On May 2, JAMS announced its new Mass Arbitration Procedures and Guidelines and Mass Arbitration Procedures Fee Schedule (together, the Procedures), with the express goal to “facilitate the fair, expeditious and efficient resolution of Mass Arbitrations” and implicit intent to reduce the administrative burden and onerous fees of mass arbitrations, as well as the delay and potential unfairness to the parties. While effective immediately, the Procedures only apply if the parties have agreed to their application in a pre- or post-dispute written agreement. This limitation significantly decreases the effectiveness of the Procedures as a tool for hedging risks and limiting the high costs of mass arbitration.

In the third episode of this four-part series, Ethan, Addison, and Trey discuss several state-level developments that occurred in the digital asset sector during 2023. The group discusses the inception of New York Department of Financial Services’ (NYDFS) BitLicense regulation, its evolution, and the NYDFS’ introduction of guidance describing the procedures a digital asset custodian must engage in to ensure the provision of safekeeping services in a consumer-friendly manner. The main principles of the guidance aim to protect consumers by requiring digital asset custodians to, among other things, segregate digital assets owned by consumers and to prevent the establishment of debtor-creditor relationships with consumers that utilize custodial services.

Troutman Pepper attorneys Brooke Conkle and Chris Capurso helm this episode to discuss the Consumer Financial Protection Bureau’s (CFPB) recent annual report on consumer complaints for 2023. Although the report primarily focuses on consumer reporting, it includes an auto-finance section for those involved in auto loans and leases. Out of 1.6 million total complaints only 17,000 to 18,000 were directed toward auto finance-related issues; however, Brooke and Chris highlight some key takeaways. The bottom line: The CFPB pursues auto finance actions, and the most effective way to gain insight into the Bureau’s thinking is to examine the issues highlighted in the complaint report and ensure your processes are properly prepared.

According to a recent report by WebRecon, court filings under the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) were down for the month of March while court filings under the Telephone Consumer Protection Act (TCPA) and complaints filed with the Consumer Financial Protection Bureau (CFPB) were up. Year-to-date everything is…

As discussed here, in March 2023, the California Department of Financial Protection and Innovation (DFPI) proposed new regulations under the California Financing Law that would interpret the definition of “loan” to include “income-based advances” or earned wage access (EWA) products, except those offered by employers. The proposal also sought to require providers of such products to register with the state, and imposed requirements on debt settlement companies and education financing providers.

The Consumer Financial Protection Bureau (CFPB) recently released an Issue Spotlight highlighting the costs and fees associated with Health Savings Accounts (HSAs). While acknowledging that HSAs offer tax advantages that can help offset the costs of high deductible health plans (HDHPs), the CFPB’s report noted that these benefits can be significantly offset by various costs.

In an unpublished decision, the U.S. Court of Appeals for the Ninth Circuit recently affirmed the decision of a California district court finding that the furnisher conducted a reasonable investigation under the Fair Credit Reporting Act (FCRA) when it updated its credit reporting to more accurately reflect the plaintiffs’ payment history.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by colleague Jesse Silverman. They discuss the crucial steps fintech firms need to take to establish and maintain successful partnerships with banks. Silverman, with his unique background as a state regulator, CFPB staff member, and fintech executive, provides insights into the preparation, due diligence, and onboarding processes. He emphasizes the importance of understanding the bank’s compliance requirements, having clear policies and procedures, and ensuring a robust information security system. Silverman also discusses the benefits and challenges of using a Banking as a Service (BaaS) partner. The episode provides valuable advice for fintech companies looking to navigate the complexities of partnering with banks in a highly regulated industry.