Payday Loans, Small Dollar Lending, and Litigation and Enforcement Trends Related toCompanies Offering Advancements on Settlement Payouts to Consumers

July 25, 2017 10:55am

Sabrina M. Rose-Smith
Partner
Goodwin Procter LLP

  • CFPB’s payday loan rule
    • determining extent of ability of creditors to provide credit
    •  focus on APR but realizing overhead costs for lenders
  • Companies offering payment in exchange for purchasing piece of settlement when and if the case settles
    • Is this product considered a loan extension of credit or a purchase of an asset
    • Does the CFPB have authority to regulate and enforce in this area?
    • CFPB v. RD LEGAL