U.S. Inspector General Warns of CFPB Data Security Weaknesses

Nov 19

From: Troutman Sanders

By H. Scott Kelly and Michael E. Lacy

For the second time in recent weeks, a federal official has issued a warning regarding potential security weaknesses with the Consumer Financial Protection Bureau’s consumer data-mining program.  In an October 30 report, United States Inspector General Mark Bialek warned CFPB Director Richard Cordray that the IG office had “identified information security as a major management challenge for the CFPB due to the advanced, persistent threat to government information technology infrastructure.”  He cautioned that “improvements are needed in four high-priority security risk areas: continuous monitoring, configuration management, security training, and incident response and reporting.”

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CFPB to Propose New Rules for Prepaid Debit Cards

Nov 13

From: The Wall Street Journal

Holders to Have Limited Ability to Borrow Money, Protections Against Lost or Stolen Cards

By Alan Zibel And Robin Sidel

WASHINGTON—Consumers who use prepaid debit cards would have limited ability to borrow money but would receive protections against lost or stolen cards and easy access to account information under a Consumer Financial Protection Bureau proposal.

The proposed rules, to be released Thursday, are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100 billion onto general-purpose prepaid cards this year, up from $19.5 billion six years ago, according to Mercator Advisory Group Inc., a consulting firm that focuses on the payments industry.

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Congressional Budget Office Releases Costs of Adding Inspector General at CFPB

Nov 05

From: ACA International

Bills proposed in the House and Senate last year, if passed, would end the Federal Reserve inspector general’s role of providing oversight for the CFPB.

The Congressional Budget Office has released cost estimates for appointing an inspector general at the Consumer Financial Protection Bureau. The estimates are the result of a request by the House Financial Services Committee and legislation proposed in the House and Senate last year.

In 2013, Reps. Steve Sivers (R-Ohio) and Tim Walz (D-Minn.) introduced H.R. 3770 in  the House as a measure to increase oversight of the CFPB. Currently, the CFPB shares an inspector general with the Federal Reserve, an unconfirmed position appointed by the Fed chairman.

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CFPB Eyeing Checking Accounts

Oct 29

From: PYMNTS.com

By @pymnts

The Consumer Financial Protection Bureau (CFPB) is looking hard at banks’ policies on opening consumer checking accounts, including the third-party databases they use, American Banker reported.

In an Oct. 8 forum on access to checking accounts, CFPB director Richard Cordray opened the session by raising issues about overdraft protections, how banks report and use credit scores and how they gauge a consumer’s credit risk. That seemed to signal that the CFPB could sweep checking and overdraft fees into its forthcoming rules on payday lenders.

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CFPB’s Loan Report Attacks Lenders Rather Than Empowering Students

Oct 23

From: Forbes

 Carrie Sheffield

The Consumer Financial Protection Bureau’s (CFPB) recent annual student loan ombudsman report aims to help those falling behind with private lenders. However, its reactive approach would simply stifle flames rather than prevent their initial burst by proposing shortsighted policies that could lead vulnerable students to take on more debt.

CFPB Student Loan Ombudsman Rohit Chopra announced the report’s release with a dire warning: “This is something we’re taking very seriously, and we do not want to see a repeat of what happened in mortgages happen here.” The comparison is appropriate, but probably not in the way Chopra intended.

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