Search Results: Small Dollar Lending/Lenders

CFPB Claims Jurisdiction Over Foreign Payday Lender and its Subsidiaries is Appropriate

The CFPB’s assault on payday lenders is nothing new (see our coverage of the Bureau’s proposed Payday lending rules here and Enforcement Watch’s coverage of a payday-lending-based consent order here), but the Bureau has now gone international.  CFPB v. NDG Financial Capital (Case No. 15-cv-05211), currently pending in the Southern District of…

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Arbitration Clauses Cannot be Used as a Vehicle to Evade Liability Under Federal Consumer Protection Statutes

On March 1, 2016, the Fourth Circuit refused to re-hear a February 2, 2016, decision in Hayes v. Delbert Services Corporation (Docket No. 15-1170).  In that decision, the Fourth Circuit reversed an Eastern District of Virginia’s decision upholding an arbitration clause on the ground that the clause was, in actuality,…

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CFPB Receiving Plenty of Advice on Proposed Regulation of Payday Lending

State and federal regulation of payday lenders is far from a new phenomenon.  Recently, litigation against entities using the “tribal lending” model, and government attempts to suppress certain online lending programs via Operation Chokepoint have put the spotlight back on industry.  In past articles, we have noted that the Consumer Financial…

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An In-Depth Analysis of the CFPB’s Proposed New Rules on Pre-Paid Cards

On Monday, November 17, we briefly discussed the CFPB’s newly proposed prepaid card rules.  Today we elaborate on these newly proposed rules, and their effect on issuers if these new rules are implemented by the CFPB. Scope: The CFPB explained what it considers to be a prepaid card for purposes of…

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Plaintiffs Find Little Traction In Suits Against Banks Over "Payday" Loans

In recent months, a number of class actions have been filed across the country against large banks in an attempt to hold those banks accountable for debiting consumers’ deposit accounts for payments to certain companies offering short-term, small dollar loans – often called “payday loans” – online.  In all of…

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Money Remittance Improvement Act Eases Regulatory Requirements for MSBs

On August 1, Congress passed the Money Remittances Improvement Act of 2014 (signed by President Obama on August 8, 2014), which reduces regulatory hurdles and duplication between state and federal regulation of money services businesses.  Specifically, the Act permits the Secretary of the Treasury to “rely on examinations conducted by a…

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