THE CONSUMER FINANCIAL PROTECTION BUREAU:The Financial Industry’s New Watchdog

PRESENTATION BY: Michelle CohenMember, 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 ConsumersEnforce Laws That Outlaw Discrimination And Other Unfair Treatment In Consumer Finance

What Does The CFPB Enforce? –Unfair, Deceptive, or Abusive Acts or

PracticesFINANCIAL LAWS

Truth In Lending Act

Fair Debt Collection Practices Act

FTC RULESTelemarketing Sales Rule

Mail Or Telephone Order Merchandising Rule

Franchising and Business Opportunities Rules

Who Is Subject to CFPB?

FINANCIAL INSTITUTIONS

NON-BANK COVERED PERSONS

“SUPERVISED SERVICE PROVIDER”

NON-BANK “LARGER PARTICIPANTS”

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

Subpoenas/Investigations/Collaboration With State Attorney Generals

Banning Mortgage Fees

Case Study – Capital One

What Remedies Are Available to CFPB?

Rescission/Reformation

Refund/Return

Restitution

Disgorgement/Compensation

Payment of Damages

Public Notification

Limits on Activities

Civil Monetary Penalties

No Criminal Enforcement Authority – Refer to DOJ

Future Predictions – What’s Next?

High Profile TargetsHigh Profile Targets

Broad Powers, Broad Enforcement

Questions?