Sarah E. Pruett

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Afterpay faces putative class action alleging it failed to warn consumers of possible overdraft fees

By Sarah E. Pruett on June 14, 2021

Posted in Litigation and Court Decisions, Overdrafts

Afterpay, a buy-now, pay-later company, is facing a putative class action lawsuit in a California federal district court. The complaint alleges that Afterpay misled customers in representing that its services allowed customers to “pay for purchases at a later date, with no interest, no fees, and no hassle” when “there are huge, undisclosed fees and interest associated with using the service.”… Continue Reading

Colorado Attorney General Bans Financial Services Companies from State for Alleged Conflict of Interest

By Sarah E. Pruett on September 13, 2019

Posted in Debt Collection, Regulatory and Enforcement

The Colorado Attorney General reached a $175,263 settlement with a lender and a debt management company that are owned and operated by the same individuals. The Colorado Attorney General alleged the companies violated Colorado law when the lender issued loans to customers of the related debt management company. Colorado law prohibits debt management companies from offering loans through a related company due to the risk of a conflict of interest.… Continue Reading

New York passes sweeping legislation impacting student loan servicers

By Sarah E. Pruett on April 8, 2019

Posted in Regulatory and Enforcement, State Regulation, Student Loans

On April 1, 2019, New York enacted Article 14-A, governing servicers of student loans owed by New York residents, in connection with New York’s fiscal year 2020 budget. Though sweeping legislation has been anticipated for some time, awareness of the extensive provisions of the new legislation are critical for student loan servicers nationwide.… Continue Reading