Consumer Lenders

News & Analysis as of

CFPB Takes Action Against Online Lender Integrity Advance, LLC

On November 18, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it initiated an administrative proceeding against online lender Integrity Advance, LLC, and its CEO, for allegedly deceiving consumers...more

Challenge to CFPB’s Auto Lending Guidance

A bipartisan bill, House Resolution 1737, which the U.S. House of Representatives will be voting on this week, seeks to nullify the Consumer Financial Protection Bureau’s (CFPB’s) guidance to indirect auto lenders....more

Lawmaker seeks information on CFPB’s role in regulating online lending to small businesses

Congresswoman Nydia Velázquez, ranking Democratic member on the House Small Business Committee, has sent a letter to Director Cordray and Mary Jo White, SEC Chair, seeking information about the roles of the CFPB and SEC in...more

FDIC Throws Water on the Marketplace Lending Phenomenon

The FDIC’s new requirements will substantially increase the costs imposed on banks that wish to purchase marketplace loans. On November 6, the Federal Deposit Insurance Corporation (FDIC) issued Financial Institution...more

The Writing is On the Wall – The CFPB Wants MSAs Gone; What Does This Mean for You?

The CFPB's mission is to promote policies and adopt regulations to allow consumers to make a fully educated decision when they purchase any consumer loan product, with the goal of such consumers taking control over their...more

BoE response to capital requirements consultation

PRA has published BoE’s response to the Commission’s consultation on the potential impact of CRR and CRD 4 on bank lending to the economy (see FReD 17 July and 23 October). The Commission will hold a conference later this...more

Massachusetts AG Settles with Auto Lender Over Alleged “Excessive” Interest Rate Charges

On November 5, Massachusetts AG Maura Healey announced a settlement with a national auto lender to resolve allegations that the lender charged excessive interest rates on subprime auto loans. The company agreed to provide...more

Case Update: Madden v. Midland Funding

As expected, today, November 10, 2015, Midland Funding filed a petition for a writ of certiorari in the United States Supreme Court, asking the Court to review the Second Circuit’s ruling in Madden v. Midland Funding, that...more

CFPB seeking Assistant Director to advise on small business lending data collection rules

The CFPB’s Division of Research, Markets & Regulations recently posted a job opening for an individual to serve as the “Assistant Director for Small Business Lending Markets.” According to the job posting, the Assistant...more

FTC announces “Operation Collection Protection”

Last week, the FTC announced a new coordinated effort against unlawful debt collection practices, “Operation Collection Protection.” The FTC also announced that federal, state and local law enforcement agencies have brought...more

Third DCA Rejects Use of Strict Compliance Standard for Paragraph 22 Notices, Expressly Adopts Substantial Compliance

Many judges in Miami-Dade County and elsewhere held the view that “strict” compliance was the standard to determine if a notice of default complied with the provisions of a paragraph 22 of a mortgage.  To this day, no...more

CashEuroNet agrees to FCA redress scheme

FCA has announced that payday lender CashEuroNet UK LLC (CashEuroNet) has agreed with an FCA review to refund over £1.7 million to almost 4,000 customers. A review of CashEuroNet’s lending decisions when trading as Quick Quid...more

Maryland Court of Special Appeals Holds MCSBA Applies to Loan Broker Working with Federally Insured Out-of-State Banks

On October 27, the Maryland Court of Special Appeals held that a loan broker who originates loans in Maryland for a federally insured out-of-state bank and then repurchases those loans days later qualifies as a “credit...more

FTC Unveils Nationwide Debt-Collection Enforcement Action

The Federal Trade Commission (FTC) on Wednesday announced that it would launch its first-ever coordinated, nationwide law enforcement effort targeting abusive and deceptive debt-collection practices. The initiative is known...more

CFPB Files Suit Against Student Financial Aid Company

On October 29, the CFPB filed a complaint in the U.S. District Court for the Southern District of California against a California-based student financial aid operation and its owner (Defendants). According to the complaint,...more

CFPB Releases Fall 2015 Report Touting Recovery of Millions Through Supervisory Actions

On November 3, the Consumer Financial Protection Bureau (CFPB) released its fall 2015 supervisory report concerning enforcement actions from May 2015 through August 2015. The Bureau highlights violations in the mortgage...more

CFPB Shines Spotlight on Credit Card Complaints

The Consumer Financial Protection Bureau (CFPB) recently released its monthly Complaint Report for October, in which the CFPB focuses heavily on credit card companies, specifically calling attention to cardholder complaints...more

Financial Regulatory Developments Focus - November 2015

In this week's newsletter, we provide a snapshot of the principal US, European and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructure providers, asset...more

Illinois District Court Enters Final Judgment Against For-Profit College to Resolve CFPB Litigation

On October 28, the U.S. District Court for the Northern District of Illinois filed a default judgment and order against a for-profit college company to resolve litigation with the CFPB. In a September 2014 lawsuit, the CFPB...more

CFPB confirms interest in marketplace lending

Companies involved in marketplace lending will be quite interested in the attendee list for the American Banker’s Marketplace Lending + Investing conference taking place this week in New York City. It indicates that 22...more

Payday lender Dollar to provide customer redress

FCA has announced that payday lender Dollar Financial UK (Dollar) has agreed with an FCA review to refund over £15.4 million to 147,000 customers. These customers were often lent more than they could afford to repay by...more

Risky times for some Internet lenders

A recent decision by the Minnesota Supreme Court serves as a painful reminder to Internet lenders of the perils of relying on choice-of-law provisions or arguments citing the Commerce Clause of the U.S. Constitution to avoid...more

OCC Updates Floor Plan Lending Guidance

On October 27, the OCC issued an updated Floor Plan Lending booklet of the Comptroller’s Handbook. The revised booklet (i) summarizes the basics of floor plan lending for examiners, including a description of indirect dealer...more

CFPB Orders Auto Finance Company to Pay Over Three Million for Alleged Unfair Debt Collection Practices

On October 28, the CFPB filed an administrative order against an Ohio-based auto lender specializing in extending credit to servicemembers. The CFPB alleged that the company violated the CFPA by engaging in unfair, abusive,...more

FCA consults on consumer HCSTC

FCA is consulting on proposals responding to the CMA report on high-cost short-term credit (HCSTC). It proposes additional standards for price comparison websites (PCWs) which compare HCSTC products. The proposals include...more

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