Joseph J. Schuster

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The Servicemember Civil Relief Act limits the amount of interest that may be charged on certain financial obligations that were incurred before military service began to no more than 6% percent per year, including most fees and charges, the CFPB and the Justice Department reminded financial institutions in a recent letter.… Continue Reading

The CFPB has taken action to permanently ban Student Loan Pro and its owner, Judith Noh, from offering consumer financial products or services.

In a complaint, filed in the U.S. District Court for the Central District of California, the CFPB alleged that Student Loan Pro and Noh violated federal law when they charged borrowers upfront fees to file paperwork to access free debt-relief programs available to consumers with federal student loans.… Continue Reading

The Attorney General for the District of Columbia has filed suit against ActiveHours Inc., doing business as EarnIn, alleging that the app-based lender deceptively marketed and provided illegal high-interest loans to more than 20,000 consumers in DC.

In the suit, filed in D.C. Superior Court, Attorney General Brian L. Schwalb alleged that the company falsely claimed that its earned wage advance product is not a loan, and that it can be accessed instantly with no mandatory fees and no interest.… Continue Reading

A panel of the Fifth Circuit Court of Appeals has set March 30, 2025 as the effective date of the CFPB’s payday lending rule.

The panel had previously set a date 286 days “from the resolution of the appeal” as the effective date, but it was not clear when that period would start.… Continue Reading

Saying that it wants to provide sufficient time to brief issues in pending litigation, the CFPB has announced that it is extending the effective date of its advisory opinion on medical debt from Dec. 3, 2024 to Jan. 2, 2025.

ACA International, the association representing the accounts receivable industry, has filed suit in the U.S.… Continue Reading

A federal court has ordered Harris Jewelry to reopen its claims process and to again notify consumers that they may submit their claims for refunds from the jewelry company.

Most of the consumers affected are active-duty servicemembers.

The U.S. District Court for the Eastern District of New York found that Harris Jewelry violated its prior settlement with the Federal Trade Commission and a multistate group led by the New York Attorney General’s Office by prematurely shutting down the claims portal.… Continue Reading

The Fifth Circuit Court of Appeals has denied a request by the Community Financial Services Association of America (CFSA) to hold a rehearing en banc on the group’s challenge of the CFPB’s payday loan rule.

The court simply said that no member of the panel had requested that the appeals court be polled, so the petition was denied.… Continue Reading

The FTC has filed a complaint against the online cash advance app, Dave, charging that the company used misleading marketing to deceive consumers about the amount of its cash advances and charged consumers undisclosed fees and so-called “tips” without their consent.

The FTC noted that Dave describes the consumers it targets as “financially vulnerable” or “financially coping,” suggesting that Dave knew they were particularly vulnerable to its claims that they could instantly receive up to $500,

In its complaint, filed in the U.S.… Continue Reading

The CFPB recently took action against VyStar Credit Union in connection with allegations that the credit union “botched” its rollout of a new online banking system.

In May 2022, VyStar transitioned to a new online banking platform that the CFPB said was dysfunctional because it made it difficult for credit union members to perform basic banking functions for weeks, with some features unavailable for more than six months.… Continue Reading

The Department of Transportation is allowing Alaska Airlines (“Alaska”) and Hawaiian Airlines (“Hawaiian”) to close their merger—as long as the airlines protect their passenger rewards program against devaluation and ensure that consumers will receive the benefits they have earned.

The airlines will be able to consummate the merger on the condition that they continue to operate separately until the DOT gives final approval to the merger application.… Continue Reading