Category Archives: Other Lending, Debt, and Credit Issues

Peterson & Ehrlich paper on RESPA, corrupt joint ventures, and mortgage settlement services

Christopher Lewis Peterson of Utah and Jeffrey Paul Ehrlich of St. Thomas University and McGuireWoods LLP have written Corrupt Joint Ventures in the Market for Residential Real-Estate-Settlement Services. Here’s the abstract: Closing costs in residential-real-estate sales have long acted as a significant barrier to American home ownership. In the Real Estate Settlement Procedures Act of 1974 […]

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 […]

CFPB proposes rules to help homeowners avoid foreclosure

The Consumer Financial Protection Bureau has proposed “new rules to make it easier for homeowners to get help when they are struggling to pay their mortgage. The proposal, if finalized, would require mortgage servicers to focus on helping borrowers, not foreclosing, when a homeowner asks for help. The proposed changes would also make it simpler […]

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 […]

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, […]

State AGs release their top 10 consumer complaints

During this National Consumer Protection Week, many offices of state attorneys general released their annual list of top 10 consumer complaints received over the last year. The lists present broad categories for received complaints, such as automobile sales, Internet sales/scams, retail, professional or consumer services, banking and loans, health/medical, home improvement, and housing/real estate. Some […]

CFPB’s 2023 enforcement actions in a nutshell

In a recent blog post, the Consumer Financial Protection Bureau offered a quick overview of its 2023 enforcement work. The agency reported that it filed 29 enforcement actions against financial institutions and resolved six prior lawsuits. Lenders, banks, and other entities that broke the law were ordered to pay approximately $3.07 billion to  consumers and […]

FDIC Consumer News

I just came across FDIC Consumer News — “the FDIC’s monthly newsletter to consumers, providing practical guidance on how to become a smarter, safer user of financial services, including helpful hints, quick tips, and common-sense strategies to protect and stretch your hard-earned dollars.” Recent articles include: Older Adults Helping Relatives Through Financial Support; Shopping for […]

CFPB proposes rules on fees for instantaneously declined transactions and on overdraft fees

The Consumer Financial Protection Bureau yesterday proposed a rule to block banks and other financial institutions from charging non-sufficient funds fees on transactions declined at the time the consumer swipes, taps, or clicks — that is, transactions that the financial institution declines in real time. These types of transactions include declined debit card purchases and […]