On September 24, 2015, the US Department of Justice (DOJ), the Bureau of Consumer Financial Protection (CFPB), and Hudson City Savings Bank (Bank) entered into a consent order which, if approved by the court, would settle allegations that the Bank violated the Equal Credit Opportunity Act and the Fair Housing Act (FHA). The consent order is the latest in a series of actions taken by a number of regulators on both the state and federal level settling allegations of redlining based largely on statistical analysis rather than evidence of denied loans.1
The recent settlement was the result of investigations … Read more
On March 10, 2015, the Consumer Financial Protection Bureau (CFPB) released a much anticipated report regarding the use of pre-dispute arbitration clauses (sometimes referred to as “mandatory” arbitration clauses). The use of these clauses is fairly common in the consumer financial services sector. The CFPB was tasked in Section 1028(a) of the Dodd-Frank Act with studying these clauses, making a report to Congress about their use, and – if the CFPB finds it to be in the public interest and protective of consumers – promulgating rules to prohibit or regulate their use.
The CFPB’s 728-page report contains extensive data on … Read more