What the arbitration rule means for CFPB payday rule

Earlier this week, CFPB Director Richard Cordray acknowledged the possibility that the Bureau’s arbitration rule could be rolled back by a CRA vote but claimed that he did not factor Congressional opposition into his decision to release the final rule. Cordray explained, “My obligation as the director of the consumer bureau is to act [...]

By | 2017-07-13T14:15:14+00:00 July 13th, 2017|0 Comments

Why the CFPB payday rule might not be coming soon

Last June, the CFPB held a field hearing in Kansas City, Missouri to announce the release of the consumer watchdog agency’s highly anticipated proposed rule covering payday and auto title loans, and certain high-cost installment loans. More than a year has passed since the notice of proposed rulemaking was issued last June, and despite [...]

By | 2017-07-12T07:52:48+00:00 July 9th, 2017|0 Comments

What a recent DC Circuit decision could mean for final CFPB arbitration and payday rules

There have been recent rumors that the CFPB will issue its final arbitration rule by the end of July. According to Ballard Spahr attorney Alan Kaplinsky, “that rumor appears to be gaining traction, with major industry trade group telling its members today that it expects the CFPB to issue a final arbitration rule ‘very [...]

By | 2017-07-07T19:35:55+00:00 July 7th, 2017|0 Comments

CFPB sues four online payday lenders for collecting debts not legally owed

Today, the CFPB announced that it filed a lawsuit against four online payday lenders for allegedly collecting on debts that were not legally owed. According to the CFPB’s complaint, the lenders could not legally collect on the debts because the loans were void under state laws governing interest rate caps or the licensing of lenders. [...]

By | 2017-04-27T08:38:01+00:00 April 27th, 2017|0 Comments

Georgia AG reaches $40 million settlement with online payday lender

On February 9, the Georgia Attorney General’s Office issued a press release announcing that it reached a settlement with online payday lenders Western Sky Financial, CashCall and affiliates (Defendants). The settlement resolved the Georgia AG’s multi-year legal battle with the California-based online lender for charging illegal interest and fees under an alleged “rent-a-tribe” scheme.   [...]

By | 2017-02-13T12:06:52+00:00 February 13th, 2017|0 Comments

CashCall to pay $15 million settlement for illegal Virginia online lending scheme

On January 31, the Virginia Attorney General issued a press release announcing a settlement with CashCall, Inc., a small-dollar online lender that allegedly engaged in illegal lending practices. According to the Virginia Attorney General’s complaint, CashCall engaged in a “rent-a-tribe” scheme, using a South Dakota company with a purported Native American tribe affiliation called Western Sky [...]

By | 2017-02-06T07:19:28+00:00 February 6th, 2017|0 Comments

Ninth Circuit orders tribal payday lenders to comply with CFPB investigations

On January 20, the Ninth Circuit affirmed a district court decision in CFPB v. Great Plains Lending that compelled three tribal lending entities to comply with civil investigative demands (CID) issued by the CFPB. The tribal entities are for-profit small-dollar online lending companies created by three separate tribes (Tribes). The CFPB launched an investigation into [...]

By | 2017-01-23T12:08:48+00:00 January 23rd, 2017|0 Comments

Online payday lender settles with Florida AG for $28 million

On January 12, the Florida Attorney General’s Office announced it had “coordinated settlements with the operators of an online lending scheme.” According to the Florida AG’s press release, the companies involved in the alleged scheme include Western Sky Financial, LLC, CashCall, Inc., WS Funding, LLC, Delbert Services Corporation and John Paul Reddam, the President, CEO [...]

By | 2017-01-17T00:24:51+00:00 January 17th, 2017|0 Comments