THE CONSUMER FINANCIAL PROTECTION BUREAU: The Financial Industry’s New Watchdog PRESENTATION BY: Michelle Cohen Member, Ifrah PLLC What is the CFPB? New Agency Created By Congress Under Dodd-Frank Wall Street Reform and Consumer Protection Act Independent Agency With Broad Authority To Implement And Enforce Federal Consumer Financial Law Collaborative Agency With Shared Responsibilities with FTC What Are The CFPB’S Objectives? Conduct Rule-Making, Supervision, And Enforcement For Federal Consumer Protection Laws Restrict Unfair, Deceptive, Or Abusive Acts Or Practices Take Consumer Complaints Promote Financial Education Research Consumer Behavior Monitor Financial Markets For New Risks To Consumers Enforce Laws That Outlaw Discrimination And Other Unfair Treatment In Consumer Finance What Does The CFPB Enforce? – Unfair, Deceptive, or Abusive Acts or Practices FINANCIAL LAWS Truth In Lending Act Fair Debt Collection Practices Act FTC RULES Telemarketing Sales Rule Mail Or Telephone Order Merchandising Rule Franchising and Business Opportunities Rules Who Is Subject to CFPB? FINANCIAL INSTITUTIONS NON-BANK “LARGER PARTICIPANTS” NON-BANK COVERED PERSONS “SUPERVISED SERVICE PROVIDER” How Does CFPB Coordinate With FTC? Memorandum of Understanding What Actions Has CFPB Taken Thus Far? “Know Before You Owe” Project QuinStreet, Inc. Prepaid Card Initiative Banning Mortgage Fees Subpoenas/Investigations/Collaboration With State Attorney Generals Case Study – Capital One What Remedies Are Available to CFPB? Rescission/Reformation Payment of Damages Refund/Return Public Notification Restitution Limits on Activities Disgorgement/ Compensation Civil Monetary Penalties No Criminal Enforcement Authority – Refer to DOJ Future Predictions – What’s Next? High Profile Targets Broad Powers, Broad Enforcement Questions?