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Category Archives: Payday Lending

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The CFPB’s report on online payday loan payments: setting the stage for limits on collection practices?

Posted in CFPB Rulemaking, Payday Lending

The CFPB has issued a new report entitled “Online Payday Loan Payments,” summarizing data on returns of ACH payments made by bank customers to repay certain online payday loans.  The latest report is the third report issued by the CFPB in connection with its payday loan rulemaking.  (The previous reports were issued in April 2013 and… More >

Republican Congressmen seek CFPB forum on impact of payday lending rule on state and tribal sovereignty

Posted in CFPB Rulemaking, Payday Lending

Two Republican members of the House Financial Services Committee, Randy Neugebauer and Mick Mulvaney, have sent a letter to Director Cordray asking him to convene a forum or roundtable of state and tribal officials before the CFPB proposes a payday loan rule. In the letter, the Congressmen assert that comments made by CFPB officials about… More >

Director Cordray defends CFPB positions in appearance before Senate Banking Committee; comments on small business lending and Fintech companies

Posted in Auto Finance, CFPB Enforcement, Fair Credit, Payday Lending, Small Business

Much of Director Cordray’s testimony in his appearance before the Senate Banking Committee yesterday consisted of his predictable defense of various CFPB positions.  While the hearing was much less contentious than last month’s hearing of the House Financial Services Committee at which Director Cordray appeared, the questions raised by Republican Senators focused on many of the… More >

DNC Chair supporting bill to curb CFPB payday loan rulemaking authority

Posted in Payday Lending

To the dismay of many consumer advocates, it has been reported that Democratic National Committee Chairwoman and Florida Congresswoman Deborah Wasserman Schultz is supporting a bill (H.R. 4018) that would limit the authority of the CFPB to regulate payday loans. The bill, entitled the “Consumer Protection and Choice Act,” would provide that if the CFPB… More >

Director Cordray reveals no change in CFPB’s approach to payday loans

Posted in Payday Lending

In remarks earlier this week to the National Credit Union Association, Director Cordray discussed  the proposals the CFPB is considering for small dollar loans.  In March 2015, in anticipation of convening a SBREFA panel, the CFPB issued an outline of the proposals it was considering for payday (and other small-dollar, high-rate) loans (“Covered Loans”).  For… More >

CA federal court refuses to dismiss CFPB lawsuit against online lending companies alleging UDAAP violations based on state law violations

Posted in CFPB Enforcement, Payday Lending, UDAAP

A federal district court has refused to dismiss the lawsuit filed by the CFPB in December 2013 against CashCall, several related companies and their principal, which asserted UDAAP violations based on the defendants’ efforts to collect loans that were purportedly void in whole or in part under state law.  The companies allegedly funded, purchased, serviced… More >

Is Online Lead Generation Inherently Deceptive?

Posted in CFPB General, FTC, Hot Issues, Lead Generation, Payday Lending

This post is the third in a series we’re writing on the FTC’s workshop on online lead generation entitled Follow the Lead. In our first post, we explored how online lead generation works. In our second, we covered the role that disclosures can and should play. Here, we will discuss the allegation the CFPB and certain consumer… More >

NY Fed blog post calls into question objections to payday loans and rollover limits

Posted in Payday Lending

A blog post about payday lending, “Reframing the Debate about Payday Lending,” posted on the New York Fed’s website takes issue with several “elements of the payday lending critique” and argues that more research is needed before “wholesale reforms” are implemented.  The authors are Robert DeYoung, Ronald J. Mann, Donald P. Morgan, and Michael R. Strain. … More >

CFPB issues snapshot of servicemember complaints

Posted in Military Issues, Payday Lending

The CFPB has issued a new “snapshot of servicemember complaints.”  The report states that as of November 2015, the CFPB had received about 2,500 complaints from servicemembers, veterans and their dependents about high-cost consumer credit.  These complaints were submitted under two complaint categories: the “payday loan” category or under the “debt collection” category with “payday… More >

Risky times for some Internet lenders

Posted in Payday Lending

A recent decision by the Minnesota Supreme Court serves as a painful reminder to Internet lenders of the perils of relying on choice-of-law provisions or arguments citing the Commerce Clause of the U.S. Constitution to avoid application of a borrower’s home state law.  In its decision, the Supreme Court ruled that the Commerce Clause of… More >

Director Corday testifies before House Committee on Financial Services

Posted in Arbitration, Auto Finance, CFPB General, Mortgages, Payday Lending, TILA / RESPA

On Wednesday, September 29, CFPB Director Richard Cordray appeared before the House Committee on Financial Services to answer questions regarding the Bureau’s activities since March. Director Cordray used his introductory remarks to highlight the expansion of the marketplace for consumer credit over the last year. He specifically noted increases in home mortgage lending, auto loan origination… More >

Director Cordray appears before Senate Banking Committee

Posted in Arbitration, CFPB General, Military Issues, Mortgages, Payday Lending

On Wednesday, July 15, CFPB Director Richard Cordray appeared before the Senate Committee on Banking, Housing, & Urban Affairs to answer questions regarding the Bureau’s Semi-Annual Report to Congress and the President, which it published on June 15, 2015. Dir. Cordray observed that during the six month period covered by the report, from October 2014 through… More >

Briefing completed in Ninth Circuit tribal lending case challenging CFPB authority

Posted in Payday Lending

Briefing has now been completed in CFPB v. Great Plains Lending, LLC, et al., the case before the U.S. Court of Appeals for the Ninth Circuit in which three tribally-affiliated payday lenders are challenging the CFPB’s authority to issue civil investigative demands (CIDs) to entities that are arms of sovereign tribes. Last July, a California… More >

Senator seeks GAO investigation of CFPB payday loan rulemaking

Posted in Payday Lending

In a letter to the Government Accountability Office (GAO), Senator David Vitter questioned “the adequacy and thoroughness of the CFPB’s analysis of small entity impacts” in connection with its payday lending rulemaking process and asked the GAO to conduct an investigation and issue a report on its findings.  Senator Vitter chairs the Senate Committee on Small Business… More >

New report shows negative effect of CFPB’s contemplated payday loan proposals on credit availability

Posted in Payday Lending

A new report prepared by Charles River Associates for the Community Financial Services Association of America (CFSA) found that the CFPB’s contemplated proposals for payday (and other small-dollar, high-rate) loans would cut small payday lenders’ revenues by 82 percent on average, potentially forcing these lenders to close many existing stores. The report also found that… More >

32 Democratic senators call for strong payday lending rules

Posted in Payday Lending

A group of 32 Democratic U.S. senators sent a letter to Director Cordray last week regarding the CFPB’s efforts to address payday lending in which they urged him “to issue the strongest possible rules to end the damaging effects of predatory lending.”  (It is unsurprising that the letter garnered no Republican sponsors but somewhat interesting… More >

US Hispanic Chamber of Commerce and CFSA to hold May 13 summit on CFPB short-term lending rulemaking

Posted in Payday Lending

On May 13, 2015, the United States Hispanic Chamber of Commerce (USHCC) and the Community Financial Services Association of America (CFSA) will host a policy and research summit in Washington, D.C. on “Consumer Credit Under Assault: Does the Data Support the Rhetoric?” At the summit, there will be a discussion of the CFPB’s recent contemplated… More >

Report from SBREFA Panel on Payday, Title and Installment Loans

Posted in Payday Lending, Vehicle Loans

Yesterday, I had the opportunity to participate as an advisor to a small entity representative (“SER”) at the small business review panel on payday, title and installment loans.  (Jeremy Rosenblum has four posts—here, here, here and here—that analyze the rules being reviewed in detail.)  The meeting was held in the Treasury Building’s Cash Room, an impressive, marble-walled room… More >

The CFPB’s contemplated payday/title/high-cost lending proposals: our thoughts on collection practice limits

Posted in Payday Lending, Vehicle Loans

This is the last of a series of blog posts in which we share our reactions to the CFPB’s contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”).  In this blog post, we share our thoughts on the CFPB’s proposed limits on payment collection practices.  (Our previous blog posts have looked… More >

Some issues for “longer-term” loans under the CFPB’s contemplated payday/title/high-cost lending proposals

Posted in Payday Lending, Vehicle Loans

In this blog post, we share our thoughts on the 36% “all-in” rate trigger and restrictions for loans considered to be “longer-term” under the CFPB’s contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”).  (Our previous blog posts have looked at the CFPB’s grounds for the proposals, how the proposals will… More >