Search Results: Lender Law

Constitutionality of Shortened Time Limits on New York Foreclosures Still Unresolved

On September 12, 2024, New York’s highest court dismissed an appeal challenging the constitutionality of the retroactive application of the Foreclosure Abuse Prevention Act (“FAPA”), a law that amended certain New York rules to strictly cabin the time limits for commencing mortgage foreclosures.  The Court of Appeals, on its own motion,…

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CFPB Report Spotlights Consumer Risks with Private, Solar-Specific Loans

On August 7, 2024, the Consumer Financial Protection Bureau (CFPB) issued a report spotlighting four marketing and financing practices relating to solar financing that it claims pose significant consumer risks (the Report).  The CFPB noted that solar-powered electricity is a growing industry—suggesting that these risks may become an enforcement priority. …

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Massachusetts Attorney General Settles Claims Against California-Based Financing Company for $625,000

​On May 22, 2024,​ the Massachusetts Attorney General (MA AG) announced it entered into an Assurance of Discontinuance (AOD) with a California-based financing company resolving allegations of violations of the Massachusetts Consumer Protection Act.​ The MA AG alleged that the company engaged in a “rent-a-bank” scheme, whereby the company partnered with an out-of-state bank in an…

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Awaiting Appellate Precedent on Whether Recent New York Foreclosure Limits Are Constitutional

Over a year after becoming law, New York’s Foreclosure Abuse Prevention Act, L. 2022, ch. 821 (eff. Dec. 30, 2022) (FAPA) continues to divide trial courts regarding the constitutionality of the law’s retroactive application.  Appellate level guidance remains wanting. FAPA amended certain New York rules related to the time limits…

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New York Courts Split on the Constitutionality of the Foreclosure Abuse Prevention Act

In the six months since New York’s governor signed the Foreclosure Abuse Prevention Act, L. 2022, ch. 821 (eff. Dec. 30, 2022) (FAPA), a split has emerged about whether the law applies retroactively. FAPA strictly cabins the time limits for commencing mortgage foreclosures by amending five New York procedural rules…

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Pennsylvania Attorney General Settles $11 Million Dollar Lawsuit with Lender

​On May 15, 2023, the Pennsylvania Attorney General (PA AG) announced ​that it reached a $11.4 million settlement with a rent-to-own lender and its affiliates. This settlement resolves a lawsuit filed by the PA AG in Pennsylvania state court in which the PA AG alleged that the lender violated state law by misrepresenting the terms of its rental-purchase agreements…

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CFPB Proposes Rule That Nonbanks Must Publicly Register with CFPB When They Use Certain Terms and Conditions in Form Contracts

On January 11, 2023 the Consumer Financial Protection Bureau (CFPB) proposed a rule (“Proposed Rule”) that would require “most nonbanks subject to the Bureau’s supervisory authority” to “register annually in [a] system” that is created and operated by the CFPB when their form contracts “use certain terms or conditions that…

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CFPB Proposes Rule That Nonbanks Subject to Certain Public Orders Must Publicly Register with CFPB As a Means of Detecting “Repeat Offenders”

On December 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) proposed a rule (“Proposed Rule”) that would require non-bank financial institutions to register with the CFPB when they become subject to certain final public orders by a Federal, State, or local government agency in connection with the offering or provision…

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CFPB Files Certiorari Petition With the U.S. Supreme Court Seeking Review of the Fifth Circuit’s Decision in Community Fin. Services

On November 15, 2022, less than one month after the Fifth Circuit panel’s decision in Community Fin. Services Assoc. of Am. Ltd., No. 21-50826 (5th Cir. Oct. 19, 2022) and more than two months before its 90-day deadline, the Consumer Financial Protection Bureau (CFPB) filed a certiorari petition with the…

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Pennsylvania AG Sues Lead Generators For Deceptive Ads

On November 2, 2022, the Pennsylvania Office of Attorney General filed a lawsuit in federal court alleging that a group of companies offering lead generation services violated the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, and Pennsylvania consumer protection law, 73 P.S. §§ 201-3 and 201-4, by engaging in…

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Fifth Circuit Issues Decision Holding that the Funding Mechanism for the Consumer Financial Protection Bureau Is Unconstitutional

On October 19, 2022, the Fifth Circuit Court of Appeals (Fifth Circuit) held that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional and violates the Appropriations Clause of the Constitution.  Community Fin. Services Assoc. of Am. Ltd., No. 21-50826 (5th Cir. Oct. 19, 2022).  In light…

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Ninth Circuit Issues Two Significant TCPA Decisions Concerning Mixed-Use Cellphones and Statutory Damages Awards

In the past few weeks, the United States Court of Appeals for the Ninth Circuit (Ninth Circuit) has issued significant decisions concerning the Telephone Consumer Protection Act (TCPA) and its application to unwanted text messages sent to cell phones used for both personal and business use, and the constitutionality of…

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CFPB Releases Supervisory Highlights Regarding Practices of Student Loan Servicers and University-Owned Lenders

In September 2022, the Consumer Financial Protection Bureau (CFPB) released a special edition of Supervisory Highlights regarding recent examination findings related to student loan servicing.  The Supervisory Highlights focus on three sets of “significant supervisory findings:”  (i) blanket policies to withhold transcripts in connection with an extension of credit are abusive…

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CFPB Issues Circular Confirming that Financial Companies May Violate Consumer Financial Protection Law by Failing to Protect Consumer Data

In August 2022, the Consumer Financial Protection Bureau (CFPB) published a circular confirming that, under certain circumstances, entities may “violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security.”  The circular sets forth the CFPB’s analysis…

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CFPB Fines Bank for Accessing Customer Credit Reports and Opening Accounts, Credit Cards, and Lines of Credit Without Customers’ Permission

On July 28, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against a large bank (the Bank), claiming that the Bank created sales pressure on its employees that encouraged employees to illegally access customer credit reports and to open checking and savings accounts, credit cards, and lines…

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CFPB and DOJ Order Mortgage Company to Pay Over $22 Million for Advertising and Marketing Discrimination

On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) filed a complaint and proposed consent order in a federal district court alleging that a mortgage company intentionally discriminated against families living in majority-minority neighborhoods around Philadelphia in violation of the Fair Housing Act…

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Third Circuit Rules that Caller Must Use An “Automatic Telephone Dialing System’s” Ability to Produce or Store Telephone Numbers Through Random or Sequential Number Generation to Trigger Potential Liability under the TCPA’s ATDS Provision

On June 14, 2022, the Third Circuit Court of Appeals (Third Circuit) issued a significant decision regarding the TCPA’s restrictions in Section 227(b)(1)(A)(iii) on using an automatic telephone dialing system (ATDS) definition to make calls or texts to cellphones without prior express consent.  In Panzarella v. Navient Solutions, Inc, No….

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