What does the 7th Circuit’s Townstone decision tell us about delegations to the CFPB after Loper Bright?

Adam blogged earlier about Townstone but I wanted to say a bit more about what the case tells us about the CFPB’s authority concerning TILA and ECOA. As Adam noted, the Seventh Circuit cited Loper Bright and stated in note 15 that it approached the case “as presenting a question of statutory interpretation subject to […]

Seventh Circuit Holds ECOA Prohibits Discrimination Against Prospective Applicants

The Federal Reserve Board’s Regulation B implements the Equal Credit Opportunity Act, and prohibits creditors from discouraging, on a prohibited basis, applicants or prospective applicants from making or pursuing an application for credit. In 2020, the CFPB, who now enforces the regulation, brought an enforcement action alleging a lender “discouraged black prospective applicants from applying […]

JPMorgan Chase threatens to end free checking

So reports WSJ’s Alexander Saeedy (behind paywall). Excerpt: [Chase executive Marianne] Lake is warning that new rules that would cap overdraft and late fees will make everyday banking significantly more expensive for all Americans. Lake said Chase is planning to pass on the costs of higher regulation and charge customers for a number of now-free services, including checking […]

Seventh Circuit Asks (and Answers) “What is Reasonable Consumer Behavior?”

In order to state a claim for deceptive practices, many state consumer protection laws require plaintiffs to prove that the challenged acts or practices are “likely to deceive reasonable consumers.” In an opinion issued today, the Seventh Circuit grappled with the question of what exactly that means. The opinion comes in a class action brought […]

Crootof paper on the legal consequences of repossessions by cars that autonomously drive back to the lender

Rebecca Crootof of Richmond Law and the Yale Information Society Project has written Remote Repossession, 73 DePaul Law Review, (forthcoming 2024). Here’s the abstract: Ford’s February 2023 patent application raises a new possibility: that after a default, an internet-connected vehicle might autonomously drive itself off of the owner’s premises—to a public space, to the repossession agency, […]

Seventh Circuit Holds Company Can Flout Arbitration Agreement Without Consequence

Generally, when you read an opinion holding that there was insufficient evidence of an arbitration agreement between a consumer and a corporation, it’s a win for the plaintiff. But in Wallrich v. Samsung Electronics America, decided by the Seventh Circuit yesterday, the opposite was true. Paula Wallrich and several thousand other consumers had filed arbitration […]

2 FTC actions alleged deceit of consumers

Two new actions by the Federal Trade Commission today: FTC Takes Action Against Online Used Car Dealer Vroom for Deceiving Customers, Failing to Deliver on Time and Provide Required Disclosures FTC Takes Action Against Gig Work Company Arise Virtual Solutions for Deceiving Consumers About Pay in Marketing Its Business Opportunity

Does Loper Bright limit the CFPB’s power?

As I noted in yesterday’s post, Loper Bright preserves agency authority when Congress authorized the agency to exercise discretion. Loper Bright cited as an example of such a case Michigan v. EPA, in which, Loper Bright noted, Congress used a term or phrase that gives agencies flexibility, “such as ‘appropriate’ or ‘reasonable.” Now let’s look […]

How much deference must courts give federal consumer protection agency determinations that conduct is unfair after Loper Bright?

Yesterday, the Supreme Court decided Loper Bright, in which it proclaimed that “Chevron is overruled.” But now we have to figure out what that means in particular contexts. One such context is federal consumer protection agency UDAAP statutes, like the FTC Act and Consumer Financial Protection Act. When those statutes give the agencies the power […]

Call for Abstracts for the Consumer Law Scholars Conference

We received the following Call for Abstracts for the Consumer Law Scholars Conference, always an important event for consumer law scholars: We are pleased to announce the seventh annual Consumer Law Scholars Conference (CLSC), which will be held Thursday and Friday, March 6-7, 2025 at Boston University. Save the date! The purpose of the CLSC is to support in-progress scholarship, foster […]