Recent Posts
Blog Post
12/04/2020
By Kyle E. Gray

The Consumer Financial Protection Bureau (CFPB) released its final Advisory Opinions Policy (AOP) on Monday, November 30, setting forth procedures to facilitate the submission of requests for advisory opinions from it by interested parties.

Blog Post
10/22/2020
By Francis X. Riley III

On September 11, 2018, an interagency statement was issued by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Consumer Financial Protection Bureau  that sought to clarify the limited role of the guidance that they issue. Following this, two banking industry advocacy groups, the Bank Policy Institute and the American Bankers Association, filed a petition with regulators on November 5, 2018 that requested a formal rulemaking on the subject. On October 21, 2020, the agencies jointly issued a proposed rule that would codify the 2018 interagency statement to establish that supervisory guidance is not binding or enforceable at law.
 

Blog Post
10/15/2020
By Francis X. Riley III

A national lender, USAA Federal Savings Bank, entered into a consent order with the Office of the Controller of the Currency (“OCC”), which included an $85 million civil money penalty for alleged "unsafe or unsound" banking risk management, compliance processes, and information technology (“IT”) risk governance. In the consent order, the OCC stated that the bank has failed to implement and maintain banking risk management and IT risk governance protocols. Specifically, the bank had deficiencies in "all three lines of defense": first-line business units, independent risk management, and internal audits. As a result, the OCC concluded that the lender had violated the Military Lending Act (“MLA”) and the Servicemembers Civil Relief Act (“SCRA”) in a “pattern of misconduct."

Blog Post
10/12/2020
By Stephanie L. Denker

It has been several months since consumers began filing lawsuits against various companies for failing to issue refunds or changing their refund policies after the COVID-19 pandemic began. 

Blog Post
06/30/2020
By Francis X. Riley III and John L. Ropiequet

The U.S. Supreme Court ruled on June 29 that the Director of the Consumer Financial Protection Bureau (CFPB) cannot constitutionally be subject to removal only for cause, as provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), but must instead be removable at the President’s will. Seila Law LLC v. CFPB, No. 19-7 (U.S. June 29, 2020), arose from a constitutional challenge to the CFPB’s authority to issue a civil investigative demand (CID) for documents and information from a law firm that handled debt relief services. The firm asserted that the single-director structure of the agency, with the director removable only for cause, was a violation of the separation of powers under the Constitution. The district court rejected the argument and was affirmed by the Ninth Circuit.

Blog Post
06/03/2020
By Stephanie L. Denker

Since the outbreak of COVID-19, we have seen numerous class action lawsuits filed against companies for changing their refund policies to ones that have a negative impact on consumers or for not giving full monetary refunds for cancelled events or closed venues. Airlines, Ticketmaster, StubHub, Magic Mountain, and the Office of the Commissioner of Baseball are some of the entities currently defending these lawsuits. More companies could soon be defending against these types of claims, such as retailers that no longer allow the return of health, beauty, wellness, and pet products, and travel companies that have retroactively amended their refund policies to avoid issuing full monetary refunds for cancelled trips. 

Blog Post
05/28/2020
By Ryan L. DiClemente and Francis X. Riley III and Colleen Fox

Saul Ewing Arnstein & Lehr’s Consumer Finance attorneys Trip Riley, Ryan DiClemente and Colleen Fox delivered a presentation about the CARES Act to the Women in Housing and Finance Professional Organization. The presentation covered the CARES Act’s mortgage payment forbearance on existing and deferment, along with what that means for servicers’ Reg. X compliance. The program also addressed servicers’ credit reporting obligations in light of a forbearance or deferment.

Blog Post
05/12/2020
By Thomas Laser

On May 5, the Seventh Circuit decided in Bryant v. Compass Group USA, Inc., 2020 WL 2121463 (7th Cir. May 5, 2020), that a plaintiff who alleges a procedural violation of the Illinois Biometric Information Privacy Act (“BIPA”) without a showing of actual injury has standing to maintain suit in federal court under Article III of the U.S. Constitution. This opinion addresses an issue of first impression with great importance to the developing area of BIPA case law.

Blog Post
04/28/2020
By Francis X. Riley III

On April 23, Texas Attorney General Ken Paxton accused the country’s largest egg producer, which sells brands like Egg-Land’s Best and Land O’ Lakes, of raising the price of a dozen eggs by 300%. See Texas v. Cal-Maine Foods Inc., No. 20205427 (215th Dist. Ct. Harris Cty. Tex. Apr. 23, 2020). In California, in an apparently related consumer class action, Whole Foods, Walmart, Trader Joe’s, Costco, and a host of other grocery businesses are alleged to be illegally marking up the price of eggs in violation of California’s consumer protection laws in the midst of the pandemic. See Frazer v. Cal-Maine Foods, Inc., No. 3:20-cv-2733 (N.D. Cal. Apr. 20, 2020). It is alleged in the California case that more than two dozen grocery stores, wholesalers, and producers have been nearly tripling the price of eggs over the past month following Gov. Gavin Newsom’s emergency declaration that ordered all nonessential workers to stay home as the virus swept around the world.

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