Pre-CFPB Federal Regulation of Payday Lending

Pre-CFPB Federal Regulation of Payday Lending

Before the enactment associated with the Dodd-Frank Act (the Act), federal enforcement of substantive customer financing guidelines against non-depository payday lenders had generally speaking been limited by civil prosecution by the Federal Trade Commission (FTC) of unjust and misleading functions and methods (UDAP) proscribed by federal legislation. Though it might be argued that unjust techniques had been included, the FTC would not pursue state-law rollover or usury violations. Due to the general novelty of this lending that is tribal, and maybe more to the point due to the tendency of FTC defendants to be in, you will find no reported decisions https://speedyloan.net/title-loans-co about the FTC’s assertion of jurisdiction over TLEs.

The FTC’s many general public (and maybe its very very first) enforcement action against a purported payday that is tribal-affiliated had not been filed until September 2011, if the FTC sued Lakota money after Lakota had tried to garnish customers’ wages without getting a court order, to be able to gather on pay day loans. The FTC alleged that Lakota had illegally unveiled consumers’ debts for their employers and violated their substantive liberties under other federal laws and regulations, including those associated with electronic repayments.Continue reading