News & Analysis as of

High-Interest Loans Financial Services Industry

Adams and Reese LLP

Consumer Financial Protection Bureau Issues “Zombie Mortgage” Advisory Opinion

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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

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

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

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

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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

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

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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

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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

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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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