Legal battle for CFPB directorship looms, an updated OCC policy on enforcement actions, and more in this issue of Consumer Financial Services Practice Digest

3 min

Legal Battle of CFPB Directorship Still Looming, but Mulvaney Is the Acting Director in the Interim

United States District Court Judge denies an emergency request to prevent President Trump’s appointment of Mick Mulvaney as the acting director of the CFPB

The controversy over the CFPB's leadership comes as the Bureau faces challenges on legislative and judicial fronts, with congressional opposition to CFPB rulemaking under the Congressional Review Act, and a pending decision regarding the CFPB's constitutionality in the D.C. Circuit. Mulvaney, in his limited time as the acting director, has already implemented a freeze on hiring and on the issuance of any new regulations. The CFPB has had many "firsts" since it was created, and the resignation of its first director and his successor adds to that list. We will be following closely this first change in leadership and how it impacts the CFPB’s priorities in the coming year.

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Lending Laws

Updated OCC Policy Regarding Enforcement Actions Aims to Increase Consistency by Imposing Objective Standards and Requiring Uniform Communication

On October 31, 2017, the Office of the Comptroller of the Currency (OCC) updated its Policies and Procedures Manual (PPM) regarding enforcement actions against banks, federal savings associations, federal branches, and agencies (collectively referred to as "banks"), rescinding and replacing a previous version of the PPM that was issued in 2011. The updated PPM provides internal OCC guidance on selecting the appropriate enforcement action to resolve a bank's deficiencies and promote consistency, while also preserving flexibility for individual circumstances.

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Credit Cards and Cash

The Impact of Beneficial Ownership Rules on Payment Facilitators

If you’re a payment facilitator, how much do you currently know about the owners of your sub-merchant customers? If you’re a processor, how much do you know about the owners of your payment facilitator customer’s sub-merchant customers? And if you’re a bank, how much do you know about the owners of your processor customer’s payment facilitator customer’s sub-merchant customers (who are, technically, also your customers)? If the answer to any of these questions is less than “a lot,” you should be aware that ownership verification requirements are scheduled for important changes in May 2018.

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January 30, 2018: "Strategies for Managing Third-Party Servicers and Implementing Robust Compliance Management Systems,"at the American Conference Institute's 18th National Forum on Prepaid Card Compliance

February 6, 2018: "Playing Your Best Hand When Dealt a State Attorney General Investigation," at the 2018 RMA Annual Conference

February 6, 2018: "Don't Gamble with Regulation: A General Counsel Roundtable," at the 2018 RMA Annual Conference

February 7, 2018: "The Future of Receivables Management: CEO Roundtable," at the 2018 RMA Annual Conference

February 8, 2018: "Current Issues in Debt Buying," at the 2018 RMA Annual Conference

March 7, 2018: "Ensuring Effective Compliance in Lead Generation," at the LeadsCon 2018 Las Vegas Conference

April 25-27, 2018: "Consumer Financial Services Legal and Regulatory Update," at the 2018 Financial Counseling Association