Today the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a new rule that will have a significant impact on the payday lending market. The CFPB will now require lenders to conduct a “full-payment test” to determine upfront whether the borrower will have the ability to repay the loan when it becomes due. Lenders
DOJ Permits Banks to Create Real-Time Payment System
On September 21, the Department of Justice cleared the way for a group of the twenty-four largest U.S. banks to create a real-time payment system that will permit immediate transfer of funds between financial institutions. The system was proposed by The Clearing House Payments Co., LLC (“TCH”), a joint venture between the twenty-four banks that
CFPB Issues First No-Action Letter to Online Lender Using Alternative Data
On Thursday, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued its first no-action letter to Upstart Network, Inc., an online lender. The no-action letter green-lights the lender’s use of alternative data in marketing and pricing decisions. In exchange, Upstart will report lending and compliance information to the CFPB.
UPSTART’S MODEL
California-based Upstart provides an
Federal Court Strikes CFPB’s Counts Against Payment Processors for Violating Discovery Order
On August 25, the United States District Court for the Northern District of Georgia struck four counts of a complaint filed by the Consumer Financial Protection Bureau because it failed to abide by the Court’s discovery order.
This matter began on March 26, 2015, when the CFPB filed a complaint against 12 debt collectors, four
Join Us for the American Bar Association State and Local 2017 Annual Meeting
We are pleased to announce that Troutman Sanders Partner Ashley Taylor will be a featured speaker at the American Bar Association State and Local 2017 Annual Meeting taking place on August 10, 2017.
Ashley will participate in the State Attorneys General and Department of Justices Issues Committee meeting tomorrow to discuss state Attorneys General work
Pennsylvania AG Follows Trend, Creates Consumer Financial Protection Unit
On July 20, Pennsylvania Attorney General Josh Shapiro announced the creation of a Consumer Financial Protection Unit to protect Pennsylvanians from “financial scams.”
According to Shapiro’s announcement, the new unit will focus on lenders and mortgage and student loan servicers that “prey on seniors, families with students, and military service members.” This new consumer unit
New Jersey Legislator Introduces Bill to Prevent Prepaid Account Fees
On June 8, Assemblyman Troy Singleton (D) introduced New Jersey Assembly Bill 4965, which, if enacted, would closely mirror the Consumer Financial Protection Bureau’s Prepaid Rule, but also would prohibit prepaid account issuers in New Jersey from charging a number of fees to prepaid account holders. Singleton co-sponsored a similar bill in 2012 that
Join Us for the Credit and Collection News Annual Creditor Grantor Consortium in Washington, DC
We are pleased to announce that Troutman Sanders partners Ashley Taylor and David Anthony will be featured speakers at the upcoming Credit and Collections News (CCN) Annual Creditor Grantor Summit. The conference will be held August 14-16, 2017 at the Ritz-Carlton in Georgetown, Washington, DC.
Ashley will speak on a panel entitled “Working with Your
Federal and State Regulators Obtain Record Judgment Enforcing TCPA Violations Predicated Upon Insufficient Vendor Oversight
On June 5, 2017, an Illinois federal judge awarded $280 million to the federal government and the states of California, Illinois, North Carolina, and Ohio against Dish Network LLC over violations of numerous federal and state do-not-call laws. The district court’s $280 million penalty constitutes the largest ever for violations of telemarketing laws. In addition,
Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices
On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices. The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership