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House Financial Services Committee Asks CFPB for Information on No Restitution Settlements

A letter recently sent by House Financial Services Committee Chairwoman Maxine Waters to CFPB Director Kathy Kraninger will undoubtedly be followed in the coming months by many similar letters to the CFPB from the Committee’s new Democratic leadership.

In the letter, Chairwoman Waters raises concerns “about how the Consumer Bureau is exercising its enforcement activity, especially how it is determining whether to require companies to pay redress to consumers that have been harmed.”  She highlights three recent CFPB settlements that did not provide for any consumer redress, including its settlements with Sterling Jewelers and NDG Financial, and comments that “the fact that two of the three settlements involve online lending raises serious concerns about the Consumer Bureau’s commitment to protecting America’s consumers from predatory online lending practices.”

The letter asks the CFPB to provide various records related to the settlements, including “all documents and communications referring to or related to the issue of restitution” in each of the settlements.

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About this Author

Barbara S. Mishkin, Ballard Spahr, Philadelphia, Deceptive Practices Lawyer, Fair Debt Collection Practices Act, Gramm Leach Bliley
Of Counsel

Barbara Mishkin focuses on consumer compliance and banking law. The federal laws with which Ms. Mishkin has dealt extensively include the Truth in Lending Act, Equal Credit Opportunity Act, Real Estate Settlement Procedures Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, and Gramm-Leach-Bliley Act. She also has significant experience with state usury and lender licensing laws, as well as state laws prohibiting unfair and deceptive acts and practices.

American Bar Association, member, Consumer Financial Services Committee;...

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