March 10, 2020

Consumer Financial Services Practice Digest

3 min

CFPB Issues Proposed Rules for Time-Barred Debt Collection

The Consumer Financial Protection Bureau (CFPB) issued a Notice of Proposed Rulemaking (NPRM) to require debt collectors to make certain disclosures when collecting time-barred debts under the Fair Debt Collection Practices Act (FDCPA), Regulation F, 12 CFR part 1006, on February 21, 2020. Comments must be received on or before May 2, 2020. The CFPB proposes the effective date of the final rule be one year after the final rule is published in the Federal Register.

Seila Law v. CFPB: The Fate of the Bureau in the Balance

The Supreme Court heard oral argument in Seila Law v. Consumer Financial Protection Bureau and should issue a decision by the middle of this summer. Depending on how the Court decides this case, it could reshape one of the most significant pieces of post-2008 financial crises legislation—the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Court could also change both the ability of Congress to delegate certain executive branch functions by legislation and the way that the executive branch controls independent agencies.

Debt Relief Services Back in the Spotlight

Household and credit card debt is at an all-time high. So it should come as no surprise that debt-relief legal and regulatory issues are back in the spotlight. The Consumer Financial Protection Bureau ("CFPB") will host "Evolutions in Consumer Debt Relief" on March 10, 2020. The CFPB says the event will explore options for consumers facing unmanageable unsecured debt and limited credit options.

FTC Staff Perspectives on Small Business Financing Enforcement Dangers

The staff of the Federal Trade Commission's (FTC) Bureau of Consumer Protection released a much-anticipated paper on small business financing that highlights enforcement dangers on February 26, 2020. The staff are sounding the alarm on FTC enforcement and its investigations of small business financing providers and their marketers, servicers, and collectors.

Lend360 Online Lending and Legal Policy Issues Forum Recap

LEND360 held its first annual Online Lending Legal and Policy Issues Forum on February 26, 2020, at Venable's Washington, DC office. The conference focused on the legal issues facing online lenders and fintech firms. Opening and closing remarks were provided by Jonathan L. Pompan, co-chair, Venable’s Consumer Financial Services Practice Group. Other speakers included Patrick M. Kane and Gerry S. Sachs, members of Venable’s Privacy and Consumer Financial Services practices, who provided insights on the panels, “Data Privacy and Security – The Implications for Your Business” and “Enforcement Trends and Other Insights from the FTC – What You Need to Know.” And Andrew Arculin provided comments on Online Lending and Valid-When-Made Doctrine / True Lender Legal Landscape.

LEND360 Photos

Other topics included online lending advertising, marketing, and lead generation; CFPB Investigations and Enforcement; and the CFPB Office of Innovation provided a keynote presentation. For more information on LEND360, please click here.

Liu v. SEC: Disgorgement in Danger

In Liu v. SEC, the Supreme Court considers whether the SEC may obtain disgorgement in federal court cases. A ruling against the SEC would also jeopardize the ability of other agencies, such as the Federal Trade Commission, to pursue equitable monetary remedies.