THE CONSUMER FINANCIAL PROTECTION BUREAU: The Financial Industry’s New Watchdog PRESENTATION BY: Michelle Cohen Member, Ifrah PLLC

What is the CFPB? New Agency Created By Congress Under Dodd-Frank Wall Street Reform and Consumer Protection Act Independent Agency With Broad Authority To Implement And Enforce Federal Consumer Financial Law Collaborative Agency With Shared Responsibilities with FTC

What Are The CFPB’S Objectives? Conduct Rule-Making, Supervision, And Enforcement For Federal Consumer Protection Laws Restrict Unfair, Deceptive, Or Abusive Acts Or Practices Take Consumer Complaints Promote Financial Education Research Consumer Behavior Monitor Financial Markets For New Risks To Consumers Enforce Laws That Outlaw Discrimination And Other Unfair Treatment In Consumer Finance

What Does The CFPB Enforce? – Unfair, Deceptive, or Abusive Acts or Practices FINANCIAL LAWS Truth In Lending Act Fair Debt Collection Practices Act FTC RULES Telemarketing Sales Rule Mail Or Telephone Order Merchandising Rule Franchising and Business Opportunities Rules

Who Is Subject to CFPB? FINANCIAL INSTITUTIONS NON-BANK COVERED PERSONS “SUPERVISED SERVICE PROVIDER” NON-BANK “LARGER PARTICIPANTS”

How Does CFPB Coordinate With FTC? Memorandum of Understanding

What Actions Has CFPB Taken Thus Far? “Know Before You Owe” Project QuinStreet, Inc. Prepaid Card Initiative Subpoenas/Investigations/Collaboration With State Attorney Generals Banning Mortgage Fees

Case Study – Capital One

What Remedies Are Available to CFPB? Rescission/Reformation Refund/Return Restitution Disgorgement/ Compensation Payment of Damages Public Notification Limits on Activities Civil Monetary Penalties No Criminal Enforcement Authority – Refer to DOJ

Future Predictions – What’s Next? High Profile Targets Broad Powers, Broad Enforcement

Questions?