Financial services companies - banks, non-bank lenders and loan servicers, auto finance companies, student loan companies, debt collectors, credit card issuers, non-traditional finance companies, and other market participants - face numerous legal challenges today, including government investigations and enforcement actions, a shifting regulatory landscape, novel civil litigation theories and other litigation risks. Especially as the Consumer Financial Protection Bureau and other regulators issue guidance and promulgate new rules and regulations impacting the consumer finance industry, it is now more critical than ever that corporate counsel stay abreast of these developments and related enforcement and litigation trends in order to manage institutional risks. Recognizing this need, Goodwin's LenderLaw Watch monitors, chronicles and analyzes news and legal issues impacting our clients and the consumer finance industry.

Ninth Circuit Issues Opinion on TCPA ATDS Definition

On September 20, 2018, the Ninth Circuit issued an opinion finding that the Telephone Consumer Protection Act’s (TCPA’s) “automatic telephone dialing system” (ATDS) definition is vague and ambiguous, and interpreting the statutory definition anew.  More specifically, in Marks v. Crunch San Diego, LLC, the court interpreted the TCPA’s ATDS definition…

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Industry Groups Seek Preliminary Injunction to Enjoin CFPB’s Enforcement of the Payday Lending Rule

On September 14, 2018, the Community Financial Services Association of America, Ltd. and the Consumer Service Alliance of Texas (Industry Groups) moved for a preliminary injunction to prevent many of the provisions of the Consumer Financial Protection Bureau’s (CFPB’s) payday lending rule (12 C.F.R. Part 1041) from becoming effective on…

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California Supreme Court Rules that Loans Can be Unconscionable Due to High Interest Rates, Despite Lack of Interest Rate Cap

On August 13, 2018, the California Supreme Court answered a question certified to it by the Ninth Circuit, holding that a loan with a high interest rate can be unconscionable, even if the legislature specifically declined to impose an interest rate cap on loans of that amount.  See De La Torre…

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CFPB Finalizes Changes to Regulation P

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On August 10, 2018 the Consumer Financial Protection Bureau (CFPB) issued a final rule adopting changes to Regulation P to bring the regulation into conformity with its authorizing statute, the Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq. (GLBA).  The rule, which was enacted to reduce regulatory burden on financial…

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Trump Repeals CFPB's Indirect Auto Lending Guidance

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One month after the U.S. Senate and U.S. House of Representatives voted to repeal of the Consumer Financial Protection Bureau’s (CFPB’s) indirect auto lending guidance under a Congressional Review Act challenge, President Trump signed the resolution to make the repeal official on May 21, 2018. The guidance, which Congress and the President have…

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In the Wake of ACA International, Four Cases Follow Suit

On March 16, 2018, the D.C. Circuit issued a long-awaited ruling in ACA International v. FCC, which struck down the Federal Communications Commission’s (FCC’s) expansive interpretation of the Telephone Consumer Protection Act’s (TCPA’s) “automatic telephone dialing system” (ATDS) definition.  As LenderLaw Watch analyzed more fully here, the D.C. Circuit focused…

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House Bill Proposes to Set New Framework for CFPB Regulation

On April 17, 2018, House members Sean Duffy (R-WI) and Ed Perlmutter (D-CO) co-sponsored bi-partisan legislation aimed at providing more certainty to companies subject to the Consumer Financial Protection Bureau’s (CFPB) regulation.  The bill, H.R. 5534, titled the “Give Useful Information to Define Effective Compliance Act” or “GUIDE Compliance Act,”…

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