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AFSA asks House Appropriations Committee to block proposed FTC Motor Vehicle Dealers Trade Regulation Rule

On June 21, 2023, the American Financial Services Association (“AFSA”) asked the House Appropriations Committee to include language in the Financial Services and General Government appropriations bill that would prevent the...more

CFPB report highlights problems military families have experienced with digital payment apps

On June 20, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued its Office of Servicemember Affairs Annual Report, which analyzes consumer complaints received from servicemembers, veterans, and their families for...more

Court looks to FCRA in interpreting MLA statute of limitations

In dismissing a class action last month alleging violations of the Military Lending Act (“MLA”), a federal district court in Virginia held that the MLA’s two-year statute of limitations is triggered by discovery of the facts...more

DOJ announces consent order with property management company to resolve alleged SCRA early lease termination violations

On June 13, 2023, the Department of Justice (“DOJ”) announced that it had settled an action against a multi-family residential property management company for alleged violations of the Servicemembers Civil Relief Act (“SCRA”)...more

FTC requests comment on consumer advocate petition regarding auto “yo-yo financing”

On May 31, 2023, the Federal Trade Commission (“FTC”) requested public comment on a petition for rulemaking it received from six national consumer advocate groups regarding “yo-yo sales,” a term the groups use to refer to...more

Fintech settles allegations that payment of tips and donations was a hidden interest charge

A fintech peer-to-peer lender has entered into separate consent orders with California, Washington D.C., and Connecticut relating to its practice of requesting tips and donations in connection with the loans offered through...more

Department of Education releases proposed gainful employment rule for certificate and for-profit programs

On May 17, 2023, the U.S. Department of Education (ED) released a Notice of Proposed Rulemaking intended to increase transparency regarding the costs and financial outcomes of postsecondary programs. The centerpiece of the...more

SBA: CFPB credit card late fee proposed rule may hurt small entities

The Consumer Financial Protection Bureau (“CFPB”) received more than 225 public comments to its credit card late fee proposal (the “Proposed Rule”). As we have discussed, the Proposed Rule would make significant changes to...more

Fourth Circuit holds GAP coverage financed with vehicle purchase is exempt from MLA

In a highly anticipated decision regarding the treatment of Guaranteed Asset Protection (“GAP”) under the Military Lending Act (“MLA”), a federal appellate court has ruled that a hybrid loan that finances GAP coverage along...more

FTC proposes “click to cancel” provision in proposed amendments to Negative Option Rule

On March 23, 2023, the Federal Trade Commission (“FTC” or “Commission”) issued a Notice of Proposed Rule Making (“NPRM”) seeking comment on proposed amendments to the Commission’s Negative Option Rule. The proposed...more

DOJ sues towing company over SCRA default judgment violations

On March 3, 2023, the U.S. Department of Justice (DOJ) filed a complaint against a towing company located near a Marine base alleging violations of the Servicemembers Civil Relief Act’s (SCRA) prohibition against default...more

CFPB consent order shuts down mortgage lender focused on servicemembers

On February 27, 2023, the Consumer Financial Protection Bureau (CFPB) entered into a consent order against RMK Financial Corporation d/b/a Majestic Home Loan (RMK), a California-based mortgage lender, based on allegations...more

CFPB issues orders requesting information to large auto lenders

On February 23, 2023, the CFPB announced in a blog post that it had issued orders to nine large auto lenders requesting information about their auto lending portfolios. The orders, which the CFPB says were sent to a...more

New study finds Military Lending Act expansion had limited impact for military credit card customers

A new report from the Urban Institute examining the 2015 expansion of the Military Lending Act (“MLA”) concludes that it did not lead to better credit and debt outcomes for servicemembers and may instead have limited access...more

DOJ alleges SCRA violations by City of El Paso for auctioning servicemembers’ vehicles without court orders

On February 2, 2023, the U.S. Department of Justice (“DOJ”) filed a complaint against the City of El Paso, Texas (the “City”) and several co-defendants alleging violations of the Servicemembers Civil Relief Act (“SCRA”) for...more

Massachusetts Attorney General settles case alleging discriminatory pricing of auto add-on products

On January 31, 2023, the Massachusetts Attorney General’s Office (“Mass AG”) announced a settlement with Hometown Auto Framingham, Inc. (“Hometown Auto”), resolving allegations that the auto dealership had engaged in unfair,...more

Tenth Circuit Dismisses FDCPA Claim for Lack of Standing Where Third-Party Mail Vendor Sent Collection Letters

The U.S. Court of Appeals for the Tenth Circuit recently joined the Eleventh Circuit (and a growing majority of courts) in rejecting the “Hunstein theory” of liability under the Fair Debt Collection Practices Act (FDCPA). In...more

Tenth Circuit dismisses FDCPA claim for lack of standing where third party mail vendor sent collection letters

The U.S. Court of Appeals for the Tenth Circuit recently joined the Eleventh Circuit (and a growing majority of courts) in rejecting the “Hunstein theory” of liability under the Fair Debt Collection Practices Act (FDCPA). In...more

New CFPB report highlights increase in servicemember identity theft incidents

On January 12, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued a report highlighting an increase in reported incidents of identity theft by servicemembers. The report, titled “Servicemember reports about...more

Credit unions settle GAP fee refund cases with Colorado Attorney General

On January 4, 2023, Colorado Attorney General Phil Weiser announced settlements with two state-chartered credit unions, Bellco Credit Union (“Bellco”) and Canvas Credit Union (“Canvas”), over Guaranteed Automobile Protection...more

New CFPB Report Proactively Encourages Creditors To Apply SCRA Interest Rate Benefits

On December 7, 2022, the CFPB issued a report recommending that creditors proactively provide Servicemember Civil Relief Act (SCRA) interest rate benefits to eligible customers, bypassing the statute’s requirements of a...more

CFPB and FTC File Amicus Brief Regarding Servicemembers’ Right to Sue Under the Military Lending Act

On November 22, 2022, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) filed an amicus brief in a case involving the right of servicemembers to sue under the Military Lending Act (MLA)....more

New CFPB report encourages creditors to proactively apply SCRA interest rate benefits

On December 7, 2022, the CFPB issued a report recommending that creditors proactively provide Servicemember Civil Relief Act (“SCRA”) interest rate benefits to eligible customers, bypassing the statute’s requirements of a...more

36 State Attorneys General settle with CarMax over non-disclosure of open safety recalls

On December 1, 2022, nationwide used car dealer CarMax Auto Superstores, Inc. (“CarMax”) and 36 state attorneys general announced a $1 million multistate settlement that will require CarMax to disclose open recalls related to...more

CFPB and FTC file amicus brief regarding  servicemembers’ right to sue under the Military Lending Act

On November 22, 2022, the Consumer Financial Protection Bureau (“CFPB”) and the Federal Trade Commission (“FTC”) filed an amicus brief in a case involving the right of servicemembers to sue under the Military Lending Act...more

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