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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.

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Empirical Evidence Suggests Dodd-Frank Has Led to 14.5 Percent Drop in Consumer Credit

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 […]

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2nd Circuit Rules Bankruptcy Code Does Not Preclude FDCPA Suit in District Court

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…”

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Class Certification Rejected in Alleged FDCPA/RICO Suit Against Sherman Financial Group

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.

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FTC and CFPB File Amicus Brief in Carmen Franklin v. Parking Revenue Recovery Services, Inc.

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 […]

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CFPB Issues Bulletin Warning About Risk of In-Person Collections

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.) […]