As anticipated, yesterday the CFPB announced the release of its report to Congress following the CFPB’s study of arbitration agreements in connection with offering or providing consumer financial products or services. According to the CFPB, the study’s results “indicat[e] that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class
CFPB’s Field Hearing on March 10, 2015 on Arbitration Expected to Coincide With Release of Its Report to Congress on the Use of Pre-Dispute Arbitration Clauses
On March 10, the CFPB will hold a field hearing on arbitration at 11 a.m. in Newark, New Jersey.
The event will include remarks by Richard Cordray, head of the Consumer Financial Protection Bureau, and will be held at the J. Harry Smith Lecture Hall at Essex Community College, 303 University Avenue. Tomorrow’s field hearing
Repossession Agency Subject to Liability under FDCPA Upon Violation of State Law Self-Help Requirements
A recent decision of the Northern District of Ohio, Vantu v. Echo Recovery, L.L.C., held that a repossession agency, while generally not subject to liability under the Fair Debt Collection Practices Act, becomes subject to such liability when it undertakes to repossess collateral that it does not have a present right to possess.
This case
CFPB Director Cordray Addresses National Association of Attorneys General
Several attorneys from Troutman Sanders attended this week’s meeting of the National Association of Attorneys General in Washington, during which Richard Cordray, Director of the Consumer Financial Protection Bureau and former Ohio Attorney General, provided an overview of the four obstacles that, in his view, “interfere with justice and dignity for consumers.” He referred to
West Virginia Legislature Considering Amendments to its Consumer Credit Protection Act
On February 23, legislation was introduced in the West Virginia Senate to amend the state’s Consumer Credit Protection Act. Senate Bill 542 would revise sections 46A-2-121, -122, -125, -126, and -128, sections 46A-5-101 and -106, and add new section 46A-5-107.
Among these proposed changes, the Bill seeks to:
- Modify section 46A-2-121(1) regarding a claim for
Consent Decree Between DOJ and “Buy Here, Pay Here” Auto Dealer Highlights Continued Focus on Intent-Based Lending Discrimination Claims
We’ve been reporting for almost two years now on federal regulators’ attempts to use an effects-based test for discrimination – disparate impact – to fundamentally alter the auto sales and finance industries, and how those efforts have consistently gained steam from late 2013 through to more recent times. We’ve also reported on challenges to
Dish Network Court Finds Manifest Error in Its Opinion Regarding Millions of Calls Placed by Third-Party Affiliates
On February 17, the Court in United States of America v. Dish Network, LLC reconsidered a portion of its opinion granting partial summary judgment for the United States for tens of millions of calls made by Dish Network in violation of state and federal telemarketing laws. The Court found that it erred by determining liability
Congress to Consider Installing Inspector General for CFPB
On February 12, Representative Steve Stivers (R-Ohio) reintroduced bi-partisan legislation that would require the Senate to confirm an independent inspector general for the Consumer Financial Protection Bureau, arguing it would provide greater oversight.
The Bureau of Consumer Financial Protection-Inspector General Act of 2015 (H.R. 957) is co-sponsored by Tim Walz (D-Minn.), Blaine Luetkemeyer (R-Mo.), and
DOJ and State Regulators Settle Claims of Intentional Discrimination Against North Carolina “Buy Here Pay Here” Auto Dealer
On February 10, the Department of Justice and the North Carolina Attorney General filed a consent decree to settle claims that a Charlotte-area “buy here pay here” dealer engaged in intentionally discriminatory “reverse redlining” practices. The regulators alleged that the defendants specifically targeted African-American customers and imposed onerous credit terms upon them without regard to
FTC Announces Settlements in First Cases Against Auto Title Lenders
The Federal Trade Commission announced on January 30 that it has reached settlements with two auto title lenders operating in Georgia and Alabama. The FTC had alleged that the lenders advertised certain offers without disclosing specific conditions required to receive the advertised rate, and failed to disclose that finance charges may rise after an introductory