A litigation phenomenon that has recently surged is the simultaneous filing of hundreds or even thousands of individual arbitration demands against the same company by the same law firm, requiring the company to pay the substantial up-front filing fees typically charged by arbitration administrators. Initially used in the context of employment arbitration claims, such “mass arbitrations” are now also being pursued against consumer businesses.… Continue Reading
Loyola University Chicago School of Law’s Consumer Law Review to hold symposium on racial justice in consumer law; Ballard Spahr partner Chris Willis to be panel member
By Barbara S. Mishkin on
Posted in Fair Lending, Regulatory and Enforcement
On March 4 and 5, 2021, the Consumer Law Review of Loyola University Chicago School of Law will hold a symposium on issues involving racial justice in consumer law. The symposium will consist of three panel discussions, with each panel discussion followed by a Q&A session. Chris Willis, co-chair of Ballard Spahr’s Consumer Financial Services Group, will be a member of the second panel.… Continue Reading
CFPB Likely to Delay Mandatory Compliance Date of New General QM Rule and May Reconsider Seasoned QM Rule
By Richard J. Andreano, Jr. on
The CFPB recently issued a policy statement addressing the rules finalized near the end of former Director Kraninger’s tenure that amend the Regulation Z ability to repay rule/qualified mortgage (QM) requirements to replace the strict 43% debt-to-income (DTI) ratio basis for the current general QM with an annual percentage rate (APR) limit, and to create a new seasoned loan QM.… Continue Reading
CFPB files first enforcement action under Biden Administration
By Ballard CFS Group on
Earlier this week, the CFPB announced that it has filed its first enforcement action under the leadership of Acting Director Uejio. The lawsuit was filed in a Virginia federal district court jointly with the Attorneys General of Virginia, Massachusetts, and New York. The complaint names as defendants Libre by Nexus, Inc.… Continue Reading
CFPB files another status report in Section 1071 lawsuit
The CFPB has filed its fourth status report with the California federal district court as required by the Stipulated Settlement Agreement in the lawsuit filed against the Bureau in May 2019 alleging wrongful delay in adopting regulations to implement Section 1071 of the Dodd-Frank Act.
Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. … Continue Reading
This week’s podcast: The times at the CFPB are a-changing: perspectives on the CFPB under Acting Director David Uejio and Director Rohit Chopra: Part II
By Barbara S. Mishkin on
Posted in CFPB, Regulatory and Enforcement
In Part II of our two-part podcast, we discuss how we expect Rohit Chopra, if confirmed by the Senate, to approach his new role as CFPB Director. We look at the possible implications of positions taken by Mr. Chopra as FTC Commissioner for how he will use the CFPB’s statutory authorities, his likely approach to student lending based on his tenure as CFPB Student Loan Ombudsman, and how his approach to enforcement is likely to differ from that of former Director Kraninger.… Continue Reading
New York Dept. of Financial Services announces fair lending agreement with nonbank mortgage lender and releases redlining report
The New York Department of Financial Services (DFS) recently announced that it has entered into an agreement with Hunt Mortgage, a licensed mortgage banker, to address the DFS’s findings that there was a “demonstrable lack of lending to minorities and in majority-minority neighborhoods in Western and Central New York by Hunt Mortgage.” … Continue Reading
Chopra confirmation hearing reported to be scheduled for March 2
By Alan S. Kaplinsky on
Posted in CFPB, Regulatory and Enforcement
According to the Consumer Bankers Association, the Senate Banking Committee will hold a hearing on March 2, 2021 to consider President Biden’s nomination of Rohit Chopra to serve as CFPB Director. The nomination was officially received by the Senate on February 13.
PA Supreme Court rules proof of defendant’s state of mind not required for deception claim under UTPCPL
By Martin C. Bryce, Jr. on
Posted in Litigation and Court Decisions, UDAAP
The Pennsylvania Supreme Court issued its highly anticipated decision in Gregg v. Ameriprise Financial, Inc. at the end of last week.
In 1996, the General Assembly amended the catchall provision of the Unfair Trade Practices and Consumer Protection Law, 73 P.S. 201-2(4)(xi), to prohibit anyone who advertises, sells, or distributes goods or services from “engaging in any deceptive conduct .… Continue Reading
State AGs file opposition to OCC’s summary judgment motion in lawsuit challenging Madden-fix rule
By Ballard CFS Group on
The Attorneys General of California, Illinois, and New York have filed their opposition to the OCC’s cross-motion for summary judgment in their lawsuit to enjoin the OCC’s final rule (Rule) purporting to override the Second Circuit’s Madden decision as to national banks and federal savings associations. In their filing, the AGs also reply to the OCC’s opposition to their summary judgment motion. … Continue Reading