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Jeff Sovern

@jsovern.bsky.social

Michael Millemann Professor of Consumer Protection Law, University of Maryland Francis King Carey School of Law. Posts etc. are made solely in my individual capacity and do not necessarily represent the views of anyone else or any institution.

134 Followers  |  184 Following  |  146 Posts  |  Joined: 13.11.2024  |  1.8709

Latest posts by jsovern.bsky.social on Bluesky

Instead of protecting consumers, CFPB attacks the Government Accountability Office - CLP Blog Kate Berry’s story in the American Banker is headlined CFPB calls GAO funding probe ‘political’ and ‘weaponized.’ The story is about a letter the CFPB’s Chief Legal Officer, Mark Paoletta, sent the GA...

clpblog.citizen.org/instead-of-p...

04.08.2025 20:03 — 👍 0    🔁 0    💬 0    📌 0

NYC should change the name of Fifth Avenue for the block that Trump Tower is on to "Release the Epstein Files Avenue."

02.08.2025 23:54 — 👍 0    🔁 0    💬 0    📌 0
The House Financial Services Committee wants to know what you think about the Gramm-Leach-Bliley privacy protections - CLP Blog For a list of specific questions and the address to submit comments, go here. Comments are due by August 28.

clpblog.citizen.org/the-house-fi...

01.08.2025 19:05 — 👍 0    🔁 0    💬 0    📌 0
WaPo: DOGE builds AI tool to cut 50 percent of federal regulations - CLP Blog Here. Excerpt: The U.S. DOGE Service is using a new artificial intelligence tool to slash federal regulations, with the goal of eliminating half of Washington’s regulatory mandates by the first annive...

clpblog.citizen.org/wapo-doge-bu...

26.07.2025 17:09 — 👍 0    🔁 0    💬 0    📌 0
Fast Company article on surveillance pricing - CLP Blog The article, Companies use this sneaky pricing trick to overcharge you. One lawmaker wants it banned, is by K.R. Callaway. Excerpt: Last year, the FTC launched an investigation into surveillance prici...

clpblog.citizen.org/fast-company...

25.07.2025 13:58 — 👍 1    🔁 1    💬 0    📌 0
Kate Berry: CFPB complaints skyrocket amid efforts to defund, cut staff - CLP Blog In the American Banker. How sad that just when the Bureau is most needed, it is hibernating.

clpblog.citizen.org/kate-berry-c...

24.07.2025 00:50 — 👍 0    🔁 0    💬 0    📌 0
Preview
Some ideas for judges, lawyers, and legal academics on trying generative AI On the usefulness of personal experience, and suggestions about what to try

I've had a few recent conversations with judges and law profs who haven't tried generative AI, or have only used it for a few minutes to write a poem or other trivial fun. After a few people asked me about how to start, I thought I'd write up my suggestions: www.wilftownsend.net/p/some-ideas...

10.06.2025 13:36 — 👍 9    🔁 4    💬 1    📌 5
Preview
Opinion | Where Have All the Novel-Reading Men Gone?

My latest letter in the Times: "How can I know I’m right if I don’t hear the arguments for why I’m wrong?|https://www.nytimes.com/2025/07/16/opinion/novels-men-reading.html (you have to scroll down to see my letter)

16.07.2025 21:20 — 👍 0    🔁 0    💬 0    📌 0
The myth of the bipartisan commission under Trump - CLP Blog According to American Banker’s Claire Williams, in an article headlined Republicans gear up for Dodd-Frank rollback, Democratic Representative Gregory Meeks said during a hearing yesterday “that he wo...

clpblog.citizen.org/the-myth-of-...

16.07.2025 21:14 — 👍 2    🔁 0    💬 0    📌 0
The American Prospect's heartbreaking CFPB update: looks like a boom for scammers - CLP Blog By Maureen Tkacik and James Baratta, it’s captioned Hardly Workin’. It covers a lot of ground, but here’s one excerpt: In the meantime, formal entries into the CFPB’s consumer complaints database have...

clpblog.citizen.org/the-american...

12.07.2025 14:57 — 👍 1    🔁 0    💬 0    📌 0
Call for Abstracts for the Berkeley Annual Consumer Law Scholars Conference - CLP Blog We received the following call for abstracts (apologies for the formatting issues): We are pleased to announce the Eighth Annual Consumer Law Scholars Conference will be held in Berkeley on Thursday a...

clpblog.citizen.org/call-for-abs...

09.07.2025 17:57 — 👍 0    🔁 0    💬 0    📌 0
Two recent essays attack the administration's consumer protection moves - CLP Blog Seth Frotman & Tara Mikkilineni have written The Trump Administration Wants to Reboot Redlining at the Harvard Journal of Law & Technology’s Jolt Digest. Here’s an excerpt: [T] he Vought CFPB[] . . . ...

clpblog.citizen.org/two-recent-e...

08.07.2025 14:28 — 👍 0    🔁 0    💬 0    📌 0
The "Big Beautiful Bill" & Law-School Student Loan Debt - Credit Slips The president has done yet another thing that will have massive effects on legal education. No, this is not about how I must overhaul my Consumer Finance syllabus. Granted, the poor saps who teach Con...

www.creditslips.org/creditslips/...

07.07.2025 19:49 — 👍 0    🔁 2    💬 0    📌 2
Hypocrisy alert: Critics of CFPB's so-called lack of accountability prevent CFPB accountability - CLP Blog The Dodd-Frank Act provides that the CFPB “shall” issue a semiannual report on its activities and various other matters and that its director “shall appear before the Committee on Banking, Housing, an...

clpblog.citizen.org/hypocrisy-al...

27.06.2025 16:11 — 👍 0    🔁 0    💬 0    📌 0
Senate Parliamentarian says reconciliation bill can cut CFPB funding to 6.5% of Fed's budget - CLP Blog So reports Politico. That means that even if all Democrats oppose the bill, the Senate can still pass it unless at least four Republicans oppose it. Current law provides for a 12% cap.

clpblog.citizen.org/senate-parli...

27.06.2025 14:01 — 👍 0    🔁 0    💬 0    📌 0
Report finds administration's consumer protection agenda has already cost Americans at least $18M - CLP Blog Here, from the Consumer Federation of America and Student Borrower Protection Center. The conclusion is based on elimination of fee limits, dropping of enforcement actions, and blocking payments to co...

clpblog.citizen.org/report-finds...

24.06.2025 16:54 — 👍 0    🔁 0    💬 0    📌 0
Kathleen Engel: Here comes the latest race to the bottom in consumer finance - CLP Blog In the American Banker (behind paywall but available on Lexis). The essay is about how the CFPB is repeating the mistakes of the past. Excerpt: The Consumer Financial Protection Bureau is systematical...

clpblog.citizen.org/kathleen-eng...

24.06.2025 13:25 — 👍 1    🔁 0    💬 0    📌 0
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Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule | U.S. Senate Committee On The Budget The Official U.S. Senate Committee On The Budget

The first batch of Byrd bath guidance from the parliamentarian has been released!

HUGE victory for Dems and for consumers everywhere: Republicans cannot defund CFPB.

20.06.2025 04:11 — 👍 538    🔁 142    💬 17    📌 17
Mike Calhoun: Why the Senate should protect funding for the CFPB - CLP Blog In the National Mortgage News (may be behind paywall). Excerpt: Through a law enacted by Congress, the CFPB receives an amount of up to 12% of the Federal Reserve’s inflation adjusted profits in 2009....

clpblog.citizen.org/mike-calhoun...

17.06.2025 17:44 — 👍 0    🔁 0    💬 0    📌 0
If we had better consumer law, the Minnesota shootings might never have happened - CLP Blog Data brokers are largely unregulated by federal law, despite efforts to fix that. According to Senator Wyden, the shooter obtained the legislators’ home addresses from data brokers. This is an area ov...

clpblog.citizen.org/if-we-had-be...

17.06.2025 17:33 — 👍 0    🔁 0    💬 0    📌 0
Buy Now, Pay Later's Perverse Incentives - CLP Blog Buy Now, Pay Later transactions (BNPL) are increasing dramatically. And for some folks, they are probably positive. But for others, BNPL can create significant problems. In case you don’t already know...

clpblog.citizen.org/buy-now-pay-...

16.06.2025 21:15 — 👍 0    🔁 0    💬 0    📌 0
Notably, the Motion, as observed by Amici, is unprecedented. The Parties in
this case—a government agency and private parties—voluntarily entered into a
settlement and consent decree to resolve the dispute. As previously noted, the consent
decree, among other things, enjoined Townstone from engaging in any acts that
violate the ECOA in connection with offering or providing mortgage loans. The
voluntary nature of the resolution of this case cannot be overemphasized. It was only
after a change at the leadership at CFPB that CFPB now seeks—along with
Defendants—to unwind the very settlement and consent decree that it negotiated.

Notably, the Motion, as observed by Amici, is unprecedented. The Parties in this case—a government agency and private parties—voluntarily entered into a settlement and consent decree to resolve the dispute. As previously noted, the consent decree, among other things, enjoined Townstone from engaging in any acts that violate the ECOA in connection with offering or providing mortgage loans. The voluntary nature of the resolution of this case cannot be overemphasized. It was only after a change at the leadership at CFPB that CFPB now seeks—along with Defendants—to unwind the very settlement and consent decree that it negotiated.

Recall that the investigation and initiation of the lawsuit occurred during
President Trump’s first term, not under some previous administration. Presumably,
CFPB launched the lawsuit after it determined that there was a legal and factual
basis for the suit. Apparently, that was not the case. Now, current CFPB leadership
under the second Trump administration, in an act of legal hara-kiri that would make
a samurai blush, falls on the proverbial sword and attests that the lawsuit lacked a
legal or factual basis.7 That’s not all, as current CFPB leadership lambasts CFPB
leadership under the first administration for trampling Defendants’ First
Amendment rights.

Recall that the investigation and initiation of the lawsuit occurred during President Trump’s first term, not under some previous administration. Presumably, CFPB launched the lawsuit after it determined that there was a legal and factual basis for the suit. Apparently, that was not the case. Now, current CFPB leadership under the second Trump administration, in an act of legal hara-kiri that would make a samurai blush, falls on the proverbial sword and attests that the lawsuit lacked a legal or factual basis.7 That’s not all, as current CFPB leadership lambasts CFPB leadership under the first administration for trampling Defendants’ First Amendment rights.

Moreover, the Court agrees with Amici that granting the Motion would erode
public confidence in the finality of judgments. It would set a precedent suggesting
that a new administration could seek to vacate or otherwise nullify the voluntary
resolution of a case between a prior administration (or the same administration ,but
under different agency leadership) and a private party merely because its leadership
thought the original litigation unwise or improperly motivated. That is a Pandora’s
box the Court refuses to open.
All in all, balancing the benefits vacatur against the public interest in the
finality of judgment, the Court finds that the latter outweighs the former.
Conclusion
For the foregoing reasons, the Court denies the Parties’ Joint Rule 60(b)(6)
Motion for Relief and Vacatur of the Stipulated Final Judgment and Order [145]. The

Moreover, the Court agrees with Amici that granting the Motion would erode public confidence in the finality of judgments. It would set a precedent suggesting that a new administration could seek to vacate or otherwise nullify the voluntary resolution of a case between a prior administration (or the same administration ,but under different agency leadership) and a private party merely because its leadership thought the original litigation unwise or improperly motivated. That is a Pandora’s box the Court refuses to open. All in all, balancing the benefits vacatur against the public interest in the finality of judgment, the Court finds that the latter outweighs the former. Conclusion For the foregoing reasons, the Court denies the Parties’ Joint Rule 60(b)(6) Motion for Relief and Vacatur of the Stipulated Final Judgment and Order [145]. The

Russ Vought's CFPB tried to do a corporate pardon with a mortgage broker who had already entered a final judgment and paid a fine for egregious lending discrimination.
The judge looked at it and said, "No."
storage.courtlistener.com/recap/gov.us...

12.06.2025 23:29 — 👍 581    🔁 186    💬 11    📌 15
CFPB's enforcement head says the administration has "no intention to enforce the law in any meaningful way." - CLP Blog So reports Kate Berry in an American Banker article, CFPB’s top enforcement official, Cara Petersen, resigns. Berry writes: “It has been devastating to see the Bureau’s enforcement function being dism...

clpblog.citizen.org/cfpbs-enforc...

10.06.2025 23:26 — 👍 0    🔁 0    💬 0    📌 0
7. As a result of Defendants’ actions, I have been denied the wages, benefits, and
resources to which I am legally entitled as an FTC Commissioner.
8. For personal reasons, I can no longer afford to go without any source of income for
my family. Applicable rules and regulations limit an FTC Commissioner’s ability to accept other
employment while serving on the Commission. See, e.g., 15 U.S.C. § 41 (“No Commissioner shall
engage in any other business, vocation, or employment.”). In addition, even assuming I would not
be deemed an FTC Commissioner for purposes of such rules and regulations for the duration of
this litigation, my acceptance of other employment during the pendency of this litigation could
give rise to an appearance of impropriety or to actual or perceived conflicts of interest.
9. Accordingly, and out of an abundance of caution, I formally resigned my position as
a Commissioner of the FTC on June 9, 2025.

7. As a result of Defendants’ actions, I have been denied the wages, benefits, and resources to which I am legally entitled as an FTC Commissioner. 8. For personal reasons, I can no longer afford to go without any source of income for my family. Applicable rules and regulations limit an FTC Commissioner’s ability to accept other employment while serving on the Commission. See, e.g., 15 U.S.C. § 41 (“No Commissioner shall engage in any other business, vocation, or employment.”). In addition, even assuming I would not be deemed an FTC Commissioner for purposes of such rules and regulations for the duration of this litigation, my acceptance of other employment during the pendency of this litigation could give rise to an appearance of impropriety or to actual or perceived conflicts of interest. 9. Accordingly, and out of an abundance of caution, I formally resigned my position as a Commissioner of the FTC on June 9, 2025.

UPDATE: One of the two FTC commissioners Trump purported to fire in March, Alvaro Bedoya, resigned today because he hasn't been paid since then and, he wrote, "I can no longer afford to go without any source of income for my family." storage.courtlistener.com/recap/gov.us...

09.06.2025 20:22 — 👍 1132    🔁 427    💬 20    📌 18
Why does the administration see the FTC's consumer protection efforts as ok but not the CFPB's? - CLP Blog I hope some reporter will ask that question of someone in the Trump administration but I’m not sure who the person to ask would be. OMB Director and CFPB Interim Director Russell Vought? We have writt...

clpblog.citizen.org/why-does-the...

06.06.2025 14:57 — 👍 0    🔁 0    💬 0    📌 0
Politico reports Senate Banking Committee memo indicates budget bill will zero out CFPB funding - CLP Blog So Jasper Goodman reports. The bill would leave open the possibility of the Bureau receiving funds through the normal appropriations process, or in the words of one of my kids, “yeah, right.”

clpblog.citizen.org/politico-rep...

05.06.2025 19:31 — 👍 0    🔁 0    💬 0    📌 0
What effects might the $150,000 cap on government student loans for professional schools have? - CLP Blog The so-called Big Beautiful Bill caps an individual’s aggregate government student loans for professional school education at $150,000. For many people, that wouldn’t be enough to cover the cost of at...

clpblog.citizen.org/what-effects...

02.06.2025 20:41 — 👍 1    🔁 0    💬 0    📌 0
Weinberger: CFPB Tells Employees to Pack Up Offices as Mass Firings Loom - CLP Blog Here, in Bloomberg Law. Weinberger writes: That Vought is telling CFPB employees to come collect their personal belongings is a sign that he’s confident the US Court of Appeals for the District of Col...

clpblog.citizen.org/weinberger-c...

01.06.2025 15:14 — 👍 1    🔁 1    💬 0    📌 0
AI Gets Its First Law School A+s We had o3, OpenAI's new reasoning model, take our Spring 2025 law school final exams with the "reasoning effort" parameter set to high. We graded o3's

papers.ssrn.com/sol3/papers....

30.05.2025 23:36 — 👍 0    🔁 0    💬 0    📌 0
Who will be the next nominee for CFPB director-and does it matter? - CLP Blog In his Bloomberg Law article, Trump’s Eventual CFPB Pick Will Work in White House’s Shadow, Evan Weinberger reports that “Mark Calabria, an Office of Management and Budget official currently detailed ...

clpblog.citizen.org/who-will-be-...

29.05.2025 13:43 — 👍 0    🔁 0    💬 0    📌 0

@jsovern is following 20 prominent accounts