Welcome to Hudson Cook Insights - a collection of articles written each month by the attorneys of Hudson Cook, LLP, in an effort to keep their clients and other compliance professionals informed about current trends and developments in consumer credit finance that will affect the way they do business.
Almost one year ago, Kathy Kraninger was sworn in as the Consumer Financial Protection Bureau's second permanent Director. The Bureau's first Director, Rich Cordray, was known first and foremost for his aggressive law enforcement. After Cordray, the Bureau was run by Acting Director Mulvaney, and CFPB enforcement swung the other way: pending investigations ground to a halt, few new investigations were opened, and small-dollar settlements were reached with what some called the "Mulvaney discount." article continued
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 online lending. The investigation focuses on whether companies are in violation of state banking laws, including usury limits, licensing laws and other applicable laws regulating payday lending and consumer protection laws. article continued
Many steps creditors take in the process of directly or indirectly originating a vehicle finance agreement are designed to protect the creditor in the event its credit risk assessment was off and the consumer defaults. A handful of those steps also help in what for creditors can be a worst-case scenario - when consumers file for bankruptcy, putting the creditors' recovery at risk. A key component to originating vehicle-secured credit is the timing of the creditor's perfection of its lien on the collateral. If the creditor timely perfects its security interest, the creditor enjoys better protections as a secured creditor in a consumer's bankruptcy case. article continued
On April 15, 2019, the Federal Trade Commission and the Office of the Georgia Attorney General presented "Green Lights and Red Flags: FTC Rules of the Road for Business." The program addressed a variety of issues, including hot-button issues in advertising. An attorney with the FTC's Bureau of Consumer Protection and the Office of the Georgia Attorney General's assistant deputy attorney discussed false advertising, a topic applicable to all businesses, including auto dealers. article continued
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