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
CFPB delays underwriting compliance of Payday Rule
On June 6, the CFPB released a final rule to delay the August 19, 2019 compliance date for the mandatory underwriting provisions of the agency’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule). Compliance with these provisions of the Rule is now...
InfoBytesOregon requires consumers to repay title, payday loans before lender makes new loan
On May 30, the Oregon Governor signed HB 2089 , which, among other things, prohibits title loan and payday loan lenders from making a new loan to a consumer until seven days after the consumer has fully repaid a previous title loan or payday loan. In addition, lenders may not make or renew a title...
InfoBytesFDIC resolves Operation Chokepoint lawsuit
On May 22, the FDIC announced it resolved a 2014 lawsuit brought by payday lenders that alleged that the FDIC, the OCC and the Federal Reserve abused their supervisory authority during Operation Chokepoint, an Obama Administration DOJ initiative that formally ended in August 2017 (covered by...
InfoBytesCFPB publishes spring 2019 rulemaking agenda
On May 22, the Office of Information and Regulatory Affairs released the CFPB’s spring 2019 rulemaking agenda . According to a Bureau blog post , the information presented represents regulatory matters it “reasonably anticipates having under consideration during the period of May 1, 2019, to April...
InfoBytesNew Hampshire amends licensing requirements for nondepository mortgage bankers, pawnbrokers
On May 15, the New Hampshire governor signed HB 649 to, among other things, amend the state licensing requirements for nondepository mortgage bankers, brokers, and servicers, as well as pawnbrokers and moneylenders. Specifically, licensing applicants must file with the banking commissioner a...
InfoBytes25 state AGs reject CFPB payday proposal in comment letter
On May 15, a group of 25 Democratic Attorneys General submitted a comment letter in response to the CFPB’s February proposal to rescind certain provisions related to the underwriting standards of the “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule) (covered by InfoBytes...
InfoBytesHouse committee examines CFPB’s proposal to repeal payday rule
On May 16, the House Committee on Oversight and Reform’s Subcommittee on Economic and Consumer Policy held a hearing to examine the CFPB’s proposal to repeal parts of its “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule). (See previous InfoBytes coverage on the proposed...
InfoBytesOnline lending platform settles with SEC for $3 million
On April 19, the SEC announced that an online lending platform will pay a $3 million penalty to resolve allegations it miscalculated and materially overstated annualized net returns (ANR) to investors. According to the order , between 2015 and 2017, the company allegedly excluded securities linked...
InfoBytesMaryland charges title company with making unlicensed, usurious consumer loans
On April 11, the Maryland Attorney General announced an administrative proceeding taken against a title company, its owner, and related businesses for allegedly making unlicensed and usurious title loans secured by consumers’ motor vehicles. According to the AG’s charges, the defendants, among...
InfoBytesOklahoma enacts small lenders act
On April 18, the Oklahoma governor signed SB 720 to create the Oklahoma Small Lenders Act (the Act) and establish a framework to license and regulate small loan lenders in the state through the Department of Consumer Credit (ODCC). Beginning on January 1, 2020, any licensee under the Deferred...
InfoBytes
Our Alternative Finance Team
Partners
Recent Blog Posts
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June 7, 2019
CFPB delays underwriting compliance of Payday Rule
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June 5, 2019
Oregon requires consumers to repay title, payday loans before lender makes new loan
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May 24, 2019
FDIC resolves Operation Chokepoint lawsuit
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May 24, 2019
CFPB publishes spring 2019 rulemaking agenda
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May 23, 2019
New Hampshire amends licensing requirements for nondepository mortgage bankers, pawnbrokers