by Jeff Sovern Here. Lots of irony in this one, as you can tell from the headline. A sample: Eighteen groups representing thousands of corporations and banks filed the lawsuit against the Consumer Financial Protection Bureau last Friday in federal court in Dallas. Oddly, they did not attempt to individually resolve the dispute through an arbitration process, […]
That's what Georgetown law prof. Anne Fleming has to say in her Washington Post op-ed Federal regulation of payday loans is actually a win for states’ rights. It includes this defense of federal regulation: Critics of the CFPB rule, such as House Financial Services Committee Chairman Jeb Hensarling (R-Tex.), argue that federal regulation of these loans […]
by Jeff Sovern I've been listening to the several hearings in Washington this week at which former Equifax CEO Richard Smith testified. I haven't finished yet, and may have more to say, but here's a quick observation. Mr. Smith testified at various points that Equifax planned to make things right for consumers. For example, here […]
That's the topic of Trump University and Presidential Impeachment by law prof Chris Peterson. Here's the abstract: In the final weeks of the 2016 Presidential campaign Donald J. Trump faced three lawsuits accusing him of fraud and racketeering. These ongoing cases focus on a series of wealth seminars called “Trump University” which collected over $40 million from […]
by Jeff Sovern There's been a steady drumbeat of criticism for the CFPB from certain members of Congress for not moving sooner on the Wells Fargo unauthorized account scandal. These critics also tend to support legislation, like the Financial Choice Act, which would take away the power the CFPB used to fine Wells Fargo for […]
by Jeff Sovern The article is headlined Congress grapples with preventing the next Equifax-level hack. Excerpt: Their ideas included like fining companies that fail to adequately protect consumer data, restructuring the credit reporting industry to allow for more competition and requiring data holders to notify consumers whose information has been compromised. A slew of legislation aimed […]
In an editorial titled President Cordray Strikes Again. This time, it's the payday lending rule that has the WSJ up in arms. Here's the conclusion: The recent rule-makings give the President more cause to dismiss the director, and a D.C. Circuit Court of Appeals panel has held that he can be removed at will. Mr. […]
Though consumer arbitration proponents and courts often justify pre-dispute mandatory arbitration (PDMA) through the language of consent — that consumers contract with corporations freely and knowingly — opponents of PDMA understand that PDMA is forced down consumers' throats. With these two visions of arbitration in mind, you may want to read two new issue papers […]
According to the press release: "The Consumer Financial Protection Bureau (CFPB) today finalized a rule that is aimed at stopping payday debt traps by requiring lenders to determine upfront whether people can afford to repay their loans. These strong, common-sense protections cover loans that require consumers to repay all or most of the debt at […]
Amanda Werner of Americans for Financial Reform and Public Citizen attended the Equifax hearing today to draw attention to forced arbitration and make the point that forced arbitration gives corporations a monopoly on justice. Amanda seems to have attracted as much attention as the former Equifax CEO who was testifying. Below is a small sample […]