The Consumer Financial Protection Bureau (CFPB), under the direction of President Trump’s appointee Mike Mulvaney, is withdrawing from its role of protecting consumers from predatory lending practices. The CFPB was created to correct the abusive practices of banks, payday lenders, student loan servicers, and other financial institutions, but under the Trump administration, the bureau has made a dramatic shift in its policies. The burden now shifts to consumer lawyers and private litigants to step into …
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Lawsuits Against Abusive Tribal Payday Loans
By John B. Scofield, Jr. on January 17, 2018 in Investigations
Caddell & Chapman is investigating potential “rent-a-tribe” class action litigation. The investigation focuses on businesses that abuse their arrangements with Native American tribes to make short-term loans. These payday or installment loans have extremely high interest rates that are illegal under state and federal law.
As Caddell & Chapman is learning through its investigation, businesses across the country operate illegal online payday lending schemes by using the names of Native American tribes. Such tribes are …