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Cadwalader, Wickersham & Taft LLP

UK Supreme Court Delivers Landmark Ruling in the Motor Finance Commissions Litigation

On 1 August 2025, the UK Supreme Court delivered its much anticipated judgment on the appeal  from the Court of Appeal’s decision in the UK motor finance commission litigation — being the joined cases of Johnson v. FirstRand...more

Hogan Lovells

Johnson v FirstRand Unpacked

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On 1 August 2025, the Supreme Court handed down its Judgment in the conjoined appeals of Johnson, Wrench and Hopcraft (the Judgment). The case concerned liability arising from the payment of commission by lenders to motor...more

Akin Gump Strauss Hauer & Feld LLP

After the Supreme Court Judgement – What’s Next for Motor Finance Claims in the UK?

The types of consumer credit arrangements at issue in all of the relevant motor finance cases are “three-cornered” transactions. Motor dealers would offer a car for sale, which a member of the public would then see and wish...more

Latham & Watkins LLP

UK Supreme Court Hands Down Combined Judgment Affecting Consumer Finance Sector

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The judgment brings clarity regarding the fiduciary duty and unfair relationships. The consumer finance sector now awaits the FCA’s plans for a new redress scheme covering commission arrangements....more

A&O Shearman

BNPL UK statutory instrument partially in force

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The UK statutory instrument (The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025) implementing the necessary legislative changes for progressing buy-now, pay-later (BNPL) regulation...more

Mayer Brown

California Senate Bill 784 Builds Out Solar and Home Improvement Financing Regulations

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A bill that would substantially expand solar and home improvement financing requirements is making its way through the California legislature. Senate Bill 784 (“SB 784”) passed the California Senate on June 2, and is now...more

Sheppard Mullin Richter & Hampton LLP

Louisiana and Connecticut Advance Earned Wage Access Laws

Louisiana and Connecticut recently passed legislation establishing regulatory frameworks for earned wage access (EWA) providers. Connecticut’s SB 5140 passed the legislature on June 4 and awaits Governor Ned Lamont’s...more

Sheppard Mullin Richter & Hampton LLP

Nevada Enacts Law Allowing Remote Licensing for Internet Consumer Lenders

On May 28, Nevada Governor Joe Lombardo approved SB 437, creating a new framework for internet-based consumer lenders that lend to Nevada residents. The law defines an “Internet consumer lender” as any entity that exclusively...more

Orrick, Herrington & Sutcliffe LLP

District court finds communicating digitally enough to hold defendants liable for doing business in state

On May 29, the U.S. District Court for the Middle District of North Carolina denied a motion to dismiss an action filed against several finance companies accused of violating North Carolina’s consumer protection laws. The...more

Orrick, Herrington & Sutcliffe LLP

Nevada regulates consumer lenders doing business remotely

On May 28, the governor of Nevada approved SB 437, establishing requirements for consumer lenders operating outside the state over the internet. Under the new law, an “Internet consumer lender” is defined as an entity that...more

Orrick, Herrington & Sutcliffe LLP

CFPB ceases special supervision against installment lender

On May 22, an installment lender disclosed in a securities filing that the CFPB recently withdrew a 2023 order designating the company for supervision. As previously covered by InfoBytes, the CFPB claimed special oversight...more

Troutman Pepper Locke

Welcoming a New Payment Pro: Jason Cover Joins the Payments Pros Podcast — Payments Pros – The Payments Law Podcast

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In this episode of Payments Pros, Carlin McCrory introduces Jason Cover as a new co-host. Jason, a partner in Troutman Pepper Locke's Consumer Financial Services practice, brings extensive knowledge in consumer lending and...more

McGlinchey Stafford

Court Finds No TILA Violation for Not Providing TILA Disclosures During Pre-Approval Process

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In a recent case, the United States District Court for the District of Connecticut granted a motion to dismiss, finding that the Defendant had no obligation to provide disclosures under the Truth in Lending Act (TILA) during...more

Orrick, Herrington & Sutcliffe LLP

CFPB seeks withdrawal from auto finance suit

On April 24, the CFPB filed a memorandum in support of a consent motion to withdraw as a plaintiff in its enforcement action in the U.S. District Court for the Southern District of New York. The case involves the CFPB and the...more

Cadwalader, Wickersham & Taft LLP

Broker Dealer Commissions: UK Supreme Court Hears Appeal in Johnson, Wrench, Hopcraft v Close Bros. and FirstRand

Executive Summary - The UK Supreme Court last week heard arguments in the joined test cases of Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd and Hopcraft v Close Brothers Ltd. At issue were findings by the...more

Orrick, Herrington & Sutcliffe LLP

New York Fed report on credit insecurity highlights regional disparities and improvements

Recently, the New York Fed’s released a report titled, “Credit Insecurity in the United States, 2018-2023,” which examined the state of credit security across the U.S. over a five-year period. It introduced the Credit...more

Sheppard Mullin Richter & Hampton LLP

California DFPI Reaches Settlement with Lender Over Crypto-Backed Loans

On December 23, 2024, the California Department of Financial Protection and Innovation (DFPI) announced a consent order with a lender to resolve its investigation into the company’s crypto-backed lending program, which the...more

Orrick, Herrington & Sutcliffe LLP

CFPB voluntarily dismisses enforcement action with prejudice

On February 21, the CFPB voluntarily dismissed its case against an online lending platform, ending a suit filed in May 2024. As previously covered by InfoBytes, the CFPB sued the platform last spring, alleging it violated the...more

Cadwalader, Wickersham & Taft LLP

UK Supreme Court Rejects Treasury’s Intervention in Motor Finance Claims

As set out in our previous Cabinet News & Views issue of December 2024 here, the Court of Appeal has found that some commissions paid to car dealerships for arranging loans were potentially unlawful as the loan agreements did...more

Hudson Cook, LLP

Despite Noble Intentions, Va. Usury Bill Is Bad For Consumers

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In the last few years, state legislatures have enacted legislation to curtail online bank lending in response to advocacy efforts by consumer activists. Such programs, in which nonbank financial technology companies...more

Sheppard Mullin Richter & Hampton LLP

CFPB Announces Plans to Regulate Nonbank Personal Loan Providers

On January 8, the CFPB announced its intent to pursue rulemaking that would allow the agency to oversee nonbank personal loan lender. The announcement came in response to a petition filed in September 2022 by the Consumer...more

Bennett Jones LLP

Lower Criminal Interest Rate Now in Effect

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As detailed in our prior blog the Government of Canada proposed amendments to lower the criminal interest rate to an annual percentage rate (APR) of 35 percent (the prior criminal interest rate, being an effective rate of 60...more

Sheppard Mullin Richter & Hampton LLP

CFPB Takes Action Against Owners of Small Dollar Lender for Hiding Money to Avoid Penalties

On June 17, the Consumer Financial Protection Bureau filed an order to resolve its 2023 lawsuit against the former CEO of a short-term small dollar lender and his spouse, in connection with a series of fraudulent transfers...more

Sheppard Mullin Richter & Hampton LLP

CFPB Sues Fintech for Deceptive Practices Surrounding Tipping Service

On May 17, the CFPB filed a lawsuit against a California-based fintech that operates a nationwide website and mobile-application based peer-to-peer lending platform through which consumers can obtain small-dollar, short-term...more

Ballard Spahr LLP

House Financial Services Committee: “rent-a-bank” hearing on Feb. 5; Director Kraninger to testify on Feb. 6

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On Wednesday, February 5, the House Financial Services Committee will hold the first part of a two-part hearing on “rent-a-bank” structures. The hearing is titled “Rent-A-Bank Schemes and New Debt Traps: Assessing Efforts to...more

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