Bankruptcy provides an opportunity for a fresh financial start. In that spirit, creditors’ contractual rights are often impaired. But what happens in those rare circumstances when a debtor is deemed solvent? According to a recent decision from the United States
NextGen Financial Services Report
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Fifth Circuit Holds CFPB Funding Structure is Unconstitutional, Invalidates Payday Lending Rule
A three-judge panel of the United States Fifth Circuit Court of Appeals held that the CFPB’s funding structure is unconstitutional. The CFPB must now consider whether to appeal to the Supreme Court, seek en banc review (by all of the Fifth Circuit…
CFPB Director States That a New Rule Aimed at Consumer Arbitration Clauses Is Unlikely but Calls for Non-monetary “Structural” Penalties for “Repeat Offenders”
The Director of the Consumer Financial Protection Bureau (“CFPB”), Rohit Chopra, while attending an event organized by the Public Citizen (a group that opposes mandatory arbitration clauses in consumer agreements), indicated that the CFPB is unlikely to issue a new…
California Governor Newsom Signs Blockchain and Crypto Assets Executive Order: Familiar Agencies To Lead Efforts To Regulate New Technology
On May 4, 2022, California Governor Gavin Newsom signed an executive order aimed at creating a framework for both regulating and developing the quickly growing blockchain and cryptocurrency industry. The Order follows President Biden’s March 9, 2022, Executive Order on…
The California Supreme Court Rules that Lenders Have No General Tort Duty to Process, Review, and Respond to a Borrower’s Application for a Loan Modification
Yesterday, in Sheen v. Wells Fargo (S258019), the California Supreme Court resolved an important issue for the mortgage servicing industry. The court unanimously held that lenders owe no tort duty to process, review, and respond to a borrower’s loan modification…
Mining the Metaverse: Prospecting the Virtual Real Estate Boom and Implications For Lenders
If Mark Zuckerberg is to be believed, the Metaverse is the next step in our digital evolution, a virtual reality space where users can interact with a computer-generated environment and socialize among user-created avatars.
And it’s already here.
The Metaverse…
FDIC Announces 2022 Priorities in the Wake of Chairman Jelena McWilliams Resignation; Financial Services Entities Should Take Note of FDIC Focus on Bank Mergers and Crypto
On February 7, 2022, Acting Chairman Martin J. Gruenberg released a statement outlining the FDIC’s 2022 priorities. He also recognized the contributions of former Chairman Jelena McWilliams, who resigned on February 4, 2022.
The FDIC has been the recent subject…
Convenience Fees Face Increased Scrutiny After Fourth Circuit Holds That Online Payments May Violate Consumer Protection Statutes
By Theodore W. Seitz & Dykema
The Fourth Circuit recently found that the imposition of convenience fees can run afoul of consumer protection statutes—including the Fair Debt Collection Practices Act.
Convenience fees are commonly charged by financial institutions in exchange for allowing a consumer to easily…
Survey Results: Significant M&A Activity Expected for the Financial Services Sector in the Next 12 Months
Respondents to Dykema’s 17th annual M&A Outlook Survey expected the financial services industry to be among the busiest sectors for M&A activity in the coming 12 months. While automotive topped the list, financial services was ranked third, up from fifth…
No Time to Waste: New Federal Rules Regulating Debt Collection Practices (Regulation F) Take Effect November 30, 2021
By Theodore W. Seitz & Dykema
In May 2019, the Consumer Financial Protection Bureau (CFPB) proposed new rules to amend and expand Regulation F, to further regulate the debt collection industry and those connected to it. It was meant to supplement the federal Fair Debt Collection…