Alternative Finance
Practice Overview
Alternative finance addresses financing activity that takes place outside of the traditional banking system, such as payday loans, auto title loans, check cashing services, and often through the numerous emerging fintech companies. Buckley has long-standing experience with such products, including involvement from the inception of retail payday lending — representing the first movers in that space in litigation and regulatory matters even before the enactment of specific laws addressing payday lending. Our attorneys navigate clients and investors through the challenges of payday loans, auto title installment loans, deposit advance, and similar products. We work with our clients to address and adapt to changing regulatory expectations and federal and state legislative developments.
Our firm provides legal counsel regarding supervisory and enforcement matters with the Consumer Financial Protection Bureau (CFPB) and state banking departments. We also perform transactional due diligence of alternative finance for investors and other counterparties. As needed, we are effective advocates who defend alternative finance providers and their officers and directors in class actions and governmental enforcement actions.
Representative work includes:
- Represent payday lenders in CFPB supervisory and enforcement matters relating to a variety of business models (single-state license/choice-of-law, multiple-state license, online, tribal, and offshore)
- Advise payday lenders regarding state regulatory inquiries regarding possible violations of state law
- Perform acquisition due diligence of alternative finance companies offering payday loans, installment loans, title loans, gold buying, and check cashing services
- Defended a payday lender in a class action alleging unfair and deceptive trade practices and usury violations
- Represented a payday lender in a Federal Trade Commission (FTC) investigation regarding privacy and information security issues
Articles
"Equipment finance: Understanding licensing obligations" by Kathryn L. Ryan, Moorari K. Shah, and Frida Alim (Equipment Leasing & Finance Magazine)
Licensing Considerations, Generally The applicability of state licensing laws may depend on multiple factors, including transaction structures, business entity types and whether the activities are appropriately classified as “commercial” or another type of non-consumer transaction. Although the...
Articles
News & Blogs
Illinois Department of Financial and Professional Regulation issues guidance to Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act licensees on office closures
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to licensees under the Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act regarding office closures due to Covid-19. A licensee may close its offices without...
InfoBytesIllinois Department of Financial and Professional Regulation issues notice to currency exchange and money transmitter licensees
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice encouraging currency exchange and money transmitter licensees to provide the Department with advance notice of any changes to their usual business practices. The Department expects all...
InfoBytesUtah amends consumer lending requirements
On March 24, the Utah governor signed HB 319 , which modifies provisions related to consumer lending in the state, including registration, reporting, and operational requirements for deferred deposit lenders. Among other things, the provisions require deferred deposit lenders to provide borrowers...
InfoBytesWisconsin Department of Financial Institutions issues guidance to payday lenders
On March 18, the Wisconsin Department of Financial Institutions (DFI) announced the issuance of emergency guidance on character and fitness requirements for all payday and licensed lenders doing business in Wisconsin. The DFI cautions payday and licensed lenders that increasing interest rates, fees...
InfoBytesDistrict court approves $18.5 million “rent-a-tribe” payday loan settlement
On February 25, the U.S. District Court for the Eastern District of Virginia granted preliminary approval of an $18.5 million class action settlement to resolve allegations including violations of the Racketeer Influenced and Corrupt Organizations Act, state usury and lending laws, and unjust...
InfoBytesCFPB issues Winter 2020 Supervisory Highlights
On February 14, the CFPB released its winter 2020 Supervisory Highlights , which details its supervisory and enforcement actions in the areas of student loan servicing, payday lending, debt collection, and mortgage servicing. The findings of the report, which are published to assist entities in...
InfoBytesKraninger testifies at House hearing; final payday rule expected in April
On February 6, CFPB Director Kathy Kraninger testified at a House Financial Services Committee hearing on the CFPB’s Semi-Annual Report to Congress. (Covered by InfoBytes here .) The hearing covered the semi-annual report to Congress on the Bureau’s work from April 1, 2019, through September 30,...
InfoBytesColorado announces roadmap to cannabis banking
On February 3, the Colorado governor announced plans to create a regulatory landscape to provide guidance and clarity for state-chartered financial services industries that serve, or wish serve, legal cannabis-related businesses. The Roadmap to Cannabis Banking & Financial Services —primarily...
InfoBytesMassachusetts AG reaches $1.25 million settlement with online lender
On January 21, the Massachusetts attorney general announced a $1.25 million settlement with an online marketplace lender to resolve allegations that it violated the state’s Small Loan Statute by facilitating the origination of loans with excessive interest rates to Massachusetts borrowers...
InfoBytesRepresentatives hold hearing on “rent-a-bank” schemes
On February 5, the House Financial Services Committee held a hearing titled “Rent-A-Bank Schemes and New Debt Traps: Assessing Efforts to Evade State Consumer Protections and Interest Rate Caps” to discuss policies relating to state interest rate caps and permissible interest rates on small dollar...
InfoBytes
Our Alternative Finance Team
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Recent Blog Posts
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March 30, 2020
Illinois Department of Financial and Professional Regulation issues guidance to Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act licensees on office closures
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March 30, 2020
Illinois Department of Financial and Professional Regulation issues notice to currency exchange and money transmitter licensees
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March 24, 2020
Utah amends consumer lending requirements
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March 19, 2020
Wisconsin Department of Financial Institutions issues guidance to payday lenders
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February 28, 2020
District court approves $18.5 million “rent-a-tribe” payday loan settlement