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Internet Lenders

Ballard Spahr LLP

DC Attorney General files suit against app-based lender EarnIn

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The Attorney General for the District of Columbia has filed suit against ActiveHours Inc., doing business as EarnIn, alleging that the app-based lender deceptively marketed and provided illegal high-interest loans to more...more

Ballard Spahr LLP

FTC files complaint against online cash advance app Dave

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The FTC has filed a complaint against the online cash advance app, Dave, charging that the company used misleading marketing to deceive consumers about the amount of its cash advances and charged consumers undisclosed fees...more

Ballard Spahr LLP

CFPB alleges dark patterns in suit against fintech peer-to-peer lender

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On May 17, 2024, the Consumer Financial Protection Bureau (“CFPB”) filed suit against an online lending platform, alleging, among other things, the use of dark patterns to induce consumers to pay tips and donations,...more

Orrick, Herrington & Sutcliffe LLP

Online lender asks Supreme Court to review ALJ ruling

A Delaware-based online payday lender and its founder and CEO (collectively, “petitioners”) recently submitted a petition for a writ of certiorari challenging the U.S. Court of Appeals for the Tenth Circuit’s affirmation of a...more

Mayer Brown

Iowa Targets Out-of-State Bank Partner for Usury, Shedding Light on State’s Interpretation of DIDMCA Opt-Out

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In December, the State of Iowa and the Iowa Division of Banking entered into an Assurance of Discontinuance (“AOD”) with Transportation Alliance Bank, Inc. (the “Bank”) settling claims that the Bank charged usurious rates of...more

Cozen O'Connor

The State AG Report – 2.10.2022

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Here are last week’s curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: Baby Food Manufacturer Agrees to Reduce...more

Cozen O'Connor

Online Lender Settles Allegations of Charging Usury Interest and Operating Without a License

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District of Columbia AG Karl Racine reached a settlement with online lender Elevate Credit, Inc. to resolve allegations it used misleading tactics to market loans with unlawfully high interest rates to consumers in violation...more

Goodwin

CFPB Files Suit Against Online Lender for Alleged Violations of Military Lending Act

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On December 4, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against an online lender that offers single-payment and installment loans to consumers for alleged violations of the Military...more

Hudson Cook, LLP

New York DFS and Other Regulators Launch Investigation into Payroll Advance Industry

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On August 6, 2019, the New York Department of Financial Services Superintendent Linda A. Lacewell announced that the DFS will lead a multistate investigation into the payroll advance industry and allegations of unlawful...more

Hudson Cook, LLP

What's Old is New Again: The Future of Bank Partnership Programs from Small Dollar Installment Loans to Mortgages to Everything

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Bank partnerships allow banks to offer loans to consumers and businesses by leveraging the resources of non-bank entities. The relationships between banks and their non-bank entity partners have existed for many years. In the...more

Goodwin

CFPB Announces $3.2 Million Settlement with Online Payday Lender

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On January 25, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an online lender that extends unsecured payday and installment loans, as well as lines of credit,...more

Ballard Spahr LLP

Minnesota federal court decision is warning to lead generators

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A Minnesota federal district court recently ruled that lead generators for a payday lender could be liable for punitive damages in a class action filed on behalf of all Minnesota residents who used the lender’s website to...more

Ballard Spahr LLP

State AGs file amicus brief in Fourth Circuit case involving use of sovereign immunity by tribal lenders to defeat state law...

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A coalition of 14 state Attorneys General and the D.C. Attorney General have filed an amicus brief with the U.S. Court of Appeals for the Fourth Circuit in Williams v. Big Picture Loans in which a tribal lender and its tribal...more

Troutman Pepper

True Lender: A Potential Ready Remedy

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Online lenders continue to be plagued by “true lender” legal issues, including lawsuits from state attorneys general and private litigants challenging the named lender in loans made through online lenders’ partnerships with...more

Ballard Spahr LLP

Court stays CFPB payday loan rule compliance date

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This week, the court reversed course in the lawsuit filed by two industry trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule). ...more

Ballard Spahr LLP

Baptist Church Seeks to Intervene In CFPB Payday Rule Lawsuit

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On September 19, 2018, the Georgia based Cooperative Baptist Fellowship (the “Fellowship”) filed a motion to intervene as a defendant in a case filed by the Community Financial Services Association of America Ltd. and the...more

Ballard Spahr LLP

CFPB seeks extension to respond to trade groups’ preliminary injunction motion in lawsuit challenging payday loan rule

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The CFPB is asking the Texas federal district court to give it a 45-day extension to respond to the preliminary injunction motion filed by two trade groups in their lawsuit challenging the CFPB’s final payday/auto...more

Ballard Spahr LLP

Trade groups challenging CFPB’s payday loan rule file preliminary injunction motion

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The two trade groups that unsuccessfully attempted to obtain a stay of the August 19, 2019 compliance date for the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) have now filed a Motion for...more

Ballard Spahr LLP

CFPB and trade groups file status report in industry lawsuit challenging payday loan rule

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On August 7, the Texas federal court hearing the lawsuit filed by two trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) denied the trade groups’ motion for...more

Robins Kaplan LLP

Your Daily Dose Of Financial News

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Last Friday, the White House asked the SEC to “consider eliminating requirements that publicly traded companies post quarterly earnings reports.” Such disclosures, however, are required by federal securities law, so they’re...more

Ballard Spahr LLP

CFPB settles lawsuit against online payday lenders

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The CFPB announced that it has settled a lawsuit that it filed in 2014 in a Missouri federal district court alleging that the defendants engaged in unlawful online payday lending schemes.  ...more

Ballard Spahr LLP

Court denies motion for reconsideration filed by plaintiffs in industry lawsuit challenging CFPB payday loan rule

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A Texas federal court has denied the motion for reconsideration filed by the trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule)....more

Ballard Spahr LLP

Consumer advocacy groups ask to participate as amicus to oppose motion for reconsideration of plaintiffs in industry lawsuit...

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The four consumer advocacy groups that filed an amicus brief opposing the joint motion filed by the CFPB and two trade groups seeking a stay of the compliance date for the CFPB’s final payday/auto title/high-rate installment...more

Ballard Spahr LLP

CFPB files response supporting motion for reconsideration of plaintiffs in industry lawsuit challenging CFPB payday loan rule

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The CFPB has filed a response in support of the motion for reconsideration filed by the trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule)....more

Ballard Spahr LLP

Court stays lawsuit challenging CFPB payday loan rule but not compliance date

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A Texas federal court has granted the stay of the lawsuit filed by two trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) requested in a joint motion filed by the trade...more

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