Quyen Truong, former assistant director and deputy general counsel of the Consumer Financial Protection Bureau (CFPB), has joined Stroock & Stroock & Lavan LLP as a partner in the firm’s Washington, DC office.

Truong, a member of the firm’s national Financial Services/Class Action Practice Group, was instrumental in building the new federal agency while implementing the Dodd-Frank Act for finance reform, the firm says in a release. Among other responsibilities, she advised leadership on analysis of consumer financial laws, oversaw review of all enforcement actions and responded to legal challenges to the agency.

“Quyen’s proven track record bridging the technical complexities of financial reforms and their regulatory implications will complement our already prominent Financial Services/Class Action practice and enhance our ability to provide high level strategy and counsel to our clients,” stated Julia Strickland, chair of the Financial Services/Class Action Practice Group and a member of the firm’s Executive Committee.  “We are thrilled that she chose Stroock when she decided to return to the private legal sector.”

While at the CFPB from 2012-2016, Truong was instrumental in helping the Bureau to define the scope of its authorities and develop a new regulatory and enforcement framework for the financial industry.  As a senior leader at the CFPB, she represented the Bureau on the inter-agency Financial Stability Oversight Council (FSOC), managed enterprise risks, and coordinated activities with the Department of Justice, Federal Trade Commission, and banking regulators in high stakes litigation, regulatory and oversight proceedings.  As head of litigation, she also directed the CFPB’s amicus program to advance the agency’s policy and legal interpretations in private litigation.

“Stroock to me epitomizes an ideal law firm in which to work with the financial industry, because of the high quality of its lawyers, their focus on this industry, and their close relationships with market leaders,” says Truong.  “The firm and its clients share my belief that doing right by customers is crucial to achieving business success. I am confident that as we continue to build the practice, we will advance both business and consumer interests.”

Prior to joining the CFPB, Truong served at the Federal Deposit Insurance Corporation (FDIC) as risk management and litigation counsel where she oversaw the investigation and litigation of claims of regulatory violation, fraud, officer/director and other professional liability, following the financial crisis.  In addition, she has held public and private positions with Dow Lohnes PLLC, the Federal Communications Commission (FCC), Howrey LLP and Mayer Brown LLP.

“Quyen’s unique government background, coupled with her 25 years of regulatory policy, compliance and litigation experience adds significant value for our market-leading financial services clients,” noted Alan M. Klinger, Stroock’s co-managing partner.  “We embrace every opportunity to grow our Washington, DC office through highly talented and skilled legal leaders from the government sector.”

Truong received her J.D. from Yale Law School where she was a John M. Olin Fellow in Law, Economics & Public Policy, and her B.A. from Yale University, summa cum laude and Phi Beta Kappa.

Akerman LLP has announced the expansion of the firm’s Consumer Financial Services Practice Group  with two senior lawyers joining from the Consumer Financial Protection Bureau, partners Thomas Kearney and Mary (Molly) Calkins. They join the firm’s Washington, D.C., office, working in federal and state compliance as well as operational support capabilities.

“Tom and Molly bring a tremendous combination of experience in financial rulemaking and enforcement, with a thorough understanding of the compliance challenges resulting from CFPB actions,” said William Heller, chair of Akerman’s Consumer Financial Services Practice Group. “They build upon our team’s extensive experience in the home loan space, adding a deep understanding of evolving federal and state laws governing bank and non-bank consumer debt originators and servicers.”

Kearney joins Akerman from the CFPB’s Office of Regulations where he played a key role in the development and drafting of multiple mortgage originations related rulemakings. He most recently led the team responsible for the final Home Mortgage Disclosure Act rule. Kearney also drafted substantial portions of the CFPB’s Truth in Lending Act — Real Estate Settlement Procedures Act Integrated Disclosure or Know Before You Owe rule and the Ability-to-Repay and Qualified Mortgage rules. He handled outreach, guidance and training on various CFPB efforts under Dodd-Frank, in addition to providing guidance to Congress, federal agencies, and other CFPB offices on legal and regulatory issues arising under HMDA, RESPA and TILA. Prior to the CFPB, Kearney worked for several years as in-house counsel for a provider of mortgage compliance services to national banks, securitizers, non-depository mortgage lenders and other financial services companies.

Calkins joins Akerman from the CFPB’s Division of Supervision, Enforcement & Fair Lending, where she led investigations into a broad array of potential consumer protection violations. Her enforcement matters involved fair lending, auto finance, mortgage lending and servicing, credit cards and bank deposit products, credit reporting, student loans, and debt collection. As a founding member of the Bureau, Calkins also coordinated the CFPB investigations with state attorney generals and other federal regulators such as the Federal Deposit Insurance Corporation, Federal Trade Commission, and Office of the Comptroller of the Currency.

Prior to her work at the CFPB, Calkins was counsel at the FDIC’s Professional Liability & Financial Crimes Section, where she investigated and litigated claims arising from bank failures, reviewed mortgage loan files, analyzed claims for loan putbacks, and ascertained potential liability of bankers as well as third party vendors and service providers. Calkins is an experienced financial services litigator, covering the Equal Credit Opportunity Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Real Estate Settlement Procedures Act, Truth in Lending Act, Truth in Savings Act, Unfair, Deceptive or Abusive Acts or Practices and Dodd Frank Act issues.

The Consumer Financial Protection Bureau has proposed prohibiting application of pre-dispute arbitration agreements to class litigation involving certain consumer financial products, according to a report published by Carlton Fields on its website.

“Citing concerns that such agreements ‘effectively prohibit’ class litigation and prevent consumers from obtaining remedies for harm caused by providers of consumer financial products or services, the proposal would apply to most products subject to Bureau oversight,” the report says.

“The Bureau’s proposal would prohibit inclusion of arbitration clauses that block class action claims in contracts with consumers for credit cards, checking and deposit accounts, prepaid cards, money transfer services, certain auto loans, auto title loans, small dollar or payday loans, private student loans, and installment loans.”

Read the report.

Consumer Financial Protection Bureau determined that pre-dispute arbitration clauses harm consumers by forcing them to sign or click away their right to pursue future remedies in a court of law, reports Julie Goldsmith Reiser is a partner at Cohen Milstein Sellers & Toll PLLC in an article published by Bloomberg BNA.

Consumers “undervalue the importance of mandatory arbitration clauses even in the rare instances where consumers might be able to opt out.” she writes. “CFPB correctly concluded that binding individual customers to mandatory arbitration before a dispute arises, rather than encouraging its voluntary use, is harmful to public interest and consumer protection.”

She details the CFPB’s study and results and examines a critique offered by the Mercatus Center.

Read the article.