On August 15, 2024, the Illinois Bankers Association, American Bankers Association, America’s Credit Unions, and Illinois Credit Union League filed a complaint for declaratory and injunctive relief against the Illinois Attorney General challenging the enactment of the Interchange Fee Prohibition Act (the “IFPA”). The 74 page complaint seeks a declaratory judgment that the IFPA is preempted by federal laws, unconstitutional, and invalid as applied to any participant in the payment system, and to permanently enjoin the state from taking any investigatory or enforcement actions under the IFPA.… Continue Reading

A Pennsylvania federal judge has imposed sanctions and lambasted a law firm and its attorneys for having employees write falsified letters on behalf of clients involved in debt collection disputes.

Attorneys Travis Andrew Gordon, and Joshua P. Ward, and their firm, J.P. Ward & Associates, LLC, filed two suits suit on behalf of clients disputing debts.… Continue Reading

On August 15, 2024, the Federal Trade Commission (“FTC”) and Arizona Attorney General announced a proposed settlement with an Arizona-based vehicle dealership to resolve allegations that the dealership misrepresented prices in online advertisements, engaged in unfair and deceptive practices related to the sale of add-on products, and discriminated against Latino consumers by charging higher interest rates and more expensive add-on charges.… Continue Reading

The Federal Trade Commission on August 14 announced a final trade regulation rule intended to fight fake reviews and testimonials by prohibiting their purchase or sale and by allowing the agency to seek civil penalties against violators.

The final rule, 16 CFR Part 465: Trade Regulation on the Use of Consumer Reviews and Testimonials, follows a proposed rule issued in June 2023 and an informal hearing on the proposal that was held in February.… Continue Reading

We recently reported that on August 15, 2024 Solo Funding, Inc. (“Solo”) filed a motion to dismiss in its entirety an enforcement complaint brought by the CFPB against Solo (a company that facilitates peer-to-peer small dollar lending) in Federal District Court for the Central District of California (Los Angeles). The motion to dismiss was predicated in part on Solo’s argument that since September, 2022, the CFPB has been unlawfully funded by the Federal Reserve Board because the Federal Reserve System incurred losses starting then.… Continue Reading

In connection with its guaranteed home loan program, the Department of Veterans Affairs (VA) announced in Circular 26-24-17 requirements when a party assuming a VA guaranteed loan in connection with the purchase of a home also obtains a secondary mortgage to help finance the purchase.  The VA notes that a VA guaranteed home loan, other than for repairs, alterations, or improvements, must be secured by a first lien and that when a party assuming an existing VA loan also obtains secondary financing, if the secondary loan is not processed correctly it can jeopardize the VA guaranteed home loan’s first lien position.… Continue Reading

The Introduction to the Complaint which was filed by the CFPB on May 17, 2024 against Solo Funding, Inc. in the United States District Court for the Central District of California – Western Division Los Angeles (Judge R. Gary Klausner) describes the CFPB’s claims as follows:

INTRODUCTION

  1. The Consumer Financial Protection Bureau (“Bureau”) brings this action under §§ 1031, 1036(a), 1054, and 1055 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C.
… Continue Reading

Unsigned Terms and Conditions found in a preprinted car rental jacket are part of the contract between the parties under Florida, Arizona and Colorado law because they were properly incorporated by reference into the signed rental receipt, the 11th Circuit Court of Appeals ruled Thursday.

The case, Calderone v. Sixt Rent a Car, stems from allegations that Sixt did not follow the Terms and Conditions in its rental jacket when charging renters for auto repairs. … Continue Reading

The FTC has shut down Michigan-based Financial Education Services, a credit repair company that the agency says actually was a large pyramid scheme,

If approved by a federal judge in the Eastern District of Michigan, the settlement also will return $12 million to consumers harmed by the company, the FTC said.… Continue Reading

The CFPB and state regulators and legislators have medical debt in their crosshairs. In this episode, we’re joined by Chris Eastman, CEO of the Pendrick Group, a Cerberus portfolio company that specializes in financial services solutions for healthcare companies. We discuss the differences between medical debt and other types of debt, as well as how states have been regulating medical debt including the collection of medical debt.… Continue Reading