Last week, Illinois enacted the “Predatory Loan Prevention Act” (SB 1792), which would place a 36% rate cap on nearly all non-bank consumer loans. This act will essentially outlaw small-dollar loans in Illinois and may make ancillary products on auto loans, such as GAP insurance, unavailable for a large number of consumers. The act

Michael M. Aphibal
Michael Aphibal advises on regulatory issues affecting financial institutions, including banks, non-bank lenders, and insurance agencies. His work primarily focuses on issues surrounding the offering of consumer financial products and services, including licensing, employee compensation, loan origination and servicing, customer information sharing and privacy, consumer disclosures, telemarketing, and the sale of add-on products, particularly debt protection products.
OCC Proposes Clarification to True Lender Doctrine
Earlier this week, the OCC released a proposed rule designed to address the “true lender” doctrine, a legal test utilized by courts and regulators to determine whether a bank or its non-bank partner is the actual lender in a credit transaction. This doctrine has led to uncertainty in the fintech and bank-partnership spaces, in large…
OCC, FDIC Issue Long-Awaited Valid-When-Made “Madden Fix”
Recently, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) issued final rules designed to resolve the uncertainty created by the Second Circuit Court of Appeals’ decision in Madden v. Midland Funding, 786 F.3d 246 (2d Cir. 2015). In Madden, the court called into doubt…
Updates from 12 State Regulatory Agencies Regarding Coronavirus and Related Work from Home Issues
As regulatory agencies provide guidance regarding working from home for financial services professionals while the COVID-19 outbreak progresses, we summarized the additional guidance issued in the recent past and current as of March 24, 2020.
California Department of Real Estate Released Frequently Asked Questions Relating to COVID-19
The California Department of Real Estate’s Frequently Asked…
Four Additional States Issue New Guidance Relating to Working from Home; Massachusetts and New York Supplement Previous Guidance
As we continue to follow the trend of regulatory agencies providing guidance allow working from home for financial services professionals while the COVID-19 outbreak progresses, we summarized the additional guidance issued in the recent past and current as of March 19, 2020.
Colorado Department of Regulatory Agencies, Division of Real Estate Issued an Advisory on
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New Legislation in House, Senate Would Cap Consumer Loans at 36%, Crippling the Industry
New federal legislation introduced in the House and Senate would place a 36% annual percentage rate cap on nearly all consumer loans, potentially killing the small dollar consumer lending industry.
Last month, Congressmen Jesús G. “Chuy” García (D-IL) and Glen Grothman (R-WI) introduced H.R. 5050, the Veterans and Consumers Fair Credit Act. The bill…
The CFPB (Yes, the CFPB!) Offers New Compliance Tools for Innovation
Companies that offer innovative consumer financial products and services have new tools to help them stay in compliance with federal consumer financial laws. In a refreshing twist from prior policy, the Consumer Financial Protection Bureau (CFPB) announced last week that it had revamped its No-Action Letter Policy and released a Compliance Assistance Sandbox and a…