Cannabis companies nationwide are facing yet another statutory obstacle that can have serious (and potential ruinous) consequences for the emerging industry if not appropriately addressed—the Telephone Consumer Protection Act (“TCPA”). There is a recent uptick in class-action lawsuits filed against cannabis companies across the country premised on alleged violations of the TCPA including lawsuits in Michigan and California. These complaints allege cannabis companies sent unsolicited marketing text messages or placed automated phone calls to individuals…

NextGen Financial Services Report

Consumer Financial Protection Bureau Requests Comment on Imminent Advisory Opinion Program

By Scott R. Fryzel & Lauren E. Quigley

July 23, 2020

On June 22, 2020, the Consumer Financial Protection Bureau (“CFPB”) launched its advisory opinion pilot program and its proposed final advisory opinion program. The pilot program is effective immediately, and the CFPB is accepting comments on the final program until August 21, 2020. Dykema is submitting comments on the proposed permanent advisory opinion program on behalf of clients. Under both the pilot and permanent advisory opinion programs, institutions may request an advisory opinion from the…

NextGen Financial Services Report

TCPA Protection Against Robocalls Upheld. Did the Supreme Court Sacrifice the Right of Free Speech For the Sake of Rescuing a Bad Statute?

By Laura C. Baucus & Erin A. Sedmak

July 6, 2020

In a closely monitored case, the U.S. Supreme Court today upheld the restriction on robocalls under the Telephone Consumer Protection Act (“TCPA”) of 1991 but struck the Act’s government debt-collection exclusion. Many followed this case, anticipating it would result in a fatal blow to the TCPA. But today’s opinion extinguished these hopes. In response to consumer complaints, Congress passed the TCPA to prohibit robocalls to cell phones, among other things. 47 U.S.C. 227(b)(1)(A)(iii). In 2015,…

NextGen Financial Services Report

The Battle Over the Constitutionality of the CFPB Is Finally Settled… So What Now?

By Dawn N. Williams

July 2, 2020

From the inception of the Consumer Financial Protection Bureau (“CFPB”), opponents have argued that its single-director structure is unconstitutional. The arguments focused on the executive power that the Constitution vests in the President, positing that limiting the President’s power to remove the CFPB director only for cause infringes upon the President’s executive power and therefore violates the Constitution’s separation of powers. As Dykema previously blogged, the constitutionality of the CFPB has been litigated in…

NextGen Financial Services Report

HEROES Act Includes Potentially Disastrous FCRA Amendments

By Erin A. Sedmak & Theodore W. Seitz

May 28, 2020

On May 15, 2020, the House passed the Health and Economic Recovery Omnibus Emergency Solutions Act, or “HEROES Act”, which is a 1,815-page bill that affords $3 trillion in relief to consumers and businesses impacted by COVID-19. The bill includes a number of provisions, including another round of $1,200 payments to most Americans, hazard pay for frontline workers, and funding for local and state governments. The bill also includes proposed amendments to the Fair Credit…

NextGen Financial Services Report

Credit Reporting Agencies Are Not Required to Determine What Is a “Legally” Valid Debt

By Erin A. Sedmak & Theodore W. Seitz

May 19, 2020

In a consumer class action, the United States Court of Appeals for the Seventh Circuit was called on to decide whether “consumer reporting agencies to determine the legal validity of disputed debts.” Denan v. Trans Union LLC, No. 19-1519, 2020 U.S. App. LEXIS 14930, at *1-2 (7th Cir. May 11, 2020). Joining the First, Ninth, and Tenth Circuits, the Seventh Circuit found that “a consumer’s defense to a debt is a question for a court to…

NextGen Financial Services Report

Bankruptcy On Ice III – The Freeze Extends Temporary Suspensions of Chapter 11 Cases

By Jonathan E. Aberman & Mark A. Silverman

May 11, 2020

In our latest installment of our series “Bankruptcy On Ice”, we tackle temporary suspension of bankruptcy proceedings in response to the closure of “non-essential businesses” and other critical protective measures being imposed to fight the spread of COVID-19. Last week, key decisions in the Pier 1 and Modell’s Sporting Goods bankruptcy cases extended temporary freezes and limited suspensions of proceedings as most states slowly begin to reopen. Before we get to that, it…

NextGen Financial Services Report

Are Debtors Eligible to Receive PPP Loans? Bankrupt Companies and the SBA Wage War Over Critical CARES Act Program Eligibility

By Deborah D. Williamson, Jonathan E. Aberman & Mark A. Silverman

May 5, 2020

The Paycheck Protection Program (PPP) is one of two business loan programs created under the Coronavirus Aid, Relief and Economic Security (CARES) Act to assist companies by extending potentially forgivable credit to small business employers. The PPP is designed to help cover employee-related expenses and help employers avoid layoffs. The prospect of forgivable debt, coupled with relatively favorable terms, have put PPP loans in high demand and many businesses, including some which had already sought…

NextGen Financial Services Report

Illinois Courts May Increasingly Embrace Equity Receiverships

By Steven D. Mroczkowski, Mark A. Silverman, Jonathan E. Aberman & Edward S. Weil

April 30, 2020

This article was originally published on Law360. The COVID-19 pandemic has caused, and continues to cause, massive humanitarian and economic upheaval with no clear end in sight. Borrowers are already scrambling to increase liquidity from their banks. Some will continue to operate openly, honestly, and in the best interests of the company and its stakeholders. Others will not. Notwithstanding that lenders and governments are attempting to mitigate the crisis’s effects,[1] loan defaults are anticipated…

NextGen Financial Services Report

Compliance for PPP Loans: Different Questions for Different Lenders

By Jonathan S. Feld, Andrew T. VanEgmond, Thomas S. Vaughn & Alexis J. Schostak

April 27, 2020

As all lenders know by now, the Coronavirus Aid, Relief, and Economic Security Act’s (“CARES Act”) guaranteed Paycheck Protection Program (“PPP”) loans are the key piece of economic relief for small businesses during the COVID-19 crisis. Yet, in the rush to get those loans flowing into the economy, the Small Business Administration (“SBA”) issued an interim regulation that raises substantial unanswered questions about participating lenders’ compliance policies. Business Loan Program Temporary Changes; Paycheck Protection Program…

NextGen Financial Services Report

News and analysis of legal issues affecting the Financial Services Industry

Blog Authors

Why Cannabis Companies Need to Care About the TCPA

Consumer Financial Protection Bureau Requests Comment on Imminent Advisory Opinion Program

TCPA Protection Against Robocalls Upheld. Did the Supreme Court Sacrifice the Right of Free Speech For the Sake of Rescuing a Bad Statute?

The Battle Over the Constitutionality of the CFPB Is Finally Settled… So What Now?

HEROES Act Includes Potentially Disastrous FCRA Amendments

Credit Reporting Agencies Are Not Required to Determine What Is a “Legally” Valid Debt

Bankruptcy On Ice III – The Freeze Extends Temporary Suspensions of Chapter 11 Cases

Are Debtors Eligible to Receive PPP Loans? Bankrupt Companies and the SBA Wage War Over Critical CARES Act Program Eligibility

Illinois Courts May Increasingly Embrace Equity Receiverships

Compliance for PPP Loans: Different Questions for Different Lenders

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