CFPB’s Expansive Payday Lending Rule: Outlook on the Regulatory Future
Overview:
In June 2016, the Consumer Financial Protection Bureau (CFPB) issued a long-awaited proposed rule regarding payday loans. The rule will require payday lenders to take comprehensive steps to ensure that the consumers have the ability to repay their loans without re-borrowing. When finalized, the rule would alter how lenders make their loans and would probably cause a ruffle in the financial services industry. Thus, it is crucial for consumers, payday lenders and consumer finance attorneys to keep themselves abreast with this lending rule to maximize the opportunities and avoid common pitfalls.
Mr. Stephen Fogdall, Partner, Schnader Harrison Segal & Lewis LLP will help the audience understand the fundamentals as well as recent developments regarding the latest and significant issues surrounding CFPB's Expansive Payday Lending Rule. Mr. Fogdall will also offer best practices in developing and implementing effective risk mitigation strategies while ensuring compliance with applicable laws.
Key topics include:
- CFPB Payday Lending Rule - An Overview
- Significance and Challenges
- Possible Implications and Pitfalls
- Potential Liability for Lenders
- The Full-Payment Test
- Principal Payoff Option
- Long-Term Lending Options
- Debit Attempt Cutoff
- Latest Regulatory Developments
- Best Compliance Practices
Agenda:
Stephen Fogdall, Partner
Schnader Harrison Segal & Lewis LLP
- Overview of Consumer Financial Protection Bureau
- Power of CFPB Over Payday Lenders
- Delaware-incorporated brick-and-mortar lenders
- Internet lenders
- State regulatory authorities
- PHH Corp. v. CFPB: Effect on Bureau’s Status
- D.C. Circuit panel finds the for-cause limitation on presidential authority to remove the Bureau’s director unconstitutional.
- Case is under en banc review, leaving the Bureau’s current status as an independent agency in place for now. It’s future structure is uncertain.
- Some uncertainty whether payday lending rule will take effect
- Payday Lending Rule Analyzed
- Lending Products Targeted
- Payday and other short-term credit products
- High-cost installment loans
- Proposed Protections
- Full-payment test
- Principal payoff option for certain short-term loans:
- Less risky longer-term lending options
- Debit attempt cutoff
- CFPB’s Proposed Ban on Class Action Waivers in Consumer Financial Contracts
- Rule would apply to payday loan agreements
- Restrictions on arbitration for dispute resolution
- Lending industry opposition efforts
Who Should Attend:
- Consumer Finance Attorneys
- Chief Financial Officers
- Payday Loan Consultants
- Payday Lenders
- Installment Lenders
- Auto Title Lenders
- Financial Reporting Managers
- Finance Managers
- Compliance Officers
- Other Related/Interested Professionals
Stephen A. Fogdall is a partner in the Philadelphia office of Schnader Harrison Segal & Lewis LLP, and serves as Co-Chair of Schnader’s Financial Services Litigation Practice Group. His practice focuses on defending individual and class action claims under consumer financial laws and fair lending laws. He authored Overview of the Federal Regulation of Fair Lending, a volume in Bloomberg BNA’s Banking Practice Portfolio Series. He has also written numerous other articles on financial services issues for publications such as the Real Estate Finance Journal, Bloomberg Law Reports, and BNA’s Class Action Litigation Report.
Course Level:
Intermediate
Advance Preparation:
Print and review course materials
Method of Presentation:
On-demand Webcast
Prerequisite:
Experience in financial services law
Course Code:
145886
NASBA Field of Study:
Finance - Technical
NY Category of CLE Credit:
Areas of Professional Practice
Total Credit:
1.0 CLE
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About Schnader Harrison Segal & Lewis LLP
Schnader's team of outstanding lawyers serves the complex litigation and transactional needs of both long established and newly emerging businesses, including those doing business internationally and in cyberspace. We also provide wealth management and an array of personal legal services to individuals.
Website: http://www.schnader.com/
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