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Title Loans In Iowa

Pre-CFPB Federal Regulation of Payday Lending

Pre-CFPB Federal Regulation of Payday Lending

Ahead of the enactment associated with Dodd-Frank Act (the Act), federal enforcement of substantive customer financing regulations against non-depository payday lenders had generally speaking been limited by civil prosecution by the Federal Trade Commission (FTC) of unjust and misleading functions and methods (UDAP) proscribed by federal legislation. Though it might be argued that unfair techniques had been included, the FTC would not pursue state-law usury or rollover violations. Due to the general novelty of this tribal financing model, as well as perhaps more to the point due to the tendency of FTC defendants to stay, you can find no reported decisions about the FTC’s assertion of jurisdiction over TLEs.

The FTC’s many public (and maybe its very very first) enforcement action against a purported tribal-affiliated payday lender was not filed until September 2011, if the FTC sued Lakota Cash after Lakota had tried to garnish customers’ wages without finding a court purchase, to be able to gather on payday advances.