitigating Factors
9-10
1.
Size of the Financial Resources
9-11
2.
Good Faith
9-11
3.
Gravity of the Violation or Failure to Pay
9-11
4.
Severity of the Risks to or Losses of the Consumer
9-11
5.
History of Previous Violations
9-12
6.
Such Other Matters as Justice May Require
9-12
B.
Interagency CMP Matrix-an Alternative Approach
9-13
C.
CMP Examples from Enforcement Actions
9-16
D.
Civil Money Penalty Analysis of the Statutory Mitigating Factors
9-16
ch. 10
Responsible Business Conduct
I.
Introduction
10-1
II.
Responsible Business Conduct Guidance Purpose and Background
10-2
III.
Four Responsible Business Conduct Elements
10-4
A.
Element One: Self-Policing
10-4
B.
Element Two: Self-Reporting
10-6
C.
Element Three: Remediation
10-8
D.
Element Four: Cooperation
10-11
IV.
Responsible Business Conduct Guidance Limitations
10-12
ch. 11
Litigating an Administrative Adjudication
I.
Introduction
11-1
II.
Basic Principles
11-2
III.
Administrative Adjudication Timing
11-3
A.
Sample Timeline
11-5
B.
Exemplar Timeline for an Administrative Adjudication
11-6
IV.
Administrative Rules Governing Discovery
11-10
A.
Document Discovery and Production
11-10
B.
Chart of Materials That Shall Be Produced and May Be Withheld
11-11
C.
Exculpatory Evidence
11-13
D.
Civil Investigative Demands Disallowed
11-13
E.
Administrative Subpoenas
11-14
F.
Producing Witness Statements
11-15
G.
Injunctive and Monetary Relief
11-16
V.
Evidentiary Rules in CFPB Administrative Proceedings
11-17
A.
General Rules
11-17
B.
Hearsay
11-18
C.
Judicial Estoppel
11-19
VI.
Motions Practice
11-20
A.
Dispositive Motions
11-21
B.
Nondispositive Motions
11-21
C.
Protective Orders
11-22
VII.
Appeals of Administrative Adjudications
11-23
VIII.
Procedure and Judicial Review of Litigated Administrative Orders
11-24
ch. 12
Civil Penalty Fund
I.
Overview
12-1
II.
Statutory Basis
12-2
A.
Fund Administrator (12 C.F.R. [§]1075.102(a), (b), (d))
12-2
B.
Civil Penalty Fund Governance Board (12 C.F.R. [§]1075.102(c))
12-2
C.
Eligible Victims (12 C.F.R. [§]1075.103)
12-3
D.
Payments to Eligible Victims (12 C.F.R. [§]1075.104)
12-3
E.
Allocation of Payments (12 C.F.R. [§]1075.105, 1075.106)
12-3
F.
Distribution (12 C.F.R. [§]1075.108)
12-4
G.
Reporting Requirements (12 C.F.R. [§]1075.110)
12-5
ch. 13
Enumerated Consumer Laws & UDAAPS
I.
Overview
13-4
II.
Enumerated Consumer Laws: Capsule Summaries
13-7
A.
Alternative Mortgage Transactions Parity Act
13-7
B.
Consumer Leasing Act
13-8
C.
Electronic Fund Transfer Act
13-10
1.
Scope
13-10
2.
Disclosures
13-11
a.
General Disclosure Requirements
13-11
b.
Initial Disclosures
13-11
3.
Notices
13-13
a.
Change-in-Terms Notice
13-13
b.
Error Resolution Notice
13-13
4.
Receipts and Periodic Statements
13-14
a.
Receipts
13-14
b.
Periodic Statements
13-14
5.
Access Devices
13-15
6.
Preauthorized Transfers
13-16
a.
Notices
13-16
b.
Stop Payment
13-16
7.
ATMs
13-17
8.
Gift Cards
13-17
9.
Overdraft Services
13-18
a.
Opt in Requirement
13-18
b.
Overdraft Fee Disclosures
13-19
10.
Unauthorized Transfers
13-19
11.
Error Resolution Procedures
13-19
12.
Remittance Transfers
13-21
a.
Scope
13-21
b.
Prepayment Disclosures, Receipts, and Combined Disclosures
13-22
c.
Cancellation
13-22
d.
Error Resolution
13-23
D.
Equal Credit Opportunity Act
13-24
1.
Scope and Applicability
13-24
2.
Prohibited Practices
13-25
3.
Rules for Taking Applications
13-25
a.
Applicant Characteristics
13-26
b.
Inquiries Concerning Marital Status
13-26
c.
Alimony, Child Support, or Separate Maintenance Income
13-27
d.
Residency and Immigration Status
13-27
4.
Rules for Evaluating Applications
13-27
5.
Rules for Extensions of Credit
13-28
6.
Notifications
13-28
a.
Notice of Action on Application
13-28
b.
Adverse Action Notice
13-29
7.
Record Retention
13-30
8.
Enforcement, Penalties, and Liabilities
13-30
E.
Fair Credit Billing Act
13-31
F.
Fair Debt Collection Practices Act
13-32
1.
Scope
13-32
a.
Covered Debt
13-32
b.
Covered Debt Collectors
13-33
c.
Excluded Debt Collectors
13-33
2.
Prohibited or Required Acts
13-33
a.
Communications
13-33
b.
Validation Notice
13-35
c.
Prohibited Conduct with Any Person in Connection with Collection of Debt (Harassment or Abuse)
13-35
d.
Prohibition on Debt Collectors from Making False or Misleading Representations
13-36
e.
Prohibition on Debt Collectors from Using Unfair or Unconscionable Means to Collect or Attempt to Collect a Debt
13-37
3.
Least Sophisticated Consumer Standard
13-38
4.
Civil Liability for Violating the FDCPA
13-38
G.
Fair Credit Reporting Act
13-39
1.
Scope
13-39
2.
Regulation of Credit Bureaus
13-41
3.
Regulation of Furnishers
13-42
4.
Regulation of Users
13-43
H.
Gramm-Leach Bliley Act (GLBA)
13-44
1.
Key Definitions
13-45
a.
Financial Institutions
13-45
b.
Nonpublic Personal Information, Personally Identifiable Information, and Publicly Available Information.
13-45
c.
Customer or Consumer
13-46
d.
Special "Customer Relationship" Rule for Loans
13-47
2.
Financial Privacy Rule
13-47
a.
Notice of Privacy
13-48
i.
Timing of Notice
13-48
ii.
Form of Notice
13-48
iii.
Content of Notice
13-49
b.
Opt Out
13-49
c.
Limitations on Reuse and Redisclosure
13-50
d.
Limitations on Disclosure of Account Numbers
13-50
I.
Homeowners Protection Act of 1998 (HPA)
13-51
1.
Scope
13-52
2.
Borrower Requested Cancellation
13-52
3.
Automatic Termination
13-54
4.
Final Termination
13-54
5.
Treatment of Loan Modifications
13-55
6.
PMI refunds
13-55
7.
Exclusion for LPMI
13-55
8.
Exceptions to Cancellation and Termination Provisions for High Risk Mortgages
13-55
9.
Disclosure and Notice Requirements for Residential Mortgage Transactions
13-55
10.
Civil Liability
13-56
J.
Home Ownership and Equity Protection Act
13-57
1.
Scope
13-57
2.
Disclosures
13-59
3.
Restrictions
13-59
4.
Counseling Requirement
13-60
K.
Home Mortgage Disclosure Act
13-61
1.
Applicability
13-61
2.
Compilation of Loan Data
13-63
a.
Required Data
13-63
b.
Optional Data
13-64
c.
Excluded Data
13-64
3.
Reporting Format
13-64
4.
Disclosure of Data
13-65
5.
Enforcement
13-66
L.
RESPA
13-66
1.
RESPA's Coverage of Mortgage Origination
13-67
2.
RESPA Section 8 and Affiliated Business Arrangements Prohibitions
13-68
3.
RESPA's Coverage of Mortgage Servicing
13-69
a.
Escrow Accounts and Accounting
13-70
b.
Loan Servicing Transfers
13-70
c.
Qualified Written Requests and Mortgage Servicing Error Resolution
13-71
d.
Force-Placed Insurance
13-72
e.
Mortgage Servicing Loss Mitigation
13-74
f.
Special Rules for Small Servicers
13-77
M.
Secure and Fair Enforcement for Mortgage Licensing Act of 2008
13-78
1.
Scope and Applicability
13-79
2.
Registration for Employees of Federally Regulated Institutions
13-80
3.
Financial Institution Requirements for Registration
13-81
4.
Policies and Procedures Requirement
13-82
5.
Unique Identifier Requirement
13-83
6.
Relation to Other Laws
13-83
N.
Truth in Lending Act
13-84
O.
Truth in Savings Act
13-87
1.
Scope
13-87
2.
Disclosure Requirements
13-88
3.
Maturity Notices
13-89
4.
Balance Computation Methods
13-89
5.
Advertisements
13-89
6.
Overdraft Notices and Fees
13-90
7.
Enforcement and Record Retention
13-90
8.
Relation to Other Laws
13-91
P.
Interstate Land Sales Full Disclosure Act
13-91
1.
Scope
13-92
2.
Exemptions
13-92
3.
Statement of Record and Property Report
13-93
4.
Revocation and Repayment Rights
13-94
III.
UDAAPs
13-95
A.
Unfairness
13-96
B.
Deception
13-97
C.
Abusive Acts or Practices
13-99
ch. 14
Covered Persons
I.
Introduction
14-1
II.
Covered Persons
14-2
III.
Service Providers to Covered Persons
14-3
IV.
Related Persons
14-7
V.
Exemptions
14-9
A.
Overview
14-9
B.
Merchant Exemption
14-10
C.
Automobile Dealers
14-11
D.
Practice of Law Exclusion
14-12
ch. 15
Nonbank Covered Markets
I.
Introduction
15-4
II.
Residential Mortgage Origination
15-4
A.
Market Overview
15-4
B.
CFPB Regulation
15-5
1.
Bureau Authority
15-5
2.
Applicable Laws and Regulations
15-6
C.
Compliance
15-7
1.
Advertising and Marketing
15-7
2.
Loan Originators
15-8
3.
Loan Disclosures and Terms-Closed-End Residential Mortgage Loans
15-8
4.
Loan Disclosures and Terms-Other Residential Mortgage Loans
15-9
5.
Appraisals
15-10
6.
Underwriting
15-10
III.
Residential Mortgage Servicing
15-11
A.
Market Overview
15-11
B.
CFPB Regulation
15-12
1.
Bureau Authority
15-12
2.
Applicable Laws and Regulations
15-13
C.
Compliance
15-15
1.
Servicing and Loan Ownership Transfers
15-16
a.
Mortgage Servicing Transfer Notices
15-16
b.
Error Resolution Procedures and Requests for Information
15-17
c.
FCRA, FDCPA, and UDAAP Compliance
15-18
2.
Payment Processing, Account Maintenance, and Optional Products
15-19
a.
Payment Processing
15-19
b.
Optional Products and Services
15-19
c.
Account Maintenance
15-19
i.
Periodic Statements
15-19
ii.
Periodic Payments and Payoff Statements
15-21
iii.
Credit Balances
15-21
iv.
Successors in Interest
15-21
3.
Error Resolution, Consumer Inquiries, and Complaint Procedures
15-22
a.
Error Resolution
15-22
b.
Consumer Inquiries
15-23
4.
Maintenance of Escrow Accounts and Insurance Products
15-24
a.
Force-Placed Insurance
15-24
b.
Escrow Account Requirement
15-24
5.
Consumer Reporting
15-25
6.
Privacy and Information Sharing
15-26
7.
Collection and Accounts in Bankruptcy
15-26
a.
Collection
15-26
b.
Bankruptcy
15-26
8.
Loss Mitigation, Early Intervention, and Continuity of Contact
15-27
a.
Early Intervention
15-27
b.
Continuity of Contact
15-28
c.
Loss Mitigation Procedures
15-28
d.
Consequences of Loss Mitigation
15-29
e.
Short Sales and Deeds in Lieu of Foreclosures
15-30
9.
Foreclosure
15-30
a.
UDAAPs
15-31
b.
ECOA, Loss Mitigation, and Foreclosure
15-32
IV.
Automobile Finance
15-32
A.
Market Overview
15-32
1.
Indirect Lending
15-32
2.
Direct Lending
15-33
3.
Auto Leasing
15-33
4.
Buy Here Pay Here
15-33
5.
Ancillary Products and Services
15-33
B.
CFPB Regulation
15-34
1.
Bureau Authority
15-34
2.
Applicable Laws
15-35
C.
Compliance
15-36
1.
Advertising and Marketing
15-36
a.
TILA and Regulation Z
15-36
b.
Consumer Leasing Act and Regulation M
15-36
c.
FCRA and Regulation V
15-37
2.
Application and Origination
15-37
3.
Payment Processing, Account Maintenance, and Optional Products
15-38
a.
Payment Processing
15-38
b.
Account Maintenance
15-39
c.
Optional Products
15-39
4.
Collections, Debt Restructuring, Repossessions, and Accounts in Bankruptcy
15-39
a.
Collections
15-39
b.
Debt Restructuring
15-40
c.
Repossession
15-41
d.
Accounts in Bankruptcy
15-41
5.
Customer Complaints and Inquiries
15-42
6.
Credit Reporting, Information Sharing, and Privacy
15-42
7.
Service Provider Oversight
15-42
V.
International Money Transfers
15-43
A.
Market Overview
15-43
B.
CFPB Regulation of International Money Transfers
15-43
1.
Bureau Authority
15-43
2.
Applicable Laws
15-43
C.
Compliance
15-45
VI.
Debt Collection
15-46
A.
Market Overview
15-46
B.
CFPB Regulation
15-51
1.
Bureau Authority
15-51
2.
Applicable Laws
15-52
3.
Proposed Regulation
15-53
C.
Compliance
15-54
1.
Entity Business Model
15-54
2.
Communications in Connection with Debt Collection
15-55
3.
Information Sharing, Privacy, and Interactions with Consumer Reporting Agencies
15-56
a.
GLBA and Regulation P
15-56
b.
FCRA and Regulation V
15-57
4.
Consumer Complaints, Dispute Resolution, and Debt Validation
15-58
5.
Payment Processing and Account Maintenance
15-58
6.
Equal Credit Opportunity Act
15-59
7.
Litigation Practices, Repossession, and Time-Barred Debt
15-59
VII.
Consumer Credit Reporting-Larger Participants
15-60
A.
Market Overview
15-60
B.
Bureau Authority
15-60
C.
CFPB Regulation
15-61
1.
FCRA
15-61
a.
Employment Screening
15-64
b.
Nationwide Consumer Reporting Agencies
15-66
2.
Other Federal Laws
15-66
D.
Compliance
15-67
1.
Accuracy of Information and Furnisher Relations
15-68
2.
Contents of Consumer Reports
15-68
3.
Permissible Purposes and Other User Issues
15-70
4.
Consumer File and Score Disclosure
15-71
5.
Consumer Inquiries, Complaints, Disputes, and the Reinvestigation Process
15-73
6.
Consumer Alerts and Identity Theft Provisions
15-75
a.
Fraud and Active Duty Alerts
15-75
b.
Identify Theft Blocking Requirement
15-76
7.
Prescreening, Employment Reports, and Investigative Consumer Reports
15-76
a.
Prescreening
15-76
b.
Employment Reports
15-77
c.
Investigative Consumer Reports
15-77
VIII.
Small Dollar Loans (Payday Loans)
15-78
A.
Market Overview
15-78
B.
CFPB Regulation
15-79
1.
Bureau Authority and Applicable Laws
15-79
2.
Regulation
15-80
C.
Compliance
15-81
1.
Marketing
15-81
2.
Application and Origination
15-81
3.
Payment Processing and Sustained Use
15-82
4.
Collections, Accounts in Default, and Consumer Reporting
15-83
5.
Information Sharing Practices
15-83
6.
Service Provider Relationships
15-84
Appendix A: Table of Abbreviations
APP-1
Appendix B: Enforcement Internal Policies and Procedures
APP-7
Table of Statutes, Regulations, and Government Manuals
S-1
Table of Cases
T-1
Index
I-1