Search Results: Lender Law

COVID-19 and Credit Reporting - Regulatory Response and Resulting Litigation Risks

Passed in response to the impact of COVID-19, section 4021 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748, 116th Cong. (2020)) amended the Fair Credit Reporting Act (FCRA) in a variety of ways that impact credit reporting entities.  Mainly, it requires a furnisher of credit information…

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Trends in U.S. Paycheck Protection Program Class Actions

Early uncertainty and the initial lapse in appropriations for the U.S. CARES Act’s Paycheck Protection Program (PPP) set off a wave of litigation by disgruntled small businesses who have been unable to secure PPP loans.  PPP loans were made available through various lenders to certain COVID-19-affected businesses meeting specific maximum…

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Fair Lending Considerations in a COVID-19 World: U.S. Paycheck Protection Program Issues

The first wave of class actions relating to the COVID-19 pandemic is here, including a number of cases concerning so-called “gating” eligibility rules that are legitimately applied by many lenders to manage the flow of applications for the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP). We expect these…

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Federal Agencies Encourage Access to Small-Dollar Loans in Light of COVID-19

This week LenderLaw Watch covers developments related to small-dollar loans in response to the COVID-19 crisis. Every year the Board of Governors of the Federal Reserve System (Federal Reserve) conducts its Survey of Household Economics & Decision-making, asking households across the country questions related to financial wellbeing and security.  According…

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Court Rules Against Plaintiff Challenging Implementation of Paycheck Protection Program

Two financial institutions have now been sued in separate putative class action lawsuits concerning their implementation of the CARES Act’s Paycheck Protection Program (PPP), which is aimed at assisting small businesses keep employees on their payroll.  Plaintiffs in both lawsuits allege that the financial institutions are unlawfully restricting access to…

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COVID-19 and Consumer Financial Services: Navigating New U.S. and State Orders, Rules, Laws, Guidance, and Pleas

Over the past several weeks, the coronavirus (COVID-19) pandemic has sparked a litany of new orders, rules, laws, guidance, and plain asks from federal and state leaders, agencies, and courts. The President and federal and state leaders have all begun to focus on how COVID-19 is likely to impact Americans’…

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Student Loan Servicer Appeals Bankruptcy Court's Decision to Discharge Student Loan Debt

On January 17, student loan servicer Educational Credit Management Corporation (ECMC) filed a notice of appeal in the United States District Court for the Southern District of New York, challenging the decision of Chief Bankruptcy Judge Celelia Morris, which granted summary judgment for a student loan debtor and discharged his…

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CFPB Issues Much Anticipated Guidance Regarding Abusive Acts or Practices

On January 24, 2020, the Consumer Financial Protection Bureau (CFPB) issued a policy statement setting forth guidelines on how it intends to enforce the “abusiveness” standard under the Dodd-Frank Act.  Section 103(a) of the Dodd-Frank Act authorizes the CFPB to bring enforcement actions against “covered persons” engaged in unfair, deceptive,…

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California and New York Propose to Expand Consumer Protections

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…

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Eleventh Circuit Decertifies TCPA Class on Traceability and Predominance Grounds

On November 15, 2019, the Eleventh Circuit decertified a Telephone Consumer Protection Act (TCPA) class in Cordoba v. DIRECTV, LLC (No. 18-12077, 2019 WL 6044305), finding that the plaintiff could not adequately identify potential class members without resorting to individualized inquiries.  The plaintiff alleged that DIRECTV failed to maintain an…

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