Alunda Edmonds – Consumer Financial Services Watch

Payday Loan Rule Is Officially A Go—Or Is It?

Jan 16 2018

By Jennifer Janeira Nagle and Robert W. Sparkes III

Today, January 16, 2018, officially marks the effective date of the Consumer Financial Protection Bureau’s final rule targeting what it refers to as “payday debt traps” (the “Rule”). As outlined in our previous publications (found here and here), the Rule marks a significant change in the landscape for lenders offering short-term loans or longer-term loans with balloon payments, including payday and vehicle title loans. Looming large is the new requirement that lenders determine a borrower’s ability to repay prior to originating covered loans.

Kristie Kully to speak at NBI Seminar: What the CFPB and FTC Need You to Know—RESPA/TILA, FDCPA and More

May 12 2015

Kristie Kully will participate as a speaker in the National Business Institute Seminar: What the CFPB and FTC Need You to Know—RESPA/TILA, FDCPA, and More, May 14–15, 2014. Kristie will be speaking at the following sessions: “Loan Estimates Under the New Rules,” “Closing Disclosures—Changes You Need to Know,” and “Loan Originator Compensation: What You Need to Know—NOW.”

Five Steps To Data Breach Coverage For Card Issuer Liability

Apr 21 2015

By: Roberta D. Anderson

Target’s recent $19 million settlement with MasterCard underscores very significant sources of potential exposure that often follow a data breach incident. In the wake of any significant breach involving payment cards, such as the Target breach, retailers and other organizations that accept those cards are likely to face — in addition to a slew of claims from consumers and investors — claims from financial institutions seeking to recover their losses associated with issuing replacement credit and debit cards, among other losses.

Client of Blast Fax Solutions Provider Hit with $22 Million TCPA Judgment

Apr 14 2015

By: Joseph C. Wylie II, Molly K. McGinley, Nicole C. Mueller

A new decision once again highlights the dangers that companies face if their independent contractors engage in conduct that violates the Telephone Consumer Protection Act, and highlights the need to monitor contractor compliance with the TCPA. In City Select Auto Sales, Inc. v. David/Randall Assocs., Inc., a federal court in New Jersey recently found a roofing company, David/Randall Associates, liable for $22.4 million under the TCPA for the actions of its blast fax solutions provider, Business to Business Solutions (B2B).

To read the full alert, click here.

U.S. Supreme Court Allows DOL Interpretation on Overtime for Mortgage Loan Officers

Mar 16 2015

By: Thomas H. Petrides, John L. Longstreth

On March 9, 2015, the U.S. Supreme Court held that the U. S. Department of Labor (DOL) could issue a controversial “Administrator’s Interpretation,” which had concluded in 2010 that loan officers in the mortgage banking industry generally do not qualify as exempt from overtime under the administrative exemption of the federal Fair Labor Standards Act (FLSA). The Supreme Court reversed a ruling of the U.S. Court of Appeals for the D.C. Circuit that had struck down the DOL administrative ruling. The Mortgage Bankers Association had challenged the 2010 Interpretation in court, arguing that because the DOL had previously issued an Opinion Letter in 2006 determining that loan officers could generally qualify as exempt from overtime under the administrative exemption, the DOL could not change its prior position without first issuing a written notice and allowing a comment period pursuant to the Administrative Procedure Act. However, the Supreme Court in a 9-0 decision ruled that because the 2006 DOL Opinion Letter was itself merely an interpretation of an existing rule and not a new rule with the force and effect of law, DOL could reverse its prior position and issue a new interpretation without a prior notice and comment rulemaking.

Author - Alunda Edmonds