Usury

Axos Bank--More Sketchiness?

07/27/23

The Washington Post has a big piece up about Axos Bank being the lender-of-last-resort for Donald Trump. But those us who work in the consumer finance space, know of Axos as a notorious bank partner in rent-a-bank arrangements.

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The New Usury

02/03/23

I have a new paper up on SSRN. It's called The New Usury: The Ability-to-Repay Revolution in Consumer Finance. It's a paper that's been percolating a while--some folks might remember seeing me present it (virtually) at the 2020 Consumer Law Scholars Conference, right as the pandemic was breaking out. Here's the abstract:

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Impact of the Illinois Predatory Loan Prevention Act

01/15/23

In 2021 Illinois passed its Predatory Loan Prevention Act (PLPA), which imposes a 36% military APR (MAPR) cap on all loans made by non-bank or credit union or insurance company lenders. Not surprisingly, the law has not been popular with higher cost lenders who either have to change their offerings, cease doing business in Illinois, or figure out some way to team up with a bank that won't run afoul of the law's anti-evasion provision. 

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Massachusetts Throws in the Towel with Credit Acceptance Corporation

09/07/21

In 2020 the Massachusetts Attorney General brought one of the most significant consumer finance cases in years, a suit against subprime auto lender Credit Acceptance Corporation.  If you haven’t heard of CAC, it’s a one of the largest subprime auto lenders, and its stock has been one of the hottest growth stocks in recent years.

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Fake Lender Rule Repeal

06/21/21

The House is schedule to take up a vote on repealing the OCC's "Fake Lender Rule," that would deem a loan to be made by a bank for usury purposes as long as the bank is a lender of record on the loan. Under the rule, issued in the waning days of the Trump administration, the bank is deemed to be the lender if its name is on the loan documentation, irrespective any other facts.

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FDIC Valid-When-Made Rule Amicus Brief

04/29/21

I filed an amicus brief today in support of the challenge of eight state attorneys general to the FDIC's Valid-When-Made Rule.

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A Campaign to Opt-Out

04/25/21

Following-up on my prior post, let’s talk more about what’s at stake in this little legislative kerfuffle in the Hawkeye state, as well as how consumer advocates should seize on this moment in a different way.  

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Abolish the OCC?

04/22/21

I've been saying for quite a while that the OCC is a "problem agency" that is seriously in need of reform. An article in Politico today underscores the problem. The OCC—under a civil servant acting Comptroller—has begun an active lobbying campaign to protect its so-called "True Lender" Rule.

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Of Usury, Preemption, and Fancy Stationary Bikes

04/21/21

Greetings, Slipsters! I’m thrilled to be here guest blogging, and I thank the editors for having me. So with that, let me get started…

Usury, preemption, and pandemic fitness are all colliding here in Iowa. 

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Hope for helping the prospective payday loan customer

12/17/19
Short term (payday) loans and high interest consumer installment loans
continue to deplete low income households of micro dollars and their
communities of macro dollars. Although the CFPB seems intent on supporting
the depletions, a good number of states have provided some relief. 
Even in states without interest rate limitations
there are a couple of ideas that can help.

Chris Peterson and Nathalie Martin have provided legal support

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