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Tag: “Consumer Financial Protection Act”

Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

A federal court that previously ruled  that the structure of the Consumer Financial Protection Bureau is unconstitutional, while allowing the New York Attorney General to proceed with claims in the same lawsuit, now has reversed course, and dismissed the New York AG’s claims against a litigation funding company accused of scamming 9/11 responders and ex-professional football players. In a September 12 ruling, Judge Loretta Preska dismissed the New York Attorney General’s federal and state law claims against RD Legal Funding over…

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CFPB Sues Pension Factoring Companies Over Misleading Business Practices

CFPB Sues Pension Factoring Companies Over Misleading Business Practices

The Consumer Financial Protection Bureau this month sued a group of pension advance company over allegedly misleading practices. The CFPB alleges that the companies violated the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B), by representing that their pension advances were not loans, were not subject to lending laws, and “were comparable in cost to, or cheaper than, credit card debt when, in actuality, the pension-advance products were loans, and were subject to interest rates that were substantially…

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Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Court Reinstates Claims Against Attorney in Lawsuit Over Settlement Factoring Practices

Just four months after dismissing all claims against a lawyer who provided independent professional advice for dozens of structured settlement factoring transactions, a federal court reinstated a claim against the lawyer by the Consumer Financial Protection Bureau (CFPB) that has claimed that such transactions involved abusive practices. The CFPB sought leave to file an amended complaint that alleged that structured settlement payees were unaware that attorney Charles Smith was, in fact, a lawyer – and therefore they lacked the intent…

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Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

A federal district court this month dismissed four of five counts of a complaint brought by the Consumer Financial Protection Bureau against a structured settlement factoring company’s allegedly abusive business practices. The ruling by District Judge J. Frederic Motz of the U.S. District Court for the District of Maryland, in Consumer Fin. Proc. Bureau v. Access Funding, L.L.C., Civil No. 16-03759-JFM, 2017 U.S. Dist. LEXIS 149519 (D.Md. Sept. 13, 2017), lets stand one count concerning allegedly illegal business practices arising…

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Court Rules Against Pension Factoring Company That Challenged Consumer Financial Protection Bureau’s Authority, Investigation

Court Rules Against Pension Factoring Company That Challenged Consumer Financial Protection Bureau’s Authority, Investigation

A federal court has upheld the constitutionality of the Consumer Financial Protection Board’s structure, and further found that the CFPB’s investigation into a pension factoring company’s business practices was neither overboard nor outside the CFPB’s jurisdiction. In Consumer Fin. Prot. Bureau v. Future Income Payments, LLC, Case No. SACV 17-00303-JLS ((SSx), 2017 U.S. Dist. LEXIS 80074 (C.D. Cal. May 17, 2017), Judge Josephine L. Staton of the federal district court for the Central District of California granted the CFPB’s petition…

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Factoring Company’s Identity Revealed: Future Income Payments Is the ‘John Doe’ Company Fighting the Consumer Financial Protection Board

Factoring Company’s Identity Revealed: Future Income Payments Is the ‘John Doe’ Company Fighting the Consumer Financial Protection Board

A company that has been fighting the Consumer Financial Protection Bureau’s jurisdiction and authority to issue a civil investigative demand – and did so under the name “John Doe Company” because it said its business would be harmed if its identity were known – has now been revealed. The company is Future Income Payments, LLC. And the CFPB issued its civil investigative demand to look into whether the company violated any federal law in connection with transactions involving pensions, annuities,…

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Federal Appeals Court’s Dissenting Judge Says CFPB Is Unconstitutional, Would Have Ruled For Secondary Market Company

Federal Appeals Court’s Dissenting Judge Says CFPB Is Unconstitutional, Would Have Ruled For Secondary Market Company

As described here, in a 2-1 opinion, the U.S. Court of Appeals for the District of Columbia denied a motion for an injunction, pending appeal, against the Consumer Financial Protection Bureau (CFPB) by a secondary insurance market company, and rejected that company’s argument that the CFPB’s structure violates the U.S. Constitution. The unidentified company had filed a lawsuit (John Doe Company v. Consumer Financial Protection Bureau, et al., Civil Docket No. 1:17-cv-00049-RC, U.S. Dist. Ct., District of Columbia) against the Consumer…

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D.C. Circuit Court of Appeals Rejects Secondary Market Company’s Constitutional Challenge to Consumer Financial Protection Bureau

D.C. Circuit Court of Appeals Rejects Secondary Market Company’s Constitutional Challenge to Consumer Financial Protection Bureau

A federal appellate court has rejected a secondary market company’s constitutional challenge to the federal  Consumer Financial Protection Bureau’s authority to investigate the company. The opinion of the U.S. Court of Appeals for the District of Columbia in Doe Co. v. Cordray, No. 17-5206 (D.C. Cir. Mar. 3, 2017) – decided with two judges in the majority, and one dissenting – is one of the latest developments in multiple fronts alleging that the actions or authority of the Consumer Financial…

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J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

J.G. Wentworth Cites New Opinion to Argue CFPB Lacks Authority

As described in previous Secondary Insurance Market Blog posts (such as those here, here and here), the Consumer Financial Protection Bureau has sought to investigate structured settlement factoring company J.G. Wentworth, which argued that the CFPB lacked authority to conduct such an investigation. In the lawsuit brought by the CFPB to enforce its investigation, J.G. Wentworth recently cited a new opinion as supplemental authority in its arguments. In a filing with the court last week, J.G. Wentworth cited CFPB v. Harbour…

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More News Reports Describe CFPB Lawsuit, Reactions

More News Reports Describe CFPB Lawsuit, Reactions

The Consumer Protection Financial Bureau’s lawsuit against factoring company Access Funding, alleging violations of federal law in connection with structured settlement factoring transactions between the company and Maryland residents, has led to a number of news reports and other articles describing both the litigation and some reactions. Here is a sample of the media pieces and what they say: Federal Watchdog Sues Md. Company Over Lead Paint Settlements, Baltimore Sun (available here), which reports on how the CFPB lawsuit followed an…

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