Politico reports: The Trump administration is taking steps to shield student loan collection companies from state regulators, over the objections of consumer advocates and even some Republican attorneys general. Education Secretary Betsy DeVos is preparing to issue a declaration that companies collecting federal student loans are off limits for state lawmakers and regulators. The “notice […]
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by Jeff Sovern The White House issued its 2017 Draft Report to Congress on the Benefits and Costs of Federal Regulations and AgencyCompliance with the Unfunded Mandates Reform Act today. According to Table 1-3 in the report, at page 19, the benefits of three consumer protection rules the administration looked at were estimated at $1.9 to […]
I know little of economics but I've frequently said to myself (and occasionally to colleagues and clients) that, all other things equal, the defendant generally benefits from delay, and the plaintiff, wanting to see some cash, rarely so. But what do I know? You consumer litigators out there might find some actual enlightenment on the […]
I was curious to see what the Department of Justice's Consumer Protection Branch has been up to lately, so I checked its website. Here are its 2018 press releases: Tuesday, February 13, 2018 – Michaels Stores Agrees to Pay $1.5 Million to Settle CPSC Delayed Reporting Claim Friday, January 26, 2018 – Leader of Fraudulent Medical […]
In today's decision in Hagy v. Demers & Adams, the Sixth Circuit held that a bare allegation that a debt collector's letter that fails to say it's "from a debt collector" as required by the Fair Debt Collection Practices Act, 15 U.S.C. § 1692e(11), is not an article III injury under the Supreme Court's decision […]
ProPublica has an article about the Consumer Financial Protection Bureau today. Here is the lead: Born as a fiercely independent agency meant to protect citizens, the Consumer Financial Protection Bureau has quickly been subsumed into the Trump administration. Banks, student-loan agencies and payday lenders are the winners. The full article is here.
Former Director of the Consumer Financial Protection Bureau Richard Cordray has an op-ed in the Washington Post today, expressing concerns about the agency's current path: The CFPB was designed to serve as a tough and independent watchdog for consumers. Yet Trump and White House budget director Mick Mulvaney, the bureau’s putative acting head, have bullied […]
The decision is Tatis v. Allied Interstate. Applying the "least sophisticated consumer" standard and following decisions of the Fifth, Sixth, and Seventh circuits, the court summarizes its decision this way: This appeal arises under the Fair Debt Collection Practices Act …. The question presented is whether a collection letter sent to collect a time-barred debt that […]
The Associated Press reports that Wells Fargo has made missteps in its efforts to make amends to customers who were forced to buy unneeded auto insurance. A spokeswoman for the bank said that 38,000 customers received a letter they did not need and that contained no refund. She said the error was due to a […]
The Alabama legislature is considering a bill that would give borrowers who take out payday loans additional time to pay them back. The bill reportedly has bipartisan support in the Alabama Legislature. Currently, payday lenders in Alabama can require that loans be paid back anywhere from 10 days to 31 days. The bill would set […]