NPR reports today: There is a scandal rocking the financial industry — or we should say, a small but important part of that industry: online lending. Lending Club — one of the first companies to directly connect borrowers and investors online — is in boiling-hot water. Investors were lied to, and the CEO resigned. Industry […]
When federal regulators last week took their first ever step to protect consumers who use payday lenders, many experts described the move as a fatal blow to the industry. The payday trade association said “thousands of lenders” would be forced to “shutter their doors.” But larger payday lenders have already concluded in recent days they […]
Read about it here. UPDATES: First, as currently drafted, the tax would be imposed not only on sugary drinks but on diet sodas as well. Second, for more information, see this NPR story.
ALI’s Proposed Restatement of Consumer Contracts – Perpetuating a Legal Fiction? By Dee Pridgen The members of the American Law Institute (ALI) are currently working on what may ultimately become “The Restatement of Consumer Contracts.” This project could provide an opportunity for real law reform. Indeed, the original goals of the ALI include adapting […]
by Paul Alan Levy Cases involving Xcentric Ventures, the company that owns Ripoff Report, frequently push the boundaries of the legal protections that are provided for the hosts of online expression, and we have often come to that company's defense even though some aspects of its business model leave something to be desired. A brief […]
House Financial Services Chair Jeb Hensarling has proposed a Republican alternative to the Dodd-Frank Act, to be called the Financial Choice Act. The Committee's summary of the portions of the bill that affect the CFPB are as follows: SECTION THREE: Empower Americans to achieve financial independence by fundamentally reforming the CFPB and protecting investors. […]
or click here. Brilliant. Best line (and one I'm planning to use in my forthcoming FDCPA article): No good guy business model has ever been based on the logic of "what, don't worry about people's legal rights. I'm pretty sure half these unsophisticated morons can't read, right guys?"
In the Times's DealBook. Excerpt: Conservative lawyers have been muttering about the constitutionality of the Consumer Financial Protection Bureau for years, but their best argument is pretty novel. It is a “death by a thousand cuts” separation of powers claim. The idea is that if you count up all the ways that the Consumer Financial […]
by Jeff Sovern According to a report in HousingWire, a CompassPoint report concludes the following: “Our channel checks estimate that shifting the CFPB’s governance from a directorship to a commission would double the bureau’s already elongated rulemaking timeline, cut its enforcement activity by 50% to 75%, and result in a far greater importance being placed on […]
Below are recent announcements from the Department of Justice about the work of its Consumer Protection Branch, including work related to mass-marketing fraud schemes, adulterated food, and odometer fraud. Justice Department and Dutch Authorities Announce Simultaneous Enforcement Actions Against International Mass-Mailing Fraud Schemes Targeting the Elderly (June 2, 2016) District Court Enters Permanent Injunction Against […]