Category Archives: Unfair & Deceptive Acts & Practices (UDAP), including Discrimination

WSJ article about how debt settlement firms can harm consumers

Here.  Excerpt: Companies like National Debt Relief seek out heavily indebted consumers with a promise to help them get out from under it. But regulators say these debt-settlement programs can leave customers worse off, facing high fees, damaged credit scores and unexpected income-tax bills. * * * Data from credit-reporting companies has been used by some debt-settlement […]

Seventh Circuit: Student Loan Borrowers Can Sue Servicers Under State Consumer Protection Laws

Yesterday, a unanimous panel of the U.S. Court of Appeals for the Seventh Circuit issued an opinion in Nelson v. Great Lakes Educational Loan Services, Inc. in which it concluded that the federal Higher Education Act (HEA) does not preempt state law claims against student loan servicers. The case involves a student loan borrower who brought a […]

Will New York catch up to Mississippi in protecting consumers?

by Jeff Sovern Many states allow their consumers to sue misbehaving companies for unfair practices, including red and purple states like Mississippi, Georgia, North Carolina, Tennessee and West Virginia, states that we normally don't think of as being in the vanguard of consumer protection.  This power can be important in protecting consumers. For example, the […]

Report That Companies Include Provisions in Arbitration Clause that They Know the Arbitrator Won’t Enforce–But That Might Suppress Claims Even More

by Jeff Sovern Level Playing Field is reporting that companies include in their arbitration clauses provisions that AAA, their arbitration service, has informed them have to be waived, meaning AAA won't enforce them. The clauses in question may deter consumers, who don't know that they won't be enforced, from bringing the arbitration at all. For […]

The National Consumer Law Center Releases Updated Survey of State UDAP Laws

Today, the National Consumer Law Center released an updated version of its very helpful and informative 50-state UDAP survey. The page with links to the full report, executive summary, key recommendations, maps, charts, and appendices is available here. The press release is available here. Since the last survey, which was conducted in 2009, NCLC finds […]

Nelson/Wright Article Applies CBA to State Unfairness Cases

Elise M. Nelson of Freshfields Bruckhaus and Joshua D. Wright of George Mason have written Judicial Cost-Benefit Analysis Meets Economics: Evidence from State Unfair and Deceptive Practices Laws, 81 Antitrust Law Journal (2017). Here is the abstract: Section 5 of the Federal Trade Commission Act (FTC Act) prohibits "unfair or deceptive acts or practices in or affecting commerce." […]

Am. Banker: Mulvaney looks to neuter CFPB’s most potent weapon

Here, by Kate Berry (behind a paywall). The most potent weapon is, of course, the Bureau's UDAAP powers. Excerpt: [The Bureau's] vision statement unveiled as part of the new strategic plan dropped any reference to so-called UDAAP claims, suggesting that the agency will not use the Dodd-Frank authority as the same kind of blunt enforcement […]

Dee Pridgen Article: State and Private Enforcement of UDAP Laws

Dee Pridgen of Wyoming has written The Dynamic Duo of Consumer Protection: State and Private Enforcement of Unfair and Deceptive Trade Practices Laws, 81 Antitrust L.J. 911 (2017). Here's the abstract: This article focuses on the critical importance to consumer protection of the “dynamic duo” of state and private enforcement mechanisms provided in state unfair and deceptive […]

Chris Peterson Study Finds Financial Choice Act Would Eliminate Chilling Number of CFPB Enforcement Actions Costing Consumers Billions

Christopher Lewis Peterson of Utah has written Choosing Corporations Over Consumers: The Financial Choice Act of 2017 and the CFPB Consumer Finance Law Quarterly Report (forthcoming). Here is the abstract: The Consumer Financial Protection Bureau (CFPB) is the U.S. Government’s primary regulator and civil law enforcement agency governing consumer lending, payment systems, debt collection, and other […]

Times Op-Ed Shows How Markets Sometimes Fail to Curb Companies That Cheat Consumers

by Jeff Sovern The piece is by Richard Coniff and is titled Why We Don’t Vote With Our Wallets. Excerpt: [W]e get bored and look away from the dull crimes companies commit every day, like Wells Fargo foisting phony accounts and unwanted auto insurance on its customers. * * * Like Volkswagen selling “clean diesel” […]