No standing to challenge delayed release of title, Eighth Circuit holds

Under Missouri law, lienholders must release their liens within 5 days after payment in full of any moneys owed. According to the plaintiff in a putative class action, Santander Consumer violates this law by waiting fifteen days to send the title after a borrower pays off a car loan. After Santander removed the case, a […]

FACTA, Standing, and Federal Defendants

State and federal courts have concurrent jurisdiction over claims brought under the Fair and Accurate Credit Transactions Act (FACTA). But apart from the merits of a FACTA claim, state and federal courts have different requirements for standing. So when a defendant removes a FACTA action from state to federal court, but the claim does not […]

CFPB releases final rule barring medical bills from credit reports

The Consumer Financial Protection Bureau today announced its final rule requiring the removal of medical bills from credit reports and barring lenders from using consumers’ medical information in their lending decisions. The Fair Credit Reporting Act already limits a creditor’s ability to obtain or use a consumer’s medical information in connection with any determination of […]

Ninth Circuit holds consumer lender waived 7th Amendment argument against CFPB

CashCall is a lender that makes unsecured, high-interest loans to consumers via a related company incorporated under the laws of the Cheyenne River Sioux Tribe. In 2022, the Ninth Circuit decided CFPB v. CashCall, in which it affirmed a district court’s finding, after a bench trial, that CashCall committed an unfair, deceptive, or abusive act […]

CFPB sues Walmart for tying drivers’ pay to high-fee banking product

On Monday, the CFPB announced that it had sued Walmart and Branch Messenger for practices with respect to its “last-mile” delivery drivers. The suit alleges that Walmart and Branch opened Branch accounts for drivers, and  Walmart then deposited drivers’ pay into these accounts, without the drivers’ consent. The suit also alleges Walmart told the drivers […]

CFPB blog post about new illegal junk fees

Here, authored by Seth Frotman and Lorelei Salas. Here is a particularly intriguing excerpt: Now that companies are being held accountable for charging [certain] unlawful fees, they have switched to new, underhanded tactics to try to continue to extract junk fee revenue from people. For example, we have seen some debt collectors unlawfully amend consumers’ […]

Adam Feibelman paper argues that the CFPB should have authority over the Community Reinvestment Act

Adam Feibelman of Tulane University has written Relocating the Community Reinvestment Act. Here’s the abstract: The Community Reinvestment Act was enacted in 1977 to address the failure of financial institutions to provide credit and financial services in low-income communities, especially Black neighborhoods. The Act is part of a family of legal regimes, including the Home […]

“FTC, Illinois Attorney General Take Action Against Grubhub for Harming Diners, Workers, and Small Businesses”

The FTC reports: “Grubhub will pay $25 million to settle charges from the Federal Trade Commission and the Illinois Attorney General that the food delivery firm engaged in an array of unlawful practices including deceiving diners about delivery costs and blocking their access to their accounts and funds, deceiving workers about how much money they […]