Author: J.H. Jennifer Lee

J.H. Jennifer Lee

Jenny represents large and regional banks, card issuers, mortgage bankers or mortgage insurance companies, online lenders, Fin Tech firms, private equity firms with consumer-facing specialty finance strategies, or any “covered person” delineated in the Bureau’s statute, title X of the Dodd-Frank Act. As a lawyer who worked inside the Consumer Financial Protection Bureau (Bureau) Office of Enforcement for several years beginning with the Bureau’s founding, Jenny possesses unique experience that she draws upon to provide clients with defense strategies for enforcement by or litigation with the Bureau....

View Full Bio on Dorsey

Vizio Settles for $17 Million Claims That it Collected and Distributed Consumers’ Viewing Histories on Smart TV Device Without User Consent

On October 4, 2018, Internet of Things (“IoT”) device manufacturer Vizio Inc. agreed to settle (subject to court approval) a consolidated class action lawsuit alleging that the smart TV maker collected and sold customers’ viewing histories to third party advertisers without the customers’ consent for $17 million, in addition to agreeing to take additional affirmative steps to supplement its on-screen data collection practice disclosures. Reports that...

CFPB Issues FAQs on Mortgage Servicing Rules on the Eve of Compliance Deadline

With less than one month remaining until the April 19, 2018 effective date of bankruptcy-related amendments to Regulation X and Regulation Z, the Consumer Financial Protection Bureau has issued “Mortgage Servicing FAQs” to address several questions it has received regarding the new bankruptcy statement requirements. Specifically, the FAQs provide some clarification regarding periodic statements, coupon books, reaffirmation, successors in interest, and the effective date.

Federal Court Orders Loan Servicer to Comply with CFPB’s CID Investigating Potential UDAAP and FCRA Violations

On February 28, 2018, a Pennsylvania federal district court granted a petition by the CFPB to enforce a CID against a student loan servicer to investigate potential Unfair, Deceptive or Abusive Acts or Practices or violations of FCRA in CFPB v. Heartland Campus Solutions, ECSI. The court applied the Supreme Court’s Morton Salt test applicable to investigative demands, and ruled in the CFPB’s favor, marking a court victory for the Mulvaney-led CFPB in investigative efforts to enforce a CID against the loan servicer.

D.C. Circuit Upholds CFPB’s Constitutionality: Why the PHH Case Underscores the Importance of Internal Agency Discipline

On January 31, the D.C. Circuit issued a plurality opinion confirming the constitutionality of the CFPB governance by a sole Director, while reinstating the decision below that struck down the CFPB’s $109 million disgorgement demand in the underlying dispute. Moving forward, the decision puts the spotlight on several important issues for those interested in the CFPB’s activities.

OCC’s Proposed Charter for Fintech Companies in Limbo

Late last year, the Office of the Comptroller of the Currency announced that a proposed national charter for fintech companies is currently on hold as the OCC’s new Comptroller of the Currency, Joseph Otting, needs additional time to study the proposed charter. Despite the fact that the OCC has not yet granted a national charter for fintech companies, the proposal to do so has already been the subject of two different court challenges by state regulatory authorities.

Senate Republicans Sink Controversial CFPB Anti-Arbitration Rule: Lessons Learned for the CFPB

On Tuesday, the Senate voted 51-50 (with Vice President Mike Pence casting the tiebreaking vote) to overturn the Consumer Financial Protection Bureau’s July 2017 rule banning firms from including arbitration clauses blocking class-action lawsuits in consumer financial contracts. The Senate’s action follows a 231-190 vote in the House in July 2017 to overturn the Rule. Under the Congressional Review Act, the resolution will now go to President Trump, whose expected signature will invalidate the Rule and prohibit the CFPB from revisiting it for an extended period of time.

Law Firm Attempts to Resist Subpoena by Arguing CFPB is Unconstitutional

The constitutionality of the CFPB continues to be an issue in cases involving that agency. The latest party to raise the “CFPB is unconstitutional” defense is a law firm, Seila Law, LLC, which is attempting to evade a civil investigative demand seeking information relating to the CFPB’s litigation against debt relief firm Morgan Drexel Inc. and its affiliates.

Atlanta Federal Judge Orders Discovery Sanctions Against CFPB and Dismisses CFPB’s Claims

Last Friday, Judge Richard Story (USDC, N.D. Ga.) entered an order in Consumer Financial Protection Bureau v. Universal Debt Solutions, LLC, et al., granting a defendant’s motion for Rule 37 discovery sanctions and striking Counts 8, 9, 10, and 11 from the CFPB’s complaint. This order is another example of judicial decisions resolving a significant issue for the CFPB in recent years: how to handle Rule 30(b)(6) depositions.

What You Need to Know About the CFPB and the PHH Argument Yesterday

Which is the better policy? Having banking agency heads be removed for only malfeasance and wrongdoing, or be removed for any reason? This question is the critical issue that the judge asked in yesterday’s oral argument in PHH Corporation v. Consumer Financial Protection Bureau that no one is talking about.