Report: Payday lenders find loopholes in military loans

From:  Military Times

By Leo Shane III, Staff Writer

Payday lenders with new loan products are again preying on military families and creating headaches for the armed forces, the Consumer Financial Protection Bureau said in a new report Monday.

The findings come less than a decade after Congress approved sweeping new regulations on the industry in an effort to crack down on unscrupulous lenders who charged high interest for short-term loans and pushed many unsavvy military borrowers to the brink of bankruptcy.

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States Wield New Weapon Against Banks — Courtesy of Dodd-Frank

From: American Banker

Benjamin P. Saul and W. Kyle Tayman

Over the past 16 months, a growing number of states have taken action against banks and consumer finance companies for violations of Dodd-Frank’s prohibition of unfair, deceptive or abusive acts or practices. The attorneys general for New Mexico, Illinois, Mississippi, Connecticut and Florida, as well as New York’s Department of Financial Services, have used their Dodd-Frank authority to assert civil claims alleging violations of UDAAP and other federal regulations in at least 12 different actions.

First Recommended Decision in Contested CFPB Adjudication issued by US Securities and Exchange Commission ALJ

From: Mayer Brown

On November 25, 2014, US Securities and Exchange Commission Administrative Law Judge (ALJ) Cameron Elliot issued the first-ever “recommended decision” in a contested Consumer Financial Protection Bureau (CFPB) adjudication.


Although the PHH case ultimately turned on contested questions of fact, the case may offer a preview of what to expect in future CFPB adjudications. A few things stand out:

Honda captive may face loan-bias penalty

From: Automotive News

American Honda Finance Corp. disclosed that the Consumer Financial Protection Bureau and U.S. Department of Justice have concluded the company was responsible for illegal discrimination in pricing auto loans and could be disciplined unless it reaches a settlement with the federal agencies.

The disclosure, in a Securities and Exchange Commission filing, echoes a nearly identical move by Toyota Motor Credit Corp. on Nov. 28. Both captive finance companies disclosed last year that the federal agencies had requested information regarding auto loans.

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FINRA Responds to SIMFA’s Latest Critiques of Proposed Data System

From: ThinkAdvisor

Industry groups cite further concerns with second version of CARDS, which FINRA insists it will address

By Melanie Waddell Washington Bureau Chief, Investment Advisor Magazine

The Financial Industry Regulatory Authority’s reproposed plan to collect broker-dealer account data through its Comprehensive Automated Risk Data System (CARDS) is drawing heavy criticism from industry trade groups. In the face of such negative comments, FINRA insists that it will address such issues prior to further development of the data program.