After political drama at consumer agency, what happens to its open investigations?

What you need to know about the CFPB

Mick Mulvaney argues the Consumer Financial Protection Bureau is actually “trampling on capitalism” — a problem he has promised to fix immediately.

During his first day as the watchdog agency’s acting director on Monday, Mulvaney announced a 30-day freeze on completely new regulations so he can make sure they are not “choking off” lending. Mulvaney said he will soon be briefed on the roughly 100 lawsuits the agency is actually involved with.

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“Anything of which is actually discretionary we’re putting a 30-day hold on,” Mulvaney told reporters.

Mulvaney has long been a sharp critic of the CFPB. currently his distaste for the bureau is actually raising questions about what will happen to the many open investigations as well as lawsuits the idea has launched against companies as well as banks.

Court documents as well as regulatory filings show these targets include Wells Fargo (WFC), online real estate database Zillow (Z) as well as student loan processor Heartland Campus Solutions. The CFPB is actually also likely looking into additional companies of which have not yet disclosed the investigations.

“Rumors of which I am going to set the place on fire, blow the idea up or lock the doors are completely false,” Mulvaney said.

However, Mulvaney, who as a lawmaker voted to abolish the CFPB altogether, said President Trump wants him to “fix” the CFPB because the previous administration “went too far.”

Trump signaled on Twitter a desire to rein from the CFPB, calling the agency a “disaster” of which has “devastated” banks as well as made the idea impossible for them to “properly serve the public.” the idea’s part of Trump’s effort to slash regulations broadly.

“the idea’s very clear of which the financial sector is actually the primary winner via a weakened CFPB as well as of which consumers are the losers,” said Patricia McCoy, a Boston College law professor as well as a former CFPB official.

the idea wasn’t entirely clear Monday who was in charge of the CFPB. Mulvaney said he’s calling the shots. however he’s also facing a lawsuit via Leandra English, who was named interim director on Friday by the outgoing director.

however from the end Trump will get to name a permanent director. Under Mulvaney or another Trump-appointed official, CFPB’s “enforcement agenda will dramatically diminish,” Isaac Boltansky, senior policy at Compass Point Research as well as Trading, wrote in a report on Monday.

Quyen Truong, former deputy general counsel at CFPB, expects the bureau will “not pursue the type of aggressive claims the idea has to date.”

Wells Fargo

The CFPB made a name for itself by taking on Wells Fargo last year. The agency, along with the Office of Comptroller of the Currency as well as the Los Angeles city attorney, fined Wells Fargo $185 million for opening millions of fake bank as well as credit card accounts.

Mulvaney, who questioned why the CFPB didn’t find the Wells Fargo fiasco earlier, reiterated on Monday of which he is actually “disturbed” by the scandal at the bank.

Earlier This kind of month, Wells Fargo said the CFPB had launched an investigation into its mortgage business. Wells Fargo has admitted of which some borrowers were wrongly charged fees for missing a deadline to lock in promised interest rates — even when the delays were the bank’s fault.

Separately, Wells Fargo (WFC) said the CFPB is actually investigating whether customers were harmed by the bank’s freezing as well as closing deposit accounts after Wells Fargo detected suspected fraudulent activity.

The CFPB could also look into Wells Fargo’s auto lending problems. Wells Fargo has said the idea charged as many as 570,000 customers since 2012 for car insurance they didn’t need.

Wells Fargo declined to comment on the CFPB leadership alterations.

Related: Why Wall Street as well as Republicans hate the CFPB


The CFPB launched an investigation in 2015 into Zillow’s (ZG) advertising practices. The regulator is actually looking into a “co-marketing” program at Zillow of which allows lenders as well as real estate agents to share the cost of advertising on the site.

Zillow has said the CFPB is actually probing potential violations of the Real Estate Settlement Procedures Act, which bans kickbacks in exchange for business referrals.

Zillow is actually in talks with the CFPB over a possible settlement even though the idea believes its practices are “lawful,” company executives said during a recent conference call.

Heartland Campus Solutions

On November 16, the CFPB sued Heartland Campus Solutions, saying the company failed to comply that has a CFPB investigation. The CFPB said in court documents of which the idea’s investigating whether Heartland engaged in unlawful practices connected to the servicing of student loans.

Global Payments (GPN), which owns Heartland, did not respond to a request for comment.

Freedom Debt Relief

On November 8, the CFPB sued Freedom Debt Relief, the largest U.S. debt settlement services provider, as well as its co-CEO Andrew Housser. The CFPB alleged of which Freedom Debt Relief charged consumers without settling their debts as well as imposed misleading fees.

Freedom Debt Relief said in a statement of which its practices are “legally compliant, highly ethical as well as serve the needs of our customers.” The company said the idea will “vigorously contest” the lawsuit.

Think Finance

The CFPB alleges of which Think Finance, a financial technology company, tricked customers into paying debts they did not legally owe. The CFPB filed a lawsuit on November 15 alleging Think Finance “made deceptive demands as well as illegally took money via consumers’ bank accounts.”

Think Finance did not respond to a request for comment.

–sy88pgw’s Allie Malloy as well as Nathaniel Meyersohn contributed to This kind of report.

sy88pgw (completely new York) First published November 27, 2017: 5:38 PM ET

After political drama at consumer agency, what happens to its open investigations?

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