Author: adminhc

Catherine M. “Cathy” Brennan In a case closely watched by players in the asset purchase space, the Colorado Supreme Court ruled that the purchase of a future interest in the litigation proceeds of a tort lawsuit – usually automobile accidents, slip and falls, construction site injuries and medical malpractice – constituted a loan subject to… Continue reading Asset Purchase or Consumer Loan: One State High Court Weighs In

Eric L. Johnson When the Consumer Financial Protection Bureau released its Fall 2015 Rulemaking Agenda in late November, I didn’t have time to delve into it fully. With the December holidays a distant memory, Super Bowl 50 a thing of the past, lots of snow on the ground, and warm spring weather still months away,… Continue reading Looking Ahead

December 15, 2015 | By: Robert Cook, Cathy Brennan, and Kate Fisher, Hudson Cook, LLP A new California law is drawing attention to a much-misunderstood issue – whether California Finance Lenders can pay referral fees to unlicensed ISOs. Effective January 1, 2016, the answer is yes, but only for commercial loans with an annual percentage rate of… Continue reading Can California Lenders Pay Referral Fees to Unlicensed Brokers?

L. Jean Noonan Just before Thanksgiving, Capitol Hill lobbed a bomb at the Consumer Financial Protection Bureau. The explosion was heard across Washington, and the aftershocks were felt throughout the indirect auto finance world. On November 24, the House Committee on Financial Services released a 54-page report by its Republican staff, entitled “Unsafe at Any… Continue reading Congressional Staff Report Reveals Sad Inner Workings of CFPB Fair Lending Attack on Dealer Compensation

Nicole F. Munro As if dealers and finance companies didn’t have enough on their compliance plates with the Consumer Financial Protection Bureau, the Federal Trade Commission, state attorneys general, The New York Times, and Elizabeth Warren, along comes a state agency with a new concept in regulation – credit contracts that people can actually understand. OK,… Continue reading Here Come the “Readability” Police

The process of selling and financing vehicles is, as we have noted before, highly regulated. With each step, there are potential land mines just waiting for a careless dealer. One of those pesky land mines is something we lawyers call a “single document” rule. A single document rule requires that all documents, or certain documents,… Continue reading Lots of Pages, But a Single Document

Nicole F. Munro We all knew the Consumer Financial Protection Bureau was coming. But few predicted the pervasive wave of subpoenas and enforcement actions brought by other federal agencies as well as state regulators at the close of 2014. Issued in mid-September, the CFPB’s proposal to oversee larger nonbank auto finance companies was widely expected.… Continue reading Seismic Shift

Thomas B. Hudson Two aliens brought their spaceship down slowly above the California highway, matching their speed to the cars below. Opening the ship’s cargo bay, they positioned themselves over a car traveling below. Activating their magnetic loader, they sucked the car and its two passengers into the cargo bay. Their mission was a simple… Continue reading Spacemen Abduct Regulators!

Thomas B. Hudson The U.S. Department of Justice, the U.S. Attorney’s Office for the Western District of North Carolina, and the North Carolina Department of Justice announced a settlement of the federal government’s first-ever discrimination lawsuit involving “buy here, pay here” auto financing. The settlement, subject to court approval, resolves a lawsuit alleging that Auto… Continue reading Don’t Fence Me In