In a letter dated July 21, Senators Sherrod Brown (D-Ohio) and Jeffrey Merkley (D-Ore.), on behalf of the Committee on Banking, Housing, and Urban Affairs (the “Committee”), asked the heads of several federal agencies to provide the Committee with information concerning their understanding of the role of fintech in the consumer financial services
Connecticut Issues No-Action Letter That Is Great News for Consumer Collection Agencies
In a memorandum dated June 30, the Connecticut Department of Banking stated that it will take no action against licensed consumer collection agencies who collect student loan debt if the licensed consumer collection agencies do not have a license to service student loans. The Department stated that consumer collection agencies who collect student loan debt
Don’t Call Me (Maybe): FTC Telemarketing Sales Rule Amendments Limiting Payment Methods Available to Telemarketers Go Into Effect
On June 27, the Federal Trade Commission issued an alert regarding new amendments to the Telemarketing Sales Rule (“TSR”) that are now in effect. The new amendments prohibit telemarketers from using three types of commonly abused payment methods: cash-to-cash money transfers (such as MoneyGram), PIN numbers from cash reload cards
Settlement Between North Carolina and Payday Lender Serves as Reminder to Payment Processors
On June 6, the Attorney General for the State of North Carolina executed a settlement agreement with a payday lender, Future Income Payments, LLC, arising out of the payday lender’s alleged violation of that state’s usury laws. The settlement agreement requires the lender to pay North Carolina $50,000 in attorneys’ and investigation fees, plus a
CFPB Announces Annual Threshold Adjustments for TILA, CARD, HOEPA, and More
On June 17, 2016, the Consumer Financial Protection Bureau (“CFPB”) announced changes to the dollar amount thresholds for certain consumer credit transactions under the Truth in Lending Act (“TILA”). According to the notice submitted to the Federal Register, these new thresholds could affect minimum interest charges and safe harbor penalty fees under the Credit Card
Arkansas Attorney General Announces Settlement with Online Payday Lender
On June 24, 2016, Arkansas Attorney General Leslie Rutledge announced a settlement agreement with payday lender, Western Sky Financial LLC, and loan servicer, CashCall Inc., to resolve allegations that the companies conspired to offer illegal online loans to Arkansas consumers while claiming to be shielded by tribal sovereign immunity.
According to the Arkansas Attorney General,
Final Days of Payday? CFPB Proposes Update to Payday Lending Rule
On June 2, the Consumer Financial Protection Bureau released a newly proposed rule that, if enacted, will place new burdens on lenders who offer consumers payday loans, auto title loans, and other short-term, small-dollar loans.
Overview
The proposed rule will require lenders to inquire about the loan applicant’s income and expenses by conducting a “full-payment”
Vermont Executes Assurance of Discontinuance with Payday Lender Payment Processor
On May 19, 2016, the Vermont Attorney General announced that it had executed an Assurance of Discontinuance with a payment processor arising out of the Attorney General’s allegation that the payment processor violated a Vermont state statute prohibiting unfair and deceptive practices when the processor processed payments for dozens of payday lenders who did not
FTC Hosts FinTech Forum on Marketplace Lending
On June 10, Troutman Sanders attended the Federal Trade Commission’s FinTech Forum on marketplace lending. The event marked the first in the FTC’s FinTech Forum series, which is part of the FTC’s ongoing efforts to examine marketplace lending and its impact on consumers. The topics discussed during the forum included adequate
CFPB Authority Limited by Federal Court
On April 21, the United States District Court for the District of Columbia held that the Consumer Financial Protection Bureau exceeded its authority when it issued a Civil Investigative Demand (“CID”) to the Accrediting Council for Independent Colleges and Schools (“ACICS”), an accreditor of for-profit colleges. Notably, this is the first time that the