As expected, and with few changes, the Consumer Financial Protection Bureau adopted its proposed rule barring financial companies regulated by the agency from including class action waivers in arbitration agreements. Arbitration clauses in new contracts offering a consumer financial product
Financial Institutions Law Blog
Up-to-date Information on Financial Institutions
The Financial Institutions Law Blog, published by Sheppard, Mullin, Richter & Hampton LLP, focuses on legal developments affecting financial institutions and related regulatory frameworks. It covers topics such as consumer financial protection regulations, arbitration agreements, debt collection practices, enforcement of security interests, loan origination and secondary market issues, and compliance with federal statutes like the Fair Debt Collection Practices Act and the National Bank Act. The blog also addresses litigation trends, regulatory enforcement actions, and the impact of court decisions on financial services providers, including banks, lenders, and debt collectors.
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Latest from Financial Institutions Law Blog
The Ninth Circuit Holds That Enforcing A Security Interest Is Not Necessarily Debt Collection
On Oct. 19, 2016, the Ninth Circuit held that merely enforcing a security interest is not “debt collection” under the federal Fair Debt Collection Practices Act (“FDCPA”). In so holding, the Ninth Circuit disagreed with earlier decisions by the Fourth…
CFPB Prevails On Summary Judgment Against CashCall, Inc.
By John Dineen
On August 31, 2016, in a ground breaking decision, the United States District Court in Los Angeles ruled that CashCall, Inc. violated the Consumer Financial Protection Act in connection with efforts to collect on certain loans that would have been held…
Most Recent CFPB Supervisory Highlights Feature FCRA, LO Compensation and Debt Collection Issues
By Sherwin Root
The Consumer Financial Protection Bureau’s most recent supervisory highlights publication featured issues relating to the Fair Credit Reporting Act, loan originator compensation and in-person debt collection that should be on mortgage lenders’ and debt collectors’ radar.…
Will Madden v Midland Disrupt Loan Sales and Platform Lending?
Where do marketplace lenders and secondary loan market participants find themselves on the issue of preemption of state usury laws after the June 27 denial of the petition for a writ of certiorari in Madden v. Midland by the U.S.…
Notice to Mortgage Lenders – Your Mortgage Interest Statements Must be Revised Starting in Tax Year 2016
By Sherwin Root
An act passed by Congress last year makes changes to IRS Form 1098 (Mortgage Interest Statement) starting in tax year 2016 (reported commencing in calendar year 2017). Internal Revenue Code Section 6050H(b)(2)(D) requires that a Form 1098 include “the amount…
A Proposition 65 Violation May Be Lurking in Your Cash Register Receipt
Many consumer-facing businesses have learned to identify high-risk Prop 65 targets: soft, flexible plastics; faux and colored leathers; and any kind of brass or metal that may contain lead or other heavy metals. But businesses need to take action to…
Google To Ban Payday Loan Advertisements
By Sherwin Root
Google announced on May 11 that effective on July 13, 2016 it will ban all payday loan advertisements from its site. Google was responding to concerns raised by consumer advocates who argued that the lending practice exploits the poor and…
In Wake of Panama Papers Scandal Obama Calls for Stricter Bank Regulations, Tax Rules
In a news conference today President Obama addressed rules and proposed regulations announced Thursday intended to help the U.S. fight tax evasion and other crimes connected to anonymous offshore companies and accounts. The announcements come after a month of intense…
The TCPA And Mortgage Servicing Rules: Caught Between A Rock And A Hard Place
Mortgage servicers are heavily regulated. Usually, the worst that can be said is that the laws and regulations are many, complex, and onerous. Sometimes, however, they are contradictory.…