That's the topic of as Glass-Steagall's Demise Inevitable and Unimportant? by law prof Arthur Wilmarth. Here's the abstract: The demise of the Glass-Steagall Act was the result of affirmative policy decisions by federal regulators and Congress, and it was not the inevitable byproduct of market forces. Economic disruptions and financial innovations posed serious challenges to the viability […]
Bloomberg reports: Payday lenders could escape tighter regulation as the Trump-led Consumer Financial Protection bureau considers eliminating a requirement that they first assess borrowers’ ability to repay loans. The CFPB is expected to either propose eliminating the rule’s strict ability to repay standards or delaying their effective date so that they can undergo further review, […]
We’ve covered before the Department of Education’s recent attempt to gut a rule adopted under the Obama administration to help student loan borrowers and rein in for-profit colleges. The regulation, commonly referred to as the borrower defense rule, was supposed to take effect on July 1, 2017. The Department issued a series of delays, which […]
Samuel Issacharoff and Florencia Marotta-Wurgler, both of NYU, have written The Hollowed Out Common Law. Here's the abstract: The electronic marketplace poses novel issues for contract law. Contracts created through browsewrap, clickwrap, and shrinkwrap (contracts whose embedded terms are only available after purchase) poorly fit doctrines that emerged from face-to-face offer and acceptance, the mutual execution […]
The Philadelphia Tribune report on a new poll that, a decade after the financial crisis, finds that consumers still support financial regulation and related enforcement. Moreover, on payday and car-title lending, "consumer scorn has grown even stronger over the past year for these small-dollar, debt-trap loans that come with triple-digit interest rates." The full article […]
The Dodd-Frank Act prohibits “unfair, deceptive, or abusive” acts and practices by the financial companies regulated under the Act, and gives the Consumer Financial Protection Bureau authority to enforce the prohibition. The Act defines "abusive" as an act or practice that: (1) Materially interferes with the ability of a consumer to understand a term or […]
by Jeff Sovern A number of sources have reported on a survey of more than one thousand metastatic breast cancer patients presented recently at an American Society of Clinical Oncology (ASCO) symposium that found that debt collectors had contacted about half about cancer care bills. HCP said that 49% had heard from debt collectors while AccountRecovery.net put […]
Here, by Brad Wolverton & Alex Richards. I don't want to quote too much, so here is an incomplete excerpt: The federal watchdog agency created to protect consumers is not regulating two of the country’s fastest-growing financial institutions despite receiving voluminous complaints about them, NerdWallet has found. Escaping scrutiny are Green Dot Corp. — which […]
Here. Excerpt from Jeff Bater's report: The Consumer Financial Protection Bureau took only three enforcement actions in the third quarter of 2018 and is on pace for the lowest yearly total in its seven years of existence. The bureau levied $1.6 million in penalties in the three-month period ending in September, compared to $7.3 million […]
by Jeff Sovern Acting CFPB director Mick Mulvaney famously wrote that he would not push the envelope. He explained: That entire governing philosophy of pushing the envelope frightens me a little. We are government employees, and we work for the people. That means everyone: those who use credit cards and those who provide the credit; […]