On November 15, 2018, in response to a November 7, 2018 letter from Republican Senators, FDIC Chairman Jelena McWilliams announced that the FDIC has engaged outside counsel to investigate the Obama-era Operation Choke Point, under which the FDIC and other government agencies pressured banks not to do business with payday lenders.… Continue Reading

The CFPB has filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in The Otoe-Missouria Tribe of Indians et al. v. New York Department of Financial Services et al., a case stemming from New York’s concerted crackdown on the online payday lending industry.  The brief, which supports the DFS, has not yet been posted on the CFPB’s website.… Continue Reading

In the latest chapter of its “comprehensive effort to prevent consumer harm in the debt-settlement industry,” the CFPB has announced the settlement of an enforcement action brought against “a leading debt-settlement payment processor” and its CEO and owner.  In its complaint, the CFPB alleged that the defendants had violated the Telemarketing Sales Rule by assisting and facilitating the charging of unlawful advance fees by debt-relief companies. … Continue Reading

On September 26, the CFPB issued a 10-page order denying a petition filed jointly by three tribal payday lenders that asked the CFPB to set aside the civil investigative demands (CIDs) the lenders received from the CFPB.  The order describes the lenders as “limited liability companies organized and chartered under the laws of federally recognized Indian tribes,” with each lender “created by resolution of its respective tribe in or about 2011” and “wholly owned by that tribe.” … Continue Reading

Christopher L Peterson, the Associate Dean for Academic Affairs and Professor of Law at the S.J. Quinney College of Law of the University of Utah, has taken a leave of absence to become (as of yesterday) an “Enforcement Analyst” at the CFPB. Professor Peterson is best known for his articles, speeches and expert testimony attacking the Mortgage Electronic Registration System (MERS).… Continue Reading