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?