To help our clients stay on the cutting edge in this developing legal landscape, we are pleased to present our 2020 Year in Review: Consumer Finance. Here, we use our detailed industry and regulatory knowledge to offer predictions on what the industry might expect in 2021 in the mortgage, fintech,…
LenderLaw Watch and Goodwin’s Consumer Financial Services Litigation Team are excited to announce the arrival of Alli Schoenthal to our team! Alli will reside in our New York office. Alli represents banks, trusts, lenders, government-sponsored enterprises, private equity firms, and loan servicers in consumer finance litigation and enforcement matters. Her…
LenderLaw Watch continues its coverage of the impact COVID-19 has had and will have on various financial services sectors, this week focusing on COVID-19’s impact on credit card issuers. Although the newly enacted CARES Act (H.R. 748, 116th Cong. (2020)), signed by President Trump into law on March 27, 2020,…
On February 14, 2020, the Consumer Financial Protection Bureau (CFPB) released its Winter 2020 Supervisory Highlights (Report). It summarizes the CFPB’s findings on violations in the areas of debt collection, mortgage servicing, payday lending, and student loan servicing completed between April 2019 and August 2019. The CFPB notes that it…
At the start of the new year, both California’s Governor Newson and New York’s Governor Cuomo proposed expansions to their respective state’s regulatory oversight of consumer financial services. Of particular note, Governor Newson’s 2020-21 Budget Summary (California’s Proposal) explained that the reason behind California’s proposed regulatory expansion is the belief…
On December 11, 2019, PayPal, Inc. (PayPal) filed suit against the Consumer Financial Protection Bureau (CFPB) in the District of Columbia, challenging the CFPB’s Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) Rule’s application to digital wallets. PayPal, Inc. v….
On September 25, 2019, California’s Governor signed into law two bills that impact financial consumer services companies in California: California Assembly Bill 539 and California Senate Bill 187. Both laws go into effect January 1, 2020. California Assembly Bill 539 (AB 539) imposes new regulations and restrictions on loans of…
On October 4, 2019, the U.S. House of Representatives moved the Supreme Court for leave to file an amicus curiae brief in opposition to Seila Law’s petition for writ of certiorari to review the Ninth Circuit’s decision in CFPB v. Seila Law LLC, No. 7-56324 (9th Cir. 2019), which upheld the…
On August 8, 2019, the Seventh Circuit, in Lavallee v. Med-1 Solutions, LLC, 932 F.3d 1049 (7th Cir. 2019), ruled that emails to consumers from debt collectors containing hyperlinks to information regarding debt, including validation notices, are not “communications” under the Fair Debt Collection Practices Act (FDCPA). Therefore, the court…
On June 28, 2019, Seila Law LLC filed a petition for a writ of certiorari with the U.S. Supreme Court seeking review of the Ninth Circuit’s ruling that the Consumer Financial Protection Bureau’s (CFPB) single-director structure is constitutional. As Lender Law Watch covered previously, in CFPB v. Seila Law LLC, No….
On May 7, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) released a Notice of Proposed Rule Making (Notice) to implement the Fair Debt Collection Practices Act (FDCPA). The Bureau’s stated purpose for the proposed rules, which would be placed in the existing Regulation F, is to “set clear,…
On March 22, 2019, the Ninth Circuit Court of Appeals reversed summary judgment in Henderson v. United Student Aid Funds, Inc., 2017 WL 766548 (S.D. Cal. Feb. 28, 2017), and remanded the matter back to the Southern District of California to determine if a student loan lender could be vicariously liable for…
The Southern District of New York is deciding whether a putative class action can proceed beyond the motion to dismiss phase in a lawsuit that may implicate how banks define crypto currency purchases, and how those purchases fit into regulatory frameworks. The case is Brady Tucker, et al. v. Chase Bank…