Today's Trends in Credit Regulation

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.

April 2019

Keep the Light On: U.S. Supreme Court Holds that Clear Consent is Required for Classwide Arbitration in Lamps Plus, Inc. v. Varela

By Nora Udell

We have good news from the U.S. Supreme Court for creditors who use arbitration agreements. On April 24, 2019, in Lamps Plus v. Varela,[1] the Supreme Court held in a 5-4 decision that courts may no longer infer from an ambiguous agreement that parties have agreed to classwide arbitration. Rather, there must be clear consent to arbitration on a classwide basis. article continued

Still Beating the Same Drum

By Nicole F. Munro

In February, the U.S. PIRG Education Fund and Frontier Group, two public interest groups, published a paper entitled "Driving Into Debt: The Hidden Costs of Risky Auto Loans to Consumers and Our Communities." The paper criticizes America's dependence on cars, absence of alternative transportation options, and the rise of automobile debt since the Great Recession. It also proffers that auto debt-strapped consumers post-recession are financially vulnerable to another economic downturn. In addition, the paper chastises the auto marketplace for loosening credit standards and "abusive, predatory, and discriminatory auto sales and lending practices." article continued

Courts Contemplate Companies' Ability to Restrict Means of Revoking TCPA Consent

By Michael A. Goodman

The Telephone Consumer Protection Act is notorious. It establishes rigorous consent standards to use an autodialer or a prerecorded message. It gives consumers a private right of action. It imposes ruinous statutory damages. The TCPA itself is silent as to whether consumers have the right to revoke consent once they have provided it. article continued

Don't Assume What a Court Will Assume About Your Contract

By Eric D. Mulligan

It's often difficult to predict how a court will interpret text, whether the text is part of a statute, a regulation, or a contract. Sure, courts have tools to aid their interpretations, but how a court will apply those tools in a specific case is anyone's guess. Fortunately, if it's a contract, you can avoid questions of interpretation by making the terms clear and apparent from the face of the text. Judges can't read minds, so if the text of a contract doesn't reflect your intent, you risk trouble in the event of a dispute. The holder of a mobile home retail installment contract learned this lesson the hard way. article continued

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Arbitration Opt-Out?   March 2019
Auto Direct Lending on the Upswing   December 2018/January 2019

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