The nature of credit and how it is accessed is evolving quickly, and specialty finance is one of the areas of greatest interest to regulators and consumer groups and greatest uncertainty for innovating companies and institutions. BuckleySandler’s specialty finance practice represented the first movers in the space - handling litigation and regulatory matters relating to retail payday lending before state laws began to enact prescriptive laws - and has the experience to handle the full range of issues and challenges to the delivery of short-term, small-dollar credit presented by changing regulatory expectations and federal and state legislative developments.
We are helping clients to navigate issues in peer-to-peer lending, overdraft, payday, installment auto title, deposit advance, and other forms of short-term, small-dollar credit. We understand and track the trends at the core of the changes, from behavioral economics, to the UK Financial Conduct Authority, to the CFPB and prudential regulators, to the Louisiana Office of Financial Institutions and the Mississippi State Capitol.
Our experience includes representing clients in the following matters:
- CFPB supervisory and enforcement matters relating to payday lending, across a variety of models (single-state license/choice-of-law, multiple-state license, online, tribal, and offshore).
- CFPB, FRB, FDIC, and OCC supervisory matters relating to overdraft services, including overdraft protection and overdraft lines of credit.
- Perform acquisition due diligence of specialty finance companies offering payday loans, installment loans, title loans, gold buying, check cashing, and debit cards.
- Provide compliance advice and perform UDAAP risk assessments regarding unsecured revolving lines of credit.
- FDIC enforcement matters relating to income tax preparation services.
- State regulatory inquiries regarding possible violations of state law in connection with payday lending.
- Defend payday lender in class action alleging unfair and deceptive trade practices and usury violations.
- Defend officers and directors of payday lender in connection with class action alleging unfair and deceptive sales practices.
- Represent payday lender in FTC investigation regarding privacy and information security issues.