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Category Archives: Payday Lending

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House to hold hearings on “Operation Choke Point”

Posted in Payday Lending

Two House committees have scheduled hearings this week on “Operation Choke Point,” the coordinated federal multiagency enforcement initiative targeting banks serving online payday lenders and other companies that have raised regulatory concerns.  Tomorrow, July 15, the House Financial Services Committee will hold a hearing entitled “The Department of Justice’s ‘Operation Choke Point.’”  The witnesses scheduled… More >

CFPB obtains $10 million of relief for payday lender’s collection calls

Posted in CFPB Enforcement, Payday Lending

Yesterday, the CFPB and ACE Cash Express issued press releases announcing that ACE has entered into a consent order with the CFPB. The consent order addresses ACE’s collection practices and requires ACE to pay $5 million in restitution and another $5 million in civil monetary penalties. In its consent order, the CFPB criticized ACE for:… More >

CFPB to issue whitepaper on methodology for identifying auto finance discrimination and consider use of advisory opinions

Posted in Auto Finance, Military Issues, Mortgages, Payday Lending

While Director Cordray’s appearance at the House Financial Services Committee’s hearing on the CFPB’s fifth Semi-Annual Report yesterday was accompanied by the usual dose of political theater, his testimony did yield the following items of noteworthy information:  The CFPB will be issuing a white paper later this summer regarding use of the proxy methodology for… More >

CFPB confirms plans for auto finance larger participant rule in rulemaking agenda

Posted in Auto Finance, CFPB Rulemaking, Debt Collection, Deposit Advance Loans, Payday Lending, Prepaid Cards

In the latest semi-annual update of its rulemaking agenda, the CFPB officially confirmed that it plans to propose a rule to define “larger participants of a market for auto lending.”  The official confirmation follows statements made by Steven Antonakes at a Consumer Bankers Association meeting in April 2014 that the CFPB’s next larger participant rule… More >

CFPB highlights unlawful practices by consumer reporting agencies, debt collectors and payday lenders

Posted in CFPB Exams, Credit Reports, Debt Collection, Fair Lending, Payday Lending

In its Spring 2014 Supervisory Highlights report issued yesterday, the CFPB highlighted deficiencies and violations it found during examinations of consumer reporting agencies (CRAs), debt collectors and payday lenders.  The CFPB has authority to examine entities that qualify as “larger participants” under the final rules it adopted to supervise participants in the debt collection and… More >

CFPB replies to tribally-affiliated lenders’ opposition to CIDs

Posted in CFPB Enforcement, Payday Lending

Last Friday, the CFPB replied to the arguments made by three tribally-affiliated payday lenders in opposition to the CFPB’s petition in California federal court seeking to enforce the civil investigative demands (CIDs) issued by the CFPB to the lenders.  A hearing on the petition was scheduled for yesterday.    The lenders argued that, as arms of… More >

Tribally-affiliated lenders file opposition to CFPB’s petition to enforce CIDs

Posted in CFPB Enforcement, Payday Lending

We recently reported that the CFPB has filed a petition in U.S. District Court for the Central District of California seeking to enforce the civil investigative demands (CIDs) it issued in June 2012 to three tribally-affiliated payday lenders.  A hearing on the petition has been scheduled for April 28. In their joint memorandum of law… More >

House Committee on Financial Services Concerned with Decreased Consumer Choice

Posted in CFPB General, CFPB People, Payday Lending

As we previously reported, the House of Representatives Financial Services Committee held a hearing on the effects of regulatory “red tape.” In her opening statement, Meredith Fuchs, General Counsel of the Consumer Financial Protection Bureau, spoke about the goals of the CFPB in seeking input from impacted entities. Before enacting a rule, she said, the… More >

Hints of future payday rule-making

Posted in Payday Lending

Laura Udis, the CFPB’s program manager for the payday lending industry, spoke on April 10 in Los Angeles on a panel sponsored by the American Bar Association Consumer Financial Services Committee.  CFPB staff members are generally somewhat constrained in commenting on future CFPB actions.  However, Ms. Udis advised that, in its rule-making, the CFPB may… More >

CFPB amends CashCall complaint

Posted in Payday Lending

The CFPB has filed an amended complaint in its lawsuit against CashCall and several related companies that funded, purchased, serviced and collected online payday loans to identify additional states in which the loans defendants sought to collect were purportedly void in whole or in part as a matter of state law.  The loans in question… More >

CFPB files petition in CA federal court to enforce CIDs issued to tribal payday lenders

Posted in Payday Lending

The CFPB recently filed a petition in U.S. District Court for the Central District of California seeking to enforce the civil investigative demands (CIDs) it issued in June 2012 to three tribally-affiliated payday lenders.  A hearing on the petition has been scheduled for April 28. In September 2013, the CFPB issued an order denying the lenders’… More >

CFPB payday loan proposal for rulemaking is coming, but timing of its publication remains unclear

Posted in CFPB General, CFPB Rulemaking, Payday Lending

At the Practicing Law Institute’s 19th Annual Consumer Financial Services Institute held on Monday in New York City, Meredith Fuchs, Associate Director & General Counsel for the CFPB delivered the opening keynote address, which touched on a number of topics regarding current areas of interest of the CFPB and provided updates on where several of… More >

Senate Banking subcommittee holding hearing on alternative financial products

Posted in Payday Lending

The Senate Banking Committee’s subcommittee on Financial Institutions and Consumer Protection is holding a hearing today titled: “Are Alternative Financial Products Serving Consumers?”  Observers have noted that the hearing could provide insight into the priorities of Democratic Senator Sherrod Brown who chairs the subcommittee and is expected to become chair of the full Banking Committee if… More >

CFPB Payday Loan Rulemaking is Imminent and Will Target Repeated Borrowing

Posted in CFPB Rulemaking, Payday Lending

The CFPB has marshaled data against what it sees as a sustained use problem by payday loan borrowers and is “in the late stages” of drafting rules to limit payday loan borrowing, according to Director Cordray’s remarks prepared for today’s field hearing. It appears that in the near future the Bureau will issue a notice of… More >

CFPB issues second report on servicemember complaints

Posted in Military Issues, Payday Lending, Student Loans

Earlier this month, the CFPB issued a press release describing its second snapshot report of complaints from military consumers.  The report details complaints the CFPB has received from servicemembers, veterans, and their families and the measures it has taken in response.  Between July 2011 and January 2014, the CFPB has received approximately 14,000 complaints, handling more than 250 complaints… More >

CFPB to hold March 25 payday loan field hearing

Posted in Deposit Advance Loans, Payday Lending

The CFPB has announced that it will be holding a field hearing on payday loans on March 25, 2014 in Nashville, Tennessee.  The event will feature remarks by Director Cordray and testimony from consumer groups, industry members, and the general public.  The CFPB’s rulemaking agenda issued at the end of last year included “prerule activities” concerning… More >

CFPB denies payday lender’s petition to modify or set aside CID

Posted in CFPB Enforcement, Payday Lending

The CFPB has issued an order denying the petition filed by CheckSmart Financial Company in September 2013 to modify or set aside a civil investigative demand (CID) it received from the CFPB.  As we previously reported, the petition stated that the CID was issued in connection with a nonpublic investigation launched by the CFPB “to… More >

DOJ lawsuit sends warning to banks dealing with online payday lenders, third-party payment processors, other targeted companies

Posted in Electronic Payments, Payday Lending

Last month, the CFPB filed its first lawsuit against companies involved in online payday lending.  The lawsuit against CashCall and several related companies that funded, purchased, serviced and collected online payday loans broke new ground by asserting UDAAP violations based on the defendants’ efforts to collect loans that were purportedly void in whole or in… More >

CFPB bootstraps purported state law violations into attack on online payday lending companies

Posted in CFPB Enforcement, Payday Lending

The CFPB has broken new ground in an attack in Massachusetts federal court against CashCall, several related companies and their principal.  The companies funded, purchased, serviced and collected online payday loans made by a tribally-affiliated lender the CFPB did not sue.  The defendants were charged with engaging in unfair, deceptive and abusive acts and practices… More >

Former Colorado regulator and consumer advocate Laura Udis to join CFPB as manager for payday lending program

Posted in CFPB People, Payday Lending

We have learned that, starting Monday, Laura Udis will join the CFPB as the Payday and Small Dollar Lending Program Manager in Research, Markets and Regulations. Ms. Udis comes to the CFPB from the Consumer Federation of America, where she served as Senior Advocate for Financial Services and worked on consumer credit, debt collection and… More >

Payday lender files petition to modify or set aside CID

Posted in CFPB Enforcement, Payday Lending

The CFPB recently posted to its website a petition filed by CheckSmart Financial Company to modify or set aside a civil investigative demand it received from the Bureau. According to the petition, the CID was issued in connection with a nonpublic investigation launched by the CFPB “to determine whether payday lenders, check cashers, their affiliates,… More >

Proposal to expand Military Loan Act coverage appears likely

Posted in Military Issues, Payday Lending

Based on testimony to a Senate Committee last week by Holly Petraeus, CFPB Assistant Director with the Office of Servicemember Affairs, it looks very likely that an expansion of Military Loan Act coverage will be among proposed changes to MLA regulations that the Department of Defense is expected to issue soon.  The DOD, in consultation with the… More >

CFPB rejects (again) trade group efforts seeking retraction of white paper on payday and deposit advance loans

Posted in Payday Lending

In addition to our own criticism of the CFPB’s April 2013 White Paper on payday and deposit advance loans, the paper has drawn well-deserved fire from industry.  As we reported, that fire included a June 2013 petition to the CFPB filed by the Community Financial Services Association (CFSA), a national payday lending trade group, seeking… More >