Hudson Cook Analysis on Fintech National Charter

This would be UUGE!  You can see the full article HERE.

“The OCC proposal, eagerly awaited by online lenders and participants in marketplace lending platforms, outlines a way for such entities to enjoy the same preemption authority of national banks over various state licensing, usury, and disclosure requirements.”

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Advance America and CFSA seeking injunction relief

“Advance America said its own situation became dire after five banks decided in the last month to cut ties, including a 14-year relationship with U.S. Bancorp, putting it “on the verge” of being unable even to hold a bank account.”

You can read the full article HERE.

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CFPB Webinar – Ballard Spahr

Ballard Spahr is hosting a webinar to discuss the proposed rules titled: “The CFPB’s Proposed Payday/Auto Title/High-Rate Installment Loan Rule: Can Industry Adapt to the New World Order?

You can register HERE on their website.

A Ballard Spahr webinar on June 15, 2016
12:00 PM – 1:00 PM ET

From their website, the topics:

The companies and products covered by the proposal.
The proposal’s limitations and requirements for covered products.
The proposal’s impact on the industry The differences between the proposal and last year’s SBREFA outline.

I also highly recommend signing up for their blog at CFPB Monitor…extremely helpful.

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Google Adwords shutting out payday lenders

You can read the article at the Washington Post titled “Google to ban payday loan advertisements.”

Additionally, David Graff, Google’s director of global product policy:

“We’re banning ads for payday loans and some related products from our ads systems. We will no longer allow ads for loans where repayment is due within 60 days of the date of issue. In the U.S., we are also banning ads for loans with an APR of 36% or higher.”

It’s important to note that the organic search results will still exist.  What I’m wondering is if Google was pressured by the CFPB or they just decided to do this??

If your curious, you can see other industries and practices that Google bans on their website HERE

The explicit list consists of:

  • Adult oriented content: porn, dating services, sexually suggestive content
  • Alcohol
  • Gambling
  • Prescription drugs and healthcare related products
  • Weapons


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Are Arbitration Agreements Done?

Hudson Cook broke the news that the CFPB Proposes Rule Prohibiting Mandatory Arbitration Clauses.

I can see the vultures swarming.


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Why Elizabeth Warren’s Consumer Watchdog Could Be In Danger

A must read, “Why Elizabeth Warren’s Consumer Watchdog Could Be In Danger” in the Huffington Post.

“In summary, this is an unprecedented, unconstitutional agency that has more power than Congress and the president put together.”  Theodore Olson, counsel of record, PHH Corporation

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Cordray Taking on Over Draft Fees

“Cordray encouraged financial institutions to offer lower-risk account options, including accounts that would not allow for overdrafting the account.” according to the Credit Union Times.  They’re pressuring financial institutions to go to more of a prepaid option that does not overdraw the account.  Basically, the payment does not get honored.

A few points were brought up that relate the short term loan industry:

  • Overdraft does not create the most complaints so why is the CFPB attacking it?  Cordray dodged the question.
  • Can the CFPB use their discretion to smaller institutions?  He said “No.”
  • There is no timeline for the rules…..what’s new.  I guess no news is good news.



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White House Responds to “We the People” Petition

You can read the FISCA new release HERE.  Basically, the White House said, whatever the CFPB says….we’re fine with that.

The silver lining here is that the petition bought us some time and will force the CFPB to really look at the issue.  It bought us some more time possibly.

Here is a pretty good take away from FISCA.  I think getting 105,000 signatures was a good show of solidarity.

The White House response was, however, encouraging in its report that the CFPB is conducting a “thorough analysis” of this issue and that the determination of whether to move forward with these rules is the CFPB’s, “if they do move forward.” “We feel this may reflect the recognition that additional research is necessary before promulgating rules, a view recently advanced by a researcher from the New York Federal Reserve,” D’Alessio said.

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CFPB Scandals Rewind

Obama Extorting Auto Lenders, CFPB Memos Prove

In 2015, The CFPB claims to have “statistical evidence” showing car lenders and dealers marking up loan prices for minorities vs. whites. But lenders and dealers insist that neutral factors such as credit history and rate-shopping explain any racial disparities in loan pricing.

TRUTH: Auto data don’t even include the applicant’s race. So investigators use surnames to identify their ethnicity. Such “proxies” are notoriously unreliable and lead to over-counting of “victims.”

ADMISSION:  “Although there may be some risk of overestimating disparities, the alternative presents an equal (and perhaps greater) risk of underestimating disparities and thus consumer harm,” stated CFPB Assistant Director Patrice Ficklin


CFPB’s complaints portal may be riddled with errors

According to current and former Consumer Financial Protection Bureau officials interviewed by American Banker, the agency’s consumer complaints portal may be riddled with errors and distrusted even by some CFPB employees.

TRUTH: In one example cited, a single complaint was counted as 35 different ones. In another, the agency noted a complaint against a bank when the consumer was in fact complaining about an unrelated payday lender.

ADMISSION: Complaints are filed by consumers as narratives. When the CFPB reviews the complaint, it creates a separate entry for any entity named in the consumer’s filing, even though some can be mentioned as incidental or uninvolved players in the complaint.  There is a huge margin for abuse.

Union strife at the CFPB

When a government agency called the Consumer Financial Protection Bureau (CFPB) is created by Congress, one would expect that a few consumers could actually receive protection, but that hasn’t been the case with this agency’s track record of mismanagement, inefficiency and waste. The CFPB has been operating for four years now and if it were a sports team, its coach, Richard Cordray, would certainly be looking for work.  It’s power that has been unchecked.

TRUTH: The very agency charged with protecting minorities is itself facing charges of racial discrimination. A number of CFPB employees testified before Congress about CFPB’s hostile workplace environment. Employees offered examples of mistreatment, discrimination and fear of reprisal for voicing objections. Lawmakers received reports of how black employees were constantly belittled and even racially stereotyped during agency sponsored events.

ADMISSION: Some union members claim Chapter President Rob Cauldwell — an examiner for the bureau’s Southeast region based in Jacksonville, Fla. — is undermining their position, supporting management to the detriment of workers, sharing sensitive emails with CFPB officials and keeping the board and other union representatives in the dark, according to the resignation letters of the two former board members, and the letter signed by 45 employees.  Is the CFPB capable of following the law?

The CFPB as a political machine

What did the CFPB do with the $80 million fine under Cordray’s leadership? Rather than improve its internal systems to identify victims, the CFPB gave the money away to various organizations that work with low-income and minority borrowers. The list of organizations receiving money from CFBP reads like a, “Who’s Who” of powerful left-wing activist groups. It’s likely no coincidence that these same groups receiving money from CFPB pushed for the agency’s creation in the first place.

TRUTH: It’s buying it’s support by extorting businesses and arbitrarily giving it away.



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Deadline for signing CFPB Petition

Dear Friends,

We have over 95,000 signature, but we need 5,000 more today.  The CFPB is putting together rules that will cripple our industry.  This will directly affect all our jobs, not to mention limit customers access to credit.  Please take a minute to sign this petition by clicking HERE.  If we can get 100,000 signature, the White House will review the rules to see, if in fact, they are in the best interests of the borrower.

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