Unless vetoed by Governor Pritzker, SB 1792 will soon become law and overhaul the state’s consumer finance laws.  After discussing the lenders and loans covered by the 36% APR cap, the types of charges included in the cap, and the penalties for violations, we look at what SB 1792 means for loans made via a bank partnership model, including when an agent or service provider would be considered the lender and the interaction with federal law.

After discussing the pandemic’s impact on 2020 litigation, we share our expectations for 2021, including pandemic-related and other types of claims most likely to be alleged in private litigation and enforcement actions, how litigation could be impacted by possible legislative changes, and the potential implications of a more aggressive CFPB for case resolution. We also discuss two federal appellate decisions of significance to class action defendants.

In Part II of our two-part podcast, we look at the recommendations in the Taskforce’s report concerning the use of principles-based (rather than prescriptive) regulations and CFPB licensing of non-depository institutions providing lending, money transmission or payment services. We share our reactions to the recommendations, consider their practical implications for the industry, and discuss how the CFPB under new leadership may react to the Taskforce’s report.

In Part I of our two-part podcast, after discussing the Taskforce’s goals and background, we look at the recommendations in the Taskforce’s report concerning artificial intelligence, limited English proficiency consumers, and fair lending, share our reactions to the recommendations, and consider the recommendations’ practical implications for the consumer finance industry.

Ballard Spahr attorney Alan Kaplinsky hosts the conversation with Prof. Zywicki and Chris Willis, Co-Chair of Ballard Spahr’s Consumer Financial Services Practices Group.

After reviewing what EWA is and the different models used for EWA programs, we discuss federal and state regulatory issues raised by such programs, the CFPB’s advisory opinion on such programs and the questions it raises, how a change in CFPB leadership under the Biden Administration could impact such programs, and the future of such programs. Ballard Spahr attorney Alan Kaplinsky hosts with Mr. Silverman and James Kim, co-leader of the firm’s Fintech and Payments Team.

After reviewing the proposal’s statutory basis, coverage, and operative requirements, Mr. Court explains the basis for BPI’s position that the proposal is inconsistent with how banking is regularly conducted and will undermine rather than promote safety and soundness, provides examples of how the proposal would impose unworkable requirements, and discusses BPI’s Freedom of Information Act request to the OCC for data supporting its assertions about banks in the proposal.

Kate joined American Banker in 2006 and has covered the CFPB since 2016. Kate shares her perspective on the controversy over Leandra English’s appointment as Acting Director, Director Kraninger’s approach to her leadership role, the Seila Law decision’s impact, President-elect Biden’s possible candidates for CFPB Director, the fate of the CFPB’s small dollar loan rule, and likely areas of CFPB focus in 2021.

After discussing what real-time payments are and how they differ from fast payments, we look at the benefits of RTPs and potential for fraud, issues arising from the Fed’s plans to launch a RTP service, the laws and rules applicable to RTPs and how they bear on loss allocation, the pandemic’s effect on RTPs, and our expectations for the use of RTPs and the impact on fast payments generally.

After looking at the differing approaches of the former and current CFPB Directors to using the CFPB’s authorities, we look ahead to how the CFPB’s leadership is expected to change in a Biden Administration. Topics discussed include how the choice of a new Director will be made (including the impact of the Georgia Senate runoff elections), who can serve as Acting Director pending a new Director’s confirmation, and what approach a new Director will take to using the CFPB’s authorities and how it will differ most from the current Director’s approach.

We are joined by Bret Ladine, the DFPI’s General Counsel. We discuss the DFPI’s plans for adding new staff, promoting innovation through the new Financial Technology Innovation Office, providing guidance on CFPL exemptions, and handling complaints. Other topics include the DFPI’s approach to its new authority regarding UDAAPs (which covers small business financing), registration of covered persons, and civil penalties.