Author Archives: Adam Pulver

Wisconsin Tribe’s 600% APR Online Loans Leads to Proposed $1b Settlement

Today, ProPublica published a story about the lending activity of the Lac du Flambeau Band of Lake Superior Chippewa Indians, a Wisconsin tribe whose various companies generated  than 2,200 consumer complaints to the FTC since 2019 — more than any other tribe in recent years. The Tribe’s affiliated entities regularly issued online loans with annual […]

CPSC finds Amazon Responsible for Recalls of Third-Party Sellers’ Products

In a unanimous decision issued yesterday, the CPSC held that Amazon is a “distributor” of certain unsafe products listed on its website, and sold by third-party sellers using the “Fulfilled by Amazon” program, and thus is responsible for recalls when those products are defective or fail to meet federal consumer product safety standards. The agency’s […]

Fifth Circuit Says DOT Can’t Really Regulate Airline Industry

American consumers hate hidden airline fees.  Unfortunately, siding with airlines, the Fifth Circuit yesterday held that DOT likely lacked authority to issue a rule that would require airlines to more clearly disclose fees associated with checked and carry-on baggage, and cancelling or changing flights. The order arose in a challenge to an April rule, discussed […]

DOL Fiduciary Rule Stayed

Earlier this year, the Department of Labor issued a rule that broadened the scope of circumstances when investment advisors were deemed to be acting in fiduciary roles with respect to workers’ retirement investments, and thus required to provide non-conflicted, honest, and loyal advice in the investor’s best interest. As they did with an Obama-era rule, […]

CFPB Addresses NDAs and Whistleblowers

Many financial services companies require their employees to enter into broad nondisclosure agreements. Today, the CFPB issued a circular to law enforcement agencies and regulators explaining that such agreements are unlawful to the extent they prevent employees from disclosing misconduct or cooperating with investigations. The circular is available here, and the CFPB’s press release is […]

Divided Second Circuit Relies on Plaintiffs’ Intent to Find No CAFA Jurisdiction

The Class Action Fairness Act provides for federal jurisdiction over “any civil action … in which monetary relief claims of 100 or more persons are proposed to be tried jointly on the ground that the plaintiffs’ claims involve common questions of law or fact.” But what constitutes a “proposal” that cases be “tried jointly”? Today, […]

CFPB proposes interpretive rule regarding “earned wage” loans

Today, the CFPB issued a report on the growth of “earned wage” cash advances , by which employers partner with third party companies to offer employees loans based on earned wages. The report found that, in addition to fees, these loans typically have an APR of 109.5%. Along with the report, the CFPB issued a […]

No indemnification rights under EFTA, Sixth Circuit holds

The Electronic Funds Transfer Act (EFTA) requires banks, credit unions, and similar financial institutions to reimburse their customers for unauthorized electronic transfers of money from the customers’ accounts.  Several credit union customers saw money transferred out of their accounts as part of a scam called “SIM Swap,” which, it was claimed, took advantage of T-Mobile’s […]

Ninth Circuit Rejects CPSA Preemption Challenge to Oregon Toxic Chemicals Law

Oregon enacted the Toxic-Free Kids Act, which directs the Oregon Health Authority to establish and maintain a list of high-priority chemicals of concern for children’s health. Manufacturers of consumer products with those chemicals to provide certain notices are required to publish notices, and, after several years, are prohibited from selling those products in the state. […]

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 […]