Many industry groups have sounded the cry that increased financial services regulation would have the unintended consequence of shrinking the credit available to the same consumers it was intended to protect. But most of these cries have been mere hypothesis. According to new research from the American Action Forum (AAF), Dodd-Frank financial reform has led to a 14.5 percent […]
In Garfield v. Ocwen Loan Servicing, LLC, the Second Circuit Court of Appeals examined whether a debtor who has been discharged in a bankruptcy can sue in a district court under the FDCPA,as opposed to seeking relief in the bankruptcy court. The Court held that the Bankruptcy Code provision governing the discharge injunction, “does not explicitly create a cause of action for its violation, whereas the automatic stay provision provides such a remedy…”
A federal judge in Indianapolis has ruled that a lawsuit alleging violations of the FDCPA and the United States Racketeer Influence and Corrupt Organization Act (“RICO”) against Sherman Financial Group, one of the country’s largest debt buyers, cannot proceed as a class action because circumstances vary too much among the class members. Assuming this decision withstands any subsequent appeal it appears that Sherman made a good decision to vigorously defend the case.
This week, former CFPB Student Loan Ombudsman Rohit Chopra started a new job — at the Department of Education. An outspoken critic of, well, just about everything related to student loans, one thing is clear: things will probably change at the Department of Education.
Yesterday the FTC announced an agreement with two payday lenders to settle charges that they illegally charged consumers across the country undisclosed and inflated fees. The two companies, Red Cedar Services Inc. and SFS Inc., have each paid $2.2 million and collectively waived $68 million in fees to consumers that were not collected.
Earlier this month, the Federal Trade Commission, together with the Consumer Financial Protection Bureau (CFPB) filed an Amicus Brief with the U.S. Court of Appeals for the Seventh Circuit in the case of Carmen Franklin and Jenifer Chism, Plaintiffs, v. Parking Revenue Recovery Services, Inc. and Bryon Bellerud II, PC. The purpose of the Brief […]
A U.S. District Judge in California ordered a break in the action on a TCPA suit against Time Warner Cable. Inc., stating, “…it is prudent to stay this case pending resolution of the Court of Appeals review of the FCC’s Declaratory Ruling.”
Yesterday, the CFPB announced a consent decree with EZCORP , an Austin, Texas-based payday lender. The consent decree included $7.5 million in redress to consumers, $3 million in fines, and the effective extinguishment of 130,000 payday loans. At the same time as the CFPB announced this consent decree, they issued guidance on at-home and at-office collection.
Yesterday, in conjunction with the Consumer Financial Protection Bureau (CFPB) announcement regarding the action against EZCORP, Inc., the Bureau issued a bulletin warning the financial services industry, and in particular lenders and debt collectors, about potentially unlawful conduct during in-person collections. (Editor’s note: See companion story for complete details on the CFPB action against EZCORP.) […]
The CFPB and many consumer advocates may not be big fans of arbitration provisions in consumer contracts, but yesterday the United States Supreme Court issued an opinion in favor of DirecTV Inc., backing the satellite television provider’s efforts to enforce arbitration agreements signed by its customers in California.