For more information, please visit www.lenderlawwatch.com or www.enforcementwatch.com 15 2017 HIGHLIGHTS The CFPB Imposes Civil Penalties Against Three Major Credit Reporting Agencies. In January and March 2017, the CFPB entered consent orders against TransUnion, Equifax, and Experian for alleged violations of the UDAAP provisions of the CFPA and the FCRA. In addition to $17.6 million in restitution, the CFPB imposed $8.5 million in civil monetary penalties. The alleged illegal activities included failing to inform consumers that the credit scores the CRAs marketed and sold were not the same scores that lenders used, and the purported use of misleading advertisements for the CRAs’ credit monitoring services. The CFPB further alleged that the disclosures and disclaimers offered by the three CRAs in connection with their credit reporting and monitoring activities were not sufficiently clear and conspicuous. The CFPB Obtains $4.6 Million Penalty from JPMorgan Chase Concerning Furnishing of Credit Reporting Information. In August, the CFPB entered into a consent order with JPMorgan Chase Bank, N.A. that imposed $4.6 million in civil monetary penalties against the bank. The CFPB alleged that JPMorgan failed to establish appropriate processes to ensure that accurate information was being provided to credit reporting agencies, inform consumers of their right to dispute inaccurate credit information, and provide key information to consumers concerning the bank’s denial of their checking account applications. LOOKING AHEAD TO 2018 Despite the recent changes to the Bureau, we anticipate that credit reporting and repair will remain a focus of the CFPB’s enforcement activities in 2018. In March, the Bureau issued a Special Edition of its Supervisory Highlights Report, which focused on credit reporting. Former Director Cordray also delivered remarks on the topic. Both the report and the Director’s remarks made clear that the CFPB’s efforts regarding credit reporting would focus on three types of entities and their actions: (1) furnishers of credit reporting information and their credit recordkeeping and reporting procedures; (2) consumer reporting companies and their information vetting practices; and (3) entities that use credit reporting information to make credit decisions. We expect that the Bureau’s scrutiny of the activities of these types of entities will continue in 2018, with a focus on accurate credit recordkeeping and reporting. Additionally, we are tracking the potential expansion of FCRA liability beyond “traditional” credit reporting agencies to companies that handle or process consumer information. In July, a New Jersey federal district court considered whether a health insurance company qualified as a consumer reporting agency subject to the FCRA. The outcome of this case may inform whether such expansion of FCRA liability should be expected in the future. WHAT TO WATCH Scrutiny of credit repair services and credit reporting agencies | Increased focus on accuracy by furnishers of credit reporting information | Expansion of FCRA liability PAYDAY LENDING MORTGAGE CREDIT CARDS AUTO LOANS TELEPHONE CONSUMER PROTECTION ACT FEDERAL COURTS OF APPEALS CONSUMER FINANCIAL & PROTECTION BUREAU STUDENT LENDING DEBT COLLECTION DATA SECURITY