News & Analysis as of

High-Interest Loans

Proskauer Rose LLP

Private Credit Deep Dives – Portability (Europe)

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One of the foundational provisions negotiated in almost every European leveraged loan agreement is the “Change of Control” definition and associated clauses. This provision is crucial because it directly impacts the risk...more

Adams and Reese LLP

Consumer Financial Protection Bureau Issues “Zombie Mortgage” Advisory Opinion

Adams and Reese LLP on

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion last month to affirm that the Fair Debt Collection Practices Act (FDCPA) and its implementing Regulation F prohibit a debt collector, as that term is...more

Allen Matkins

Ninth Circuit Declines To Aggregate Loans For Usury Exemption

Allen Matkins on

California limits the amount of interest that may be charged on loans and forbearances.  While that is the general rule, there are numerous statutory exemptions.  One of those exemptions can be found in California...more

Cozen O'Connor

Washington AG Sues Puppy Store for Alleged Misleading and Deceptive Sales Practices

Cozen O'Connor on

Washington AG Bob Ferguson filed a lawsuit against Doxiedor LLC, d/b/a Puppyland, and affiliated entities and individuals (collectively, “Puppyland”) alleging that the company violated the state’s Consumer Protection Act...more

Orrick, Herrington & Sutcliffe LLP

CFPB and New York say auto lender misled consumers

On January 4, the CFPB and New York attorney general filed a complaint against a Michigan-based auto finance company accused of allegedly misrepresenting the cost of credit and deceiving low-income consumers into taking out...more

Tonkon Torp LLP

When Interest Rates Rise, Consider Bankruptcy Restructuring for Rate Relief

Tonkon Torp LLP on

With the Federal Reserve raising interest rates, businesses struggling with floating rate increases and those needing to refinance may find bankruptcy reorganization an appealing alternative to high interest refinancing....more

Cozen O'Connor

AG Healey Recovers Over $900,000 from Auto Title Lender

Cozen O'Connor on

Massachusetts AG Maura Healey reached a settlement with automobile title lender NH Title Group, Inc. to resolve allegations that it engaged in illegal auto lending practices in violation of Massachusetts consumer protection...more

Cozen O'Connor

Online Lender Settles Allegations of Charging Usury Interest and Operating Without a License

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District of Columbia AG Karl Racine reached a settlement with online lender Elevate Credit, Inc. to resolve allegations it used misleading tactics to market loans with unlawfully high interest rates to consumers in violation...more

Foley & Lardner LLP

Build Back Better Tax Proposals: Considerations for Private Investment Funds & Sponsors

Foley & Lardner LLP on

On September 13, 2021, the House of Representative Ways and Means Committee introduced tax proposals that, if enacted, would make significant changes to the U.S. federal income tax system. This Alert summarizes some of the...more

Cozen O'Connor

Lender Settles Allegations It Financed Loans With Deposits Collected From Consumers Using False Promises Of Guaranteed High...

Cozen O'Connor on

The Consumer Financial Protection Bureau (“CFPB”) reached a settlement with financial company Driver Loan, LLC and its Chief Operating Officer (collectively “Driver Loan”) to resolve allegations that it misled consumers with...more

Cozen O'Connor

Wine Asset Sale Watered Down | Fake Vaccination Cards | Misleading Franchisee Offer

Cozen O'Connor on

2022 AG Elections- County District Attorney Launches Bid for Wisconsin Attorney General- •Fond du Lac County DA Eric Toney announced his candidacy for the Republican nomination in the 2022 race for the Wisconsin AG’s...more

Ballard Spahr LLP

CFPB, joined by South Carolina Dept. of Consumer Affairs and Arkansas AG, files lawsuit targeting service providers to pension...

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The CFPB filed a complaint in a South Carolina federal district court against Upstate Law Group LLC. and two of its individual owners and managers that alleges the defendants violated the Consumer Financial Protection Act’s...more

Ballard Spahr LLP

Virginia House of Delegates passes bill to establish 36% rate cap for “short-term” and other loans

Ballard Spahr LLP on

On January 31, 2020, by a vote of 65 to 33, the Virginia House of Delegates passed a bill that would establish a 36% rate cap on certain consumer loans.  Since Democrats also hold a majority in the Virginia Senate, the Senate...more

Ballard Spahr LLP

CFPB continues to target pension advance products structured as purchases

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The CFPB and the South Carolina Department of Consumer Affairs have filed a lawsuit in federal district court in South Carolina against two companies and their individual owner that alleges the defendants violated the...more

Manatt, Phelps & Phillips, LLP

California Regulator: Lenders Moving Away From Small-Dollar Loans to High-Interest Installment Loans

California nonbank consumer lenders are moving away from small-dollar short-term payday loans and are, instead, embracing longer-term installment loans with amounts over $2,500 to avoid interest rate caps, according to the...more

Ballard Spahr LLP

New Jersey files lawsuit against two buy-here pay-here used car dealers

Ballard Spahr LLP on

On March 7, New Jersey Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced the filing of a lawsuit against two “Buy Here-Pay Here” auto dealerships and their owner for allegedly unconscionable and...more

White & Case LLP

Consumer financial services: The road ahead: Small-dollar loans

White & Case LLP on

In February 2019, the CFPB released the highly anticipated revamp of its Payday Rule, reinforcing its more lenient attitude towards payday lenders. In light of the Bureau’s softer touch, as well as similar developments at the...more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Rules That Loans Not Subject To Usury Cap May Still Be Unconscionable

The California Supreme Court ruled on Monday, August 18, that an interest rate on a consumer loan in California could be deemed illegally high even if the loan is not subject to the state’s usury law. Consumer loans of...more

Goodwin

California Supreme Court Rules that Loans Can be Unconscionable Due to High Interest Rates, Despite Lack of Interest Rate Cap

Goodwin on

On August 13, 2018, the California Supreme Court answered a question certified to it by the Ninth Circuit, holding that a loan with a high interest rate can be unconscionable, even if the legislature specifically declined to...more

Womble Bond Dickinson

California Supreme Court Holds That High Interest Rates on Payday Loans Can be Unconscionable

Womble Bond Dickinson on

On August 13, 2018, the California Supreme Court in Eduardo De La Torre, et al. v. CashCall, Inc., held that interest rates on consumer loans of $2,500 or more could be found unconscionable under section 22302 of the...more

Ballard Spahr LLP

CA Supreme Court holds high-interest loans may be subject to price unconscionability attack

Ballard Spahr LLP on

Resolving an ambiguity in the California Finance Lender’s Law (CFLL), the California Supreme Court unanimously held that borrowers may use the unconscionability doctrine to challenge the interest rate on consumer loans of...more

Ballard Spahr LLP

Calif. Supreme Court: High-Interest Loans May Be Subject to Price Unconscionability Attack

Ballard Spahr LLP on

Resolving an ambiguity in the California Finance Lender's Law (CFLL), the California Supreme Court unanimously held that borrowers may use the unconscionability doctrine to challenge the interest rate on consumer loans of...more

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