On September 15, the Federal Trade Commission published a staff paper providing its perspective on the lead generation business. Although the FTC recognized some of the advantages of lead generation, the paper was a clear warning to “unscrupulous actors in the lead generation industry” of potential consequences. The staff paper signals that the FTC is
Minnesota AG Settles Lawsuit with Online Payday Lender
On August 18, the Minnesota Attorney General announced that it had settled a lawsuit against online money lender CashCall, Inc. The State of Minnesota alleged that CashCall violated Minnesota’s usury, lending, and licensure laws by entering into an arrangement in which a company affiliated with a Native American tribe would loan money to Minnesota citizens
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,
CFPB Takes Action Against Online Lender for Deceiving Borrowers
On November 18, the Consumer Financial Protection Bureau filed an administrative action against online lender Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans.
According to a press release, the CFPB alleges that Integrity Advance violated the Truth in Lending Act and the
CFPB Director’s Remarks at MBA Annual Convention: Progress, Updated HMDA Reporting, and Warning to Parties Engaged in Marketing Services Agreements
Consumer Financial Protection Bureau Director Richard Cordray addressed the Mortgage Bankers Association at its Annual Convention on October 19. In his remarks, Cordray:
- Summarized the progress the CFPB has made in addressing the serious problems confronting consumers in the mortgage market and steps taken by the Bureau to restore the American Dream of homeownership;
Join us at the American Conference Institute’s Inaugural Consumer Lending Regulatory Compliance Forum
Lessons Learned and Best Practices in an Era of Heightened Government Scrutiny for the Industry October 29-30, 2015 – The Carlton Hotel – New York City We are pleased to announce that David N. Anthony, Partner at Troutman Sanders, will present “Protection of Consumer Financial Information Including Consumer Financial Privacy (FCRA and GLBA) Plus
CFPB Rolls Out Online Tools to Explain New Mortgage Disclosure Forms
Effective October 3, instead of providing consumers with Truth in Lending disclosures, Good Faith Estimates, and HUD-1 Settlement Statements, mortgage lenders must provide potential homebuyers with two new forms: a Loan Estimate and Closing Disclosure.
To help consumers understand the new “Know Before You Owe” mortgage forms, the Consumer Financial Protection Bureau has released
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
CFPB Proposes New Rules Regulating Prepaid Financial Products
On December 23, the Consumer Financial Protection Bureau issued a proposed rule amending Regulation E, 12 C.F.R. §§ 205.1 et seq. – which implements the Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et seq. – and Regulation Z, 12 C.F.R. §§ 226.1 et seq. – which implements the Truth in Lending Act, 15 U.S.C.
Study by Consumer Credit Group Takes Issue with CFPB Method of Finding Auto Lending Bias
The American Financial Services Association (AFSA), a consumer credit industry trade association, released a study this month that took issue with the Consumer Financial Protection Bureau’s method of measuring discrimination in the automotive lending business.
The study, which was carried out by Charles River Associates and based on over eight million vehicle finance contracts issued