The Consumer Financial Protection Bureau report finds that one-in-five borrowers who take out a single-payment auto title loan have their car or truck seized by their lender for failing to repay their debt. According to the report, more than four-in-five of these loans are renewed the day they are due because borrowers cannot afford to […]
by Jeff Sovern Yesterday the Supreme Court decided the Sheriff case. One oddity about the case has to do with whether immaterial misrepresentations give rise to liability under the FDCPA. Several circuits have held that misrepresentations have to be material to generate FDCPA liability. See, e.g., Donohue v. Quick Collect, Inc., 562 F.3d 1027 (9th […]
By Steve Gardner Spoiler alert: The resident is ExxonMobil, which is fighting a subpoena (probably a Civil Investigative Demand) by the AG of the Virgin Islands seeking to find out about Exxon's role in climate change. The VI AG is working with an excellent plaintiff firm, Cohen Milstein, to represent the VI. The State of Texas (joined by […]
Here. SCOTUSBlog coverage by Ronald Mann here. And for more commentary on Spokeo, see Paul Bland's thoughts here.
The Supreme Court today issued its much-anticipated ruling in Spokeo v. Robins. The opinion vacates and remands the Ninth Circuit's holding that the plaintiff had standing to pursue his claims under the Fair Credit Reporting Act, but leaves open the possibility that the court of appeals may reach the same result on remand. The majority, consisting […]
The added witnesses are Jason S. Johnston of Virginia School of Law and Dong Hong, VP and Regulatory Counsel, Consumer Bankers Association. A link to Johnston's article on class actions is included in the post just below this one. Johnston has previously criticized the Bureau's arbitration report and the Dodd-Frank mortgage restrictions. Neither witness seems likely to […]
Sarah Rudolph Cole has written The Federalization of Consumer Arbitration: Possible Solutions, University of Chicago Legal Forum No. 271. Here's the abstract: Over the past fifteen to twenty years, businesses dramatically increased the use of arbitration clauses in contracts with consumers. Although commentators criticize the use of arbitration to resolve consumer disputes because arbitration lacks the […]
The title of the hearing is "Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?" It will take place Wednesday, May 18. The witnesses seem not to have been announced, but given the composition of the Committee, I think we can anticipate the majority answering […]
The Consumer Financial Protection Bureau filed suit this week against All American Check Cashing, Inc., which offers check cashing and payday loans, and its owner, for allegedly tricking and trapping consumers. The complaint alleges that All American tried to keep consumers from learning how much they would be charged to cash a check and used […]
The Second Circuit Court of Appeals held yesterday that a class-action lawsuit against the Department of Education by former students of a now-defunct for-profit beauty school can proceed. The students sued the Department for aggressive collection tactics against students who likely had the right to discharge their loans. Courthouse News offers this summary: Former […]