Andrew A. Wood

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California District Court Delivers Payday Lending Usury Victory to the CFPB with Important Consequences for On-Line Lenders

  On August 31, Judge Walter of the Central District of California entered summary judgment in favor of the Consumer Finance Protection Bureau (“CFPB”) on its claims against CashCall, Inc. arising out of allegedly unfair and deceptive loan practices. The CFPB had sued payday lender CashCall and various affiliates for violations of the Consumer Financial … Continue Reading

CFPB Releases Proposed Amendments to Truth In Lending Disclosure Rules

Today, the CFPB released its proposed amendments to disclosure requirements under RESPA and TILA. These disclosure requirements are also known as the “Know Before You Owe” rule (the Rule). The amendments propose several notable changes: The CFPB proposes to change the way loan tolerances are calculated. Tolerance calculations will now include finance charges “and disclosures … Continue Reading

Latest CFPB Report Highlights Consumer Debt Collection Complaints

On March 29, the Consumer Financial Protection Bureau (CFPB) released its monthly report summarizing consumer complaints received through February 2016. Overall to date, the CFPB has received over 834,400 complaints. Nationally, the CFPB noted a 13 percent uptick in credit reporting complaints between January and February 2016. Many complaints concern credit reporting agencies. Most consumer … Continue Reading

CFPB Director Cordray Touts Success and Future Agenda

On March 9, 2016, Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray outlined the CFPB’s progress and future plans to the Consumer Bankers Association (“CBA”). Cordray touted the CFPB’s great success despite pushback from the CBA and others from the financial industry. Cordray was careful, however, to note that the CFPB has taken the CBA’s … Continue Reading

CFPB Settles With Debt-Collection “Mill” That Filed 350,000+ Lawsuits Over Four Years

The Consumer Financial Protection Bureau (CFPB) has settled a lawsuit with a Georgia law firm allegedly functioning as a debt-collection mill. As reported by Credit Union Insight, the CFPB and the Georgia law firm agreed on a Stipulated Judgment on December 28. The CFPB’s lawsuit alleges Georgia law firm Frederick J. Hanna & Associates and … Continue Reading

CFPB Publishes List of Rural Counties and Underserved Areas

We have an update to our September 23 post regarding the CFPB’s expanded definition of “small creditors” and “rural areas” for purposes of meeting the requirements of qualified mortgages. As first reported by Housing Wire, the CFPB has now published an updated list of places the CFPB has determined qualify as “rural counties” and “underserved … Continue Reading

CFPB Bulletin Cautions That Marketing Services Agreements Often Violate RESPA

Lenders utilizing “marketing services agreements” (“MSAs”) beware: On October 8, the Consumer Financial Protection Bureau (“CFPB”) issued a new bulletin strongly cautioning that MSAs often violate Real Estate Settlement Procedures Act’s (“RESPA”) “primary purpose” of preventing kickbacks. Lenders that use MSAs bear a high risk of eventually facing a CFPB enforcement action, which could carry … Continue Reading

CFPB Expands “Small Creditor” and “Rural Area” Definitions for Qualified Mortgages

On September 21, the Consumer Financial Protection Bureau (“CFPB”) released final and revised versions of mortgage rules regarding small creditors. These changes should ease lenders’ ability to originate qualified mortgages in rural areas. These revisions comport with Director Richard Cordray’s stated position that community banks and credit unions did not cause the financial crisis—and thus, … Continue Reading

Consumer Financial Protection Bureau Files Suit Against Company and Individuals Who Allegedly Ran Pension Loan Scam

On August 20, 2015, the Consumer Financial Protection Bureau (“CFPB”) and the New York superintendent of financial services jointly sued Pension Funding, LLC; Pension Income, LLC; and individuals Steven Covey, Edwin Lichtig, and Rex Hofelter (collectively, “PF-PI”) in the Central District of California for violation of the Consumer Financial Protection Act, usury, and fraud, among … Continue Reading

CA Supreme Court Upholds Class Action Waivers in Long-awaited Sanchez Decision

On August 3, 2015, the California Supreme Court issued its long-awaited decision in Sanchez. v. Valencia Holding Company, LLC (2015) — Cal.4th — (Sanchez). The court provided much-needed clarity for consumers and auto finance companies alike by finding that class action waivers found in consumer car purchase agreements must be enforced. The court also found that … Continue Reading
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