Category Archives: CFPB

Proposed Legislation Would Delay Issuance of CFPB Payday Loan Rules

The CFPB is expected to propose its new payday loan rule next week. The rule is expected to significantly curtail payday loan products that charge more than 36% interest. Legislation recently proposed by South Carolina Representative John Mulvaney would delay the … Continue reading

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Payday Lending: Academics Urge Further Research Rather Than Wholesale Reform

While it seems like a foregone conclusion that the CFPB will soon finalize its upcoming short-term consumer lending regulations, a notable group of academics are urging more research be done before a wholesale reform of the industry. In a post published … Continue reading

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Ignoring Cease and Desist Letters – Just Don’t Do It

Usury law is complex. It is an area of law heavily burdened with obscure exceptions and antiquated nuances. Yet, one point is clear. Do Not Ignore Cease and Desist Letters No matter how clear the case law, sophisticated the compliance … Continue reading

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36% Usury Cap in New MLA Rules Mirrors Maximum Rate in CFPB’s Proposed Payday Regulations

Yesterday, President Obama announced that the Department of Defense is finalizing new rules under the Military Lending Act. The stated goal of these new regulations is to expand restrictions on certain types of consumer credit offered to US service members, … Continue reading

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ITT Appeals to Seventh Circuit – Update

The CFPB has filed its response to ITT’s jurisdictional memo. The Bureau makes two arguments against jurisdiction. First, it argues that ITT’s defense does not fall under the narrow class of important issues that are entitled to interlocutory review. The Bureau … Continue reading

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ITT Appeals to Seventh Circuit – Update

On 4/13/15, Judge Barker of the Seventh Circuit Court of Appeals ordered ITT to file a memorandum explaining why its appeal should not be dismissed for lack of jurisdiction.  The court noted that the case appeared to present nothing more … Continue reading

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Impact of New CFPB Payday Regulations on Existing State Law Uncertain

Industry watchers are interested to know what impact the new CFPB payday regulations will have on existing state payday/usury law.  During a recent budget hearing before a Pennsylvania Senate committee, Acting Pennsylvania Secretary of Banking and Securities Robin Wiessman noted that the forthcoming … Continue reading

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ITT Appeals to Seventh Circuit

CFPB v. ITT Educational Services, Inc., Court of Appeals Docket #: 15-1761 Unsatisfied with the outcome of its motion to dismiss, ITT has appealed to the Seventh Circuit Court of Appeals. ITT’s appellate brief is due May 18, 2015.

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Initial Reactions to CFPB’s Contemplated Payday Regulations Find Potential Issues with Usury Cap Prohibition

As I detailed in a previous post, the CFPB’s recently issued outline of proposed payday reforms could be read to include a usury cap.  If the upcoming regulations were interpreted to include such a cap, they would be in contravention of the … Continue reading

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Monthly Roundup – March 2015

March 2015 began with one of the blog’s more colorful posts, “Oregon Usury Statute Used as Sword Against Buddhist Loan Shark” (and I thought my English Lit degree would go to waste once I became a lawyer…).  Take away – … Continue reading

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