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Consumer Financial Products Consumer Contracts

Ballard Spahr LLP

Appeals Court Says Terms and Conditions Contained in Unsigned Auto Rental ‘Terms and Conditions’ are Part of the Consumer Contract

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Unsigned Terms and Conditions found in a preprinted car rental jacket are part of the contract between the parties under Florida, Arizona and Colorado law because they were properly incorporated by reference into the signed...more

Cooley LLP

CFPB Warns Against Deceptive Terms in Consumer Contracts

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On June 4, 2024, the Consumer Financial Protection Bureau (CFPB) issued Circular 2024-03 warning that the inclusion of “unlawful or unenforceable” terms in consumer contracts – particularly in the fine print of consumer...more

Parker Poe Adams & Bernstein LLP

NC Supreme Court: Credit Union Can Unilaterally Add Arbitration Provision and Class Action Waiver to Agreements

The North Carolina Supreme Court on Thursday, May 23 held that a credit union’s unilateral update to add an arbitration provision and class action waiver to its contract with one of its customers was valid under North...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Small Dollar Lending, Lease-to-Own, and Alternative Financial Services

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to the small dollar lending, lease-to-own, and alternative financial services industries. ...more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Nondiscrimination and Military Protection Law

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to consumers protected by nondiscrimination and military protection laws....more

Hudson Cook, LLP

CFPB Bites of the Month - 2023 Annual Review - Auto

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In this article, we share a timeline of our monthly "bites" for 2023 applicable to the auto finance industry. We think it's safe to say that the auto finance industry was top of mind to the CFPB. ...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: A Look at a New Approach to Consumer Contracts

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Our special guest is Andrea Boyack, Professor, University of Missouri School of Law. We first discuss the principles that underlie our current system of consumer contracts and the system’s role in promoting transactional...more

Ballard Spahr LLP

Comment letters from consumer advocates bolster case against CFPB rulemaking on post-dispute arbitration clauses

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We previously reported and released a podcast episode on comments that we and Professor David Sherwyn of Cornell University submitted in opposition to the Petition for Rulemaking filed by a number of consumer advocacy groups...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: Reasons Why the CFPB Should Deny the Petition for Rulemaking on Post-Dispute Consumer...

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Our special guest is David Sherwyn, Professor of Law at Cornell University's School of Hotel Administration. In Sept. 2023, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would...more

Ballard Spahr LLP

OppFi Hat Trick: Third Federal Court Upholds Arbitration Clause

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Earlier this month, in Fama v. Opportunity Financial LLC, a Magistrate Judge of the federal district court for the Western District of Washington held that the arbitration provision in OppFi’s installment loan agreement is...more

Ballard Spahr LLP

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

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Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses...more

Hudson Cook, LLP

CFPB Permanently Bans Consumer Finance Company from Providing Consumer Leases and Orders Company to Pay $2 Million Penalty

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On September 11, 2023, the CFPB filed an administrative consent order against a Nonbank Consumer Finance Company, with its principal place of business in Manchester, New Hampshire. The order alleges that the Company concealed...more

Ballard Spahr LLP

Further thoughts on consumer understanding of arbitration clauses

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Professor Jeff Sovern recently blogged about the FTC’s June 2023 revisions to its Endorsement Guide. The Guide helps advertisers and endorsers make sure that their advertising using endorsements or testimonials is truthful...more

Ballard Spahr LLP

New study targets arbitration opt-outs in online contracting, but misses the point

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Professor Jeff Sovern, who recently joined the University of Maryland Francis King Carey School of Law faculty, has recently blogged about a forthcoming Study by academicians at other institutions that will be published in...more

Sheppard Mullin Richter & Hampton LLP

CFPB Sues Lease-to-Own Finance Company for Allegedly Deceiving Consumers

On July 19, the CPFB filed a complaint against a lease-to-own finance company, alleging that the company has offered and provided millions of “lease-purchase” and “rental-purchase” financing agreements in ways that have...more

Latham & Watkins LLP

Is the Customer Always Right? PE in Focus as Regulators Tighten Grip on Consumer Facing Companies

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Consumer-facing companies face an increasingly complex UK regulatory landscape as multiple regulators place the spotlight on consumer rights and protections. A raft of new legislation is set to impact businesses and PE...more

Cadwalader, Wickersham & Taft LLP

CFPB Issues Proposed Rule on Form Contracts

The Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule last week addressing the “Registry of Supervised Nonbanks that Use Form Contracts to Impose Terms and Conditions that Seek to Waive or Limit Consumer...more

Locke Lord LLP

CFPB’s Proposed Rule Would Register ‎and Publish Waiver Provisions Used by Nonbanks in ‎Consumer ‎Contracts

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On January 11, 2023, the Consumer Financial Protection Bureau proposed a rule that would require certain nonbanks to disclose provisions in form contracts that waive consumer rights. The CFPB would then make those terms...more

Kelley Drye & Warren LLP

CFPB Tackles Fine Print in Consumer Financial Contracts

Downloading an app, buying a product or service, or otherwise interacting with a company frequently requires consumers to consent to multi-page contracts. In a new proposed rule, the CFPB would require nonbank financial...more

Hudson Cook, LLP

New California Law Impedes Creditors' Ability to Offer Voluntary Protection Products to Military Servicemembers

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California recently enacted Senate Bill 1311, the Military and Veteran Consumer Protection Act of 2022, with the stated intent of strengthening the state's military consumer protection laws by enhancing protections for...more

Sheppard Mullin Richter & Hampton LLP

CFPB Warns of Consumer Risk Over New Payment Products, Foreshadows Supervision of BNPLs

Recently, the CFPB released a report outlining the challenges and risks inherent in the rapid evolution of the payment ecosystem, with a particular focus on emerging uses cases involving “super apps,” buy now, pay later...more

Sheppard Mullin Richter & Hampton LLP

CFPB Issues Spring 2022 Supervisory Highlights

On May 2, the CFPB released its Spring 2022 Supervisory Highlights. The findings of the report, which generally cover examinations completed between July and December 2021, are issued to help institutions and the general...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Upholds Arbitration Provision Delegating Enforceability Determination to Arbitrator

In Brice v. Haynes Investments LLC, No. 19-15707 (9th Cir. Sept. 16, 2021), the Ninth Circuit considered an appeal by shareholders in Native American tribe-linked online lenders of a district court order denying the...more

Hogan Lovells

More Scope, More Power: Enhancing the scope of the Australian Consumer Law and regulator power

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Businesses are reminded to review their customer terms and conditions ahead of the impending changes to the Australian Consumer Law and unfair contract term regime, and ensure all internal policies are up to date....more

Goodwin

Eleventh Circuit Holds Administrative Feasibility is Not a Requirement for Class Certification

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On February 2, 2021, the United States Court of Appeals for the Eleventh Circuit issued a significant decision holding that a putative class representative does not need to establish an administratively feasible method to...more

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