Holland & Knight's CFPB Rapid Response Team by Holland & Knight

CFPB Rapid Response Team OVERVIEW OF THE CFPB The Consumer Financial Protection Bureau (CFPB) was created in response to the 2008 credit crisis to promote consumer protection by consolidating the authority to enforce consumer protection laws and regulations in a single agency within the federal government. Launched from the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB consolidates operations previously spread across several different federal agencies, including the Federal Reserve, the Federal Trade Commission and the Federal Deposit Insurance Corporation. The key functions of the CFPB include: 1. regulation and rulemaking 2. supervision and examinations 3. enforcement

Regulation and Rulemaking With respect to regulation and rulemaking, the CFPB implements and enforces federal consumer financial laws to ensure that all consumers have access to markets for consumer financial products and services that are fair, transparent and competitive. The CFPB's rulemaking process typically starts with research and is further informed by public input, including field hearings, consumer and industry roundtables, advisory bodies and in some cases, small business review panels. The CFPB attempts to assess the benefits and costs of the regulations it considers, and proposed rules are published to give industry members, consumers and other external stakeholders opportunities to comment on their potential impacts. Supervision With respect to supervision, the CFPB has supervisory authority over:  banks, thrifts and credit unions with assets over $10 billion  nonbank mortgage originators and servicers, payday lenders and private student lenders of all sizes  large market participants of other consumer financial markets, including debt collection, credit reporting, student loan servicing and auto financing Examinations The CFPB conducts examinations to ensure that supervised entities are complying with federal consumer financial law. The CFPB's Supervision and Examination Manual is the guide for examiners to use in overseeing companies that provide consumer financial products or services. The CFPB ends an examination by providing the examinee with a report setting forth a compliance rating and any identified concerns. The report provides a detailed summary of the examination, a discussion of areas of concern, and potential deficiencies and action items for remediation. Although the CFPB encourages proactive self-correction, it may conclude that some circumstances may be sufficiently serious to warrant a public enforcement action. If an examination matter is referred for enforcement, the CFPB has authority to bring an administrative proceeding or file a civil complaint in federal district court. Enforcement With respect to enforcement, the CFPB has power to investigate any company that is a "covered person" under the Dodd-Frank Act. A law enforcement investigation commences with a company's receipt of a governmental subpoena or a Civil Investigative Demand, which may seek the production of documents and/or information. During the process, which can take well over a year, formal testimony or investigational hearings can also take place. These investigations can result in settlement agreements, or Consent Orders. Frequently, the CFPB engages in litigation against the targets of these investigations. The CFPB can also make referrals to other agencies, and although the CFPB does not have criminal enforcement authority, it can refer a company or individual to the U.S. Department of Justice for criminal violations.

HOLLAND & KNIGHT'S CFPB RAPID RESPONSE TEAM Holland & Knight provides services for clients in connection with each of the following functions: Regulation and rulemaking: We inform and advise clients about developments and trends, and assist them in the rulemaking process, including providing formal comments to the CFPB. Supervision and examination: We assist clients in assessing their compliance management systems, as well as compliance programs used by third party providers. This includes reviewing and augmenting policies and procedures (e.g., complaint management, marketing and advertising), developing compliance training programs and conducting internal audits. We also assist clients that are engaged in formal supervisory examinations, including responding to inquiries by CFPB staff, assisting in the production of documents, preparing for witness interviews, and organizing presentations and responses to the CFPB. Enforcement: We defend clients that are involved in formal law enforcement investigations after receiving a Civil Investigative Demand. For example, we strategically manage the discovery process of providing documents and information to the CFPB staff (including e-discovery), skillfully advocate our clients' interests with the goal of closing the investigation without any public enforcement action and, if necessary, negotiate the terms of a reasonable settlement. If necessary, we are prepared to litigate against the CFPB in federal court or through an administrative action.

EXPERIENCE WITH THE CFPB Law Enforcement Investigations by the CFPB  Investigation Closed (Nonpublic and Highly Confidential): Successfully defended a leading company in the accounts receivable industry in a two-year law enforcement investigation (from receipt of a CID through NORA negotiations) that involved the production of hundreds of thousands of documents (the vast majority of which were electronic), the taking of depositions or investigational hearings of senior executives, and negotiations and advocacy with CFPB staff and senior officials  Investigation Closed (Nonpublic and Highly Confidential): Successfully defended a company involved in payment processing in a CFPB investigation concerning alleged deceptive communications to consumers on the company's website  Investigation Closed (Nonpublic and Highly Confidential): Successfully defended a prominent bank and credit card issuer in a CFPB law enforcement investigation concerning unfair, deceptive, abusive acts and practices (UDA AP) concerns  Investigation Closed (Nonpublic and Highly Confidential): Assisted in the defense of a prominent company in the debt buying and accounts receivable industry in a CFPB law enforcement investigation  Investigation Pending (Nonpublic and Highly Confidential): Defense of a debt collection company in a CFPB law enforcement investigation  Investigation Pending (Nonpublic and Highly Confidential): Defense of a prominent company in the credit reporting industry in a CFPB law enforcement investigation  Investigation Pending (Nonpublic and Highly Confidential): Defense of a third-party vendor that is not in the financial services industry in a CFPB law enforcement investigation  Investigation Pending (Nonpublic and Highly Confidential): Defense of a company in the hospitality and timeshare industry in a CFPB law enforcement investigation  Investigation Pending (Nonpublic and Highly Confidential): Defense of a financial services institution in litigation with the CFPB Supervisory Examinations by the CFPB  Successfully assisted several leading companies in the accounts receivable industry and one prominent bank in supervisory examinations by the CFPB, which resulted in positive CFPB ratings or prevented the issuance of CIDs Counseling and Risk Management Concerning CFPB Regulatory Expectations  Counseling prominent banks and financial services companies in connection with policies, practices and procedures concerning UDAAP compliance

SPEAKING ENGAGEMENTS AND PUBLICATIONS INVOLVING THE CFPB  Holland & Knight Program (2018) Exploring the New Normal in Consumer Protection Enforcement  Holland & Knight Program (2017) Navigating the "Age of Uncertainty" with Consumer Protection Enforcement  Holland & Knight Webinar (2017) The Regulatory Environment for Consumer Protection in the Trump Administration  Holland & Knight Webinar (2016) You’ve Heard from the CFPB and FTC: Now What?  Holland & Knight Webinar (2016) The FTC, Native Advertising and Consumer Privacy  Holland & Knight Program (2016) Governmental Investigations Involving the Debt Collection Industry: Ignorance is Not Bliss  The Compliance Professionals Forum (2016) Do You Always Have to Intend to Sue?  The Compliance Professionals Forum (2016) CFPB Update  ARDA International Foundation Webinar (2016) Risk Management Strategies: The Need for a Robust Compliance Management Program; What to Do When You Are Involved in a Governmental Investigation: Strategies for Success; The Regulatory Landscape for the Timeshare Industry and the Role of ARDA  Holland & Knight Webinar (2015) Navigating Consumer Protection Investigations Pt. 2  Holland & Knight Program (2015) Protecting Your Company From a Consumer Protection Law Enforcement Investigation  Holland & Knight Program (2015) Navigating Consumer Protection Investigations Pt. 1  Association of Credit and Collection Professionals (ACA) Annual Conference (2014) Demystifying the CFPB: What You Need to Know About Law Enforcement Investigations and Supervisory Examinations  Association of Credit and Collection Professionals (ACA) (2014) How To Succeed in Dealing with CFPB Investigations: Strategies Used in Recent Victories  Practicing Law Institute ("PLI") (2014) CFPB Investigations, Strategies Used in Recent Victories  Inside Accounts Receivable Management (iARM) (2014) Victory Tales and Lessons Learned from Successfully Resolving a CFPB Investigation  Association of Credit and Collection Professionals (ACA) (2014) CFPB: Closing an Investigation: Strategies Derived from Success

PUBLICATIONS  Holland & Knight Alert (2018) Officials Offer Insights on Avoiding Risk, Investigations and Corporate Compliance  Holland & Knight Consumer Protection Defense and Compliance Blog (2018) New Jersey Supreme Court Favors Retailers in Landmark Ruling Limiting TCCWNA Claims

 Holland & Knight Transportation Blog (2018) Supreme Court to Clarify Applicability of Arbitration Act to Transportation Contracts  Holland & Knight Regulatory Litigation Blog (2018) Embattled CFPB Catches a Break  Holland & Knight Alert (2018) Bitcoin, Blockchain and Consumer Protection Laws  Holland & Knight Alert (2017) Regulators Share Agendas and Insight on Consumer Protection Enforcement: Highlights from "Navigating the 'Age of Uncertainty' with Consumer Protection Enforcement" Seminar  Holland & Knight Alert (2017) New CFPB Rule Faces Opposition in Congress  Holland & Knight Alert (2017) Controversial CFPB Rule Exposes Financial Services Companies to Greater Class Action Risk  Holland & Knight Alert (2016) CFPB Structure Hangs In the Balance as Agency Petitions D.C. Circuit for Rehearing  Holland & Knight Alert (2016) CFPB Structure Ruled Unconstitutional and Enforcement Reach Under RESPA Curtailed  Law360 (2016) How To Respond When CFPB Comes Knocking  Holland & Knight Alert (2016) Regulators and Industry Thought Leaders Discuss Issues in Social Media Advertising  Holland & Knight Alert (2016) CFPB Outlines Long-Awaited Debt Collection Reforms  Holland & Knight Alert (2016) District Court: CFPB May Hold Law Firm Owners Individually Liable for Alleged Violations  Holland & Knight Alert (2016) CFPB Seeks Comments on Rule Curtailing Use of Mandatory Arbitration Clauses  The Banking Law Journal (2016) CFPB Expands UDAAP Jurisdiction in First Foray into Data Security Enforcement  Holland & Knight Regulatory Litigation Blog (2016) Federal Court: CFPB Lacked Jurisdiction to Issue CID  Holland & Knight Alert (2016) CFPB's Constitutionality and Director's Interpretation Challenged  Holland & Knight Regulatory Litigation Blog (2016) CFPB Expands UDAAP Jurisdiction in First Foray into Data Security Enforcement  Holland & Knight Alert (2015) Key Takeaways from the Consumer Protection Forum  Holland & Knight Alert (2015) CFPB Proposes Limits on Companies' Use of Arbitration Clauses  Holland & Knight Alert (2015) CFPB Affirms Its Authority to Serve Civil Investigative Demands  Holland & Knight Regulatory Litigation Blog (2015) D.C. Circuit Allows Two Challenges to the Constitutionality of the Consumer Financial Protection Bureau  Holland & Knight Alert (2015) CFPB Report Addresses Need for a Compliance Management System  Holland & Knight Regulatory Litigation Blog (2015) Consumer Protection Agencies Agree to Coordinate Investigation Strategy

APPOINTMENTS BY TRADE ASSOCIATIONS  Counsel to Regulatory Committee, Association of Credit and Collection Professionals (ACA)  General Counsel and Director of Regulatory Affairs to the Word of Mouth Marketing Association (WOMMA)

Kwamina Thomas Williford Partner Washington, D.C. T 202.828.1857 kwamina.williford@hklaw.com