A complaint filed on July 20, 2023 in Minnesota federal court seeks declaratory and injunctive relief under the Administrative Procedures Act (APA) against defendants Federal Deposit Insurance Corporation (FDIC) and Chairman Martin J. Gruenberg for the FDIC’s issuance of supervisory guidance to banks under its supervision (i.e., state-chartered banks that are not members of the Federal Reserve System) prohibiting them from charging multiple non-sufficient funds (NSF) fees for the same item.… Continue Reading

Minnesota recently enacted the Commerce Omnibus Finance Bill, which includes amendments to several provisions of Minnesota law related to consumer loans and financial institutions. 

Interest Rate Caps on Consumer Small Loans and Short-Term Loans

Minnesota laws related to consumer small loans and consumer short-term loans (as those terms are defined under Minnesota law) are amended to define the annual percentage rate (APR) for the covered loans to be an all-in rate including all fees and charges, as follows:

“Annual percentage rate” means a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. … Continue Reading

We previously blogged about Viking River Cruises, Inc. v. Moriana, in which the U.S. Supreme Court held that individual employee claims under California’s Labor Code Private Attorneys General Act (PAGA) are subject to arbitration under the Federal Arbitration Act (FAA).  While the Court further ruled that representative employee PAGA claims are not preempted by the FAA, it nevertheless dismissed those claims for lack of standing based on its interpretation of California standing law. … Continue Reading

The U.S. Supreme Court has scheduled oral argument on October 3, 2023 in Community Financial Services Association of America Ltd. v. CFPB.  In the case, CFSA has asked the Supreme Court to affirm the Fifth Circuit panel’s decision which held that the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

The Biden Administration has launched an initiative directed at combatting so-called “junk fees,” with the CFPB and FTC leading the Administration’s efforts.  In Part II of this two-part episode, we first look at CFPB supervisory activity relating to auto servicing, mortgage servicing, payday and small dollar loans, and student loan servicing. … Continue Reading

The petitioners in Loper Bright Enterprises, et al. v. Raimondo have filed their merits brief in the U.S. Supreme Court urging the Court to overrule its 1984 decision in Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc.  That decision produced what became known as the “Chevron framework”–the analysis that courts typically invoke when reviewing a federal agency’s interpretation of a statute. … Continue Reading

The U.S. Court of Appeals for the Second Circuit has ruled that because “there is no bright-line rule that only purely factual or transcription errors are actionable under the [Fair Credit Reporting Act (FCRA)],” the FCRA does not contemplate a threshold inquiry by the court as to whether an alleged inaccuracy is “legal” for purposes of determining whether the plaintiff has stated a cognizable claim under the FCRA. … Continue Reading

The Consumer Financial Protection Bureau, the California Department of Financial Protection and Innovation (CA DFPI), and ten state Attorneys General have filed a lawsuit against Prehired, LLC (Prehired) and two related companies, Prehired Recruiting, LLC and Prehired Accelerator, LLC, alleging that the companies violated the Consumer Financial Protection Act (CFPA), the Truth in Lending Act (TILA), and the Fair Debt Collection Practices Act (FDCPA) in connection with offering and collecting on income share agreements (ISAs).  … Continue Reading

The CFPB has filed an amicus brief jointly with Maine’s Attorney General, Bureau of Financial Institutions, and Bureau of Consumer Credit Protection in the Maine Supreme Judicial Court in a case, Franklin Savings Bank v. Bordick, involving whether the Truth in Lending Act (TILA) applied to the defendants’ loan.  Although Maine was granted an exemption from certain parts of TILA, the Maine Consumer Credit Code incorporates TILA and Regulation Z.… Continue Reading

Our Ballard Spahr colleagues have released a new episode of the firm’s Business Better Podcast in which they discuss the recent U.S. Supreme Court ruling in the Students for Fair Admissions Inc.’s lawsuits against Harvard University and the University of North Carolina, which challenged the constitutionality of their race conscious admission policies. … Continue Reading