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Credit Grantors

A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets.

In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.


Easing Of The Chokepoint? FDIC Clarifies That Banks Can Offer Services to Non-Bank Payday Lenders

Last week the Federal Deposit Insurance Corporation (FDIC) reissued FIL-14-2005 “Payday Lending Programs: Revised Examination Guidance” and its attachment, “Revised Guidelines for Payday Lending,” to clarify that bankers and others are aware that it does not apply to banks offering products and services, such as deposit accounts and extensions of credit, to non-bank payday lenders. […]

Action Alert

CFPB Brings Action Against Online Lender for Deceiving Borrowers

The Consumer Financial Protection Bureau (CFPB) took action yesterday against an online lender, Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans. The Bureau alleges that the company’s contracts did not disclose the costs consumers would pay under the default terms of the contracts. The Bureau […]


California Reaches $100M Settlement with JP Morgan Chase Regarding Debt Collection Practices

JP Morgan Chase, the nation’s biggest bank, will pay $100 million to settle allegations that it used illegal and abusive debt-collection practices in connection with California credit card customers. The settlement specifically collecting incorrect amounts, selling bad credit card debt, and running a debt collection mill that involved illegally “robo-signing” thousands of court documents and improperly obtaining default judgments against military service members.

lessons learned

What the ARM Industry Can Learn from Payday Lenders’ Defenders

The payday lending industry is in a tough spot. Many politicians and regulators plus a sizable segment of the press commonly refer to the industry’s small-dollar, short-term lending model as predatory, usurious or worse. That negative characterization has led to a lot of government action. The ARM industry could take a lesson from how payday lenders have responded.


CFPB Fines Auto Loan Company $3.28 Million For Illegal Debt Collection Tactics

The Consumer Financial Protection Bureau (CFPB) announced yesterday that it has filed an administrative order against Security National Automotive Acceptance Company (SNAAC), an auto lender specializing in loans to servicemembers, for engaging in illegal debt collection practices. The order requires the company to refund or credit about $2.28 million to servicemembers and other consumers who […]


FMA Alliance Selected to Speak at CFPB Small Buisness Panel on Arbitration

Houston, TX — FMA Alliance, Ltd. (“FMA”) is excited to announce that Michael Janakes, President, and Lauren Rosenfeld, General Counsel/VP Compliance, have been invited to participate in the Consumer Financial Protection Bureau’s (“CFPB”) panel in relation to the agency’s recent proposals regarding arbitration. The panel will convene in Washington, D.C. on October 28, 2015, to […]

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Sprint to Pay $2.95 Million Penalty to Settle FTC Charges It Violated Fair Credit Reporting Act

Sprint to Pay $2.95 Million Penalty to Settle FTC Charges It Violated Fair Credit Reporting Act The Federal Trade Commission (FTC) announced yesterday that mobile service provider Sprint will pay $2.95 million in civil penalties to settle charges that the company failed to give proper notice to consumers who were placed in a program for […]

answer the phone

Third Circuit Reverses District Court Order in TCPA “Called Party” Case Against Bank of America

Mark Leyse brought an action against Bank of America under the Telephone Consumer Protection Act of 1991 (TCPA) after receiving a prerecorded telemarketing call on the landline he shares with his roommate, Genevieve Dutriaux. The District Court dismissed the complaint for lack of statutory standing because Dutriaux, not Leyse, was the intended recipient of the […]

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The Plaintiffs’ Lawyer Protection Bureau

Andy Pincus, a partner at Mayer Brown LLP in Washington, D.C., has written an extremely articulate and well-researched opinion regarding the CFPB’s initiative to limit the use of arbitration by credit grantors. Even if you have already seen other articles on the topic this week, it’s worth a few minutes to read this one.