WASHINGTON UPDATE
By Maureen Thompson NACBA Legislative Director
September 19 , 2016
This is the inaugural issue of what will be a weekly blog from our nation ’ s capital , updating NACBA members on the highlights of activities of interest in three main categories : Congress , regulatory agencies , and interest groups / think tanks . The format is intended to be just an overview , with links to key documents for anyone who wants to dig deeper . Some weeks there will be more to report than others . I think what you will find is that there is much going on in D . C . every day that , although not bankruptcyspecific , touches on , impacts and informs the work you do . Enjoy … and please do provide reader feedback to mthompson @ hastingsgroup . com .
ON THE HILL Congress returned from its summer “ recess ” with a focus on completing work on a spending bill to keep the government funded when the new fiscal year starts on October 1 . Details are now being worked out , and the plan is to vote as early as next week on a bill that will keep the government funded through December 9 th . Once work on that bill is completed , Congress will leave again and not return until after the elections .
This week the House Financial Services Committee , on a party line vote , approved the proposed “ Financial CHOICES ” bill . The main purpose of the bill is to repeal and replace key provisions of the Dodd-Frank Act . Among other things , the bill would : force major changes to the leadership , funding , structure and authority of the Consumer Financial Protection Bureau ; broadly curtail the regulatory authority of financial regulators ; restrict federal regulators from limiting the use of pre-dispute mandatory arbitration agreements ; and make major changes to the housing finance system . Read the bill text , summary and supporting documents form the Republicans here and opposition from the Democrats here and here .
Next week , the Senate Banking Committee will hold a hearing to look at the recently disclosed Wells Fargo sales practice abuses . Witnesses will include John Stumpf , Chairman and CEO , Wells Fargo & Company ; the Comptroller of the Currency , and the Director of the Consumer Financial Protection Bureau ; as well as the Chief Deputy of the Office of the Los Angeles City Attorney . The hearing is scheduled for Tuesday , September 20 th at 10 a . m . and will be webcast on the Committee ’ s website .
And , Senator Warren ( D-MA ) is marking the 8th anniversary of Lehman Brothers ’ bankruptcy with a new push to investigate -- and potentially jail -- more than two dozen individuals and corporations who were referred to the Justice Department for possible criminal prosecution in 2011 by the Financial Crisis Inquiry Commission .
IN THE AGENCIES The Consumer Financial Protection Bureau ( CFPB ) has been busy in recent days . Last week the Bureau announced it fined Wells Fargo $ 100 million for widespread unlawful sales practices . The Bank ’ s employees secretly opened accounts and shifted funds from consumers ’ existing accounts into these new accounts without their knowledge or permission to do so , often racking up fees or other charges . The Bureau also revealed that Wells- Fargo had compensation programs for its employees that encouraged them to sign up existing clients for deposit accounts , credit cards , debit cards , and online banking . According to the enforcement action , thousands of Wells Fargo employees illegally enrolled consumers in these products and services without their knowledge or consent in order to obtain financial compensation for meeting sales targets .
Earlier this week , the Bureau announced that it was taking action against for-profit college chain Bridgepoint Education for deceiving students into taking out private student loans that cost more than advertised . The Bureau ordered Bridgepoint to discharge all outstanding private loans the institution made to its students and to refund loan payments already made by borrowers . Loan forgiveness and refunds will total over $ 23.5 million in automatic consumer relief . Bridgepoint must also pay an $ 8 million civil penalty to the Bureau .
As reported by our friends at NCLC , effective October 3 , Department of
6 CONSUMER BANKRUPTCY JOURNAL Fall 2016 National Association of Consumer Bankruptcy Attorneys