Payday Loans

News & Analysis as of

Fourth Circuit Holds Arbitration Agreement May Not Waive All Federal Statutory Rights

This week, the Fourth Circuit interpreted SCOTUS’s Italian Colors decision as precluding the waiver of federal statutory rights in an arbitration agreement.  In this sequel of sorts, the Fourth Circuit interpreted a modified...more

CFPB Director’s Divisive View of RESPA Limitations Period Central to Ongoing UDAAP Action

In the ongoing Integrity Advance enforcement action by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), the Office of Enforcement this month filed a brief arguing that its claims for alleged unfair, deceptive,...more

FTC Touts Record Yield in Payday Lending Case

Why it matters - A pair of online payday lenders will pay the Federal Trade Commission (FTC) $4.4 million to settle charges that they tricked consumers by failing to disclose inflated fees in what the agency said was...more

FTC Announces Settlements with Online Payday Lenders Over Alleged Violations of TILA and EFTA

On January 5, the FTC announced separate settlements with two online payday lenders to resolve charges dating back to April 2012 that the defendants violated TILA, the Federal Trade Commission Act (FTC Act), and the...more

CA federal court refuses to dismiss CFPB lawsuit against payday lending companies alleging UDAAP violations based on state law...

A federal district court has refused to dismiss the lawsuit filed by the CFPB in December 2013 against CashCall, several related companies and their principal, which asserted UDAAP violations based on the defendants’ efforts...more

Recent Actions Added To UDAAP Database

PLA today updates the UDAAP database with a series of enforcement actions from the CFPB and, notably, the prudential regulators. The majority of enforcement actions involving allegedly unfair, deceptive, and abusive...more

Regulating “Alternative Financial Services” in Ontario

Earlier this month, the Minister of Government and Consumer Services introduced Bill 156, the Alternative Financial Services Statute Law Amendment Act, 2015 (Bill 156). Bill 156, if enacted, would amend the Consumer...more

Administrative Monetary Penalties and New Exemptions for Debt Collectors

Earlier this month, the Minister of Government and Consumer Services introduced Bill 156, the Alternative Financial Services Statute Law Amendment Act, 2015 (Bill 156). Bill 156, if enacted, would amend, among other...more

Tribally Affiliated Payday Lenders Can Use Tribal Sovereign Immunity as Defense to State Administrative Proceedings, Class Actions

Two recent decisions provide support for the use of tribal sovereign immunity by tribally affiliated payday lenders as a defense to both state administrative proceedings and private class actions. In Everette v. Joshua...more

NY Fed blog post calls into question objections to payday loans and rollover limits

A blog post about payday lending, “Reframing the Debate about Payday Lending,” posted on the New York Fed’s website takes issue with several “elements of the payday lending critique” and argues that more research is needed...more

CFPB Files Notice of Charges Against Online Payday Lender

On November 18, the CFPB announced an action against a Delaware-based online payday lender and its CEO for alleged violations of the Truth in Lending Act and the Electronic Fund Transfer Act, and for engaging in unfair and...more

CFPB issues snapshot of servicemember complaints

The CFPB has issued a new “snapshot of servicemember complaints.”  The report states that as of November 2015, the CFPB had received about 2,500 complaints from servicemembers, veterans and their dependents about high-cost...more

CFPB Publishes Semi-Annual Rulemaking Agenda

Just in time for the holidays, the CFPB released its Fall 2015 rulemaking agenda on Friday, November 20. The agenda does not include any major surprises, but it does slightly revise the projected timeline for several highly...more

FDIC Issues Letter to Financial Institutions Regarding Applicability of Payday Lending Rules

On November 16, the FDIC issued FIL-52-2015 to advise financial institutions that it revised its 2005 guidance on payday lending, which established the FDIC’s expectations for prudent risk-management practices in the payday...more

CFPB Fall 2015 rulemaking agenda includes delays for payday loan and other rules

The CFPB released its Fall 2015 rulemaking agenda last Friday. The agenda sets the following timetables for key rulemaking initiatives: Arbitration. The Fall 2015 agenda gives a December 2015 date for further prerule...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

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

Commerce Clause Does Not Prevent Minnesota from Regulating Internet Loans Made to State Residents, Minnesota Supreme Court Rules

The Minnesota Supreme Court has ruled that the Commerce Clause of the U.S. Constitution does not preclude Minnesota from applying its payday lending law to loans consummated in Delaware that are made to Minnesota residents...more

CFPB highlights credit card complaints in fourth monthly complaint report

The CFPB has issued its October 2015 complaint report, the fourth in its new series of monthly complaint reports. The new report highlights credit card complaints and complaints from consumers in the Chicago, Illinois metro...more

Mixed Ruling in Suit Challenging Operation Choke Point

Why it matters - A D.C. federal court judge issued a mixed ruling in a suit brought on behalf of payday lenders against the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board of Governors, and the...more

CFPB Proposes Limits on Companies' Use of Arbitration Clauses

The Consumer Financial Protection Bureau (CFPB) has proposed new rules that would ban companies' use of arbitration clauses that prevent consumer class action lawsuits. The potential new rules, announced this month, would...more

Two Major Implications for Consumer Finance Industry from This Month’s Proposed CFPB Rules

When the Consumer Finance Protection Bureau (CFPB) released its study on the use of pre-dispute arbitration (PDA) clauses earlier this year, many expected the CFPB to propose a ban on all PDAs in contracts for consumer...more

CFPB Targets Pension Lenders in Dodd-Frank Suit

On August 20, 2015, the Consumer Financial Protection Bureau (CFPB) and New York Department of Financial Services (NYDFS) filed suit in the U.S. District Court for the Central District of California against two pension...more

BCAP consults on payday loans

BCAP has launched a consultation on whether it is proportionate and necessary to introduce scheduling restrictions on the television advertising of high-cost short-term credit (HCSTC). ...more

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