Consumer Finance Report

Back to Basics, Continued—CARES Act and PPP Loan Forgiveness

June 15, 2021

At the beginning of the COVID-19 Pandemic when the American economy was in free-fall, Congress passed the Coronavirus, Aid, Relief and Economic Security (“CARES”) Act. This bill allotted $2.2 trillion to provide fast and direct economic aid to the American people negatively impacted by the COVID-19 Pandemic. One of its important features was the Paycheck Protection Program that provided loans to companies that maintained their employees on the payroll (“PPP Loans”). Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— were eligible. Businesses with more than 500 employees were eligible in certain industries.

Rollercoasters are fun… just not when it comes to consumer financial regulation

June 11, 2021

United States: I love rollercoasters! But, the older I get, the more likely I am to end up with my head in a trashcan. As a consumer financial regulatory attorney, the last decade has been a rollercoaster, and my clients are feeling nauseous.

Back to Basics, Continued—Responding to a Consumer Complaint Received Through the CFPB Portal

June 9, 2021

Within the past few months, we have seen an uptick in the number of complaints that consumer finance companies are receiving through the CFPB’s Portal. Recall that the CFPB established the Portal as a complaint reporting system to assist consumers in having their complaints heard by creditors.

Back to Basics, Continued—More About Debt Collection

June 2, 2021

United States: Consumer finance companies and credit sellers spend much time and energy avoiding becoming a third-party debt collector.

Back to Basics, Continued—Equal Credit Opportunity Act Getting a Face Lift???

May 26, 2021

United States: One of the best understood Chapters of the Consumer Credit Protection Act is the Equal Credit Opportunity Act (ECOA).

Back to Basics, Continued—The Holder-In-Due Course Rule Giveth and Taketh Away

May 19, 2021

United States: I have written several times about the Federal Trade Commission Holder-In-Due Course Rule that preserves consumers’ claims and defenses (FTC Rule) and how it impacts “indirect” lending.

Back to Basics, Continued – Responding to Frivolous or Irrelevant Direct Disputes

May 12, 2021

United States:

As we discussed in last week’s post, companies that are “furnishers” of data to consumer reporting agencies (CRAs) have an obligation under the Fair Credit Reporting Act to furnish accurate information to CRAs and correct and update inaccurate information.

Back to Basics, Continued—The Obligation on Furnishers of Consumer Information

May 5, 2021

United States:

Furnishing information to a Credit Reporting Agency (CRA) about the payment performance of one’s customers is a basic duty of a consumer finance office.

Back to Basics, Continued—A Reflection

April 28, 2021

United States:

In today’s blog, I want to note an anniversary milestone, and I want to reflect on the history of Sirote & Permutt, P.C. as a creditor’s rights law firm.