On March 11, 2021, the Consumer Financial Protection Bureau (the “CFPB” or “Bureau”) announced it was rescinding its “Statement of Policy Regarding Prohibition on Abusive Acts or Practices” (the “2020 Policy Statement”). The rescission is the latest in a series of actions under Acting Director David Uejio that demonstrate a recalibration in the Bureau’s regulatory
See our article in BNA’s Banking Report, Defining ‘Abusive’ Acts and Practices, which sheds light on the prohibition on ‘‘abusive’’ acts or practices in the Dodd-Frank Act. The article first appeared in BNA’s Banking Report on February 13, 2017.
On February 7, 2017, the Consumer Financial Protection Bureau (“CFPB”) and the New York Attorney General filed a complaint in federal court accusing companies RD Legal Funding, LLC, RD Legal Finance, LLC, and RD Legal Funding Partners, LP (collectively, “RD Legal”) and their principal, Roni Dersovitz, of misleading consumers regarding advances made on payouts from settlement funds, including certain 9/11 first responders and former NFL players. According to the complaint, RD Legal advanced funds to consumers who are entitled to payouts from legal settlement funds. This includes 9/11 first responders suffering from respiratory conditions, cancer, and other illnesses, who are eligible to receive payments from the “Zadroga Fund,” established when Congress passed the James Zadroga 9/11 Health and Compensation Act of 2010. It also includes former NFL players who are eligible to receive amounts from a fund created by the settlement of a class-action lawsuit against the NFL relating to brain injuries.
Continue Reading CFPB, New York AG Accuse Settlement Funding Company of Engaging in Deceptive and Abusive Conduct Towards 9/11 First Responders, NFL Players