News & Analysis as of

Loans Penalties Lenders

Ballard Spahr LLP

CFPB reaches settlement with FirstCash in connection with alleged MLA Violations

Ballard Spahr LLP on

The CFPB has reached a settlement in its lawsuit against FirstCash, Inc. and its 19 subsidiaries alleging violations of the Military Lending Act (MLA). The parties have jointly filed a stipulated final judgment and proposed...more

Sheppard Mullin Richter & Hampton LLP

CFPB Orders Pawn Lender to Pay $9 Million for Alleged Military Lending Act Violations

On July 11, 2025, the Consumer Financial Protection Bureau (CFPB) announced a proposed $9 million settlement resolving its November 2021 lawsuit against a national pawn lender and its subsidiaries. The company and its...more

Orrick, Herrington & Sutcliffe LLP

CFPB proposes loan company pay $9M for military lending violations

On July 11, the CFPB announced its proposed final judgment and order against an operator of retail pawnshops that allegedly made loans to active-duty servicemembers and their dependents at a rate greater than allowed by the...more

Sheppard Mullin Richter & Hampton LLP

CFPB and Pawn Store Operator to Settle MLA Suit

On May 30, the CFPB and a national pawn store operator filed a joint status report in the U.S. District Court for the Northern District of Texas announcing that they have reached an agreement to resolve a 2021 Bureau lawsuit...more

Sheppard Mullin Richter & Hampton LLP

Washington State Passes New “True Lender” Legislation

On March 25, Washington State became the latest in a growing list of jurisdictions to introduce a “true lender” law with the passing of bill SB 6025. The legislation, similar to laws in other states would characterize a...more

A&O Shearman

A penalty for your thoughts: default interest rate found to be penal

A&O Shearman on

The High Court has found a clause that imposed default interest of 4% per month on a defaulting party to be a penalty and therefore unenforceable....more

Rivkin Radler LLP

NYS Offers Forbearance to Borrowers, NYC Allows Penalty Waivers

Rivkin Radler LLP on

On March 21, 2020, Governor Cuomo issued Executive Order 202.9, which is in effect through April 20, 2020. The order provides financial relief to consumers and businesses with outstanding bank loans....more

Foley & Lardner LLP

Final Rule Issued on Ability-to-Repay/Qualified Mortgages

Foley & Lardner LLP on

The Consumer Financial Protection Bureau (CFPB) issued its final ability to repay rule (Rule) on January 10, 2013. The Rule implements ability-to-repay provisions of the Dodd-Frank Act, which imposed strict underwriting...more

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