Goodwin’s Consumer Finance Insights (CFI) monitors, reports, and analyzes the latest legal news, activity, and developments impacting the consumer finance industry. Consumer financial services companies—whether banks, fintechs, nonbank and alternative lenders, payment providers, or industry vendors or service providers, like digital advertisers and lead generators—face a constantly shifting and maturing regulatory and legal landscape. Growing from the Financial Crisis, today more than any time in history the consumer finance industry must confront a robust and growing body of industry legislation and regulation, all while under the microscope of sophisticated enforcers, like the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state regulators and attorneys general. It is critical for in-house and outside corporate counsel, compliance departments, and business executives to stay informed and aware of these developments to navigate institutional, reputational, and legal risks. Goodwin’s CFI is a singular source of the most recent industry news and latest enforcement activity for you to leverage. Here, you will find links to original enforcement documents, enforcement activity statistics, and reports, analysis, and commentary from Goodwin’s leading Consumer Financial Services Litigation and Enforcement practitioners.

Arkansas Court Orders Texas Credit Repair Company to Comply with Investigative Demand

On January 30, 2015, the Arkansas Attorney General announced that Pulaski County Circuit Judge Chris Piazza granted its petition to enforce a civil investigative demand against a Texas credit repair company, related to its investigation into whether the company’s representations, advertising, and pricing structures violated the Arkansas Deceptive Trade Practices…

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California Department of Business Oversight Reaches $2.5 Million Settlement with Mortgage Lender for Failure to Report Loan Information

On January 23, 2015, the California Department of Business Oversight (“CBO”) announced that it reached a settlement with a national mortgage lender over allegations that the lender failed to comply with state recordkeeping requirements to assess compliance with state mortgage lending laws. The CBO claims that the mortgage lender repeatedly…

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NY Attorney General Aims To Make New York A Leader on Data Security

  On January 15, 2015, New York’s attorney general, Eric Schneiderman, proposed a new law that NY hopes will balance business and consumer interests while establishing New York as a leader in data security.  The main effect of the proposed legislation would be to expand the definition of private information to…

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New York Bank Settles Claims Over Discriminatory Lending Practices

On January 19, 2015, the New York Attorney General announced a settlement with a regional bank for possible discriminatory lending practices. The settlement was reached after the Attorney General investigated the bank for categorically excluding borrowers who lived in certain minority neighborhoods from obtaining loans, designating loans from minority areas…

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Concepcion Exception? Iskanian Threatens Supreme Court Rule on Arbitration Agreements

**UPDATE:  On January 20, 2015, the U.S. Supreme Court DENIED the Petition for Writ of Certiorari in the Iskanian matter, leaving the CA Supreme Court’s controversial decision in place.** U.S. Supreme Court precedent protecting the enforceability of arbitration agreements under the Federal Arbitration Act, 9 U.S.C. § 1 et seq….

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The Last FHA False Claims Act Settlement of 2014

On December 31, 2014, the U.S. Department of Housing and Urban Development entered into a settlement agreement with New York-based Golden First Mortgage Corporation and its president and owner, David Movtady, concerning allegations that Golden First and Movtady violated the False Claims Act by approving FHA mortgage loans that failed…

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For Removal, Less is More: Supreme Court Clarifies Requirements for CAFA Removal Notices

As we have previously opined, the decision of whether to remove a case can be critically important in state-court-filed class actions. Despite the importance of this decision, the time afforded defendants to weigh their options—thirty days—is minimal.  In that short time, defendants must weigh the costs and benefits of both…

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What You Need To Know About The CFPB’s Proposal to Use the Dodd-Frank Act to Expand the FDCPA to First-Party Debt Collectors

Speculation abounds regarding what the CFPB’s expected 2015 rules regarding first party debt collectors will be.  Here’s the background you need to know. On November 12, 2013, the CFPB issued an Advance Notice of Proposed Rulemaking, seeking comments to its proposal to update the Fair Debt Collection Practices Act (“FDCPA”).  As…

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HUD’s New Year Resolution? More Enforcement Actions Against FHA Lenders

Recent indications from the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General (OIG), and quarterly SEC filings by lenders of FHA mortgages, strongly suggest that HUD’s aggressive enforcement actions against FHA lenders over the past few years are likely to continue in the New Year.  Lenders…

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Financial Services Firms' Projected Cybersecurity Spending Increase Is Money Well Spent

One of the most persistent and insidious threats to companies is cyber attacks.  Whether these attacks involve theft of intellectual property, installation of malware, or denial of service, they pose a significant risk to businesses and their customers.  For many companies, especially financial services companies, the risk is heightened by…

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