Recent Developments in “Fake Litigation”

by Paul Alan Levy In the past few days there have been a couple of significant developments in the area of ”fake litigation” directed at consumer commentary – the use of fraudulent litigation techniques to obtain judicial relief against consumer criticisms of businesses without giving fair notice to the critic, and often using methods calculated […]

Banks Pay Colleges Substantial Sums in Royalties, Fees, When Students Use Debit Cards, Etc., When Colleges Market Banks to Students

by Jeff Sovern During the Obama administration, the Department of Education adopted a regulation obliging colleges and universities to disclose their contracts with banks governing marketing to students as well as how much the schools receive from the banks. The WSJ went through those disclosures and reported on their findings in an article, Banks Pay Big […]

Cal. Supreme Court says class-action objectors must become “parties of record” to appeal approval of a class-action settlement, rejecting federal rule

In Devlin v. Scardelletti, the U.S. Supreme Court held that a class-action objector may appeal a district court's approval of a class-action settlement under Federal Rule of Civil Procedure 23 without first intervening. Today, the California Supreme Court rejected that approach in Hernandez v. Restoration Hardware for class actions in California state courts. The court's ruling was premised […]

Another Name Surfaces to Run the CFPB: Dan Iannicola

by Jeff Sovern Ian McKendry has a report in the American Banker, Is Trump team moving to political middle in CFPB director search?, that mentions Iannicola, who served in the Treasury Department in the second Bush administration and is currently CEO of the Financial Literacy Group. Among their clients is the CFPB. The article also notes that another candidate, […]

Norm Silber on the 50th Anniversary of Caplovitz’s The Poor Pay More

Norman I. Silber of Hofstra has written Discovering that the Poor Pay More: Race Riots, Poverty, and the Rise of Consumer Law, 44 Ford.Urb.L.J. 1319 (2017).  Here is the abstract: David Caplovitz is remembered primarily for his book The Poor Pay More and his writing about poor consumers. This article addresses why this work propelled the reconstruction […]

Mulvaney Pushed the Envelope by Misquoting Cordray in Memo Saying the Bureau Has Pushed Its Last Envelope

by Jeff Sovern Allied Progress has the story. It seems that Mulvaney incorrectly attributed to his predecessor a statement that the Bureau pushed the envelope. That is according to Michael Grunwald, the author of the Politico article containing the original statement about pushing the envelope. Mulvaney's memo is available here. Update: The WSJ, which had […]

CFPB Has No Update on Enforcement Freeze After Not Announcing Enforcement Action in More Than 2 Months

by Jeff Sovern In response to my inquiry, a CFPB representative, Brenda Muniz, informed me today that "There are no updates with respect to the freeze on enforcement actions or the issuance of CIDs," and that the CFPB has not announced an enforcement action since its November 21 announcement about Citibank. Though the Bureau's press […]