Bloomberg reports: Online financing platforms aimed at small businesses are drawing new scrutiny from states concerned the largely unregulated industry could cause a new predatory lending crisis. California is soliciting data from the largest lenders as state officials eye a non-bank lending statute as a possible enforcement and regulatory tool. Illinois is considering legislation that […]
The Washington Post reports: Federal education officials are deciding whether to shut down the nation’s biggest accreditor of for-profit colleges over allegations that it overlooked deception by some of its schools. The Accrediting Council for Independent Colleges and Schools is meant to be a watchdog for hundreds of for-profit schools, wielding the stamp of approval […]
The rule is a big step forward but has some significant flaws. Here is Public Citizen's press release: An effort calling on the U.S. Department of Education to halt federal funding for predatory schools that deny students’ access to the courts reached a milestone today, as the department released a proposed rule designed to protect […]
by Jeff Sovern As a member of the consumer law professor community, I have learned from Senator Elizabeth Warren's work, admire her, worked with her staff, and exchanged emails with her (though we have never actually met). Consequently, I don't like seeing her called names. If I were to compare her to a Disney character, the one I would pick […]
by Jeff Sovern Yesterday the House Appropriations Committee reported out a bill that would convert the Bureau to a commission, subject it to the congressional appropriations process, and delay (perhaps forever) the adoption of the arbitration and payday lending rules. More information on the Committee's web site.
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 […]