Author: adminhc

HIGHLIGHTS: CASE SUMMARY: On October 17, 2024, the CFPB filed a lawsuit against the Companies claiming violations of the CFPA, TILA, and Regulation Z. The CFPB alleged that the Companies engaged in deceptive acts and practices by representing that it had vetted its partner schools for quality, verified return-on-investment metrics even where the Companies had… Continue reading Hudson Cook Enforcement Alert: CFPB Settles with Online Student Lender for Alleged Deceptive Marketing Practices and Miscalculated and Undisclosed Annual Percentage Rates

On November 4, 2024, the Federal Trade Commission sued Seek Capital, LLC, and Roy Ferman, Seek’s founder and CEO, for allegedly violating several federal laws, including Section 5 of the Federal Trade Commission Act (“FTC Act”), the Telemarketing and Consumer Fraud and Abuse Prevention Act, the Telemarketing Sales Rule (“TSR”), and the Consumer Review Fairness Act… Continue reading Federal Trade Commission Sues Business Financing Company for Allegedly Misleading Consumers

The advertising, sale, and financing of products ancillary to a credit transaction have been areas of regulatory scrutiny for years. Likewise, the always crucial question of what constitutes a cost of credit to be included in the finance charge has only grown in importance. A recent case before a federal district court touched on both… Continue reading Court Allows Claim that Purchase of Ancillary Product Was Condition of Credit to Proceed, Based on Alleged Verbal Representation

On October 9, 2024, the U.S. Court of Appeals for the Fifth Circuit heard oral arguments on the challenge by the National Automobile Dealers Association and the Texas Automobile Dealers Association (“Petitioners”) to the Federal Trade Commission’s Combating Auto Retail Scams Trade Regulation Rule. The three-judge panel was comprised of Judges Patrick E. Higginbotham and… Continue reading To Be or Not To Be: Challenge to the FTC’s CARS Rule Is Ripe for the Fifth Circuit to Decide

CounselorLibrary is proud to offer BizFinLaw, a legal reporter to help providers of business finance navigate the evolving landscape of state and federal law. Subscribers of BizFinLaw can stay up to date on legal developments that impact the small business finance industry, including: BizFinLaw is powered by Hudson Cook, LLP’s deep knowledge of consumer financial services laws and where… Continue reading Featuring BizFinLaw

Eric L. Johnson The Consumer Financial Protection Bureau has long required that an institution within the scope of its supervision or enforcement authority, including both depository institutions like banks and non-depository consumer financial services companies like auto finance companies, develop and maintain a written, sound, and robust compliance management system, or CMS, that is integrated… Continue reading Pay Now or Pay Later, But Paying Later May Cost a Whole Lot More

Eric D. Mulligan One of the first things I learned in my first-year contracts class in law school was the Uniform Commercial Code. Specifically, the class covered Article 2 of the UCC, which governs sales of goods, including motor vehicles. Though the UCC is (oddly enough) not entirely uniform among states, the differences among different… Continue reading When Is a Sale Final? Not Always as Early as You’d Like It to Be

Eric L. Johnson, Justin B. Hosie and Kristen Yarows In this month’s article, we share some of our top “bites” for the prior and current month covered during the October 2024 webinar. Bite 10: CFPB Publishes Servicemember Affairs Annual Report On September 24, 2024, the CFPB published its annual report on the top financial concerns facing servicemembers, veterans, and military… Continue reading CFPB Bites of the Month – October 2024 – (Don’t Fear) The Reaper CFPB

Chuck Dodge, Jason Esteves and Gabriela Chambi The United States is a big melting pot of cultures, ethnicities, and languages. This diversity is great for business, but if you are advertising that your business speaks “Spanish” or that your business can assist customers in multiple languages, do so with care. In certain instances, federal and state laws and… Continue reading Speaking Multiple Languages Is Great for Business, but Do You Know When You Are Required to Provide Translated Documents?

Lucy E. Morris and Taylor A. Krowitz HIGHLIGHTS: CASE SUMMARY: On October 23, 2024, the CFPB filed two separate consent orders, one against the Tech Company and the other against the Bank, alleging violations of the Consumer Financial Protection Act (CFPA) and the Truth in Lending Act (TILA) and its implementing Regulation Z, with regard to their… Continue reading Enforcement Alert from Hudson Cook: CFPB Fines Wall Street Bank and Big Tech Company for Alleged Violations of the CFPA and TILA in Connection with Credit Card Marketing and Transaction Disputes