In a notice of “Intent to Make Preemption Determination under the Truth in Lending Act (Regulation Z),” the CFPB announced that it is seeking comments on its preliminary determinations that the Truth in Lending Act (TILA) does not …
John Sadler
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Small Business Administration to expand 7(a) program to fintechs and alternative lenders
By John Sadler & Justin Kerner on
The Biden Administration recently announced a slate of new public and private sector initiatives aimed at advancing racial equity by delivering “capital and resources to underserved small businesses and the community lenders who serve them.” Among these initiatives was a …
California DFPI issues final regulations implementing 2018 law requiring consumer-like disclosures for commercial financing
By Michael R. Guerrero & John Sadler on
The California Department of Financial Protection and Innovation (DFPI) has issued final regulations to implement SB 1235, the bill signed into law on September 30, 2018 that requires consumer-like disclosures to be made for certain commercial financing products, including small …
Depository institutions beware: California appellate court holds bank liable for registered agent’s mistake in rejecting notice of levy
By Joel E. Tasca, John Sadler & Maraya Pratt on
Posted in Deposit Accounts, Litigation and Court Decisions
A California Court of Appeal recently found a bank liable to a judgment creditor under California’s Enforcement of Judgments Law for the bank’s registered agent’s mistake in misreading, and subsequently rejecting, a notice of levy. Although the bank itself did …
CFPB fines bank $10 million for conduct related to bank account garnishments and account agreements
By Michael Gordon, John Sadler, Elliot Johnson & Peng Shao on
The CFPB recently ordered a bank to cancel garnishment fees, review its system for processing garnishment orders, cease using contracts which limit consumer rights, and pay a $10 million penalty to the CFPB’s Civil Penalty Fund.
The garnishment process …
Update on state small business commercial financing disclosure laws
By John Sadler & Gerard Belfort on
Around the nation, regulators are preparing to implement and enforce new consumer-like disclosure laws for small business commercial finance providers.
New York regulators have yet to issue final regulations implementing the state’s Commercial Finance Disclosure Law (CFDL), which went into …
NYDFS announces providers of commercial financing not required to provide consumer-like disclosures under new law until final regulation takes effect
By John Sadler & Ballard CFS Group on
The New York Department of Financial Services has issued a letter announcing that it has concluded that the obligation of providers of commercial financing under the Commercial Finance Disclosure Law (CFDL) to provide consumer-like disclosures does not arise “until the …
FTC enters into settlement with two defendants in lawsuit alleging merchant cash advance providers engaged in unfair and deceptive practices
By John Sadler & Ballard CFS Group on
The FTC’s recent announcement that it has entered into a settlement with two of the defendants (RAM Capital Funding LLC and Tzvi Reich) in a lawsuit filed by the FTC against two merchant cash advance providers and three of their …
CA DFPI issues fourth modifications to proposed regulations to implement 2018 law requiring consumer-like disclosures for commercial financing
By John Sadler on
The California Department of Financial Protection and Innovation has published a fourth round of modifications to implement SB 1235, the bill signed into law on September 30, 2018 that requires consumer-like disclosures to be made for certain commercial financing …
NYDFS publishes notice of proposed regulation on consumer-like disclosures for commercial financing transactions
By John Sadler & Ballard CFS Group on
On October 20, 2021, the New York Department of Financial Services published a notice in the New York State Register announcing that it has issued a proposed regulation to implement S 5470–B, which requires consumer-like disclosures for “commercial financing” …