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 […]

Man bites dog as Trump sues under UDAP for polling claims

The complaint is here. and concerns the finding announced shortly before the election that the poll had Harris leading Trump among Iowans. The suit is against the Des Moines Register, the pollster and Gannett; the UDAP statute in question is Iowa Code § 714H.3(1). That statute provides: A person shall not engage in a practice […]

FTC rule tackles junk fees in live-event ticketing, hotel stays

The Federal Trade Commission today issued a final rule on junk fees. Under the rule, businesses that offer live-event tickets or short-term lodging must clearly and conspicuously disclose the total price at the time they offer, display, or advertise their tickets or stays. This removes the possibility of surprise fees and charges that ticket buyers […]

What do banks want from Trump’s CFPB?

The Consumer Bankers Association explains in a letter. They want to scuttle the CFPB’s overdraft rule, credit card late fees rule, open banking rule, and the BNPL and EWA interpretive rules. They also want to convert the Bureau to a commission, subject it to the annual congressional appropriations process, and “reform” its UDAAP authority.

Manufacturers’ groups issue (de)regulatory wishlist

The LA Times has published a December 5 letter from dozens of manufacturing and other industry trade associations to the incoming administration, providing a wishlist of “regulatory actions that will set the stage for industrial growth in the United States.” Although the list mostly demands a laissez faire approach to business, the coalition acknowledged “that […]