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ABILITY TO REPAY
see IMPROVIDENT LENDING
ABUSIVE LENDING
see also LOAN SHARKS
auto financing, 11.4
auto title pawns, 12.3
breach of contract claims, 2.4.10
credit cards, see CREDIT CARD ACCOUNTS
debt protection products, 6.3.5
depository creditors, 1.4.1
duty of good faith and fair dealing, 2.4.11
installment loans, see INSTALLMENT LOANS
older consumers, 2.4.12.1
payday lending, see PAYDAY LOANS
regulation
CFPB, 2.2.6.2
generally, 1.3
reregulation, 1.2.6
RTO transactions, 13.4
servicemembers, targeting, 2.2.5.2
state law, see USURY LAWS (STATE)
UDAP application, 2.4.1.1, 2.4.1.3.2
unjust enrichment, 2.4.9
ACCELERATION
credit insurance continuation, 6.10.2
rebate requirements
see also REBATES OF UNEARNED CHARGES
calculation date, 5.8.6.1
credit insurance, 6.10.2
generally, 5.8.4.1
unearned charges, collection, 5.8.8.3
ACCEPTANCE COMPANIES
see FINANCE COMPANIES
ACCIDENT AND HEALTH INSURANCE
credit insurance, see CREDIT DISABILITY INSURANCE
non-credit insurance, 6.2.4.6
ACCOMMODATION PARTIES
business loans, 3.9.3.4
standing to assert usury, 7.7.1.2
ACCRUED INTEREST
compounding, 5.5.1.1
ACTIONS
see REMEDIES
ACTUARIAL INTEREST TRANSACTIONS
see also CLOSED-END CREDIT; SIMPLE INTEREST
actuarial rule, 5.3.1.3.1
amortization, 5.3.1.2
balloon payments, 5.3.1.3.2
calculation of interest, 5.3.1.2
installment credit calculations, 5.3.1
interest-only loans, 5.3.1.3.2
negative amortization, 5.3.1.3
non-amortizing loans, 5.3.1.3.2
simple interest, 5.3.1.2
U.S. Rule, 5.3.1.3.1
ACTUARIAL METHOD
rebate calculations, 5.8.7.1.2, 5.8.7.1.3, 5.8.7.4
Rule of 78s differences, 5.8.7.3.1
ACTUARIAL RULE
see also ACTUARIAL INTEREST TRANSACTIONS
APR, calculation using, 5.4.2
compounding of interest, 5.5.1.1
negative amortization, 5.3.1.3.1
U.S. Rule, differences, 5.5.1.1
ADD-ON INTEREST
see also INTEREST
basic calculations, 5.3.2.1
irregular payment periods, 5.3.2.3
simple interest compared, 5.3.2.1
split rate transactions, 5.3.2.2
ADD-ON PRODUCTS
claims arising from, 11.5.2
credit cards, 6.3.1, 8.10.4
extended warranties, 11.5.3
installment loans, 10.3
insurance, 11.5.4
breakdown insurance, 11.5.3
credit insurance, 11.5.4.3
force-placed insurance, 11.5.4.6
GAP insurance, 11.5.4.4
VSI, 11.5.4.5
payment packing, 11.5.1
payment protection, see DEBT PROTECTION PRODUCTS
service contracts, 11.5.3
vehicle protection products (“etch”), 11.5.4.2
ADJUSTABLE-RATE TRANSACTIONS
see VARIABLE RATE TRANSACTIONS
ADMINISTRATIVE AGENCIES
see REGULATORY AGENCIES
ADMINISTRATIVE REMEDIES
exhaustion, 7.7.12
failed banks, 7.7.13
ADVERTISING
deceptive credit card advertising, 8.11.3
state regulation, federal preemption, 3.2.4.9
AFFILIATES
see SUBSIDIARIES
AGENTS
agency relationship, determination, 2.4.6.3
arbitration clauses, enforcement, 7.4.4
creditors and insurers, relationship, 6.8.3.2
fiduciary duty, 2.4.6.3
loan brokers as, 4.5.3.1
preemption rights, 3.2.5, 3.4.2.6
third party status, 4.5.2.1
ALTERNATIVE INTEREST CEILING
see also INTEREST CEILINGS; RATE EXPORTATION
depository institutions, 3.4.1
ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT (AMTPA)
manufactured homes, application, 3.7.3, 11.5.5.3
preemption of state law, 3.7.3, 7.9.1.3.4, 11.5.5.3
AMORTIZATION
actuarial interest transactions, 5.3.1.2
credit union STS loans, 9.5.3.5
described, 5.3.1.2
negative amortization, see NEGATIVE AMORTIZATION
rebate schedules, 5.8.7.4.2
Rule of 78s, use, 5.8.7.3.2
split rate loans, 5.3.4, 5.8.7.4.3
tables, NCLC practice tools, 1.1.5
variable rate loans, 5.3.6.3
AMOUNT FINANCED
see also PRINCIPAL AMOUNT
cost of credit, see ANNUAL PERCENTAGE RATE (APR); FINANCE CHARGE
defined, 5.4.1
inflating, 4.4
principal distinguished, 5.4.1
TILA disclosures, 5.4.1
ANNUAL INTEREST RATE
see ANNUAL PERCENTAGE RATE (APR)
ANNUAL PERCENTAGE RATE (APR)
see also FINANCE CHARGE; INTEREST RATES
accuracy, 5.4.1, 5.4.2
ANNUAL PERCENTAGE RATE (APR) (cont.)
calculation, 5.4.2
see also INTEREST CALCULATIONS
CFPB tables, 5.4.2
NCLC practice tools, 1.1.5
credit cards, see CREDIT CARD ACCOUNTS
defined, 5.4.1
discount interest transactions, 5.3.3.2
historical background, 5.4.1
installment credit, 5.3.1, 10.2
interest rate distinguished, 5.4.1
odd payments, effect, 5.5.2.1, 5.5.2.2
payday loans, 9.1.3
split rate loans, 5.3.4
TILA disclosures, 5.4.1
ANTITRUST VIOLATIONS
credit insurance, 6.5.5
APPLIANCE LOANS
rent-to-own contracts, see RENT-TO-OWN (RTO) TRANSACTIONS
repair contracts, rebate issues, 5.8.5.1
ARBITRATION AGREEMENTS
see also FEDERAL ARBITRATION ACT (FAA)
bankruptcy proceedings, effect, 7.4.2.6
class-wide arbitration, 7.4.6
credit card accounts, 8.10.2
credit insurance, 7.4.2.2
CROA claims, effect, 7.4.2.5
delegation clauses, 7.4.5
disadvantages, 7.4.1
enforceability, 7.4
agreement must be produced, 7.4.3.1
binding agreement, 7.4.3
class arbitration, 7.4.6
forum, 7.4.3.3
jurisdiction to determine, 7.4.5
punitive damages restrictions, 7.4.7
scope of agreement, 7.4.4
statutory limits on, 7.4.2
third parties, 7.4.4
federal preemption, 7.4.2.2
formation of agreement, 7.4.3.2
manufactured home loans, 7.4.2.1
military personnel, 2.2.5.1, 7.4.2.3
mortgage loans, 7.4.2.1
National Arbitration Forum (NAF), 7.4.3.3, 8.10.2
payday loans, 9.7
tribal loans, 9.6.3.6
prohibited agreements, 7.4.2
CFPB restrictions, 7.4.2.4
credit insurance, 7.4.2.2
manufactured homes, 7.4.2.1
military personnel, 2.2.5.1, 7.4.2.3
mortgage loans, 7.4.2.1
punitive damages awards under, 7.4.7
RTO agreements, 13.4.7
state insurance law preemption, 7.4.2.2
superseded by another agreement, 7.4.3.4
unconscionability, 2.4.8.5, 7.4.3.7
class action bans, 7.4.6
void contracts, 7.4.3.5
waiver, 7.4.3.6
ARRANGERS OF CREDIT
see LOAN BROKERS
ASSIGNEES
arbitration clauses, enforcement, 7.4.4
dealer’s actions, involvement in, 11.7.6
ECOA liability, 11.7.5
FTC Holder Rule, 11.7.3
holder-in-due-course status, 11.7.1
licensing requirements, 3.9.7.2
rate exportation, application, 3.4.3
retail installment contracts
discounts, 11.2.2, 11.3.2.1, 11.4.3
federal depositories, effect, 11.3.2.5
liability, 7.7.7, 11.7
licensing requirements, 11.3.3
true lender, as, 7.5.2.2.1
table-funding, see TABLE-FUNDED LOANS
TILA liability, 11.7.5
usury claims, asserting, 7.7.1.3
usury liability, 7.7.7, 11.7
waiver of defense clauses, 11.7.2
ASSIGNMENT TRANSACTIONS
future payment streams, see FUTURE PAYMENT STREAM TRANSACTIONS
loan status, 14.2, 14.3.4, 15.5
tax refunds, see TAX REFUND ASSIGNMENTS
wage assignments, see WAGE ASSIGNMENTS
ATTORNEY FEES AND COSTS
default charge, 4.8.6.3
usurious loans
creditor forfeiture, 7.8.2.2.1, 7.8.2.5
prevailing consumer, 7.8.2.5
ATTORNEYS
document preparers practicing as, 4.6.3
fees, see ATTORNEY FEES AND COSTS
UDAAP rules, application, 2.2.6.2.3
AUTO FINANCING
see also CREDIT SALES
assignee discounts, 11.3.4.2
balance protection plans, see GAP INSURANCE OR AGREEMENTS
body-dragging, 3.9.5, 11.3.2.2
“buy-here, pay-here” dealers, 11.2.2
rent-to-own transactions, 11.2.4, 13.5
common abuses, 11.2, 11.4
credit card finance in lieu, 11.2.6
credit insurance, 11.5.4.3
property insurance, 11.5.4.3, 11.5.4.4, 11.5.4.5
dealer add-ons, 11.5
dealer markups, 11.4.2, 11.5
direct financing, 11.2.3, 11.3.2.2
disclosure requirements, 11.3.7, 11.3.8.1, 11.4.3.2
add-on products, 11.5.2
dealer mark-ups, 11.4.2
insurance, 11.5.4
negative equity, 11.4.6.3.2
service contracts, 11.5.3
discrimination, 11.4.2
document fees, 11.4.4
force-placed insurance, 11.5.4.5.1, 11.5.4.6
GAP products, 11.5.4.4
hidden interest, 11.4.3
importance of cars, 11.4.1
inflated sale price, 11.4.3
interest rates, 11.3.4.1
leasing arrangements, 11.2.4, 11.3.4.2
lender liability for acts of dealer, 11.7
direct financing situations, 11.2.3
loan packing, 11.5
negative equity financing, 11.4.6
described, 11.4.6.1
harm to consumer, 11.4.6.2
remedies, 11.4.6.3
non-purchase finance, see AUTO TITLE LOANS
overview, 11.1
padding, 11.5
property insurance, 11.5.4
RTO transactions, 11.2.5
service contracts, 11.5.3
“single document rule,” 11.3.8.1
spot delivery, 11.4.5
state installment sales laws, 11.3
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
subprime, see SUBPRIME LENDERS
upcharges, 11.3.5
vehicle protection products (“etch”), 11.5.4.2
VSI insurance, 11.5.4.5
yield spread premiums, 11.5.1
yo-yo sales, 11.4.5
AUTO PAWNS
see AUTO TITLE LOANS
AUTO-SECURED LOANS
purchase loans, see AUTO FINANCING
title pawns, see AUTO TITLE LOANS
AUTO TITLE LOANS
see also FRINGE LENDERS
buyback schemes, 12.2
disguises, 12.1.2, 12.4
RTO transactions, 13.5
hidden fees, 12.4
leaseback schemes, 12.2
military personnel, 2.2.5.3, 12.6
nature of auto title lending, 12.1.1
overreaching, remedies, 12.2, 12.3, 12.5.2
overview, 11.2.7, 12.1
pawn status, 12.3
state regulation, 2.3.11.3, 12.5
interstate regulation, 12.5.4
non-rate regulation, 12.5.3
overview, 12.5.1
potential claims, 12.5.2
state law summaries, 12.2.5
BAD CHECK LAWS
see also BOUNCED CHECKS
payday loans, application, 9.2.3
BALANCE PROTECTION PLANS
see DEBT PROTECTION PRODUCTS; GAP INSURANCE OR AGREEMENTS
BALANCES
see LOAN BALANCE
BALLOON PAYMENTS
see also NEGATIVE AMORTIZATION
actuarial interest transactions, 5.3.1.3.2
manufactured home credit, 3.7.2, 11.6.3.3
odd payments resulting in, 5.5.2.1
rebate calculations, 5.8.7.3.4
restrictions, 5.3.1.3.2
RISAs, 11.3.4.2
TILA, 11.6.3.3
retail installment contracts, 11.3.4.2
variable rate transactions, 5.3.6.4.2
BANK ACCOUNTS
closing to avoid unauthorized withdrawals, 9.2.9
BANK CHARGES
unconscionable, 2.4.8.5
BANK HOLDING COMPANY ACT
credit insurance, application, 6.4.7, 6.5.6
BANKRUPTCY
arbitration clauses, effect, 7.4.2.6
future payment stream debts, effect, 14.2
payday lending and, 9.9
rebate formula, 5.8.7.1.5
securitization trusts, jurisdiction, 7.9.2.4
standing to assert usury, 7.7.1.1
BANKS
see also DEPOSITORY CREDITORS
affordable small loan guidelines, 9.4.2.3.2
auto title lending, 12.1
credit card business, 1.4.2
credit insurance regulation
Bank Holding Company Act, 6.4.7, 6.5.6
banking agency regulations, 6.4.8.1
federal preemption, 6.4.8
fiduciary duty, 6.4.7
daily interest calculation method, 5.5.4.4
deposit advance loans, see DEPOSIT ADVANCE LOANS
deposit insurance, 1.4.2
duty of good faith and fair dealing, 2.4.11.1
electronic banking, 3.4.4.5
failed banks, see FAILED BANKS
FDIC, participation, 1.4.2
federal banks, see NATIONAL BANKS
federal court jurisdiction, 7.9.1
federal regulation, 3.1.2.2, 3.2
federally insured, see FEDERALLY INSURED LENDERS
fees, see BANK CHARGES
fiduciary duty, 2.4.6.2.2, 2.4.6.4, 6.4.7
FTC credit practices rule, application, 2.2.7
Gramm-Leach-Bliley Act, application, 6.4.8
home loan banks, see BUILDING AND LOAN ASSOCIATIONS; SAVINGS AND LOAN ASSOCIATIONS
home state, determination, 3.4.4
industrial banks, see INDUSTRIAL LOAN COMPANIES
installment loan laws, 2.3.5
insurance activities, regulation, 6.4.8
interstate banking, see INTERSTATE BANKING
most favored lender status, 3.5.2
national banks, see NATIONAL BANKS
overview, 1.4.2
parity laws, 3.6
payday loans
direct deposit advances, 9.5.1
FDIC guidelines, 9.4.2.3, 9.5.1
FRB guidance, 9.4.2.4
non-bank partnerships, 9.5.2, 9.6.1
OCC guidelines, 9.4.2.2
prepaid cards, 9.5.2
payment processor guidelines, 9.4.2.3.3
RACs, 15.1.3
see also REFUND ANTICIPATION CHECKS (RACs)
RALs, 15.1.1, 15.2.3.1
see also REFUND ANTICIPATION LOANS (RALs)
rate exportation, see RATE EXPORTATION
regulatory history, 1.4.2
RICO actions against, 7.8.6.2.5
RTO involvement, 13.2
savings banks, see SAVINGS BANKS
state banks, see STATE BANKS
usurious loans, remedies, 7.8.6.1
federal jurisdiction, 7.9.1
BODY-DRAGGING
credit sales, 3.9.5, 11.3.2.2
BONUSES
non-cash as hidden interest, 4.7
BOUNCED CHECKS
see also BAD CHECK LAWS
payday loans
early presentation, 9.2.5
fees, adding to check, 9.2.4
prosecutions, 9.2.3
repeated presentment, 9.2.2
BROKER FEES
see also COMMISSIONS; LOAN BROKERS
auto pawns disguised as, 12.4
hidden interest issues, 4.5.3
agency relationships, 4.5.3.1
split fees, 4.5.3.2
kickbacks, see KICKBACKS
payday loans, 9.6.5
yield spread premiums, see YIELD SPREAD PREMIUMS
BROKERS
see LOAN BROKERS
BUILDING AND LOAN ASSOCIATIONS
see also SAVINGS AND LOAN ASSOCIATIONS
historical development, 1.2.3, 1.4.3
BURDEN OF PROOF
see also EVIDENCE
bona fide error, 7.5.5.2
business purpose loan, 3.9.3.1
usurious intent
usury apparent on face of contract, 7.5.5.2
usury not apparent on face of contract, 7.5.5.3
usury claims, 7.5.1.2
BUSINESS LOANS
affidavit of business purpose, 3.9.3.3
burden of proof, 3.9.3.1
credit card accounts, 8.2.4.2
incorporation prior to, 3.9.3.3
intermediaries, effect, 3.9.3.4
personal purpose distinguished, 3.9.3.2
refinancings, effect, 3.9.3.5
sham loans, 3.9.3.3, 7.7.2.3
stockholder guarantees, 3.9.3.3, 7.7.1.2
usury laws, application, 3.9.3, 3.9.10
BUY-HERE PAY-HERE VEHICLE DEALERS
licensure requirements, 11.3.3
nature of business, 11.2.2
BUYBACK SCHEMES
see also LEASEBACK AGREEMENTS
BUYBACK SCHEMES (cont.)
auto title loans, 12.2
hidden interest, 4.4.2
pawnbrokers, see PAWNBROKING
CALCULATIONS
see INTEREST CALCULATIONS; MATHEMATICAL FORMULAS
CAR DEALERS
see DEALERS
CAR LOANS
see AUTO FINANCING
CASE LAW
see also COMMON LAW; RESEARCH AIDS
federal preemption, 3.4.5.3
unreported cases, 1.1.7
CASH PRICE
see SELLING PRICE
CFPB
see CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
CHAMPERTY
litigation financing as, 14.6
CHARGE ACCOUNTS
see CREDIT CARD ACCOUNTS; OPEN-END CREDIT
CHARGES
see FEES AND CHARGES
CHECK ADVANCEMENT LOANS
see PAYDAY LOANS
CHECKING ACCOUNT ADVANCES
see DEPOSIT ADVANCE LOANS
CHECKLISTS
federal preemption of state law, 3.1.3
CHECKS
see also NEGOTIABLE INSTRUMENTS
bounced checks, see BOUNCED CHECKS
electronically created, 9.2.4
forged checks, 9.2.6
payday loans and, 9.2
post-dated checks
ACH source document, 9.2.7
disguised loan transactions, 7.8.6.2.5
early presentation, 9.2.5
repeated presentment, 9.2.2
stop payments, 9.2.7, 9.2.8
unauthorized withdrawals, 9.2.6
closing bank account, 9.2.9
CHOICE OF LAW
contract provisions, 3.8.2
credit cards, 8.11.4
military small loans, 3.8.6
overview, 3.8.1
rate exportation context, 3.4
rule for general usury statutes, 3.8.5
generally, 3.8.5.1
“not greatly in excess” requirement, 3.8.5.3
substantial relationship test, 3.8.5.2
rule for special usury statutes, 3.8.4
statutory provisions, 3.8.3
CLAIMS
see REMEDIES
CLASS ACTIONS
arbitration, 7.4.6
federal court jurisdiction, 7.9.1.5
payday loans, 9.7
usury, 7.8.7
CLEARINGHOUSE NUMBERS
unreported cases, 1.1.7
CLOSED-END CREDIT
see also CREDIT TRANSACTIONS
balloon payments, see BALLOON PAYMENTS
installment loans
non-purchase money, see INSTALLMENT LOANS
purchase money, see CREDIT SALES
interest calculations
generally, 5.3.1–5.3.4
open-end differences, 5.3.5.1
negative amortization, see NEGATIVE AMORTIZATION
open-end, distinction, 1.5.2, 3.9.4
spurious, 3.9.4
COERCION
credit insurance, 6.5
generally, 6.5.1
proving, 6.5.7
TILA claims, 6.5.2
COLLATERAL
see also SECURITY INTERESTS
automobiles
non-purchase-money loans, see AUTO TITLE LOANS
purchase-money loans, see AUTO FINANCING
conversion, 2.4.12.3
duty of good faith and fair dealing, 2.4.11.1
household goods, 6.7.4, 10.6.1
installment loans, 10.6.1
insurance, see CREDIT PERSONAL PROPERTY INSURANCE
manufactured homes, 3.7, 11.6.2
non-filing insurance, 6.7.5
pawnbrokers, regulation, 2.3.9
secured credit cards, 8.5
secured credit transactions, 1.5.3
statutory thresholds, 6.7.2
unnecessary, 6.7.4
COLLATERAL PROTECTION INSURANCE (CPI)
see CREDIT PERSONAL PROPERTY INSURANCE
COLLECTION ABUSES
credit card lenders, 8.10.1
payday loans, 9.7
state regulation, federal preemption, 3.2.4.12.4
COLLECTION COSTS
attorney fees, creditor charges, 4.8.6.3
COMMERCE CLAUSE
choice of law, 3.8.3
COMMERCIAL CREDIT
see BUSINESS LOANS
COMMISSIONS
see also BROKER FEES; KICKBACKS
credit insurance, creditor restrictions, 6.6.2.2
interest status, 4.5.2.2, 6.6.2.2
COMMITMENT FEES
see also LOAN FEES; POINTS
overview, 4.3.3
COMMON LAW
see also CASE LAW
contracts, see CONTRACT LAW
conversion, 2.4.12.3
estoppel, 2.4.12.2
fiduciary duty, see FIDUCIARY DUTY
fraud claims, see FRAUD CLAIMS
holders in due course, see HOLDERS IN DUE COURSE
interest definition, 5.8.5.2.2
interest restrictions, 7.2.1.2
late fees, treatment, 4.8.2
misrepresentation, see MISREPRESENTATION
tort claims, see TORT CLAIMS
unconscionability, see UNCONSCIONABILITY
unjust enrichment, 2.4.9
usurious interest payments, recovery, 7.8.2.3.4
usury claims, 7.2.1.2, 7.8.1
usury remedies, 7.8.2.1
COMPENSATING BALANCES
hidden interest, 4.4.4
COMPLAINT
see PLEADINGS
COMPOUND INTEREST
see also INTEREST
accrued unpaid interest, on, 5.5.1
refinancings, 5.9.5.2
described, 5.5.1.1
hidden interest, 4.4.2
restrictions, 5.5.1.1, 5.5.1.2
usury violations, 5.5.1.2.2
COMPOUNDING LATE CHARGES
hidden interest, 4.8.5
COMPTROLLER OF THE CURRENCY
see OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
CONCEALMENT
see NONDISCLOSURE
CONFLICT OF LAWS
see CHOICE OF LAW
CONSENT
electronic transactions, 2.5.2, 2.5.3
CONSOLIDATION OF LOANS
see also REFINANCING
defined, 5.9.2
negative equity financing as, 11.3.3.2.1, 11.3.3.3.5
CONSTRUCTIVE TRUST
funds unjustly held, 7.8.4.3
CONSUMER CREDIT CODES (STATE)
see also CONSUMER FINANCE LAWS (STATE); USURY LAWS (STATE)
comprehensive state codes, 2.3.10
UCCC, see UNIFORM CONSUMER CREDIT CODE (UCCC)
CONSUMER CREDIT PROTECTION ACT
ECOA, see EQUAL CREDIT OPPORTUNITY ACT (ECOA)
TILA, see TRUTH IN LENDING ACT (TILA)
CONSUMER CREDIT REGULATION
see also CREDIT TRANSACTIONS
abusive lending, 1.2.6
applicable law, determination, 3
APR, see ANNUAL PERCENTAGE RATE (APR)
automobile loans, see AUTO FINANCING
common law theories, see COMMON LAW
credit cards, see CREDIT CARD ACCOUNTS
credit insurance, see CREDIT INSURANCE
credit math, see INTEREST CALCULATIONS
credit sales, see CREDIT SALES
credit terms, see CREDIT AGREEMENTS
debt protection products, 6.3.1, 6.3.4
deregulation, 1.2.5
disclosure, see DISCLOSURES (TILA)
discrimination, see DISCRIMINATION
early termination, see REBATES OF UNEARNED CHARGES
federal preemption, see FEDERAL PREEMPTION
federal regulation, 2.2, 3
banks, see NATIONAL BANK ACT
Credit Practices Rule, see CREDIT PRACTICES RULE (FTC)
credit unions, see FEDERAL CREDIT UNION ACT
depository institutions, 2.2.1
Dodd-Frank Act, see DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
ECOA, see EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Military Lending Act, see MILITARY LENDING ACT (MLA)
nature of originating lender, 3.1.2
rebate statute, see FEDERAL REBATE STATUTE
savings and loan associations, see HOME OWNERS’ LOAN ACT
Servicemembers Civil Relief Act, 2.2.4
Talent-Nelson Amendment, see MILITARY LENDING ACT (MLA)
TILA, see TRUTH IN LENDING ACT (TILA)
finance charge, see FINANCE CHARGE
government agencies, see REGULATORY AGENCIES
historical development, 1.2
see also LEGISLATIVE HISTORY
interest, see INTEREST
loan-to-value ratios, 3.2.4.4
NCLC treatise, 1.1
need for, 1.1.3
online version, 1.1.1, 1.1.5
organization, 1.1.4, 1.2
other resources, 1.1.7
practice tools, 1.1.5
preemption checklist, 3.1.3
print version, 1.1.1
scope, 1.1.2
using, 1.1.6
potential negative consequences, 1.3.2, 1.3.3
practice tips, see PRACTICE TIPS
purpose, 1.3
reregulation, 1.2.6
research aids, see RESEARCH AIDS
state regulation, see USURY LAWS (STATE)
statutory interpretation, see STATUTORY INTERPRETATION
CONSUMER CREDIT TRANSACTIONS
see CREDIT TRANSACTIONS
CONSUMER FINANCE LAWS (STATE)
see also CONSUMER CREDIT CODES (STATE)
combined small and industrial loan laws, 2.3.3
CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
see also DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
APR tables, 5.4.2
MLA, enforcement, 2.2.5.9
Office of Servicemember Affairs, 2.2.5.9
RALs enforcement actions, 15.5.3
rulemaking authority
arbitration clauses, 7.4.2.4
debt protection products, 6.3.4
payday loans, 9.5.1
UDAAP, 2.2.6.2
CONSUMER LOANS
see CREDIT TRANSACTIONS; LOANS
CONSUMER PROTECTION LAWS
CCPA, see CONSUMER CREDIT PROTECTION ACT
electronic transactions, see ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (E-SIGN); UNIFORM ELECTRONIC TRANSACTIONS ACT (UETA)
fair lending laws, see FAIR LENDING LAWS
federal preemption of state laws, see FEDERAL PREEMPTION
manufactured homes, 3.7.2, 11.6.1, 11.6.3.1
small loan laws, see SMALL LOAN LAWS
state usury laws, see USURY LAWS (STATE)
tribal activities, application, 9.6.3.3
UDAP, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
violation as UDAP violation, 2.4.1.3.4
CONTINGENCIES
equity participation, 4.7
rule against usury through, 5.8.8.2
CONTRACT LAW
breach of contract, 2.4.10
credit card abuses, challenging, 8.11.2
credit insurance denial, application, 6.8.3.3
credit insurance rebates, application, 6.10.4
duty of good faith and fair dealing, 2.4.11
federal preemption, 3.2.4.12.2
federal rebate violations as violations, 5.8.8.4
overreaching credit, application, 2.4.10
CONTRACTS
see CREDIT AGREEMENTS
CONVENIENCE CREDITORS
see also NON-DEPOSITORY CREDITORS
regulation, 1.4.7
CONVERSION
claims re, 2.4.12.3
COOPERATIVE SOCIETIES
credit unions, see CREDIT UNIONS
historical development, 1.2.3
CORPORATIONS
business loans, see BUSINESS LOANS
jurisdiction over holding company, 7.9.2.5
jurisdiction over parent for activities of subsidiary, 7.9.2.5
COSIGNERS
see ACCOMMODATION PARTIES
COST OF CREDIT
see also FINANCE CHARGE; INTEREST CALCULATIONS
credit regulation, effect on, 1.3.2
improvident lending, see IMPROVIDENT LENDING
unconscionability, 2.4.8.3, 2.4.8.4
COUNTERCLAIMS
jurisdiction, voluntary submission, 7.9.2.4
jury trial rights, 7.3
usury, compulsory or permissive, 7.7.4
CREDIT
see CREDIT TRANSACTIONS
CREDIT ACCIDENT AND HEALTH INSURANCE
see CREDIT DISABILITY INSURANCE
CREDIT AGREEMENTS
see also CREDIT DOCUMENTS; CREDIT TRANSACTIONS
agreed rate caps, exceeding, 7.6.1
arbitration clauses, see ARBITRATION AGREEMENTS
assignee defenses, 7.7.7
breach by lender, 2.4.10
credit cards, 8.11.2
cell phone agreements, status, 7.5.2.2.2
change-in-terms, credit cards, 8.9
choice of law provisions, 3.8.2
conflict of laws, see CHOICE OF LAW
contract construction, 7.5.1.4
electronic, see ELECTRONIC CREDIT TRANSACTIONS
GAP waiver provisions, 11.5.4.4
illegal contracts, 7.8.2.1
rescission, see RESCISSION
retail installment contracts
see also CREDIT SALES
FTC Holder Notice, 11.7.3.2, 11.7.3.4
GAP waiver provisions, 11.5.4.4
“single document rule,” 11.3.8.1
term of agreement, 11.3.4.2
waiver-of-defense clauses, 11.7.2
state regulation, federal preemption, 3.2.4.5
term, see LOAN TERM
unconscionable, 2.4.8.5
unjust enrichment, 7.8.4
usurious charges, evidence, 7.5.4.2
usurious intent, 7.5.5
usury on face, 7.5.5.2
usury saving clauses, 7.7.10
usury violations, see USURY VIOLATIONS
void agreements, 7.8.2.2.2, 7.8.2.3.3, 7.8.5.1
arbitration clauses in, 7.4.3.5
reformation, 7.8.2.1, 7.8.3.3
waiver of right to void, 7.8.2.3.3
CREDIT APPLICATIONS
discrimination, 2.4.2
prescreened offers to youth, 8.7.2.3.3
CREDIT CARD ACCOUNTABILITY RESPONSIBILITY AND DISCLOSURE ACT
see CREDIT CARD ACT (TILA)
CREDIT CARD ACCOUNTS
see also OPEN-END CREDIT
ability-to-pay, 8.7.2.2, 8.7.2.3.2, 10.9.5
abuses by lenders
challenging, 8.4.1.3
fees, 8.4
opening of accounts, 8.7
other abuses, 8.10
payments, involving, 8.6.1
state claims, 8.11
subprime market, 8.5.1.2
unilateral change-in-terms, 8.9
add-on products, 8.10.4
address for payment, 8.6.5
change in address, 8.6.5.1
in-person payments, 8.6.5.2
aggressive solicitation, 8.7.2
annual fees, 4.3.3
arbitration clauses, 7.4.3.1, 8.10.2
see also ARBITRATION AGREEMENTS
auto financing through, 11.2.6
balance transfers, 8.4.4.1
breach of contract, 8.11.2
business credit cards, 8.2.4.2
changes-in-terms, unilateral
expansive provisions, 8.9.1
limited right to reject, 8.9.3.2
notice, 8.3.1.2.3, 8.3.2.2.4, 8.9.3.1
problems with, 8.9.2
collection practices, 8.10.1
credit insurance, see DEBT PROTECTION PRODUCTS
credit limit
over-the-limit fees, 8.4.3.2
padding, 8.4.3.2.1
currency conversions, 8.4.4.2
debt burden, 8.1.2
assisting consumers, 8.12
industry practices, 8.1.3
deceptive marketing, 8.7.1
deferred interest plans, 8.8
delinquent payments, 8.3.2.2.3
deregulation, 8.2.1, 8.2.4.1, 8.4.1
double-cycle billing, 5.3.5.2, 8.3.4
due date, 8.6.4
no cutoff before 5 pm, 8.6.4.1
same date each month, 8.6.4.2
weekend and holidays, 8.6.4.3
duty of good faith and fair dealing, 2.4.11.1
ECOA, application, 8.2.5
FCRA, application, 8.2.5
federal preemption, 3.5.5, 8.2.1
federal regulation, 2.2.2.1, 8.2
Credit CARD Act, see CREDIT CARD ACT (TILA)
other regulation, 8.2.5
fee abuses, 8.4
“fee-harvester” cards, 8.5.1.1, 8.5.1.3
fee limits, 8.5.2
fees, see CREDIT CARD FEES
historical background, 8.1.1, 8.2.1
bank involvement, 1.4.2
debt burden, 8.1.2
fee abuses, 8.4.1
widespread use, 8.1.1.2
insurance, see DEBT PROTECTION PRODUCTS
interest calculations, 5.3.5.2
interest rates
disparate impact, 8.1.4
double cycle billing, 8.3.4
increase abuses, 8.3.1
increase re-evaluation, 8.3.3
increase restrictions, 8.3.2
most favored lender, 3.5.5, 8.2.1
outstanding balances, 8.3.2
late fees, 8.4.3.1
background, 8.4.3.1.1
restrictions, 8.4.3.1.2
late payment practices, 8.4.3.1.1
mailing of statements, 8.6.2
marketing abuses, 8.7
minimum monthly payments, 8.6.8
deferred interest plans, 8.8.2.3
dramatic increases, 8.6.8.1
overview, 8.6.8.1
repayment disclosures, 8.6.8.2
over-the-limit transactions, 8.4.3.2
fee background, 8.4.3.2.1
fee restrictions, 8.4.3.2.2, 8.4.3.2.4, 8.4.3.2.5
opt-in requirement, 8.4.3.2.2, 8.4.3.2.3
payday loans marketed as, 9.6.4
payment protection, see DEBT PROTECTION PRODUCTS
payments
address for payment, 8.6.5
allocation order, 8.6.7
due date restrictions, 8.6.4
fees related to payment, 8.6.6
late posting, 5.5.4.5
late treatment, 8.6.2
manner of payment, 8.6.3, 8.6.6
minimum monthly payment, 8.6.8
prompt crediting, 8.6.3
penalty fees, 8.4.3
penalty rates, 8.3.1.2.1
universal default, 8.3.1.2.2
preemption issues, 8.11.5
generally, 8.11.5.1
TILA preemption, 8.11.5.2
promotional rates, 8.3.2.2.1
“protected” balance, 8.3.2
repayment protections, 8.3.2.3
repricing
abuses, 8.3.1.2
advance notice, 8.3.2.2.4
delinquency, 8.3.2.2.3
first year, 8.3.2.4
mandatory re-evaluation, 8.3.3
outstanding balance, 8.3.2
promotional rates, 8.3.2.2.1
“protected” balance, 8.3.2
variable-rate cards, 8.3.2.2.2
workouts, 8.3.2.2.5
retail sellers, 1.4.6
reward programs, 8.10.3
RISA applicability, 11.3.2.3
rise of the credit card, 8.1
secured credit cards, 8.5.1.1
small loan ceilings, application, 3.5.5
state claims, 8.11
state regulation, 2.3.8
statements, time, 8.6.2
subprime, 8.5
TILA, application, 2.2.2.1, 8.2.5
UDAP violations, 8.11.3
unconscionability, 2.4.8.5
underwriting requirements, 8.7.2.2
younger consumers, 8.7.2.3.2
unfair practices
OCC advisory letters, 8.5.3
FRB UDAP rule, 8.2.1, 8.2.2
unilateral change in terms, 8.9
universal default policies, 8.3.1.2.2
variable rates, 8.3.2.2.2
widespread use, 8.1.1
youth marketing, 8.7.2.3
ability-to-pay, 8.7.2.3.2
college students, 8.7.2.3.3
generally, 8.7.2.3.1
prescreened offers, 8.7.2.3.3
CREDIT CARD ACT (TILA)
benefits, 8.2.3
changes-in-terms provisions, 8.9.3
deferred interest plan provisions, 8.8.2.2
double-cycle billing, prohibition, 5.3.5.2, 8.3.4
effective date, 8.2.2
enactment, 2.2.2.1, 8.2.1
fees and security deposits, limits, 8.5.2
industry’s argument against, 8.2.4
industry’s response, 8.5.1.3
late payment policies, 8.6.2
over-the-limit transactions, 8.4.3.2.2
opt-in requirement, 8.4.3.2.3
prohibited practices, 8.4.3.2.4
overview, 2.2.2.1, 8.2.2
repricing restrictions, 8.3.2.1
payment provisions
address for payment, 8.6.5
allocation order, 8.6.7
due dates, 8.6.4
method of payment, 8.6.3, 8.6.6
minimum monthly payments, 8.6.8
penalty fees, restrictions, 8.4.1.3
penalty rates, restrictions, 8.3.1.2.1
private enforcement, 8.2.2
repricing restrictions on outstanding balance, 8.3.2
allowable increases, 8.3.2.2
first year, 8.3.2.4
overview, 8.3.2.1
repayment protections, 8.3.2.3
rulemaking, 8.2.2
scope, 8.2.2, 8.2.4.2
selected official commentary, Appx. A.5.3
selected provisions, Appx. A.5.1
selected regulations, Appx. A.5.2
statements, timing, 8.6.2
TILA amendment, 2.2.2.1, 8.2.2
underwriting requirements, 8.7.2.2, 8.7.2.3.2
younger consumers, protections, 8.7.2.3
CREDIT CARD FEES
see also CREDIT CARD ACCOUNTS; FEES AND CHARGES
annual fees, 4.3.3
background, 8.4.1
proliferation of fees, 8.4.1.2
skyrocketing fees, 8.4.1.1
balance transfer fees, 8.4.4.1
challenges to, 8.4.1.3
currency conversion fees, 8.4.4.2
deregulation and, 8.2.1, 8.4.1
disparate impact, 8.1.4
“fee-harvester” cards, 8.5.1.1
industry practices, 8.1.3
late fees, 8.4.3.1
over-the-limit fees, 8.4.3.2
opt-in requirement, 8.4.3.2.3
other restrictions, 8.4.3.2.5
overview, 8.4.3.2.1
prohibited practices, 8.4.3.2.4
payment method, related to, 8.6.6
penalty fees
prohibited fees, 8.4.2.2.2
rate increases, 8.3.1.2.1
reasonableness, 8.4.2.2, 8.4.3.2.5
restrictions, 8.4.2, 8.4.3.1.2
specific fees, 8.4.3
subprime cards, 8.5.2
unconscionability, 2.4.8.5
CREDIT CARD UDAP RULE
issuance, 8.2.1
withdrawal of rule, 8.2.2
CREDIT CONTRACTS
see CREDIT AGREEMENTS
CREDIT COSTS
see FINANCE CHARGE; INTEREST
CREDIT DISABILITY INSURANCE
see also CREDIT INSURANCE; INVOLUNTARY UNEMPLOYMENT INSURANCE
approved rate schedule, 6.6.1.3
calculating charges, 6.6.1.3
compulsory, prohibition, 6.5.3.1
coverage, 6.2.4.1
elimination period, 6.2.4.3
excessive cost, 6.2.3.1
NAIC model act, 6.4.3.1
no benefit insurance, 6.8.1
non-credit insurance, 6.2.4.6
overview, 6.2.4.3
prima facie rates
challenging, 6.4.2.4
deviations, 6.4.2.3
NAIC model act, 6.4.2.1
problems with, 6.4.2.2
rate regulation, 6.4.2
deviation rates, 6.4.2.3, 6.6.1.3
rebates, 6.10
retroactive vs. non-retroactive, 6.2.4.3
tie-ins, 6.5.5.1
waiting period, 6.2.4.3
CREDIT DOCUMENTS
credit agreement, see CREDIT AGREEMENTS
falsification, 2.4.4.4
CREDIT GAP INSURANCE
see GAP INSURANCE OR AGREEMENTS
CREDIT INSURANCE
acceleration of debt, effect, 6.10.2
accident and health, see CREDIT DISABILITY INSURANCE
antitrust claims, 6.5.5
arbitration clauses, 7.4.2.2
benefits to creditor, 6.2.2, 6.2.3.1
compensation from sale of insurance, 6.2.2.1
insurance coverage, 6.2.2.2
interest on premium, 6.2.2.3
CREDIT INSURANCE (cont.)
captive reinsurers, 6.2.2.1
choice of insurers, 6.5.3.2
claim denials, 6.8.3
coercion, 6.5
anti-trust claims, 6.5.5.1
compulsory insurance, 6.5.3
generally, 6.5.1
proving coercion, 6.5.7
TILA claims, 6.5.2
UDAP claims, 6.5.4
consumer complaints, 6.2.4.1
cost, see INSURANCE PREMIUMS
coverage
denial of coverage, 6.8.3
excess coverage, 6.6.3, 6.6.4
incomplete coverage, 6.8.2
sale to ineligible persons, 6.4.6.2, 6.8.1
credit cards, 6.3
creditors, loss to, see CREDIT LOSS INSURANCE
debt protection products distinguished, 6.3.1, 6.3.2
see also DEBT PROTECTION PRODUCTS
default of debt, effect, 6.10.2
disability insurance, see CREDIT DISABILITY INSURANCE
eligibility, 6.2.1, 6.8.1
excess coverage
amount of coverage, 6.6.3.2
credit property issues, 6.6.4
level term life, 6.6.3.1
usury claims, 6.6.3, 6.6.4.1
excessive cost, 6.2.3
calculating charges, 6.6.1
excessive coverage, 6.6.3
excessive premiums, 6.6.2
low loss-ratio, 6.2.3.1
market failures, 6.2.3.2
rate regulation, 6.2.3.1, 6.4.2
reverse competition, 6.2.3.2
unemployment insurance, 6.2.4.4
usury claims, 6.6.2
family leave, see CREDIT LEAVE OF ABSENCE INSURANCE
federal regulation, 6.4.8, 6.5.5.2
fiduciary duty, 6.4.7, 6.8.3.3
force-placed, see FORCE-PLACED INSURANCE
GAP, see GAP INSURANCE OR AGREEMENTS
good faith and fair dealing, 2.4.11.1
group policies, 6.2.1
incomplete coverage, 6.8.2
ineligible borrowers, sale to, 6.8.1, 6.8.2
remedies, 6.8.3
installment loans, 10.3
level term insurance, 6.2.4.2.2, 6.6.3.1
liability damage waivers, 13.4.2.4
licensing requirements, 6.4.3.3
life insurance, see CREDIT LIFE INSURANCE
loss-of-income, see INVOLUNTARY UNEMPLOYMENT INSURANCE
loss-ratio, 6.2.3.1
manufactured home credit, 6.4.9, 11.6.3.3
misrepresentation, 6.8.3.2, 6.8.3.3
mortgage loans, 6.4.9
NAIC model acts, see NAIC MODEL ACTS
no benefit insurance, 6.8.1
non-credit insurance distinguished, 6.2.4.6
non-disclosure, 6.8.2, 6.8.3.3
overview, 6.2.1, 6.2.4.1
regulation and consumer claims, 6.4
packing, see INSURANCE PACKING
post-claim underwriting, 6.8
premiums, see INSURANCE PREMIUMS
prescreened offers to youth, 8.7.2.3.3
property insurance, see CREDIT PERSONAL PROPERTY INSURANCE
rate regulation, 6.4.2
filed-rate doctrine, 6.4.2.5
loss ratios, 6.2.3.1
rebates, see INSURANCE PREMIUM REBATES
refinancing, flipping penalty, 5.9.4
regulation, 6.4
Bank Holding Company Act, 6.4.7, 6.5.6
consumer credit laws, 6.4.5
federal preemption, 3.2.4.3, 6.4.8.2
insurance premium financing laws, 6.4.4
joint banking regulations, 6.4.8.1
NAIC model acts, 6.2.4.5, 6.4.3.1, 6.4.3.2
non-rate regulation, 6.4.3
overview, 6.4.1
rate regulation, 6.4.2
state preemption, 6.5.5.2, 7.4.2.2
TILA, 6.5.2
UDAP, 6.4.6.1
UNIP, 6.4.6.2
voluntariness, 6.5
retail installment contracts, 11.5.4.3
reverse competition, 6.2.2.1, 6.2.3.2
secondary beneficiaries, 6.9
secured credit, 10.6.1
sliding, 6.5.7
state regulation, 6.4.1, 6.4.5, 6.4.6
credit property insurance, 6.2.4.5
debt protection products, 6.3.4
licensing requirements, 6.4.3.3
preemption issues, 6.5.5.2, 7.4.2.2
UNIP statutes, 6.4.6.2
stretching the term, 5.9.4, 6.7.2
surpluses, 6.9
tie-ins, 6.5.3.2, 6.5.5.1
banks, 6.5.6
TILA application, 6.4.9
TILA claims, 6.5.2
truncated policies, 6.2.4.2.3
types, 6.2.4
unemployment insurance, see INVOLUNTARY UNEMPLOYMENT INSURANCE
UNIP statutes, 6.4.6.2
usury claims, 6.4.5.2, 6.6.2, 6.6.3, 6.6.4
VSI insurance, 11.5.4.5
CREDIT LEAVE OF ABSENCE INSURANCE
see also CREDIT INSURANCE
coverage, 6.2.4.1
excessive cost, 6.2.3.1
CREDIT LIFE INSURANCE
see also CREDIT INSURANCE
background, 6.2.1
calculating charges, 6.6.1.2
compulsory, prohibition, 6.5.3.1
coverage, 6.2.4.1
decreasing term, 6.2.4.2.1
excess coverage, 6.2.4.2.2, 6.6.3.1
excessive cost, 6.2.3.1
gross or net coverage, 6.2.4.2.1, 6.6.1.2
joint life, 6.2.4.2.3
level term, 6.2.4.2.2, 6.6.3.1
NAIC model act, 6.4.3.1
overcharges, 6.6.1.2
overview, 6.2.4.2
prima facie rates
challenging, 6.4.2.4
deviations, 6.4.2.3
NAIC model act, 6.4.2.1
problems with, 6.4.2.2
rate regulation, 6.4.2
rebates, 6.10
secondary beneficiaries, 6.9
single insurance, 6.2.4.2.3
surpluses, 6.9
tie-ins, 6.5.5.1
CREDIT LIMITS
over-the-limit fees, see OVER-THE-LIMIT FEES
padding, 8.4.3.2.1
CREDIT LINES
see OPEN-END CREDIT
CREDIT LOSS INSURANCE
see also CREDIT INSURANCE
charging consumer for, 11.5.4.5.3
VSI insurance as, 11.5.4.5.3
CREDIT MARKETPLACE
see also CREDITORS
credit cards, see CREDIT CARD ACCOUNTS
credit insurance, 6.2.1, 6.2.3.2
custom and usage, creditor defense, 7.7.9
debt burden, 8.1.2
deregulation, effect, 1.2.5
fringe lenders, see FRINGE LENDERS
modern consumer marketplace, described, 2.3
overreaching credit, see ABUSIVE LENDING
securitization, see SECURITIZATION TRUSTS
subprime lenders, see SUBPRIME LENDERS
types of credit, 1.5
types of creditors, 1.4
types of usury statutes
federal statutes, 2.2
other statutes, 2.4
state statutes, 2.3
CREDIT MATH
see INTEREST CALCULATIONS; MATHEMATICAL FORMULAS
CREDIT MONITORING
credit cards, 8.10.4
CREDIT PERSONAL PROPERTY INSURANCE
see also CREDIT INSURANCE
calculating charges, 6.6.1.4
compulsory, restrictions, 6.5.3.2
coverage, 6.2.4.1, 6.2.4.5
credit sales, 11.3.4.3
dual interest, 11.4.5.4.1
excess coverage
calculating, 6.6.1.4
duplicative insurance, 6.7.4
packing, 6.7.3, 6.7.4
phantom coverage, 6.6.4.2
scope of insurable interest, 6.6.4.1
excessive cost, 6.2.3.1
finance charge, exclusion, 6.5.2
force-placed, see FORCE-PLACED INSURANCE
household goods, 6.6.4.1, 6.7.4
insurable interest, 6.6.4.1
NAIC model act, 6.2.4.5, 6.4.3.2
overview, 6.2.4.5
regulation, 6.2.4.5, 6.4.5, 6.6.4.1
rate regulation, 6.2.3.1, 6.2.4.5, 6.4.2.1
retail installment contracts, 11.3.4.3
TILA rules, 11.5.4.5.2
VSI misnomer, 11.5.4.5.2
CREDIT PRACTICES RULE (FTC)
see also FEDERAL TRADE COMMISSION (FTC)
late fees, 10.7.1
non-purchase-money security interests in household goods, 10.6.1
overview, 2.2.7
pyramiding late charges, 4.8.5
unfair late charges, Appx. A.4
wage assignments, 10.6.2
CREDIT REGULATION
see CONSUMER CREDIT REGULATION
CREDIT REPAIR LAWS
federal, see CREDIT REPAIR ORGANIZATIONS ACT (CROA)
installment loans, application, 10.2.4.2
payday lenders, application, 9.6.5
state, see CREDIT SERVICES LAWS (STATE)
CREDIT REPAIR ORGANIZATIONS ACT (CROA)
see also CREDIT REPAIR LAWS
claims under, arbitration, 7.4.2.5
installment loans, application, 10.2.4.2
CREDIT REPORTS
prescreened offers to youth, 8.7.2.3.3
state regulation, federal preemption, 3.2.4.8
CREDIT SALES
see also RETAIL SELLERS
applicable law, 11.3.2
assignment of contract, 1.4.6
assignee liability, 11.7
automobiles, see AUTO FINANCING
balloon payments, 11.3.4.2
body-dragging, 3.9.5, 11.3.2.2
concealed loans, 7.5.2.2.1
contract completion and delivery, 11.3.8.2
convenience creditors, 1.4.7
deferral charges, 11.3.5.1
described, 1.4.6
disguised as leases, 13.3.1
electronic, see ELECTRONIC CREDIT TRANSACTIONS
equal installment payments, 11.3.4.2
federal preemption, 11.3.2.3, 11.3.2.5, 11.3.7
NCUA, 3.3
finance charge, 11.3.4.1
FTC Holder Rule, 7.7.7
hidden interest
inflating sale price, 4.4.5
late charges, 4.8.4
seller’s points, 4.4.6
insurance, see CREDIT INSURANCE
interest calculations, 5.3
late charges, 4.8.4, 11.3.5.2
see also LATE CHARGES
lender liability for seller-related claims, 11.7
direct financing situations, 11.2.3
limits on interest, 11.3.4.1
limits on term, 11.3.4.2
loan distinction, 1.5.1
loans in lieu of, 3.9.5
manufactured homes, see MANUFACTURED HOME CREDIT
motor vehicles, see AUTO FINANCING
overview, 11.3.2.1
precomputed interest, 5.8.3.3
see also PRECOMPUTED LOANS
rebates of unearned interest, 11.3.5.3
refinancings, 5.9.5.5
regulatory history, 1.2.4
remedies, 11.3.9
rescission of contract, 7.8.3.2
RTO transactions, status, 13.3
see also RENT-TO-OWN (RTO) TRANSACTIONS
schedule of payments, 11.3.4.2
security interests, see COLLATERAL
“single document rule,” 11.3.8.1
spot delivery, 11.4.5
state regulation
installment loan laws, see INSTALLMENT LOAN LAWS
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
structure, 11.2
time-price doctrine, 1.2.4, 1.5.1, 7.5.2.2
unequal payments, 5.5.2.1
usury law
application, 1.5.1, 7.5.2.2.1
historical development, 1.2.4
yo-yo sales, 11.4.5
CREDIT SERVICE ORGANIZATION (CSO)
loan brokers, 9.6.5
payday loans, 9.6.5
CREDIT SERVICES LAWS (STATE)
see also CREDIT REPAIR LAWS
coverage, 2.3.12.2
installment loans, application, 10.2.4.2
overview, 2.3.12.1
payday lending, application, 9.6.5
private causes of action, 2.3.12.4
RALs, application, 15.4.4, 15.6.2
substantive prohibitions, 2.3.12.3
tax preparers, application, 15.4.4, 15.6.2
use to evade usury caps, 2.3.12.5, 10.2.4.2
CREDIT STATUTES (STATE)
see USURY LAWS (STATE)
CREDIT TERMS
see CREDIT AGREEMENTS
CREDIT TRANSACTIONS
see also CONSUMER CREDIT REGULATION
auto-secured
auto purchases, see AUTO FINANCING
non-auto purchases, see AUTO TITLE LOANS
closed-end credit, see CLOSED-END CREDIT
common law, application, see COMMON LAW
discrimination, 2.4.2
duty of good faith and fair dealing, 2.4.11
electronic, see ELECTRONIC CREDIT TRANSACTIONS
federal regulation, 2.2, 2.4.2
improvident, see IMPROVIDENT LENDING
income buyers, see FUTURE PAYMENT STREAM TRANSACTIONS
interest-bearing explained, 5.8.3.1, 5.8.3.2
see also INTEREST-BEARING LOANS
loan or forbearance status, 7.5.2.1
loans, see LOANS
military personnel, see MILITARY PERSONNEL
older consumers, 2.4.12.1
open-end credit, see OPEN-END CREDIT
overreaching terms, see ABUSIVE LENDING
precomputed explained, 5.8.3.1, 5.8.3.3
see also PRECOMPUTED LOANS
rebates, see REBATES OF UNEARNED CHARGES
sale of goods, see CREDIT SALES
secured credit, see SECURED CREDIT
state regulation, 2.3, 2.4.1, 2.4.2
time-price doctrine, application, 7.5.2.2.2
types of credit, 1.5
UDAP application, 2.4.1.2
unconscionability, 2.4.8
usurious transactions, see USURY VIOLATIONS
variable rate, see VARIABLE RATE TRANSACTIONS
CREDIT UNEMPLOYMENT INSURANCE
see INVOLUNTARY UNEMPLOYMENT INSURANCE
CREDIT UNIONS
see also DEPOSITORY CREDITORS
deposit insurance, 1.4.4
federal regulation, 2.2.1, 3.1.2.3, 3.3, Appx. I
see also FEDERAL CREDIT UNION ACT
FTC credit practices rule, application, 2.2.7
historical development, 1.2.3
interest ceilings, 9.5.3.2, 9.5.3.3
most favored lender status, 3.5.2
NCUA interpretations, Appx. I.3, Appx. I.4
NCUA loan guidelines, 9.5.3.8
STS loans, 9.5.3.3–9.5.3.7
NCUA regulations, Appx. I.2
NCUSIF, participation, 1.4.4, 3.1.2.3
parity laws
effect on national banks, 3.5.4
generally, 3.6
payday loans, 9.5.3
generally, 9.5.3.1
interest rate caps, 9.5.3.2, 9.5.3.3
rate exportation
see also RATE EXPORTATION
federal credit unions, 3.4.2.2
state credit unions, 3.4.2.3, Appx. F.4
regulatory history, 1.4.4
service organizations, 9.5.3.9
short-term, small-amount (STS) loans
amortization requirements, 9.5.3.5
fee restrictions, 9.5.3.5
higher rate cap, 9.5.3.3
military personnel, 9.5.3.7
repayment method, 9.5.3.6
rollover ban, 9.5.3.4
underwriting guidelines, 9.5.3.3
state-chartered federally insured, see FEDERALLY INSURED LENDERS
state regulation, 3.1.2.3
usurious loans, remedies, 7.8.6.1
CREDITOR DEFENSES
administrative alternative, 7.7.12
assignees, 7.7.7
bona fide error, 7.5.5.2
contract saving clauses, 7.7.10
correction of error, 7.7.11
de minimis violations, 7.7.8
estoppel, 7.7.2
FDIC, special defenses, 7.7.13
federal receivers, 7.7.13
holders in due course, 7.7.7
industry custom and usage, 7.7.9
lack of standing, 7.7.1
lack of usurious intent, 7.5.5.2
reformation of contract, 7.8.2.1, 7.8.3.3
removal to federal court, 7.9.1
res judicata, 7.7.4
statute of limitations, 7.7.6
voluntary payment doctrine, 7.7.5, 7.8.2.3.3, 7.8.4.4.3
waiver, 7.7.2.4, 7.7.3.3.2
CREDITORS
see also CREDIT MARKETPLACE
arbitration clauses, enforceability, 7.4
business of extending credit, 3.9.6
collection abuses, see COLLECTION ABUSES
credit insurance
benefits, 6.2.2, 6.3.1
commissions as interest, 6.6.2.2
excess charges, liability, 6.6.2.1
fiduciary duty, 6.4.7
liability for coverage, 6.8.3.3
VSI, 11.5.4.5
defenses to usury claims, see CREDITOR DEFENSES
depository creditors, see DEPOSITORY CREDITORS
duty of care, 2.4.6.2.2, 2.4.7
duty of good faith and fair dealing, 2.4.11
estoppel, 2.4.12.2
federal lenders, see FEDERAL LENDERS
federally insured lenders, see FEDERALLY INSURED LENDERS
fiduciary role, 2.4.6.2.2
FTC credit practices rule, application, 2.2.7
installment loan laws, application, 2.3.5
insurers, agency relationship, 6.8.3.2
Internet-based lenders, see ELECTRONIC CREDIT TRANSACTIONS; INTERNET TRANSACTIONS
licensed, see LICENSED LENDERS
licensing requirements, 3.9.7, 7.8.5
assignees, 3.9.7.2
evasion, 3.9.7.3
most favored lender doctrine, see MOST FAVORED LENDER DOCTRINE
non-depository creditors, see NON-DEPOSITORY CREDITORS
originating lender, determination, 3.1.2.1
overreaching, see ABUSIVE LENDING
regulation, see CONSUMER CREDIT REGULATION
retail installment sales, 11.2
see also CREDIT SALES
table-funding, see TABLE-FUNDED LOANS
types of creditors, 1.4
identifying originating, 3.1.2
UDAP application, 2.4.1.2
usurious intent, 7.5.5
CRIMINAL USURY
business credit, application, 3.9.10
interest ceiling, 2.3.2, 3.9.10
CUSTOM AND USAGE
creditor defense, 7.7.9
DAILY INTEREST RATES
see also INTEREST RATES
computation
360-day method, 5.5.4.3
365-day method, 5.5.4.2
bankers’ year, 5.5.4.4
generally, 5.5.4.1
late charges in addition to, 5.7.1
DAMAGES
liquidated, see LIQUIDATED DAMAGES
MLA violations, 2.2.5.10.1
punitive, see PUNITIVE DAMAGES
statutory, see STATUTORY PENALTIES
DE MINIMIS VIOLATIONS
see also USURY VIOLATIONS
creditor defense, 7.7.8
DEALERS
add-ons, 11.5
auto dealers, see AUTO FINANCING
“buy-here, pay-here,” 11.2.2
charges as hidden interest
document preparation fees, 4.6.2
upcharges, 4.5.2.2
fiduciary duty, 2.4.6.2.2
FTC jurisdiction, 2.2.6.2.3
inflated sales price as hidden interest, 4.4.5, 11.4.3
lender liability for acts of, 11.7
direct financing situations, 11.2.3
FTC Holder Rule, 11.7.3
holder-in-due-course doctrine, 11.7.1
waiver of defense clauses, 11.7.2
licensing requirements, 11.3.3
loan padding, 11.5.1, 11.5.2
markups, 11.4.2
unfair or deceptive practices, 2.2.6.2.3
yield spread premiums, 11.4.2, 11.5.1
DEBT BUYERS
see ASSIGNEES
DEBT CANCELLATION OR SUSPENSION AGREEMENTS (DCAs)
see DEBT PROTECTION PRODUCTS
DEBT COLLECTION
see COLLECTION ABUSES
DEBT PROTECTION PRODUCTS
see also CREDIT INSURANCE
abusive or deceptive practices, 6.3.5
advantages to creditor, 6.3.1, 6.3.2
auto loans, see GAP INSURANCE OR AGREEMENTS
credit cards, 6.3, 8.10.4
credit insurance, differences, 6.3.1, 6.3.2
insurance status, 6.3.4
manufactured home credit, 6.4.9
nature of products, 6.3.2
overview of industry, 6.3.1
regulation, 6.3.4
federal preemption, 3.2.4.3, 6.3.4, 6.4.8.2
DECEPTIVE PRACTICES
credit insurance, 2.2.6.2.3
credit transactions, 2.4.1.3.5
dealers, 2.2.6.2.3
debt protection products, 6.3.5
financial services industry, see UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)
FTC Credit Practices Rule, see CREDIT PRACTICES RULE (FTC)
retail credit, 2.2.6.2.3
RTO transactions, 2.2.6.2.3
state regulation, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
DEFAULT CHARGES
see also LATE CHARGES
attorney fees, 4.8.6.3
default interest rate, 4.8.6.4
deferral charges, 4.8.6.1, 7.5.2.3
late charges distinguished, 4.8.1
property inspection fees, 4.8.6.2
usury laws, application, 7.5.2.3
DEFAULT INSURANCE
see CREDIT LOSS INSURANCE
DEFAULT JUDGMENTS
setting aside, usury defense, 7.7.4
DEFAULTED LOANS
see ACCELERATION; DEFAULT CHARGES
DEFENSES
creditor defenses, see CREDITOR DEFENSES
federal receivers, special defenses, 7.7.13
holders in due course, against, 7.7.7
Military Lending Act (MLA), 2.2.5.10.2
Servicemembers Civil Relief Act, 2.2.4
usury as defense, see USURY AS DEFENSE
DEFERRAL FEES
see also FORBEARANCE
calculating, 5.7.2
interest status, 4.8.6.1
overview, 5.7.2
precomputed transactions, 5.7.2, 5.8.3.3
retail installment contracts, 11.3.5.1
DEFERRED INTEREST PLANS
disclosure requirements, 8.8.2.1
minimum payment requirements, 8.8.2.3
overview, 8.8.1
special provisions, 8.8.2.2
DEFERRED PRESENTMENT LOANS
see PAYDAY LOANS
DEFICIENCY INSURANCE
see CREDIT LOSS INSURANCE; DEBT PROTECTION PRODUCTS; GAP INSURANCE OR AGREEMENTS
DEFINITIONS
accurately disclosed APR, 5.4.2
affiliate, 3.2.5
amount financed, 5.4.1
APR, 5.4.1
branch, 3.4.4.4
“case-by-case basis,” 3.2.2.5
consolidation, 5.9.2
credit sale, 13.3.2.3
enterprise, 7.8.6.2.1
finance charge, 5.4.1
flipping, 5.9.2
forbearance, 7.5.2.1
housing creditor, 3.7.3
impair, 6.5.5.2
installment loan, 10.1.1
interest, 3.4.5, 4.2, 5.8.5.2.2, 7.5.4.3
loan, 7.5.2.1, 7.5.2.2.1, 14.3.2
non-interest fees, 7.5.4.3
pattern, 7.8.6.2.2
payday loan, 9.4.1
principal, 7.5.4.3
racketeering activity, 7.8.6.2.2
refinancing, 5.9.2
sale, 14.3.2
state consumer financial law, 3.2.2.1, 3.4.2.6
subsidiary, 3.2.5
unlawful debt, 7.8.6.2.3
DELINQUENCY CHARGES
see DEFAULT CHARGES; LATE CHARGES
DEPARTMENT OF VETERANS AFFAIRS (VA) LOANS
manufactured homes, application, 3.7.4
preemption of state law, 3.7.4
DEPOSIT ADVANCE LOANS
FDIC guidelines, 9.4.2.3.1, 9.5.1
overview, 9.5.1
regulation, 9.5.1
DEPOSIT INSURANCE
see also FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
banks, 1.4.2
credit unions, 1.4.4
federal receivers, special defenses, 7.7.13
savings and loan associations, 1.4.3
DEPOSITORY CREDITORS
see also CREDITORS
abusive practices, 1.4.1, 2.2.6.2
banks, see BANKS
credit unions, see CREDIT UNIONS
federal institutions
banks, see NATIONAL BANKS
credit unions, see CREDIT UNIONS
regulation, 2.2.1, 3.1.2.1
savings banks, see SAVINGS AND LOAN ASSOCIATIONS
federal preemption, 3.1.2.1
FTC credit practices rule, application, 2.2.7
most favored lender doctrine, see MOST FAVORED LENDER DOCTRINE
non-depository creditors distinguished, 1.4.1, 3.1.2.1
RACs, see REFUND ANTICIPATION CHECKS (RACs)
RALs, see REFUND ANTICIPATION LOANS (RALs)
rate exportation, see RATE EXPORTATION
savings and loan associations, see SAVINGS AND LOAN ASSOCIATIONS
state institutions
applicable law, 3.1.1, 3.1.2.1
banks, see STATE BANKS
credit unions, see CREDIT UNIONS
federally insured, see FEDERALLY INSURED LENDERS
most favored lender status, 3.5.2
parity laws, 3.6
savings associations, see SAVINGS AND LOAN ASSOCIATIONS
unfair or deceptive practices, 2.2.6.2
DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY CONTROL ACT (DIDA)
choice of law provision, 3.4.2.3.1, 3.5.2
first mortgage preemption, 3.7.2, 7.9.1.3.4
manufactured homes, application, 3.7.2, Appx. H
regulations, Appx. H.2
text, Appx. H.1
state opt-out, 3.4.2.3.2, 3.4.2.3.3
usury remedies, 7.8.6.1
DEREGULATION
credit card industry, 8.2.1, 8.2.4.1
credit marketplace, effect, 1.2.5
DIDA, see DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY CONTROL ACT (DIDA)
post-deregulation usury remedies, 7.6
agreed interest ceilings, 7.6.1
hidden interest issues, 7.6.2
rate exportation, via, see RATE EXPORTATION
state parity laws, see PARITY LAWS (STATE)
DETENTION OF MONEY
forbearance distinguished, 7.5.2.3
usury laws, application, 7.5.2.3
DIDA
see DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY CONTROL ACT (DIDA)
DIRECT DEPOSIT ADVANCES
see DEPOSIT ADVANCE LOANS
DISABILITY INSURANCE
credit insurance, see CREDIT DISABILITY INSURANCE
non-credit insurance, 6.2.4.6
DISCLOSURE
document preparation fees, 11.4.4
credit insurance
fiduciary duty, 6.4.7
premium financing, 6.4.4
VSI insurance, 11.3.4.5
electronic transactions, 2.5.4
fiduciary duty, 2.4.6.4
nondisclosure, see NONDISCLOSURE
RALs, 15.2.1, 15.3.2
remedies under RISAs, 11.3.9
retail installment sales, 11.3.7, 11.4.3.3
add-on products, 11.5.2
dealer markups, 11.4.2
insurance, 11.5.4
negative equity, 11.4.6.3.2
service contracts, 11.5.3
single document rule, 11.3.8.1
RTO transactions, 13.4.3
state law, federal preemption, 3.2.4.9
TILA, see DISCLOSURES (TILA)
DISCLOSURES (TILA)
APR, see ANNUAL PERCENTAGE RATE (APR)
credit cards, 8.2.5
credit insurance, 6.5.2
debt protection products, 6.3.4
premium financing, 6.4.4
credit service organization fees, 10.2.4.2
dealer markups, 11.4.3.2
deferred interest plans, 8.8.2.1
discounts, 11.4.3.2
document preparation fees, 11.4.4
finance charge, see FINANCE CHARGE
generally, 2.2.2.1
interest calculation method, 5.3.5.2
negative equity, 11.4.6.3.1
payday loans, 9.4.3
purpose, 5.4.1
RACs, 15.2.1.3
RALs, 15.2.1.1
pay stub RALs, 15.2.1.2
RTO transactions, applicability, 13.3.2.3
variable rate transactions, 5.3.6.2
DISCOUNT INTEREST
see also INTEREST
calculations
examples, 5.3.3.2
given principal, 5.3.3.3
compensating balances, 4.4.4
compounding, 5.5.1.1
described, 5.3.3.1
hidden interest, 4.4.2
refinancing, effect, 5.9.4
DISCOUNT POINTS
see POINTS
DISCOUNTS
retail installment contracts, 11.4.3
“buy-here, pay-here” dealers, 11.2.2
described, 11.4.3.1
establishing inflated price, 11.4.3.4
TILA disclosures, 11.4.3.2
DISCOVERY
credit insurance
excess charges, 6.6.2.1
proving coercion, 6.5.7
NCLC resources, 1.1.5
true cash price, 11.4.3.4.1, 11.4.3.4.2
DISCRIMINATION
credit card rates, 8.1.4, 8.2.5
dealer markups, 11.4.2
fair lending statutes, 2.4.2
ECOA, see EQUAL CREDIT OPPORTUNITY ACT (ECOA)
payday loans, 9.4.3
RTO transactions, 13.4.6
DOCTORS
see CONVENIENCE CREDITORS
DOCUMENT PREPARATION FEES
auto financing, 11.4.4
hidden interest, 4.6.2
statutory caps, 4.6.1
unauthorized practice of law, 4.6.3
DOCUMENTS
see CREDIT DOCUMENTS
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
see also UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)
abusiveness standard, 2.2.6.2.1, 2.2.6.2.2
CFPB rulemaking authority, 2.2.6.2
effective date, 3.2.2.7
historical development, 1.2.6
overview, 1.2.6, 2.2.6.1
preemption standards, 3.2.1, 3.2.2, Appx. G.1
case-by-case determinations, 3.2.2.5
compliance by OCC, 3.2.3.3
procedures, 3.2.2.5
“significantly interferes,” 3.2.2.2
subsidiaries, 3.2.5, 3.4.2.6
unfairness standard, 2.2.6.2.1
D’OENCH DOCTRINE
FDIC special defenses, 7.7.13
DUAL INTEREST INSURANCE
see also CREDIT PERSONAL PROPERTY INSURANCE
force-placed insurance, 11.3.8.3
vendor’s single interest (VSI) insurance, 11.5.4.5.1
DUE CARE DUTY
lender liability, 2.4.7
DUE PROCESS
jurisdictional issues, 7.9.2.1
DUTY
due care, see DUE CARE DUTY
fiduciary, see FIDUCIARY DUTY
good faith and fair dealing, see GOOD FAITH AND FAIR DEALING
EARLY TERMINATION
acceleration, see ACCELERATION
prepayment, see PREPAYMENT
rebates, see REBATES OF UNEARNED CHARGES
E-COMMERCE
see ELECTRONIC BANKING; ELECTRONIC CREDIT TRANSACTIONS; ELECTRONIC FUND TRANSFERS (EFT); ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (E-SIGN); INTERNET TRANSACTIONS; UNIFORM ELECTRONIC TRANSACTIONS ACT (UETA)
ELDERLY PERSONS
see OLDER CONSUMERS
ELECTRONIC BANKING
Internet-only banks, 3.4.4.5
payday lenders, 9.2.1, 9.6.2
ELECTRONIC CREDIT TRANSACTIONS
see also INTERNET TRANSACTIONS
applicable law, 2.5.2
consent requirements, 2.5.2, 2.5.3
disclosure requirements, 2.5.4
enforceability, 2.5.5
long arm jurisdiction, 7.9.2.2
overview, 2.5.1
payday loans, 9.2.1, 9.6.2
form of repayment, 9.2.7
timing and format requirements, 2.5.4
ELECTRONIC FUND TRANSFERS (EFT)
installment loan repayment, 10.6.3
payday loan repayments, 9.2.1
additional fees added to, 9.2.4
manipulating by lender, 9.2.7
stop payments, 9.2.7, 9.2.8
tribal payday loans, 9.6.3.3
unauthorized transfers, 9.2.6, 9.2.9
preauthorized transfers, see PREAUTHORIZED ELECTRONIC FUND TRANSFERS
ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (E-SIGN)
consent requirements, 2.5.2, 2.5.3
enforceability of contracts and signatures, 2.5.5
overview, 2.5.2
preemption of state law, 2.5.2
timing and format requirements, 2.5.4
UETA, interrelationship, 2.5.2
EMPLOYMENT STANDARDS
see LABOR STANDARDS LAWS
EQUAL CREDIT OPPORTUNITY ACT (ECOA)
credit cards, application, 8.2.5
dealer markups, application, 11.4.2
overview, 2.4.2
payday loans, application, 9.4.3
rent-to-own transactions, application, 13.4.6
EQUITABLE REMEDIES
see also USURY REMEDIES
constructive trust, 7.8.4.3
estoppel, see ESTOPPEL
MLA violations, 2.2.5.10.1
“money had and received,” 7.8.4.2
obstacles to, 7.8.4.4
unjust enrichment, 2.4.9, 7.8.4.1
usurious loans, generally, 7.8.3
EQUITY PARTICIPATION
see INVESTMENTS
EQUITY-SKIMMING
insurance packing as, 6.7.2
RICO claims, 7.8.6.2.6
ERRORS
creditor defenses
bona fide error, 7.5.5.2
correction of error, 7.7.11
savings clauses, 7.7.10
ESCROW ACCOUNTS
state limitations, federal preemption, 3.2.4.6
E-SIGN
see ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (E-SIGN)
ESTOPPEL
creditor defense, 7.7.2
creditor liability, 2.4.12.2
insurance disqualification, 6.8.3.2
voluntary payment, 7.7.5
ETCH
see VEHICLE PROTECTION PRODUCTS (“ETCH”)
EVIDENCE
see also BURDEN OF PROOF
business loan, 3.9.3.3
credit insurance
coercion, 6.5.7
tie-in, 6.5.5.1
discovery, see DISCOVERY
expert evidence, see EXPERT WITNESSES
inflated sale price, 11.4.3.4
interest overcharge, 7.5.4
loan or forbearance, 7.5.2
mathematical issues, proving, 5.10
repayment obligation, 7.5.3
true cash price, 11.4.3.4
usurious intent, 7.5.5
usury claims
burden, 7.5.1.2
contract construction, 7.5.1.4
elements, 7.5
excessive interest, 7.5.4.4
intent, 7.5.5
uncovering, 5.11
EXPERT WITNESSES
proving usury, 7.5.4.4
mathematical issues, 5.10
EXPORTATION OF INTEREST RATES
see RATE EXPORTATION
FACTORING COMPANIES
structured settlement advances, 14.5
FAILED BANKS
FDIC special defenses, 7.7.13
FAIR CREDIT REPORTING ACT (FCRA)
credit cards, application, 8.2.5
prescreened offers to youth, 8.7.2.3.3
FAIR LABOR STANDARDS ACT (FLSA)
overview, 2.4.3
FAIR LENDING LAWS
ECOA, see EQUAL CREDIT OPPORTUNITY ACT (ECOA)
state laws, 2.4.2
FAMILY LEAVE CREDIT INSURANCE
see CREDIT LEAVE OF ABSENCE INSURANCE
FARM SUPPLY COMPANIES
see CONVENIENCE CREDITORS
FAVORED LENDERS
see MOST FAVORED LENDER DOCTRINE
FEDERAL ARBITRATION ACT (FAA)
see also ARBITRATION AGREEMENTS
preemption by state insurance law, 7.4.2.2
FEDERAL BANKING SYSTEM
see also BANKS
FDIC, see FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
historical development, 1.4.2
reserve system, see FEDERAL RESERVE SYSTEM
FEDERAL BANKS
see NATIONAL BANKS
FEDERAL COURT
jurisdiction, 7.9.1
see also JURISDICTION
removal to, 7.9.1
state court judgments, relationship, 7.7.4
FEDERAL CREDIT UNION ACT (FCUA)
see also CREDIT UNIONS
NCUA formal statements, Appx. I.4
NCUA interpretive letters, Appx. I.3
preemption of state law, 3.3
selected provisions, Appx. I.1
selected regulations, Appx. I.2
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
see also FEDERAL BANKING SYSTEM; FEDERAL RESERVE SYSTEM; FEDERALLY INSURED LENDERS
bank participation, 1.4.2
credit insurance, joint regulations, 6.4.8.1
failed banks, special defenses available, 7.7.13
industrial loan companies, application, 3.1.2.4
payday lending guidelines, 9.4.2.3
affordable small loans, 9.4.2.3.2
banks, 9.4.2.3.1, 9.5.1
generally, 9.4.2.3.1
payment processor relationships, 9.4.2.3.3
RALs enforcement actions, 15.5.1, 15.5.2
rate exportation, interpretation letters, Appx. F.3.2
FEDERAL DISCOUNT RATE
alternative federal rate, relationship, 3.4.1
FEDERAL HOME LOAN BANK BOARD
see also FEDERAL HOME LOAN BANK SYSTEM; OFFICE OF THRIFT SUPERVISION (OTS)
history, 1.4.3
FEDERAL HOME LOAN BANK SYSTEM
see also SAVINGS AND LOAN ASSOCIATIONS
Board, see FEDERAL HOME LOAN BANK BOARD
establishment, 1.4.3
FSLIC, see FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC)
OTS, see OFFICE OF THRIFT SUPERVISION (OTS)
participation, 1.4.3
FEDERAL HOUSING ADMINISTRATION (FHA) LOANS
manufactured homes, application, 3.7.3
preemption of state law, 3.7.4
FEDERAL LENDERS
see also FEDERALLY INSURED LENDERS
banks, see NATIONAL BANKS
credit insurance regulation, 6.4.8, 6.5.5.2
credit unions, see CREDIT UNIONS
regulation, 2.2.1
savings and loan associations, see SAVINGS AND LOAN ASSOCIATIONS
FEDERAL PREEMPTION
see also PREEMPTION
AMTPA, 3.7.3, 7.9.1.3.4
banks, 7.9.1.3
checklist, 3.1.3
complete preemption, 7.9.1.3
conflict preemption, 3.2.2.2, 3.2.2.5, 3.2.3.3
credit card abuses and, 8.2.1, 8.11.5
generally, 8.11.5.1
other claims, 8.11.4
TILA, 8.11.5.2
UDAP, 8.11.3
credit insurance, 6.4.8.2
credit sales, 11.3.2.3, 11.3.2.5, 11.3.7
credit unions, 3.3
debt protection products, 6.3.4, 6.4.8.2
DIDA, 3.4.2.3.1, 3.7.2, 7.9.1.3.4, Appx. H
Dodd-Frank Act
case-by-case determination, 3.2.2.5
compliance, 3.2.3.3
effective date, 3.2.2.7
generally, 3.2.1, 3.2.2.1
procedures, 3.2.2.5
“significantly interferes” standard, 3.2.2.2
standards, Appx. G.1
E-Sign, 2.5.2
FDIC insurance, effect, 1.4.2, 3.1.2.2, 3.2.6
federal court jurisdiction, 7.9.1.3
FHA loans, 3.7.4
field preemption, 3.2.2.5, 7.9.1.3.1
FIRREA, 7.9.1.3.4
Gramm-Leach-Bliley Act, 6.3.4, 6.4.8
HOEPA, 5.8.7.1.7
HOLA, 7.9.1.3.4
historical development, 1.2.5
installment loan laws, 10.1.5
interest ceilings, see RATE EXPORTATION
manufactured home credit, 3.7, 11.6.3.1
AMTPA, 3.7.3
DIDA, 3.7.2, Appx. H
FHA and VA, 3.7.4
“qualified lenders,” 3.7.2
RHS, 3.7.5
MLA, 2.2.5.12
most favored lender doctrine, see MOST FAVORED LENDER DOCTRINE
National Bank Act, 7.9.1.3.2
nature of originating lender, 3.1.2
bank subsidiaries, 3.1.2.5
banks and savings associations, 3.1.2.2
credit unions, 3.1.2.3
depository vs. non-depository, 3.1.2.1
finance companies, 3.1.2.5
industrial loan companies, 3.1.2.4
OCC, 3.2
application, 3.2.4, 3.2.5
determination procedures, 3.2.2.5
indirect effect, 3.2.6
interpretations, Appx. G.3
non-mortgage lending, 3.2.4
preemption regulations, 3.2.3, Appx. G.2
preemption standards, 3.2.2
savings clause, 3.2.4.12
scope, 3.2.1, 3.2.2.1, 3.2.2.6, 3.2.4.12, 3.2.5
“ordinary preemption,” 7.9.1.3.2
OTS interpretations, Appx. G.3
overview, 3.1.1
payday loans, 9.5
RALs, 15.3.1
rate exportation, see RATE EXPORTATION
rebates of unearned charges, 5.8.7.1.7
revolving charge accounts, 11.3.2.3
RHS loans, 3.7.5
RISAs, 11.3.2.3
state laws of general application, 3.2.2.6
state parity laws, interaction, 3.6
subsidiaries and agents, rights, 3.2.5, 3.4.2.6
TILA, 2.2.2.3, 5.8.7.1.7
UDAP, 3.2.2.6
VA loans, 3.7.4
FEDERAL REBATE STATUTE
see also REBATES OF UNEARNED CHARGES
generally, 2.2.3
interest definition, 5.8.5.2.2
points, status under, 5.8.5.2.2
preemptive effect, 5.8.7.1.7
RALs, application, 15.2.1.4
remedies for violation, 5.8.8.4
Rule of 78s, restrictions, 5.8.7.1.2
scope, 5.8.7.1.2
text, Appx. A.3
FEDERAL RECEIVERS
special defenses, 7.7.13
FEDERAL RESERVE BOARD (FRB)
see also REGULATORY AGENCIES
Credit Card UDAP Rule, 8.2.1
credit insurance, joint regulations, 6.4.8.1
deposit advance loan guidance, 9.4.2.4
federal discount rate, 3.4.1
joint banking regulations, 6.4.8.1
state banks, regulatory function, 3.1.2.2
FEDERAL RESERVE SYSTEM
see also FEDERAL BANKING SYSTEM; NATIONAL BANKS
establishment, 1.4.2
FDIC, see FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC)
see also FEDERAL HOME LOAN BANK SYSTEM
creation and participation, 1.4.3
FEDERAL TRADE COMMISSION (FTC)
credit practices rule, see CREDIT PRACTICES RULE (FTC)
holder rule, see HOLDER RULE (FTC)
jurisdiction, 2.2.6.2.3
tribal activities, 9.6.3.3
RALs, enforcement actions, 15.5.1
FEDERALLY INSURED LENDERS
see also FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
banks, see BANKS
credit unions, see CREDIT UNIONS
federal preemption, 3.1.2.2, 3.1.2.3, 3.2.6
industrial banks, see INDUSTRIAL LOAN COMPANIES
most favored lender status, 3.5.2
national banks, see NATIONAL BANKS
rate exportation, 3.4.2, Appx. F.3, Appx. F.4
FDIC interpretation letters, Appx. F.3.2
NCUA formal statement, Appx. F.4.2
statutory provisions, Appx. F.3.1, Appx. F.4.1
savings and loan associations, see SAVINGS AND LOAN ASSOCIATIONS
savings banks, see SAVINGS BANKS
state banks, see STATE BANKS
FEES AND CHARGES
see also LOAN FEES
add-on products, 11.5
attorney fees, see ATTORNEY FEES AND COSTS
broker fees, see BROKER FEES
credit card fees, see CREDIT CARD FEES
credit sales, 11.3, 11.4.3, 11.4.4, 11.5
default charges, see DEFAULT CHARGES
deferral fees, see DEFERRAL FEES
delinquency fees, see LATE CHARGES
document preparation fees, 11.4.4
see also DOCUMENT PREPARATION FEES
earned at consummation, 4.3.1, 5.8.5.2.1
earned post-consummation, 4.8.7
excessive
UDAP violations, 2.4.1.3.4
unconscionability, 2.4.8.5
expressio unius principle, 7.2.2
finance charge, see FINANCE CHARGE
installment loans
capped fees, 10.2.2, 10.2.4.1
credit service organization fees, 10.2.4.2
loan fees disguised as third party fees, 10.2.4
uncapped fees, 10.2.3, 10.2.6
interest status, 4.3.1, 4.4.2, 4.6.2, 7.5.4.3
see also HIDDEN INTEREST
late charges, see LATE CHARGES
loan fees, see LOAN FEES
open-end credit, 10.9.4
federal law limits, 10.9.4.1
interpreting caps on fees, 10.9.4.5
state caps, 10.9.4.2
states without caps, 10.9.4.4
payday loans, NSF charges, 9.2.4
points, see POINTS
post-consummation charges, see POST-CONSUMMATION CHARGES
principal, addition to, 4.4.2
credit sales, 4.4.6
property inspection fees, 4.8.6.2
“rate lock” fees, 4.3.3
referral fees, see COMMISSIONS; KICKBACKS
refinancings, additional, 5.9.5.4
retail installment contracts, 11.3, 11.4.3, 11.4.4, 11.5
RTO transactions, 13.4.2
state restrictions, 4.6
federal preemption, 3.2.4.11
third party services, 4.5
broker fees, 4.5.3
general principles, 4.5.1
subterfuges, 4.5.2
UDAP violations, 2.4.1.3.4
unauthorized fees, 7.2.2
unconscionability, 2.4.8.5
unearned
intent to collect, 5.8.8.3
rebates, see REBATES OF UNEARNED CHARGES
usurious loans, forfeiture, 7.8.2.2.1
yield spread premiums, see YIELD SPREAD PREMIUMS
FHA LOANS
see FEDERAL HOUSING ADMINISTRATION (FHA) LOANS
FIDUCIARY DUTY
credit card abuses as breach of, 8.11.4
credit insurance, 6.4.7
premium financing, 6.4.4
duties of fiduciary, 2.4.6.4
existence of duty, 2.4.6.2
debtor-creditor relationship, 2.4.6.2.2
formal fiduciary relationships, 2.4.6.2.1
principal-agent relationship, 2.4.6.3
quasi-fiduciary relationships, 2.4.6.2.1
special relationships, 2.4.6.2.1
overview, 2.4.6.1
tax preparers, RALs as breach, 2.4.6.2.2, 15.4.1
FILED-RATE DOCTRINE
described, 6.4.2.5
FINANCE CHARGE
see also FEES AND CHARGES; INTEREST
annual rate, see ANNUAL PERCENTAGE RATE (APR)
credit sales, 11.3.4.1
date of accrual, 5.5.3
defined, 5.4.1
earned at consummation, 4.3.1, 5.8.5.2.1
exclusions, 4.2.2
document preparation fees, 4.6.2
hidden, see HIDDEN INTEREST
insurance premiums, exclusion, 6.5.1, 6.5.2
interest distinguished, 5.4.1
minimum finance charge, 5.5.7
overview, 5.4.1
prepaid finance charges, see POINTS
rebate of, see REBATES OF UNEARNED CHARGES
retail installment contracts, 11.3.4.1
statutory interpretation, 4.2.2
TILA disclosures, 5.4.1
FINANCE COMPANIES
see also LICENSED LENDERS; NON-DEPOSITORY CREDITORS
FTC credit practices rule, application, 2.2.7
holder-in-due-course defense, 7.7.7
industrial loan companies, see INDUSTRIAL LOAN COMPANIES
insurance premiums, see INSURANCE PREMIUM FINANCE COMPANIES
licensing requirements, 3.9.7.1
most favored lender doctrine, 3.5.1
products or services, see FINANCIAL PRODUCTS OR SERVICES
regulatory history, 1.4.5
retail installment contracts, purchasing, 1.4.6
FINANCIAL INSTITUTIONS
see DEPOSITORY CREDITORS
FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT (FIRREA)
legislative history, 1.4.3
preemptive status, 7.9.1.3.4
FINANCIAL PRODUCTS OR SERVICES
CFPB regulation, 2.2.6.2
FIXED-TERM CREDIT
see CLOSED-END CREDIT
FLIPPING OF LOANS
see LOAN FLIPPING
FORBEARANCE
see also LOANS
definition, 7.5.2.1, 7.5.2.3
detention of money distinguished, 7.5.2.3
fees, see DEFERRAL FEES
necessary element of usury violation, 7.5.2
usury law, application, 7.5.2.3
FORCE-PLACED INSURANCE
see also CREDIT INSURANCE
credit property insurance, 6.2.4.5
auto loans, 11.5.4.5.1, 11.5.4.6
coverage, 6.2.4.1
excess coverage, 4.5.2.2
FORFEITURE
unlicensed lenders, 7.8.5.1
usurious loans, 7.8.2.2
FORGERY
fraud claims, 2.4.4.4
FORMULAS
see MATHEMATICAL FORMULAS
FRAUD CLAIMS
credit card abuses, 8.11.4
credit insurance, denial of coverage, 6.8.3.2, 6.8.3.3
dealer markups, 11.4.2
elements of claim, 2.4.4.1
falsification of documents, 2.4.4.4
federal preemption, 3.2.4.12.3
hidden fees, 2.4.4.3
inflated sale price to conceal interest, 11.4.3.4.2
loan flipping, 2.4.4.3
misrepresentations, 2.4.4.2
parties liable, 2.4.4.1
punitive damages, 2.4.4.5
RICO, 7.8.6.2
spurious open-end credit, 3.9.4
tax fraud, 15.5.4
yield spread premiums, 11.3.5
FRINGE LENDERS
see also LOAN SHARKS; SUBPRIME LENDERS
auto title pawns, see AUTO TITLE LOANS
credit services laws, use to evade usury caps, 2.3.12.5
payday loans, see PAYDAY LOANS
RTO transactions, see RENT-TO-OWN (RTO) TRANSACTIONS
small loan laws, application, 2.3.3
state regulation, 2.3.11
tax refund advances, see REFUND ANTICIPATION LOANS (RALs)
FTC
see FEDERAL TRADE COMMISSION (FTC)
FTC CREDIT PRACTICES RULE
see CREDIT PRACTICES RULE (FTC)
FTC HOLDER RULE
see HOLDER RULE (FTC)
FURNITURE AND APPLIANCE LOANS
see APPLIANCE LOANS
FUTURE PAYMENT STREAM TRANSACTIONS
causes of action, 14.6
characterization, determination, 14.3
borrower’s obligation to repay, 14.3.4
consequences, 14.2
lender-obligor relationship, 14.3.3
loan features, 14.3.2, 14.3.4
substance dictates, 14.3.1
described, 14.1
litigation financing, 14.6
military personnel, 14.4
non-usury limits, 14.7
pension buyers, 14.4
settlements or judgments, 14.5
wage assignments, 10.6.2
GAP INSURANCE OR AGREEMENTS
see also DEBT PROTECTION PRODUCTS
coverage, 6.2.4.1, 11.5.4.4
negative equity issues, 11.4.6.3.3
overview, 11.5.4.4
waiver agreements, 11.5.4.4
GARNISHMENT OF WAGES
payday loans, 2.4.3
GOOD FAITH AND FAIR DEALING
credit card abuses, 8.11.4
duty, overview, 2.4.11
nature of duty, 2.4.11.1
remedies, 2.4.11.2
GOVERNMENT AGENCIES
see REGULATORY AGENCIES
GOVERNMENT BENEFITS
assignment, see FUTURE PAYMENT STREAM TRANSACTIONS
GRADUATED INTEREST
see SPLIT RATE INTEREST
GRAMM-LEACH-BLILEY ACT
bank insurance activities, application, 6.4.8
preemption of state credit insurance laws, 6.3.4, 6.4.8.2
GUARANTEED ASSET PROTECTION (GAP) PRODUCTS
see GAP INSURANCE OR AGREEMENTS
GUARANTORS
see ACCOMMODATION PARTIES
HIDDEN INTEREST
see also INTEREST; INTEREST RATES
agreed-rate transactions, 7.6.2
auto financing, 11.4.3
auto title loans, 12.4
commissions or kickbacks, 4.5.2.2
compensating balances, 4.4.4
credit insurance, 6.2.2.3
credit sales
inflating sale price to conceal interest, 4.4.5, 4.4.6, 11.4.3
seller’s points, 4.4.6
deferred presentment loans, 4.4.1
deregulated states, 7.6.2
equity participation, 4.7
fees and charges
broker fees, 4.5.3
commitment fees, 4.3.3
document preparation fees, 4.6
expressio unius principle, 7.2.2
general fees, 4.4.2
points, 4.3, 4.4.6
shams, 4.5.2
third party fees, 4.5
yield spread premiums, 4.5.3.2
fraud claims, 2.4.4.3
future income sales, 14.3
inflated principal, 4.4
compensating balance, 4.4.4
fees and charges, 4.4.2
generally, 4.4.1
indexing principal, 4.4.3
sale price, 4.4.5
seller’s points, 4.4.6
inflated sale price, 4.4.5, 4.4.6, 11.4.3
late fees, 4.8.2
litigation financing, 14.6
non-cash bonuses, 4.7
payments for third party services, 4.5
broker fees, 4.5.3
general principles, 4.5.1
subterfuges, 4.5.2
points, 4.3
seller’s points, 4.4.6
RICO remedies, 7.8.6.2
RTO transactions, 13.4.2.2
settlement factoring, 14.5
side agreements, 4.7
tax refund assignments, 15.5.1
upcharges, 4.5.2.2
HISTORICAL DEVELOPMENT
see LEGISLATIVE HISTORY
HOLDER RULE (FTC)
see also FEDERAL TRADE COMMISSION (FTC); HOLDERS IN DUE COURSE
credit sales, 7.7.7, 11.7.3
importance of rule, 11.7.3.1
operation of rule, 11.7.3.2
generally, 11.7.3.2
maximum recovery, 11.7.3.3
notice, 11.7.3.2, 11.7.3.4
remedies, 11.7.3.4
HOLDERS-IN-DUE-COURSE
claims and defenses against, 7.7.7, 11.7.1
credit sales, 7.7.7, 11.7.1
FTC rule, see HOLDER RULE (FTC)
HOME EQUITY LOANS
see HOME-SECURED LOANS
HOME IMPROVEMENT CONTRACTORS
body-dragging, 3.9.5
HOME LOAN BANKS
see SAVINGS AND LOAN ASSOCIATIONS
HOME OWNERS’ LOAN ACT (HOLA)
preemption
Dodd-Frank amendment, 3.2.2.1
non-field preemption, 3.2.2.5, 7.9.1.3.4
HOME OWNERSHIP AND EQUITY PROTECTION ACT (HOEPA)
assignee liability, 7.7.7
preemptive effect, 5.8.7.1.7
prepayment penalties, restrictions, 5.8.7.1.3
HOME-SECURED LOANS
AMTPA preemption, 3.7.3
applicable law, 3.9.9
arbitration restrictions, 7.4.2.1
credit insurance, 6.4.9
debt protection products, 6.4.9
DIDA first lien preemption, 3.7.2
equity participation, 4.7
federal preemption, 5.8.7.1.7
interest ceilings, 3.7.2, 5.3.6.4
licensing system, 1.4.5
manufactured homes, 3.7, 11.6
prepayment penalties, restrictions, 5.8.7.1.3
property inspection fees, 4.8.6.2
rebate rules, 5.8.7.1.2, 5.8.7.1.3, 5.8.7.1.7, 5.8.7.4.1
Rule of 78s, restrictions, 5.8.7.1.2, 5.8.7.1.3, 5.8.7.4.1
variable rate, see VARIABLE RATE TRANSACTIONS
HOSPITALS
see CONVENIENCE CREDITORS
HOUSEHOLD GOODS
credit property insurance
non-filing insurance, 4.5.2.2, 6.7.5
packing, 6.7.4
restrictions, 6.6.4.1
non-purchase money security interests, 6.7.4, 10.6.1
IMPLIED PRIVATE RIGHT OF ACTION
remedy, 7.8.2.1
IMPROVIDENT LENDING
breach of contract claims, 2.4.10
breach of fiduciary duty, 2.4.6.4
installment loans, 10.5
open-end credit, 10.9.5
credit cards, 8.7.2.2, 8.7.2.3.2
UDAP application, 2.4.1.1, 2.4.1.3.2
unconscionability, 2.4.8.4
INCOME BUYERS
see FUTURE PAYMENT STREAM TRANSACTIONS
INDEXING LOAN PRINCIPAL
hidden interest, 4.4.3
INDUSTRIAL BANKS
see INDUSTRIAL LOAN COMPANIES
INDUSTRIAL LOAN COMPANIES
see also FINANCE COMPANIES
FDIC insured, see FEDERALLY INSURED LENDERS
historical development, 1.2.3, 2.3.4
rate exportation, 3.4.2.4
regulation of, 3.1.2.4
INDUSTRIAL LOAN LAWS
combined with other statutes, 2.3.3
historical development, 1.2.3, 2.3.4
overview, 2.3.4
INDUSTRY PRACTICES
creditor defense, 7.7.9
INSTALLMENT CREDIT
see also CLOSED-END CREDIT
non-purchase money loans, see INSTALLMENT LOANS
purchase-money loans, see CREDIT SALES
INSTALLMENT LOAN LAWS
see also INSTALLMENT LOANS; SMALL LOAN LAWS
evasion
anti-evasion provisions, 10.1.6
open-end, structuring loans as, 10.9
federal preemption, 10.1.5
interest rate caps, 10.2.1, 10.2.2
interpretation, 7.2.1.4
loan fee caps, 10.2.2, 10.2.3, 10.2.4.1
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
overview, 2.3.5
purpose, 7.2.1.4
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
scope, 10.1.2
security interest restrictions, 10.6.1
state law summaries, Appx. D
types, 10.1.4
violations, remedies, 10.1.7
INSTALLMENT LOANS
see also SMALL LOAN LENDERS
ability to repay, 10.5
add-on products, 10.3
credit insurance, 10.3
defined, 10.1.1
disappearance and resurgence, 10.1.3
electronic repayment, 10.6.3
interest rate caps, 10.2.1, 10.2.2
military personnel, 10.2.7
post-maturity, 10.7.2
uncapped states, 10.2.6
late fees, 10.7.1
legislation, see INSTALLMENT LOAN LAWS
length of loan term, 10.4.2
licensure, 10.8
loan fees
caps, 10.2.2
disguised as third-party fees, 10.2.4
uncapped fees, 10.2.3, 10.2.6
loan splitting, 10.2.5
military personnel, 10.2.7
non-bank lenders, 10.1.2
open-end structuring, 10.9
advantage to lender, 10.9.1
authority of non-bank lenders, 10.9.2
caps on rates and fees, 10.9.4
spurious open-end loans, 10.9.3, 10.9.4.4
payment schedules, 10.4.1
post-dated check, repayment by, 10.6.3
post-maturity interest rates, 10.7.2
preauthorized payment methods, 10.6.3
purchase-money loans, see CREDIT SALES
rebates of unearned charges, 10.4.3
remedies
other remedies, 10.1.8, 10.2.6
statutory remedies, 10.1.7
security interest restrictions, 10.6.1
“supervised loans,” 10.1.4
unconscionability, 10.2.6
wage assignments, 10.6.2
INSURANCE
breakdown insurance, 11.5.3
“captive reinsurance,” 8.3.2.1
credit insurance, see CREDIT INSURANCE
deposit insurance, see DEPOSIT INSURANCE
GAP insurance, see GAP INSURANCE OR AGREEMENTS
liability damage waivers, status, 13.4.2.4
Magnuson-Moss Warranty Act exclusion, 11.5.4.1
non-credit insurance, 6.2.4.6, 6.7.3
non-filing, see NON-FILING INSURANCE
packing, see INSURANCE PACKING
premiums, see INSURANCE PREMIUMS
property insurance, see CREDIT PERSONAL PROPERTY INSURANCE
rebates, see INSURANCE PREMIUM REBATES
RISA limits on insurance sales, 11.3.4.3
service contracts, 11.5.3
title insurance, 11.6.3.4
unrelated to sale, 11.3.4.3
VSI, see VENDOR’S SINGLE INTEREST (VSI) INSURANCE
INSURANCE PACKING
see also CREDIT INSURANCE
auto financing, 11.5.1, 11.5.2
credit insurance coercion, 6.5.7
credit property insurance, 6.2.4.5
duplicative insurance, 6.7.4
excessive collateral, 6.7.2
loan flipping and, 5.9.4
non-credit insurance, 6.2.4.6, 6.7.3
non-filing insurance, 6.7.5
overview, 6.7.1, 11.5.1
remedies, 6.7.1, 11.5.2
stretching the term, 5.9.4, 6.7.2
UDAP violations, 2.4.1.3.3
unnecessary collateral, 6.7.4
INSURANCE PREMIUM FINANCE COMPANIES
regulation, 2.3.7, 6.4.4
INSURANCE PREMIUM REBATES
see also INSURANCE PREMIUMS
calculating rebate, 6.10.3
early termination, 5.8.3, 6.10.2
refinancings, 5.9.3, 5.9.5.1
remedies, 6.10.4
requirements, 6.10.1
INSURANCE PREMIUMS
see also CREDIT INSURANCE
benefits to creditor, 6.2.2.1, 6.2.2.3
calculating
disability, 6.6.1.3
life insurance, 6.6.1.2
property insurance, 6.6.1.4
compulsory premiums, 6.5.3
credit property insurance, 6.2.4.5, 6.4.2.1
finance charge, exclusion, 6.5.1, 6.5.2
financing of, 2.3.7, 6.4.4
interest on, 6.2.2.3
interest status, 6.4.5.2, 6.5.3.1, 6.6.2.2
loss-ratio rate, 6.2.3.1
prima facie rates
challenging, 6.4.2.4
deviations, 6.4.2.3
NAIC model act, 6.4.2.1
problems with, 6.4.2.2
rate regulation, 6.4.2, 6.4.5
deviation rates, 6.4.2.3, 6.6.1.3
filed-rate doctrine, 6.4.2.5
generally, 6.4.2.1
rebates, see INSURANCE PREMIUM REBATES
refinancings, flipping penalty, 5.9.4
TILA disclosures, 6.5.2
usury claims, 6.4.5.2, 6.6.2
INTENT
see USURIOUS INTENT
INTEREST
see also FINANCE CHARGE
accrued interest, see ACCRUED INTEREST
actuarial interest, 5.3.1
add-on interest, see ADD-ON INTEREST
broker fees, status, 4.5.3
calculations, see INTEREST CALCULATIONS
caps, see INTEREST CEILINGS
commitment fees, status, 4.3.3
common law restrictions, 7.2.1.2
compound interest, see COMPOUND INTEREST
credit cards
deferred interest plans, 8.8
rates, see INTEREST RATES
credit insurance
premiums, interest on, 6.2.2.3
premiums, status, 6.4.5.2, 6.5.2, 6.5.3.1, 6.6.2.2
deferred interest plans, see DEFERRED INTEREST PLANS
defined, 4.2, 7.5.4.3
exportation purposes, 3.4.5
“federal common law,” 5.8.5.2.2
discount interest, see DISCOUNT INTEREST
document preparation fees, status, 4.6.2
early attitudes toward, 1.2.1
equity participation as, 4.7
fees added to principal, status, 4.4.2
FHA loans, 3.7.4
finance charge, distinction, 5.4.1
forfeiture, 7.8.2.2
hidden interest, 11.4.3.4
late fees as, 4.8.2
late fees in addition to, 5.7.1
open-end transactions, 5.3.5
overcharge, necessary element of usury claim, 7.5.4
points as, 4.3.1, 5.8.5.2.2
precomputed interest, 5.3.2, 5.3.3, 5.8.3.3
rates, see INTEREST RATES
simple interest, 5.2, 5.3.1.2
split rate interest, see SPLIT RATE INTEREST
spreading, see SPREADING
state regulation, see USURY LAWS (STATE)
third party payments, status, 4.5.1
unearned
intent to collect, 5.8.8.3
rebates, see REBATES OF UNEARNED CHARGES
unpaid, capitalization, 5.3.1.3
usurious, remedies, see USURY REMEDIES
yield spread premium, 4.5.3.2, 11.5.1
INTEREST-BEARING LOANS
see also CREDIT TRANSACTIONS; INTEREST; LOANS
precomputed loans distinguished, 5.8.3.1
rebate issues, overview, 5.8.3.2
INTEREST CALCULATIONS
actuarial interest, 5.3.1.2
add-on interest, 5.3.2
analyzing for usury issues, 5.11.4
APR, 5.4.2
compound interest, 5.5.1
daily balance method, 5.3.5.2
daily interest rates, 5.5.4
date finance charge accrues, 5.5.3
disclosure requirements, 5.3.5.2
discount interest, 5.3.3
distinctions between open and closed-end, 5.3.5.1
formulas, see MATHEMATICAL FORMULAS
generally, 5.3
installment credit, 5.3
interest-bearing transactions, 5.8.3.2
irregular or odd payments, 5.3.2.3, 5.5.2
late-posted payments, 5.5.4.5
MLA cap, 2.2.5.7
most favored lender rate, 3.5.6
NCLC practice tools, 1.1.5
NCLC treatise, organization, 5.1
negative amortization, 5.3.1.3
odd or irregular payments, 5.3.2.3, 5.5.2
open-end credit, 5.3.5
payday loans, 5.2.2
points, effect, 5.6.1
precomputed transactions, 5.3.2, 5.3.3, 5.8.3.3
rounding, 5.5.5
simple interest, 5.2, 5.3.1.2
single payment transactions, 5.2
special problems, 5.5
split rate interest, 5.3.2.2, 5.3.4
spreading, 5.5.6
variable rate transactions, 5.3.6
INTEREST CEILINGS
see also INTEREST; INTEREST RATES
agreed-rate caps, 7.6.1
alternative federal ceiling, 3.4.1
applicable ceiling, 3.4, 3.5, 3.9
Arkansas state banks, 3.4.2.5
auto title loans, 12.5.1
banks, see RATE EXPORTATION
business credit, 3.9.3, 3.9.10
conflicts of law, 3.8
credit sales, 11.3.4.1
credit services organizations, evasion, 2.3.12.5
credit unions
generally, 9.5.3.2
short term, small loans, 9.5.3.3
criminal usury, 2.3.2, 3.9.10
deregulation of usury law, 1.2.5, 7.6
DIDA, see DEPOSITORY INSTITUTIONS DEREGULATION AND MONETARY CONTROL ACT (DIDA)
exportation, see RATE EXPORTATION
federal preemption, 1.2.5, 3.4, 3.5, 3.7
floating ceilings, 3.11.2
formulae, 5.3
historical developments, 1.2
installment loans, 10.2.1
loan fee relationship, 10.2.2
post-maturity rates, 10.7.2
loan size, application, 3.9.8
manufactured home credit, 3.7
military personnel, 2.2.4, 2.2.5
minimum finance charge, interrelationship, 5.5.7
most favored lenders, see MOST FAVORED LENDER DOCTRINE
open-end credit, 10.9.4
federal limits, 10.9.4.1
state caps, 10.9.4.2, 10.9.4.3
states without caps, 10.9.4.4
refinanced loans, 5.9.5.5
retail installment contracts, 11.3.4.1
retroactive effect, 3.11
RHS loans, 3.7.5
RTO transactions, 13.4.2.3
savings and loans, see RATE EXPORTATION
spreading, 5.5.6.1
statutory interpretation, 4.2
unconscionability standards, 2.4.8.3
VA loans, 3.7.4
variable ceilings, 3.11.2
variable rate transactions, 5.3.6.4, 5.3.6.5, 5.5.6.1
violations, see USURY VIOLATIONS
INTEREST RATES
see also ANNUAL PERCENTAGE RATE (APR); INTEREST
add-on and simple compared, 5.3.2.1
agreed-rate transactions
exceeding agreed cap, 7.6.1
hidden interest, 7.6.2
APR, distinction, 5.4.1
calculations, see INTEREST CALCULATIONS
caps, see INTEREST CEILINGS
credit cards
abuses, 8.3.1
disparate impact, 8.1.4
limits on repricing, 8.3.2
military personnel, 8.3.2.2.6
penalty rates, 8.3.1.2.1
promotional rates, 8.3.2.2.1
repricing abuses, 8.3.1.2
variable rates, 8.3.2.2.2
daily interest, 5.5.4
default interest rates, 4.8.6.4
deregulation, see DEREGULATION
discount compared to add-on and simple, 5.3.3.1
exportation, see RATE EXPORTATION
formulae, 5.3
graduated rates, see SPLIT RATE INTEREST
installment loans
military personnel, 10.2.7
post-maturity rates, 10.7.2
state law caps, 10.2.1, 10.2.2
uncapped states, 10.2.6
lawful rate, determination, 7.8.2.4
military personnel
credit card rate increases, 8.3.2.2.6
debts incurred after entering service, 2.2.5
debts incurred prior to service, 2.2.4
installment loans, 10.2.7
most favored lenders, see MOST FAVORED LENDER DOCTRINE
overreaching, see ABUSIVE LENDING
penalty rates, 4.8.6.4
“rate lock” fees, 4.3.3
split rates, see SPLIT RATE INTEREST
state regulation, federal preemption, 3.2.4.11
unconscionable, 2.4.8.3
upcharges, see YIELD SPREAD PREMIUMS
usurious, see USURY VIOLATIONS
variable rates, see VARIABLE RATE TRANSACTIONS
INTERNAL REVENUE SERVICE (IRS) RULES
RALs, 15.2.3.2
INTERNET TRANSACTIONS
credit transactions, see ELECTRONIC CREDIT TRANSACTIONS
electronic banking, 3.4.4.5
electronic fund transfers, see ELECTRONIC FUND TRANSFERS (EFT)
long-arm jurisdiction, 7.9.2.2
payday loans, 9.2.1, 9.6.2
scams, 9.1.5
INTERSTATE BANKING
see also BANKS; INTERSTATE TRANSACTIONS; NATIONAL BANKS
National Bank Act, see NATIONAL BANK ACT
rate exportation, 3.4.4.3, 3.4.4.5
state parity laws, 3.6
INTERSTATE TRANSACTIONS
applicable usury law, 3.4, 3.5, 3.8
auto title loans, 12.5.4
banking, see INTERSTATE BANKING
federal preemption of state laws, see FEDERAL PREEMPTION
jurisdiction, 7.9.2
most favored lender doctrine, see MOST FAVORED LENDER DOCTRINE
INVESTMENTS
future income sales distinguished, 14.3.4
loans disguised as, 4.7, 7.5.3
INVOLUNTARY UNEMPLOYMENT INSURANCE
see also CREDIT DISABILITY INSURANCE
coverage, 6.2.4.1, 6.2.4.4
excessive cost, 6.2.3.1, 6.2.4.4
no benefit insurance, 6.8.1
overview, 6.2.4.4
rate regulation, 6.4.2.1
JOHN WARNER DEFENSE AUTHORIZATION ACT
Talent-Nelson Amendment, see MILITARY LENDING ACT (MLA)
JOINT VENTURES
see INVESTMENTS
JUDGMENT FACTORING
overview, 14.5
JURISDICTION
arbitration determinations, 7.4.5
bankruptcy court, 7.9.2.4
CFPB, 2.2.6.2
class actions, 7.9.1.5
complete preemption, 7.9.1.3
counterclaims, 7.9.2.4
diversity jurisdiction, 7.9.1.4
federal court to review state court, 7.7.4
federal question jurisdiction, 7.9.1.2
FTC, 2.2.6.2.3
general jurisdiction, 7.9.2.1
holding companies, 7.9.2.5
Internet-based lenders, 7.9.2.2
long-arm jurisdiction, 7.9.2
MLA, private actions, 2.2.5.11
out-of-state lenders, 7.9.2
parent corporations, 7.9.2.5
personal jurisdiction, 7.9.2
removal to federal court, 7.9.1
securitization trusts, 7.9.2.3
specific jurisdiction, 7.9.2.1, 7.9.2.3
JURY TRIALS
usury claims, right to, 7.3
KICKBACKS
see also COMMISSIONS
broker fees, 4.5.3.2
hidden interest issues, 4.5.2.2, 11.4.2
yield spread premiums, see YIELD SPREAD PREMIUMS
LABOR STANDARDS LAWS
deductions from paychecks, 2.4.3
employer extensions of credit, 2.4.3
minimum wage violations, 2.4.3
LATE CHARGES
see also DEFAULT CHARGES; FEES AND CHARGES
calculation, 5.7.1
credit cards, 8.4.3.1
credit sales, 4.8.4, 11.3.5.2
daily interest and, 5.7.1
default fees distinguished, 4.8.1
deferral fees distinguished, 4.8.6.1
FTC Credit Practices Rule, Appx. A.4
imposing, 4.8.1
installment loans, 10.7.1
interest status, 4.8.2
nature of, 4.8.1
partial payments, 5.7.1
penalty status, 4.8.4, 4.8.6.2
precomputed transactions, 5.8.3.3
property inspection fees, status, 4.8.6.2
pyramiding, 4.8.5, 5.7.1
refinancings, inclusion, 5.9.3
retail installment contracts, 4.8.4, 11.3.5.2
statutory regulation, 4.8.3, 4.8.4
usurious loans, forfeiture, 7.8.2.2.1
LAWYERS
see ATTORNEY FEES AND COSTS; CONVENIENCE CREDITORS
LEASEBACK AGREEMENTS
see also BUYBACK SCHEMES; LEASES
auto title pawns, 12.2
payday loans disguised as, 9.6.6
LEASES
see also LEASEBACK AGREEMENTS
auto leases, 11.2.4, 11.3.2.4
credit sales disguised as, 13.3.1
manufactured home communities, lot leases, 11.6.1, 11.6.2.2
RISA applicability, 11.3.2.4
RTO transactions, status, 11.2.5, 13.3
see also RENT-TO-OWN (RTO) TRANSACTIONS
LEGAL FEES
see ATTORNEY FEES AND COSTS
LEGISLATIVE HISTORY
credit sales, 1.2.4
deregulation, 1.2.5
Dodd-Frank Act, 1.2.6, 1.4.3
early attitudes toward interest, 1.2.1
Federal Home Loan Bank System, 1.4.3
Federal Reserve System, 1.4.2
FIRREA, 1.4.3
general usury laws, 1.2.2
Home Owners’ Loan Act, 1.4.3
National Bank Act, 1.4.2
reregulation, 1.2.6
small loans, 1.2.3
special usury laws, 1.2.3, 7.2.1.4
statutory interpretation, use, 7.2.1.2
TILA, 5.4.1
usury exemptions, 1.2.3
LENDER-PLACED INSURANCE
see FORCE-PLACED INSURANCE
LENDERS
see CREDITORS; DEPOSITORY CREDITORS; FEDERAL LENDERS; FEDERALLY INSURED LENDERS; LICENSED LENDERS; MOST FAVORED LENDER DOCTRINE; NON-DEPOSITORY CREDITORS
true lender, 3.4.3a
LENDING STATUTES (STATE)
see USURY LAWS (STATE)
LEVEL TERM INSURANCE
see also CREDIT INSURANCE
credit life insurance, restrictions, 6.2.4.2.2
LIABILITY
assignees, 7.7.7, 11.7
credit insurance benefits, 6.8.3
credit insurance overcharges, 6.6.2.1
credit sales, 11.3.9, 11.7
fiduciaries, 2.4.6
FTC Holder Notice, 11.7.3
holders in due course, 7.7.7, 11.7.1
retail installment contracts, 11.3.9, 11.7
LIABILITY DAMAGE WAIVERS (LDW)
rent-to-own transactions, 13.4.2.4
LICENSE REQUIREMENTS
see LICENSING REQUIREMENTS
LICENSED LENDERS
see also CREDITORS; NON-DEPOSITORY CREDITORS
applicable law, 3.9.7.1
assignees, 3.9.7.2
credit insurance sales, 6.4.3.3
credit sales, 11.3.3
failure to obtain license, 3.9.7.3, 7.8.5
voiding of contract, 7.8.2.1, 7.8.5.1
finance companies, see FINANCE COMPANIES
installment loans, 10.8
overview, 1.4.5
payday loans, 9.3
RALs, 15.4.4, 15.6.2
small loan laws, 2.3.3, 10.1.4
special usury statutes, 3.9.7.1
“supervised lenders,” 10.1.4
violation of licensing statute, 7.8.5.2
LICENSING REQUIREMENTS
brokers, 1.4.5, 4.5.3.3
credit sales, 11.3.3
federal preemption, 3.2.4.2
installment lenders, 10.8
insurance sales, 11.5.4.1, 11.5.4.2
insurers, 6.4.3.3
lenders, see LICENSED LENDERS
manufactured home appraisers, 11.6.2.2
negative equity financing, 11.4.6.3.3
pawnbrokers, 3.9.7.1
RAL lenders, 15.4.4, 15.6.2
real estate agents selling manufactured homes, 11.6.2.2
sales finance companies, 11.3.3
vehicle protection products (“etch”), 11.5.4.2
LIENS
see SECURITY INTERESTS
LIFE INSURANCE
credit insurance, see CREDIT LIFE INSURANCE
non-credit insurance, 6.2.4.6
LIMITATIONS PERIOD
see STATUTE OF LIMITATIONS
LINES OF CREDIT
see CREDIT CARD ACCOUNTS; OPEN-END CREDIT
LIQUIDATED DAMAGES
late fees as, 4.8.4, 4.8.6.2
LITIGATION FINANCING
overview, 14.6
settlement factoring, 14.5
LOAN BALANCE
see also LOANS; PRINCIPAL AMOUNT
closed-end credit
declining balance, 5.3.1.2
increasing balance, 5.3.1.3
interest-only loans, 5.3.1.3.2
non-amortizing loans, 5.3.1.3.2
compensating balances, 4.4.4
credit card balances
rate increase protections, 8.3.2
repayment protections, 8.3.2.3
open-end credit calculations, 5.3.5.2
LOAN BROKERS
agency status, 4.5.3.1
credit service organizations, 9.6.5
fees, see BROKER FEES
fiduciary duty, 2.4.6.2.2
kickbacks, see KICKBACKS
licensing, 1.4.5, 4.5.3.3
state regulation, 4.5.3.3, 15.4.4
tax preparers as, 15.4.4, 15.6.2
yield spread premiums, see YIELD SPREAD PREMIUMS
LOAN FEES
see also FEES AND CHARGES
auto title loans, 12.4
broker fees, see BROKER FEES
commitment fees, 4.3.3
credit union STS loans, 9.5.3.5
document preparation fees, 4.6
earned at consummation, 5.4.8.2.1
expressio unius principle, 7.2.2
hidden interest, see HIDDEN INTEREST
inflating principal through, 4.4.2
installment loans
caps, 10.2.2
disguised as third-party fees, 10.2.4
uncapped fees, 10.2.3, 10.2.6
non-interest fees, restrictions, 7.2.2
points, see POINTS
“rate lock” fees, 4.3.3
rebates, see REBATES OF UNEARNED CHARGES
refinancings, 5.9.5.4
flipping penalty, 5.9.3, 5.9.4
service charges, see SERVICE CHARGES
third party payments, 4.5
UDAP violations, 2.4.1.3.4
unconscionable, 2.4.8.5
unearned, see UNEARNED FEES AND CHARGES
LOAN FLIPPING
see also REFINANCING
defined, 5.9.2
“flipping penalty,” 5.9.1, 5.9.3
calculations, 5.9.5, 5.9.6
small loan example, 5.9.4
fraud claims, 2.4.4.3
insurance packing and, 5.9.4
overview, 5.9.1
price escalation, 5.9.3
stretching the term, 5.9.4
unconscionability, 2.4.8.5
LOAN PACKING
see LOAN PADDING
LOAN PADDING
auto loans, 11.5
insurance, 11.5.4
“payment packing,” 11.5.1
remedies, 11.5.2
service contracts, 11.5.3
credit insurance, see INSURANCE PACKING
UDAP violations, 2.4.1.3.3
unconscionability, 2.4.8.5
usury restrictions, 3.9.8.2
LOAN SERVICING
“buy-here, pay-here” dealers, 11.2.2
LOAN SHARKS
see also ABUSIVE LENDING
historical perspective,1.2.3, 2.3.3
payday loans, similarities, 9.1.1
RICO, application, 7.8.6.2.5
LOAN SPLITTING
installment loans, 10.2.5
usury restrictions, 3.9.8.1
LOAN TERM
fixed-term, see CLOSED-END CREDIT
installment loans, 10.4.2
misrepresentation, 2.4.4.2, 2.4.5
open-term, see OPEN-END CREDIT
retail installment contracts, 11.3.4.2
stretching the term, 5.9.4, 6.7.2
LOANS
see also CREDIT TRANSACTIONS
abusive, see ABUSIVE LENDING
amortization, see AMORTIZATION
auto-secured, see AUTO-SECURED LOANS
balance unpaid, see LOAN BALANCE
business loans, see BUSINESS LOANS
check advancement, see PAYDAY LOANS
consolidation, see CONSOLIDATION OF LOANS
definition, 7.5.2.1, 7.5.2.2.1, 14.3.2
discrimination, 2.4.2
disguised as credit sales, 3.9.5
disguised as investments, 4.7, 7.5.3
employers to employees, 2.4.3
federal preemption of state laws, see FEDERAL PREEMPTION
fixed-term, see CLOSED-END CREDIT
flipping, see LOAN FLIPPING; REFINANCING
forbearance, see FORBEARANCE
home-secured loans, see HOME-SECURED LOANS
income buyers, see FUTURE PAYMENT STREAM TRANSACTIONS
industrial banks, see INDUSTRIAL LOAN COMPANIES
installment loans, see CLOSED-END CREDIT
insurance, see CREDIT INSURANCE
interest on, see INTEREST
interest-bearing loans, see INTEREST-BEARING LOANS
interest-only, 5.3.1.3.2
investments distinguished, 4.7, 7.5.3
litigation finance, 14.6
military personnel, 2.2.4, 2.2.5
necessary element of usury violation, 7.5.2
non-amortizing loans, 5.3.1.3.2
overdraft loans, see OVERDRAFT LOANS
overreaching terms, see ABUSIVE LENDING
payday loans, see PAYDAY LOANS
penalties, see PENALTIES
post-dated check loans, see PAYDAY LOANS
precomputed loans, see PRECOMPUTED LOANS
principal amount, see PRINCIPAL AMOUNT
real property secured, see HOME-SECURED LOANS
refinancing, see REFINANCING
refund anticipation loans, see REFUND ANTICIPATION LOANS (RALs)
regulation of, see CONSUMER CREDIT REGULATION
repayment obligation, absolute vs. contingent, 7.5.3
sale of goods on credit, status, 1.5.1
savings and loan associations, see SAVINGS AND LOAN ASSOCIATIONS
small loan lenders, see SMALL LOAN LENDERS
state regulation, 2.3
state where loan made, 3.4.2.3.3
table-funded loans, see TABLE-FUNDED LOANS
tax refund schemes as, 15.5
term, see LOAN TERM
true lender, 3.4.3a
unconscionability, 2.4.8
underwriting, see UNDERWRITING
unequal payments, 5.5.2.1
usurious
see also USURY VIOLATIONS
novation, 7.7.3.3.1
renewal transactions, 7.7.3
voiding, 7.8.2.2, 7.8.2.3
waiver, 7.7.3.3.2
variable rate, see VARIABLE RATE TRANSACTIONS
LOSS-OF-INCOME INSURANCE
see INVOLUNTARY UNEMPLOYMENT INSURANCE
LOTTERY WINNINGS
assignments, restrictions, 14.7
MANUFACTURED HOME CREDIT
applicable law, 11.6.3
consumer protection laws, 11.6.3.1
overview, 11.6.3.1
RESPA, 11.6.3.4
state credit law, 11.6.3.2
TILA, 6.4.9, 11.6.2.2, 11.6.3.3
UDAP, 11.6.3.5
appraisals, 11.6.2.2
arbitration agreements, 7.4.2.1
background, 11.6.1
classification as real or personal property, 11.6.2
implications, 11.6.2.2
proper classification, 11.6.2.3
state law, 11.6.2.1
credit insurance, 6.4.9, 11.6.3.3
federal preemption, 3.7, 11.6.3.1
AMTPA, 3.7.3
DIDA, 3.7.2, 5.8.7.1.4, Appx. H
federally-insured loans, 3.7.4, 3.7.5
FHA loans, 3.7.4
finance charge, 11.3.4.1
interest rate caps, 3.7.2, 3.7.4, 3.7.5, 11.3.4.1, 11.6.3.1
prepayment penalties, 5.8.7.1.4
rebate requirements, 5.8.7.1.4
Rural Housing Service (RHS) loans, 3.7.5
VA loans, 3.7.4
MARKETING
credit cards
aggressive solicitation, 8.7.2
deceptive marketing, 8.7.1
UDAP violations, 8.11.3
MARKETPLACE
see CREDIT MARKETPLACE
MARKUPS
dealer markups, 11.4.2
add-on products, 11.5.1
MATHEMATICAL FORMULAS
actuarial interest, 5.3.1.2, 5.8.7.4.2
add-on interest, 5.3.2.1
split-rate transactions, 5.3.2.2
credit insurance rates
disability insurance, 6.6.1.3
life insurance, 6.6.1.2
property insurance, 6.6.1.4
daily balance, 5.3.5.2
determining correct formula, 5.10
discount interest, 5.3.3.2, 5.3.3.3
expert evidence, 5.10
installment transactions, 5.3
one payment transactions, 5.2
open-end credit, 5.3.5.2
pro rata formula, 5.8.7.2
proof issues, 5.10
rebates, 5.8.7
credit insurance, 6.10.3
Rule of 78s, 5.8.7.3.2
simple interest, 5.2
sum of the balances, 5.8.7.3.4
MCCARRAN-FERGUSON ACT
credit insurance, application, 6.5.5.2
MERCHANTS
see RETAIL SELLERS
MILITARY LENDING ACT (MLA)
see also MILITARY PERSONNEL
calculating cap, 2.2.5.7
covered borrowers, 2.2.5.5, 3.8.6
covered loans
auto title loans, 12.6
generally, 2.2.5.2
installment loans, 10.2.7
open-end loans, 2.2.5.8, 10.9.4.1
payday loans, 2.2.5.2, 9.4.1
RALs, 2.2.5.4, 15.2.2
vehicle title loans, 2.2.5.3, 12.6
DOD regulations, 12.6, Appx. A.1.2
enforcement
private enforcement, 2.2.5.10
state and federal enforcement, 2.2.5.9
open-end credit, application, 2.2.5.8, 10.9.4.1
overview, 2.2.5.1
preemption of state law, 2.2.5.12
regulatory authority, 2.2.5.9
requirements for covered loans, 2.2.5.6
safe harbor, 2.2.5.5
scope, 2.2.5.2, 2.2.5.8
text, Appx. A.1.1
violations
damages, 2.2.5.10.1
defenses, 2.2.5.10.2
equitable relief, 2.2.5.10.1
jurisdiction, 2.2.5.11
limitations period, 2.2.5.11
MILITARY PERSONNEL
see also MILITARY LENDING ACT (MLA); SERVICEMEMBERS CIVIL RELIEF ACT
arbitration clauses, 2.2.5.1, 2.2.5.6
auto pawns, 2.2.5.2, 2.2.5.3, 12.6
CFPB Office of Servicemembers Affairs, 2.2.5.9
choice of law considerations, 3.8.6
credit card rates, 8.3.2.2.6
credit union STS loans, 9.5.3.7
interest rate protections
credit cards, 8.3.2.2.6
installment loans, 10.2.7
loans after entering service, 2.2.5, 9.4.1
loans prior to entering service, 2.2.4
open-end credit, 2.2.5.8, 10.9.4.1
RALs, 15.2.2
open-end credit, 2.2.5.8, 10.9.4.1
payday loans, 2.2.5.2, 9.4.1
pension assignments, 14.4
RALs, 2.2.5.2, 2.2.5.4, 15.2.2
small loan laws, application, 3.8.6
state protections, 2.2.5.12, 3.8.6
MINIMUM WAGE
pay deductions bringing pay below, 2.4.3
MISREPRESENTATION
credit insurance coverage, 6.8.3.2, 6.8.3.3
false contractual statements, 7.7.2.3
fraudulent misrepresentation, 2.4.4.2
loan terms, 2.4.4.2, 2.4.5
negligent misrepresentation, 2.4.5
RALs, 15.4.2
UDAP violations, 2.4.1.3.5
variable rate provisions, 5.3.6.5
MISTAKE
see ERRORS
MOBILE HOME LOANS
see MANUFACTURED HOME CREDIT
MODEL ACTS (NAIC)
see NAIC MODEL ACTS
MORRIS PLAN
industrial bank loans, 1.2.3, 2.3.4
MORTGAGE BROKERS
see LOAN BROKERS
MORTGAGES
see HOME-SECURED LOANS
MOST FAVORED LENDER DOCTRINE
see also FEDERAL PREEMPTION
“competing” lenders, 3.5.5, 3.5.7
history of deregulation, 1.2.5
interaction between federal lenders, 3.5.4
interest calculation method, 3.5.6
material state restrictions, compliance, 3.5.6
no state cap situations, 3.5.3
overview, 3.5.1
parity laws, application, 3.5.4
same loan type requirement, 3.5.5, 3.5.7
status as favored lender, 3.5.2
MOTOR VEHICLE FINANCE
see AUTO FINANCING; MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
see also RETAIL INSTALLMENT SALES ACTS (RISAs)
body-dragging, application, 3.9.5, 11.3.2.2
contract completion and delivery, 11.3.8.2
direct lending, applicability, 11.2.7
disclosure requirements, 11.3.7, 11.4.6.3.2
document fees, restrictions, 11.4.4
generally, 11.2.1, 11.3.1
historical development, 1.2.4
installment agreements, regulation, 1.4.6
NCUA preemption, 3.3
interest rate limits, 11.3.4.1
interpretation, 7.2.1.4
leases, applicability, 11.2.4
licensure requirements, 11.3.3
negative equity financing, application, 11.4.6
RTO transactions, application, 13.5
scope, 11.3.2.1
“single document rule,” 11.3.8.1
NAIC MODEL ACTS
see also NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC)
credit insurance
choice of insurers, 6.5.3.2, 6.5.4
excess premiums, 6.6.2.1
life and disability, 6.4.3.1, 6.6.1.2, 6.6.3.1
personal property, 6.2.4.5, 6.4.3.2
rate regulation, 6.4.2.1
rebates, 6.10.1
surpluses, 6.9
state adoption, 6.2.4.5, 6.4.1
UNIP, 6.4.6.2
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC)
consumer complaints, 6.2.4.1
loss ratio data, 6.2.3.1
model acts, see NAIC MODEL ACTS
NATIONAL BANK ACT
history and purpose, 1.4.2
OCC interpretive letters, Appx. F.1.3
preemption, 7.9.1.3
complete preemption, 7.9.1.3.2
Dodd-Frank amendment, 3.2.2.1
non-field preemption, 3.2.2.5
selected provisions, Appx. F.1.1
selected regulations, Appx. F.1.3
usury remedies, 7.8.6.1
NATIONAL BANKS
see also BANKS; FEDERAL BANKING SYSTEM; FEDERAL LENDERS; NATIONAL BANK ACT
branches, 3.4.4
what constitutes a branch, 3.4.4.4
credit insurance regulations, 6.4.8.1, 6.5.6
electronic banking, 3.4.4.5
interstate banking, 3.4.4.3
failed banks, see FAILED BANKS
federal court jurisdiction, 7.9.1.3
federal preemption, 3.1.2.2, 3.2.2.6, 3.4.2.1, 7.9.1.3
financial subsidiaries, 3.1.2.5
Internet-only banks, 3.4.4.5
most favored lender status
see also MOST FAVORED LENDER DOCTRINE
generally, 3.5.2
material state restrictions, compliance, 3.5.6
scope, 3.5.4, 3.5.5
OCC regulation
payday loan guidelines, 9.4.2.2
preemption regulations, 3.2, 3.4, 3.5
operating subsidiaries, 3.1.2.5
payday loans
direct deposit advances, 9.5.1
FDIC guidelines, 9.4.2.3
FRB guidance, 9.4.2.4
non-bank partnerships, 9.6.1
OCC guidelines, 9.4.2.2
RALs
see also REFUND ANTICIPATION LOANS (RALs)
OCC policy statements, 15.2.3.1
rate exportation, 15.3.1
rate exportation, Appx. F.1
see also RATE EXPORTATION
branches, 3.4.4.3
electronic banking, 3.4.4.4
OCC interpretive letters, Appx. F.1.3
RALs, 15.3.1
regulations, Appx. F.1.2
rules, 3.4.2.1
statutory provisions, Appx. F.1.1
regulation of, 2.2.1, 3.1.2.2
OCC regulations, 3.2.1
regulatory history, 1.4.2
state law, application, 3.1.2.2, 3.2.2.6
subsidiaries and affiliates
applicable law, 3.2.5, 3.4.2.6
overview, 3.1.2.5
unconscionability claims, 2.4.8.2
usurious loans, remedies, 7.8.6.1
federal court jurisdiction, 7.9.1.3
NATIONAL CREDIT UNION ACT
see FEDERAL CREDIT UNION ACT
NATIONAL CREDIT UNION ADMINISTRATION (NCUA)
see also CREDIT UNIONS
Credit Card UDAP Rule, 8.2.1
interest rate ceiling, 9.5.3.2
interpretations
deference, 7.2.3
formal statements, Appx. I.4
selected letters, Appx. I.3
preemption of state law, 3.3
rate exportation, formal statement, Appx. F.4.2
regulatory function, 3.1.2.3, 3.3
see also FEDERAL CREDIT UNION ACT
selected regulations, Appx. I.2
NEGATIVE AMORTIZATION
see also AMORTIZATION; BALLOON PAYMENTS
balloon payments, 5.3.1.3.2
credit card minimum payments, 8.6.8.1
described, 5.3.1.3.1
variable rate transactions, 5.3.6.4.2
NEGATIVE EQUITY FINANCING
auto loans
damages, 11.4.6.3.4
described, 11.4.6.1
harm to consumer, 11.4.6.2
hiding by dealer, 11.4.6.1, 11.4.6.2
remedies, 11.4.6.3
single document rule, 11.3.8.1
TILA disclosures, 11.4.6.3.1
NEGLIGENCE
see also TORT CLAIMS
breach of duty of due care, 2.4.7
misrepresentations, 2.4.5
NEGOTIABLE INSTRUMENTS
checks, see CHECKS
holders in due course, see HOLDERS IN DUE COURSE
promissory notes, see PROMISSORY NOTES
NON-BANK LENDERS
see NON-DEPOSITORY CREDITORS
NON-DEPOSITORY CREDITORS
see also CREDITORS
convenience creditors, see CONVENIENCE CREDITORS
depository creditors distinguished, 1.4.1
federal preemption, 3.1.2.1, 3.4.2.6
finance companies, see FINANCE COMPANIES
FTC credit practices rule, application, 2.2.7
installment loans, see INSTALLMENT LOANS
licensed lenders, see LICENSED LENDERS
RALs, see REFUND ANTICIPATION LOANS (RALs)
retail sellers, see RETAIL SELLERS
NONDISCLOSURE
fiduciary breach, 2.4.6.4
fraud claims, 2.4.4.1
UDAP violations, 2.4.1.3.5
NON-FILING INSURANCE
coverage, 6.4.2.1
finance charge, exclusion, 6.7.5
hidden interest issues, 4.5.2.2
overview, 6.7.5
packing issues, 6.7.5
NON-PURCHASE MONEY SECURITY INTERESTS
household goods, 6.7.4, 10.6.1
installment loans, see INSTALLMENT LOANS
NOT SUFFICIENT FUNDS (NSF)
see BOUNCED CHECKS
NOTICE
see also DISCLOSURE
FTC Holder Rule, 11.7.3.2, 11.7.3.4
NOVATION
purging usury through, 7.7.3.3.1
OCC
see OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
ODD PAYMENTS
bi-weekly periods, 5.5.2.2
generally, 5.5.2.1
weekly periods, 5.5.2.2
OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
see also NATIONAL BANKS; REGULATORY AGENCIES
credit cards, unfair practices advisory letters, 8.5.3
credit insurance, joint regulations, 6.4.8.1
debt protection regulations, 6.3.4, 6.4.8.2
interpretations, deference, 7.2.3
joint banking regulations, 6.4.8.1
payday lending advisory letter, 9.4.2.2
preemption of state law, 3.2, 3.4, Appx. G
case-by-case determination, 3.2.2.5
field preemption, 3.2.2.3
interest definition, 3.4.5.2
interpretations, Appx. G.3
laws of general applicability, 3.2.2.6, 3.2.4.12.1
most favored lender, 3.5
non-interest matters, 3.2
non-mortgage matters, 3.2.4
preemption regulations, 3.2.3, 3.2.4, 3.4.5.2, Appx. G.2
rate exportation, 3.4
savings clause, 3.2.4.12
statutory standards, 3.2.2, Appx. G.1
RALs
enforcement actions, 15.5.1
policy statements, 15.2.3.1
rate exportation, interpretive letters, Appx. F.1.3
regulations
credit insurance, 6.4.8.1
preemption, 3.2, 3.4, 3.5, Appx. G.2
regulatory function, 1.4.3, 2.2.1, 3.2.1
OFFICE OF THRIFT SUPERVISION (OTS)
see also SAVINGS AND LOAN ASSOCIATIONS; REGULATORY AGENCIES
Credit Card UDAP Rule, 8.2.1
credit insurance, joint regulations, 6.4.8.1
history, 1.4.3
interpretations
deference, 7.2.3
preemption, Appx. G.3
rate exportation, Appx. F.2.3
OIL COMPANIES
see CONVENIENCE CREDITORS
OLDER CONSUMERS
financial abuse, 2.4.12.1
OPEN-END CREDIT
see also CREDIT TRANSACTIONS
ability-to-repay, 10.9.5
credit cards, 8.7.2.2, 8.7.2.3.2
auto pawns disguised as, 12.4
caps on rates and fees, 10.9.4
federal law limits, 10.9.4.1
interpreting caps on fees, 10.9.4.5
state caps on interest and fees, 10.9.4.2
state caps on interest, not fees, 10.9.4.3
states without caps, 10.9.4.4
closed-end, distinction, 1.5.2, 3.9.4
credit cards, see CREDIT CARD ACCOUNTS
interest calculations
closed-end differences, 5.3.5.1
methods of calculating, 5.3.5.2
spreading, 5.5.6.2
military personnel, 2.2.5.8
non-bank small loan lenders, 10.9
ability-to-repay requirements, 10.9.5
authority to extend, 10.9.2
caps on rates and fees, 10.9.4
installment loan regulation, avoiding, 10.9.1, 10.9.3
spurious open-end loans, 10.9.3, 10.9.4.4
retailers, 1.4.6
spurious, 2.2.5.8, 3.9.4
installment loans, 10.9.3, 10.9.4.4
payday loans, 9.6.4
state regulation, 2.3.8, 10.9
state law summaries, Appx. E
ORIGINATION FEES
see LOAN FEES; POINTS
OTS
see OFFICE OF THRIFT SUPERVISION (OTS)
OUTSTANDING BALANCE
see LOAN BALANCE
OVERCHARGES
see USURY VIOLATIONS
OVERDRAFT LOANS
payday loan status, 2.2.5.2
OVERDUE CHARGES
see DEFAULT CHARGES; LATE CHARGES
OVERREACHING CREDIT
see ABUSIVE LENDING; IMPROVIDENT LENDING
OVER-THE-LIMIT FEES
credit cards, 8.4.3.2
PARITY LAWS (STATE)
constitutional challenges, 3.6.6
enormous variations, 3.6.1
grant of authority, 3.6.3
limits to, 3.6.4
most favored lender interaction, 3.5.4
overview, 3.6.1
ricochet effects, 3.6.5
scope, 3.6.2
“super parity” statutes, 3.6.3
PAWNBROKING
auto-pawning, see AUTO TITLE LOANS
licensing requirements, 3.9.7.1
state regulation, 2.3.9
PAY STUB LOANS
RALs, 15.1.2
TILA and, 15.2.1.2
PAYDAY LOANS
see also FRINGE LENDERS; LOAN SHARKS
APR, 9.1.3
background, 9.1.1
bank accounts, closing to avoid unauthorized withdrawals, 9.2.9
bank loans, 9.5.1
bank partnerships, 9.5.2, 9.6.1
bankruptcy and, 9.9
brokers, 9.6.5
checks, repayment by
additional fees, 9.2.4
bad check laws, application, 9.2.3
early presentment, 9.2.5
manipulation into EFT, 9.2.7
re-presentment, 9.2.2
stop payment rights, 9.2.7, 9.2.8
unauthorized payments, 9.2.6, 9.2.9
credit service organizations, 9.6.5
credit unions, use by, 9.5.3.9
credit unions, 9.5.3
service organizations, 9.5.3.9
definition, 2.2.5.2, 9.1.1, 9.4.1
disclosure requirements, 9.4.3
discrimination, 9.4.3
electronic fund transfer, repayment by, 9.2.1
manipulation by lender, 9.2.7
stop payments, 9.2.7, 9.2.8
unauthorized, 9.2.6, 9.2.9
FDIC guidelines, 9.4.2.3
federal regulation, 9.4
banking agency guidelines, 9.4.2
ECOA, 9.4.3
MLA, 2.2.5.2, 9.4.1
TILA, 9.4.3
financial institutions, 9.5
credit unions, 9.5.3
direct deposit advances, 9.5.1
prepaid cards, 9.5.2
FRB guidance, 9.4.2.4
garnishment of wages, 2.4.3
historically, 1.2.3, 9.1.1
interest calculations, 5.2.2
Internet loans, 9.2.1, 9.6.2
scams, 9.1.5
litigation, 9.7
local ordinances, 9.8
military personnel, 2.2.5.2, 9.4.1
OCC guidelines, 9.4.2.2
overview of industry, 9.1
generally, 9.1.1
how payday loans work, 9.1.2
problems and abuses, 9.1.3, 9.1.5
regulation, 9.1.1
typical borrowers, 9.1.4
paycheck deductions, repayment by, 2.4.3
preauthorized EFT, repayment by, 9.2.1
closing account, 9.2.9
stop payments, 9.2.7, 9.2.8
preemption, 9.5
prepaid cards, 9.5.2
remedies, 9.7
rent-a-bank arrangements, 3.4.3.2, 9.6.1
RICO claims, 7.8.6.2.5
spurious open-end credit, 9.6.4
state regulation, 2.3.11.2, 7.2, 9.3
attempts to evade, 9.6
stop payments, 9.2.7, 9.2.8
TILA disclosures, 9.4.3
tribal payday loans, 9.6.3
PAYMENT PACKING
see also LOAN PADDING
auto financing, 11.5
PAYMENT PROTECTION PLANS
see DEBT PROTECTION PRODUCTS
PAYMENTS
see also REPAYMENT OF LOANS
balloon payments, see BALLOON PAYMENTS
late postings, 5.5.4.5
odd payments, see ODD PAYMENTS
packing, see PAYMENT PACKING
prepayment, see PREPAYMENT
third party payments, see THIRD PARTIES
PAYROLL DEDUCTIONS
restrictions on, 2.4.3
PENALTIES
interest rate increases, see PENALTY RATES
late payments, see LATE CHARGES
prepayment, see PREPAYMENT PENALTIES
usury violations, see STATUTORY PENALTIES
PENALTY RATES
credit cards, 8.3.1.2.1
abuses, 8.4.1.1
reasonable and proportional, 8.4.2
universal default, 8.3.1.2.2
delinquent loans, 4.8.6.4
PENSION BUYERS
assignment of pensions to, 14.4
PERSONAL PROPERTY INSURANCE
credit insurance, see CREDIT PERSONAL PROPERTY INSURANCE
force-placed, see FORCE-PLACED INSURANCE
PERSONAL PROPERTY SECURITY INTERESTS
see COLLATERAL; SECURITY INTERESTS
PLEADINGS
NCLC resources, 1.1.5
usurious charges in, 7.5.4.2
POINTS
see also FEES AND CHARGES; LOAN FEES; SERVICE CHARGES
agreed-rate transactions, 7.6.1, 7.6.2
calculation
described, 5.6.1
legal issues arising, 5.6.2
commitment fees, 4.3.3
compounding, 5.5.1.1
earned at consummation, 4.3.1, 5.8.5.2.1
FASB accounting standards, 5.8.5.2.1
finance charge, inclusion, 5.4.1
hidden interest, 4.3.1, 4.3.2, 7.6.2
seller’s points, 4.4.6
interest status, 4.3.2, 4.3.3, 5.8.5.2.2
legal considerations, 4.3.2
overview, 4.3.1, 5.6.1
rebate issues, 5.8.3, 5.8.5.2
refinancings
calculating, 5.6.2
evaluating benefits, 5.9.3
non-rebatable charges, 5.9.5.3
seller’s points, 4.4.6
yield spread premiums as, 4.5.3.2, 5.6.2
POST-CONSUMMATION CHARGES
default charges, see DEFAULT CHARGES
delinquency fees, see LATE CHARGES
optional services, 4.8.7
POST-DATED CHECK LOANS
see PAYDAY LOANS
PRACTICE TIPS
see also RESEARCH AIDS
analyzing consumer credit issues
calculations, 5.11.4
developing system, 5.11.1
gathering information, 5.11.2, 5.11.3
credit card debt, assisting overwhelmed consumers, 8.12
credit insurance, proving coercion, 6.5.7
credit math, 5
see also INTEREST CALCULATIONS
calculations and analysis, 5.11.4
formulas, see MATHEMATICAL FORMULAS
information gathering, 5.11.2, 5.11.3
NCLC practice tools, 1.1.5
proving in court, 5.10
rebates, 5.8
refinancings, 5.9
discovery, see DISCOVERY
federal preemption checklist, 3.1.3
foreclosure, enjoining, 7.8.3.1
gathering information
from client, 5.11.2
from creditor and others, 5.11.3
hidden interest, 7.5.4.3
NCLC treatise
tools and resources, 1.1.5
using treatise, 1.1.6
pleadings, see PLEADINGS
potential claims, uncovering, 5.11
rebates of unearned charges, 5.8
calculating Rule of 78s rebate, 5.8.7.3.2
true cash price, establishing, 11.4.3.4
yo-yo sales, 11.4.5
PREAUTHORIZED ELECTRONIC FUND TRANSFERS
see also ELECTRONIC FUND TRANSFERS (EFT)
loan repayment by, 9.5.3.6
closing accounts, 9.2.9
credit conditional on, restrictions, 9.2.1
installment loans, 10.6.3
payday loans, 9.2.1, 9.2.4, 9.2.8, 9.2.9
stop payments, 9.2.8
PRECOMPUTED LOANS
add-on interest, 5.3.2
deferral charges, 5.7.2, 5.8.3.3
described, 5.8.3.3
discount interest, 5.3.3
interest-bearing loans distinguished, 5.8.3.1
rebate requirements, 5.8.3.3
see also REBATES OF UNEARNED CHARGES
partial prepayments, 5.8.4.2
PREDATORY LENDERS
see ABUSIVE LENDING; FRINGE LENDERS; LOAN SHARKS; SUBPRIME LENDERS
PREEMPTION
E-Sign by state law, 2.5.2
federal law by state insurance law, 6.5.5.2
FAA, 7.4.2.2
general usury laws by RISAs, 11.3.2.1
payday loans, 9.5
state law by federal law, see FEDERAL PREEMPTION
state law by UETA, 2.5.2
PREMIUM REBATES
see INSURANCE PREMIUM REBATES
PREMIUMS
see INSURANCE PREMIUMS
PREPAID FINANCE CHARGES
see POINTS
PREPAID PAYMENT PYRAMID
described, 4.4.2
PREPAYMENT
fixing of date, 5.8.6.1
interest-bearing transactions, 5.8.3.2
partial prepayments, 5.8.4.2
penalties, see PREPAYMENT PENALTIES
precomputed transactions, 5.8.3.3
rounding intervals, 5.8.6.2, 5.8.7.4.2
spreading, effect, 5.5.6.3
unearned charges
collection, 5.8.8.3
rebates, see REBATES OF UNEARNED CHARGES
what constitutes, 5.8.4
PREPAYMENT PENALTIES
see also PREPAYMENT
manufactured home financing, 5.8.7.1.4
mortgage loans, 5.8.7.1.3
rebate refusal, distinction, 5.8.1, 5.8.8.5
refinancings, 5.9.3
refusal to accept payment as, 5.8.6.2
Rule of 78s penalty, 5.8.7.3.1
UDAP violations, 2.4.1.3.4
PRICE
see COST OF CREDIT; SELLING PRICE
PRINCIPAL AMOUNT
see also AMOUNT FINANCED
amortization, see AMORTIZATION
amount financed distinguished, 5.4.1
amount still owing, see LOAN BALANCE
compensating balances, 4.4.4
cost of credit, see INTEREST; INTEREST RATES
defined, 7.5.4.3
indexing, 4.4.3
inflating, 4.4
through compensating balances, 4.4.4
through fees, 4.4.2
through indexing, 4.4.3
through refinancing, 5.9.3
installment credit
balloon payments, 5.3.1.3.2
declining balance, 5.3.1.2
increasing balance, 5.3.1.3
insurance premiums, inclusion, 6.2.2.3
interest on, see INTEREST
loan packing, 3.9.8.2
loan splitting, 3.9.8.1
overstated, hidden interest issues, 7.6.2
repayment obligation, necessary element of usury claim, 7.5.3
small loan laws, application, 3.9.8
statutory penalties, offsetting, 7.8.2.4
usurious loans, repayment, 7.8.2.2
PROMISSORY NOTES
see also NEGOTIABLE INSTRUMENTS
electronic, 2.5.2
PROOF
see BURDEN OF PROOF; EVIDENCE
PROPERTY INSPECTION FEES
delinquent loans, 4.8.6.2
PROPERTY INSURANCE
see CREDIT PERSONAL PROPERTY INSURANCE
PUNITIVE DAMAGES
arbitration awards, 7.4.7
fraud claims, 2.4.4.5
PURCHASE MONEY SECURITY INTERESTS
see also CREDIT SALES
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
PYRAMIDING
late charges, 4.8.5, 5.7.1
RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO)
auto pawns, application, 12.3
credit card abuses, 8.11.4
credit insurance denial, application, 6.8.3.2
creditor overcharges, application, 7.8.6.2.5
injury, 7.8.6.2.4
mail and wire fraud, 7.8.6.2.5
overview, 7.8.6.2.1
pattern, 7.8.6.2.2
racketeering activity, 7.8.6.2.2
state RICO statutes, 7.8.6.2.6
unlawful debt, 7.8.6.2.3, 7.8.6.2.5
usury remedies, 7.8.6.2
RATE EXPORTATION
see also FEDERAL PREEMPTION
Arkansas state banks, 3.4.2.5
assignees, application, 3.4.3
new interest charges, 3.4.3.3
bank branches, 3.4.4
credit cards, 8.11.5.1
DIDA provisions, 3.4.2.3.1
electronic banking, 3.4.4.5
federal credit unions, 3.4.2.2
federal savings associations, 3.4.2.1, Appx. F.2
OTC interpretive letters, Appx. F.2.3
regulations, Appx. F.2.2
statutory provisions, Appx. F.2.1
federally insured lenders, 3.4.2.3.1
history of deregulation, 1.2.5
home state determination, 3.4.4
industrial loan companies, 3.4.2.4
interest, definition, 3.4.5.1
case law, 3.4.5.3
OCC definition, 3.4.5.2
scope of term, 3.4.5.1
interstate banking, 3.4.4.3
material state restrictions, compliance, 3.5.6
most favored lender rate, see MOST FAVORED LENDER DOCTRINE
national banks, 3.4.2.1, Appx. F.1
OCC interpretive letters, Appx. F.1.3
regulations, Appx. F.1.2
statutory provisions, Appx. F.1.1
operating subsidiaries, 3.4.2.6
originating lender determines, 3.4.3.1, 3.4.3.2
overview, 3.4.1
RALs, 15.3.1
remedies for usury violation, 3.4.6
“rent-a-bank” arrangements, 3.4.3.2, 9.6.1
state-chartered depositories, 3.4.2.3, Appx. F.3, Appx. F.4
FDIC interpretation letters, Appx. F.3.2
generally, 3.4.2.3.1
most favored lender status, 3.5.2
NCUA formal statement, Appx. F.4.2
state opt-out, 3.4.2.3.2, 3.4.2.3.3
statutory provisions, Appx. F.3.1, Appx. F.4.1
table-funded loans, 3.4.3
RATES
credit insurance, 6.4.2
filed-rate doctrine, 6.4.2.5
interest rates, see INTEREST RATES
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
manufactured homes, application, 11.6.3.4
REAL PROPERTY
manufactured homes, classification, 11.6.2
RTO transactions, 13.5
transactions secured by, see HOME-SECURED LOANS
REBATES OF UNEARNED CHARGES
actuarial rebates
calculation, 5.8.7.4.2
legal status, 5.8.7.4.1
split rates, 5.8.7.4.3
bankruptcy, calculating, 5.8.7.1.5
calculating
fixing date, 5.8.6.1
formulae, 5.8.7
intervals, rounding, 5.8.6.2, 5.8.7.4.2
charges subject to rebate, 5.8.5
consumer’s entitlement, 5.8.2
contractual provisions, 5.8.8.3.2, 5.8.8.3.3
credit insurance premiums, 6.10
credit sales, 11.3.5.3
date of prepayment, 5.8.6
early termination, 5.8.4.1
federal preemption, 5.8.7.1.7
federal statute, see FEDERAL REBATE STATUTE
formulae
actuarial rebates, 5.8.7.4.2
determining which formula, 5.8.7.1
pro rata rebates, 5.8.7.2
Rule of 78s, 5.8.7.3.2
sum of the balances, 5.8.7.3.4
installment loans, 10.4.3
intent to collect unearned charges, 5.8.8.3
interest-bearing loans, 5.8.2, 5.8.3.2
manufactured home financing, 5.8.7.1.4
mortgage loans, 5.8.7.1.3
overview, 5.8.1
partial prepayments, 5.8.4.2
points, 5.8.5.2
precomputed charges, 5.8.3.3, 5.8.5
prepayment penalties, relationship, 5.8.1
pro rata rebates, 5.8.7.2
refinancing calculations, 5.9.5.1
“flipping penalty,” 5.9.3, 5.9.4
remedies for violations, 5.8.8
contingent events, 5.8.8.2
federal rebate statute, 5.8.8.4
framing as prepayment issue, 5.8.8.5
intent, requirement, 5.8.8.3
usury claims, 5.8.8.1
right to, 5.8.2
RISA requirements, 11.3.5.3
Rule of 78s
background and legal status, 5.8.7.3.1
explanation, 5.8.7.3.3
refinancing example, 5.9.4
step by step calculation, 5.8.7.3.2
sum of the balances variant, 5.8.7.3.4
service contracts, 5.8.5.1
spreading, application, 5.5.6.3, 5.5.6.4
state law, 5.8.7.1.6
relationship to federal requirements, 5.8.7.1.7
sum of the balances rebates, 5.8.7.3.4
RECAPTURE CLAUSES
variable rate transactions, 5.3.6.4.3
RECEIVERS
federal receiver defenses, 7.7.13
RECOUPMENT
statute of limitations, extension, 7.7.6
REFERRAL FEES
see BROKER FEES; KICKBACKS
REFINANCING
see also CONSOLIDATION OF LOANS
business loans, 3.9.3.5
compounding interest, restrictions, 5.5.1.2
cost of refinancing
additional charges, 5.9.5.4
calculations, 5.9.5, 5.9.6
case study, 5.9.6
evaluating, 5.9.3, 5.9.5
small loan example, 5.9.4
credit insurance, 5.9.4
defined, 5.9.2
flipping, as, 5.9.2
frequent refinancing, see LOAN FLIPPING
hidden costs, 5.9.1, 5.9.3
interest ceilings, 5.9.5.5
negative equity auto loans, 11.4.6
novation distinguished, 7.7.3.3.1
open-end disguised as closed, 1.5.2
overview, 5.9.1
points, 5.6.2
price escalator, 5.9.3
rebates
see also REBATES OF UNEARNED CHARGES
calculation, 5.9.5.1
compounding, 5.9.5.2
flipping penalty, 5.9.4
non-rebatable charges, 5.9.5.3
RISAs, application, 5.9.5.5
service charges, 5.9.3, 5.9.4, 5.9.5.4
small loan example, 5.9.4
stretching the term, 5.9.4
usurious taint, 7.7.3
continuation of taint, 7.7.3.1
purging of taint, 7.7.3.3.1
waiver of taint, 7.7.3.3.2
REFORMATION
usurious contracts, 7.8.2.1, 7.8.3.3
REFUND ANTICIPATION CHECKS (RACs)
disclosure requirements
state law, 15.3.2
TILA, 15.2.1.3
federal regulation, 15.2
TILA, 15.2.1.3
overview, 15.1.3
state enforcement actions, 15.6.1
state law claims, 15.4
UDAP, 15.4.2
state regulation
disclosure laws, 15.3.2
usury laws, 15.3.1
REFUND ANTICIPATION LOANS (RALs)
see also FRINGE LENDERS
assignment of refund alternative, 15.5
cross-lender debt collection, 15.4.3
definition, 2.2.5.4
described, 15.1.1
disclosure requirements
state law, 15.3.2
TILA, 15.2.1.1
disguised, 2.2.5.4
federal enforcement, 15.5
CFPB, 15.5.3
FDIC, 15.5.1, 15.5.2
FTC, 15.5.1
OCC, 15.5.1
tax fraud, 15.5.4
federal regulation, 15.2
Federal Rebate Act, 15.2.1.4
IRS rules, 15.2.3.2
MLA, 2.2.5.4, 15.2.2
OCC policy statements, 15.2.3.1
TILA, 15.2.1.1
fiduciary relationships, 2.4.6.2.2, 15.4.1
government enforcement
federal enforcement, 15.5
state enforcement, 15.6
historical overview, 15.1.1
military personnel, 2.2.5.4, 15.2.2
pay stub RALs, 15.1.2
TILA and, 15.2.1.2
“pre-season” loans, 15.1.2
RACs, replacement by, 15.1.3
rate exportation, 15.3.1
state enforcement activity
actions, 15.6.1
informal actions, 15.6.2
warning letters, 15.6.2
state law claims, 15.4
cross-lender debt collection, 15.4.3
CSOA violations, 15.4.4
loan broker statutes, 15.4.4
tax preparers, against, 15.4.1
UDAP, 15.4.2
state regulation, 15.3
credit services laws, 15.4.4, 15.6.2
disclosure laws, 15.3.2
loan broker statutes, 15.4.4, 15.6.2
usury laws, 15.3.1
tax preparers, 2.4.6.2.2, 15.4.1, 15.5.4, 15.6.1, 15.6.2
REGISTRATION
see LICENSING REQUIREMENTS
REGULATORY AGENCIES
administrative remedies, exhaustion, 7.7.12
CFPB, see CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
FDIC, see FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
FRB, see FEDERAL RESERVE BOARD (FRB)
FTC, see FEDERAL TRADE COMMISSION (FTC)
interpretations, deference, 7.2.3
joint banking agency insurance regulations, 6.4.8.1
NCUA, see NATIONAL CREDIT UNION ADMINISTRATION (NCUA)
OCC, see OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
OTS, see OFFICE OF THRIFT SUPERVISION (OTS)
REMEDIES
class actions, see CLASS ACTIONS
common law, see COMMON LAW
counterclaims, see COUNTERCLAIMS
credit insurance denial, 6.8.3
defenses to equitable remedies, 7.8.4.4
equitable remedies, see EQUITABLE REMEDIES
failed banks, 7.7.13
FTC Holder Rule violations, 7.7.7
RICO, see RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO)
TILA, see TRUTH IN LENDING ACT (TILA)
tribal sovereign immunity, application, 9.6.3.3, 9.6.3.6
UDAP, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
usury, see USURY REMEDIES
REMOVAL
see JURISDICTION
RENT SHARING
hidden interest, 4.7
RENT-TO-OWN (RTO) TRANSACTIONS
see also FRINGE LENDERS
applicable law, 13.4.1
auto pawns disguised as, 12.4, 13.5
automobile purchases, 11.2.5, 13.5
challenges, 13.3.2, 13.4
arbitration clauses, 13.4.7
disclosures, 13.4.3
discrimination, 13.4.6
loss of equity, 13.4.4
pricing and fees, 7.8.6.2.5, 13.4.2
repossession tactics, 13.4.5
CLA, application, 13.4.3.1
credit sales disguised as, 13.3.1
legal challenges based on, 7.8.6.2.5, 13.3.2
described, 13.1
disclosure requirements, 13.3.2.3, 13.4.3
high-cost loans disguised as, 13.5
industry overview, 13.2
pricing and fees, 13.4.2.1
lease status, 13.3.1
liability damage waivers, 13.4.2.4
real estate purchases, 13.5
RICO, application, 7.8.6.2.5
RISAs, application, 13.3.2.2
state regulation, 2.3.11.4
disclosure requirements, 13.4.3.2
industry-friendly legislation, 13.3.3
price controls, 13.4.2.3
reinstatement rights, 13.4.4
structure and marketing, 13.3.1
TILA, application, 13.3.2.3
UCC, application, 13.3.2.4, 13.4.5
UDAP, application, 13.4.2.2
unconscionability, 13.4.2.2
REPAIR CONTRACTS
see SERVICE CONTRACTS
REPAYMENT OF LOANS
“absolute obligation to repay” principal, 7.5.3
credit card balances, 8.3.2.3
installment loans, 10.4.1, 10.6.3
payday loans
credit union loans, 9.5.3.6
preauthorized EFTs, 9.2.1, 9.2.7, 9.2.8, 9.2.9
state regulation, federal preemption, 3.2.4.10
tax refund assignments, 15.4.5.2
REPOSSESSION
automobiles
auto pawns, 12.5.3
buy-here pay-here vehicle dealers, 11.2.2
electronic repossession devices, 11.2.2
rent-to-own vehicle transactions, 11.2.2
RISA restrictions, 11.3.6
vendor’s single interest (VSI) insurance application, 11.5.4.5.1
yo-yo sales, 11.4.5
manufactured homes, 11.6.2.2
RTO transactions, 13.4.5
state regulation, federal preemption, 3.2.4.12.4
REPURCHASE AGREEMENTS
see LEASEBACK AGREEMENTS; PAWNBROKING
RES JUDICATA
creditor defense, 7.7.4
RESCISSION
usurious credit agreements, 7.8.3.2
RESEARCH AIDS
see also PRACTICE TIPS; WEB RESOURCES
NCLC resources, 1.1.5, 1.1.6
other resources, 1.1.7
unreported cases, 1.1.7
RESTITUTION
see also EQUITABLE REMEDIES
obstacles to, 7.8.4.4
RETAIL INSTALLMENT SALES
see CREDIT SALES
RETAIL INSTALLMENT SALES ACTS (RISAs)
see also CREDIT SALES; INSTALLMENT LOAN LAWS
assignee liability, 11.7.4
balloon payments, restrictions, 11.3.4.1, 11.3.4.2
body-dragging, application, 3.9.5, 11.3.2.2
constitutionality, 11.3.1
contract completion and delivery, 11.3.8.2
convenience creditors, application, 1.4.7
deferral charges, restrictions, 11.3.5.1
direct lending, applicability, 11.3.2.2
disclosures, 11.3.4.2
equal installments, requirements, 11.3.4.2
federal preemption, 11.3.2.5
fees, restrictions, 4.6.1
finance charges, 11.3.4.1
historical development, 1.2.4
history, 11.3.1
installment contracts, regulation, 1.4.6
NCUA preemption, 3.3
insurance requirements, 11.3.4.3
interpretation, 7.2.1.4
late fees, restrictions, 11.3.5.2
liberal construction, 11.3.1
licensing requirements, 11.3.3
limits on interest, 11.3.4.1
limits on term of credit, 11.3.4.2
motor vehicle sales, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISA)
negative equity financing, application, 11.4.6
overview, 2.3.6
rebates of unearned interest, 11.3.5.3
refinancings, application, 5.9.5.5
remedies, 11.3.9
repossession, 11.3.6
RTO transactions, application, 13.3.2.2
schedule of payments, 11.3.4.2
scope, 11.3.2
security interests, 11.3.6
“single document rule,” 11.3.8.1
state law summaries, Appx. C
variable rate transactions, restrictions, 5.3.6.5
RETAIL SELLERS
see also CREDIT SALES; NON-DEPOSITORY CREDITORS
body-dragging, 3.9.5, 11.3.2.2
CFPB jurisdiction, 2.2.6.2.3
credit card accounts, see CREDIT CARD ACCOUNTS
FTC credit practices rule, application, 2.2.7
lender liability for acts of, 11.7
direct financing situations, 11.2.3
licensing requirements, 11.3.3
motor vehicles, see AUTO FINANCING
regulatory history, 1.4.6
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
RETAILERS
see RETAIL SELLERS
REVERSE COMPETITION
credit insurance, 6.2.2.1, 6.2.3.2
REVOLVING CREDIT PLANS
see CREDIT CARD ACCOUNTS; OPEN-END CREDIT
REWARD PROGRAMS
credit cards, 8.10.3
RICO
see RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (RICO)
ROUNDING
interest calculations, 5.5.5
intervals for rebates, 5.8.6.2, 5.8.7.4.2
refinancings, 5.9.5.1
RULE OF 78s
background, 5.8.7.3.1
explanation of rule, 5.8.7.3.3
flipping penalty, small loan example, 5.9.4
formula, 5.8.7.3.2
legal status, 5.8.7.3.1, 5.8.7.3.2
prepayment penalty, 5.8.7.3.1
rebate calculations, 5.8.7.3.2
credit insurance, 6.10.3
restrictions on use, 5.8.7.1.2
retail installment contracts, application, 11.3.5.3
sum of the balances variant, 5.8.7.3.4
unearned interest charges, 5.8.3
RURAL HOUSING SERVICE (RHS) LOANS
manufactured homes, application, 3.7.5
preemption of state law, 3.7.5
RUSSELL SAGE FOUNDATION
small loan laws, 1.2.3, 2.3.3
SALARY LENDING
see FUTURE PAYMENT STREAM TRANSACTIONS; PAY STUB LOANS; PAYDAY LOANS; WAGE ASSIGNMENTS
SALE AND REPURCHASE
see BUYBACK SCHEMES; LEASEBACK AGREEMENTS; PAWNBROKING
SALE OF GOODS
installment payments, see CREDIT SALES
price, see SELLING PRICE
sellers, see RETAIL SELLERS
SALES ON CREDIT
see CREDIT SALES
SALES PRICE
see SELLING PRICE
SAVINGS AND LOAN ASSOCIATIONS
see also DEPOSITORY CREDITORS
deposit insurance, 1.4.3
Federal Home Loan Bank System, participation, 1.4.3
federal regulation, 2.2.1, 3.1.2.2
OCC regulations, 3.2.3.1
federally insured, see FEDERALLY INSURED LENDERS
FSLIC, participation, 1.4.3
FTC credit practices rule, application, 2.2.7
historical development, 1.2.3, 1.4.3
interest rate ceiling, 3.4.2.1, 3.4.2.3
lending authority, 1.4.3
most favored lender status, 3.5.2
parity laws
effect on national banks, 3.5.4
generally, 3.6
payday loans
direct deposit advances, 9.5.1
FDIC guidelines, 9.4.2.3
FRB guidance, 9.4.2.4
involvement, 9.5.2, 9.6.1
OCC guidelines, 9.4.2.2
rate exportation
see also RATE EXPORTATION
FDIC interpretation letters, Appx. F.3.2
federal associations, 3.4.2.1, Appx. F.2
regulations, Appx. F.2.2
state associations, 3.4.2.3, Appx. F.3
statutory provisions, Appx. F.2.1, Appx. F.3.1
regulatory history, 1.4.3
state regulation, 3.2.6
subsidiaries and affiliates, applicable law, 3.2.5, 3.4.2.6
usurious loans, remedies, 7.8.6.1
SAVINGS BANKS
see also BANKS; SAVINGS AND LOAN ASSOCIATIONS
historical development, 1.2.3
regulatory history, 1.4.2
state regulation, 3.2.6
SCAMS
see SHAMS
SECURED CREDIT
see also COLLATERAL; SECURITY INTERESTS
automobiles, see AUTO-SECURED LOANS
credit cards, 8.5
electronic documents, 2.5.2
installment loans, 10.6.1
manufactured homes, see MANUFACTURED HOME CREDIT
non-purchase money loans, see INSTALLMENT LOANS; NON-PURCHASE MONEY SECURITY INTERESTS
overview, 1.5.3
real property, see HOME-SECURED LOANS
retail sales, see CREDIT SALES; PURCHASE MONEY SECURITY INTERESTS
state regulation, federal preemption, 3.2.4.7
SECURITIZATION TRUSTS
personal jurisdiction, 7.9.2.3
SECURITY
see COLLATERAL
SECURITY DEPOSITS
credit cards, 8.5
charged to card, 8.5.2.2.3
maximum amount, 8.5.2.1
SECURITY INTERESTS
see also COLLATERAL; SECURED CREDIT
homes, see HOME-SECURED LOANS
household goods, 6.7.4, 10.6.1
importance, 1.5.3
installment loans, 10.6.1
manufactured homes, 11.6.2.1
non-filing insurance alternative, see NON-FILING INSURANCE
non-purchase money, see NON-PURCHASE MONEY SECURITY INTERESTS
personal property, see COLLATERAL
purchase money, see PURCHASE MONEY SECURITY INTERESTS
RISA limits, 11.3.6
RTO transactions, status, 13.3.2.4
state regulation, federal preemption, 3.2.4.7
SELLER’S POINTS
see also POINTS
inflating of principal, 4.4.6
SELLING PRICE
inflating as hidden interest, 4.4.5, 4.4.6, 11.4.3
true cash price, establishing, 11.4.3.4
RTO transactions, 13.4.2
SERVICE CHARGES
see also FEES AND CHARGES; LOAN FEES; POINTS
earned at consummation, 5.8.5.2.1
finance charge, inclusion, 5.4.1
minimum charges, 5.5.7
refinancings
additional charges, 5.9.3, 5.9.5.4
flipping penalty, 5.9.3, 5.9.4
non-rebatable charges, 5.9.5.3
SERVICE CONTRACTS
dealer add-on, 11.5.3
hidden interest, 4.7
rebate issues, 5.8.5.1
SERVICEMEMBERS CIVIL RELIEF ACT
see also MILITARY PERSONNEL
interest rate caps, 2.2.4, 8.3.2.2.6, 10.9.4.1
selected text, Appx. A.2
SERVICING OF LOANS
see LOAN SERVICING
SETTLEMENT FACTORING
overview, 14.5
SHAMS
business loans, 3.9.3.3
credit sales, 7.5.2.2.1
loans, 7.5.2.2.1
open-end credit, 2.2.5.8, 3.9.4, 9.6.4, 10.9
payday loan disguises
Internet scams, 9.1.5
overview, 9.6.6
spurious open-end credit, 9.6.4
tax refund schemes, 15.5
third party fees, 4.5.2
sham services, 4.5.2.4
sham third parties, 4.5.2.1
SIDE AGREEMENTS
hidden interest, 4.7
SIMPLE INTEREST
see also ACTUARIAL INTEREST TRANSACTIONS
actuarial calculation, 5.3.1.2
add-on interest compared, 5.3.2.1
described, 5.2.1
SINGLE DOCUMENT RULE
installment sales contracts, 11.3.8.1
SINGLE PAYMENT LOANS
interest calculations, 5.2
payday loans, see PAYDAY LOANS
SLIDING
credit insurance, 6.5.7
SMALL BUSINESSES
see BUSINESS LOANS
SMALL LOAN LAWS
see also SMALL LOAN LENDERS
combined with other statutes, 2.3.3
credit card accounts, application, 3.5.5
credit insurance, application, 6.6.2.2
historical development, 1.2.3, 7.2.1.4
installment loans, see INSTALLMENT LOAN LAWS
loan packing to evade, 3.9.8.2
loan-splitting to fail within, 3.9.8.1
military personnel, application, 3.8.6
overview, 2.3.3
purpose, 7.2.1.4
variable rate transactions, restrictions, 5.3.6.5
SMALL LOAN LENDERS
see also FINANCE COMPANIES
credit insurance restrictions, 6.6.2.2
credit unions, 9.5.3
FDIC affordable small loan guidelines, 9.4.2.3.2
flipping penalties, 5.9.4
fringe lenders, see FRINGE LENDERS
historical perspective, 1.2.3
installment loans, see INSTALLMENT LOANS
military loans, choice of law, 3.8.6
regulation, see SMALL LOAN LAWS
salary lenders, see PAYDAY LOANS
SOLDIERS’ AND SAILORS’ CIVIL RELIEF ACT
see SERVICEMEMBERS CIVIL RELIEF ACT
SPECIAL USURY STATUTES
see also USURY LAWS (STATE)
applicable law, 3.9
choice of law rule, 3.8.4
combined, see CONSUMER FINANCE LAWS (STATE)
consolidated, see CONSUMER CREDIT CODES (STATE)
credit services laws, 2.3.12
fringe lenders, 2.3.11
historical development, 1.2.3
industrial loan laws, see INDUSTRIAL LOAN LAWS
installment loan laws, see INSTALLMENT LOAN LAWS
insurance premium finance statutes, 2.3.7, 6.4.4
licensed lenders, 3.9.7.1
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
open-end credit laws, 2.3.8
overview, 2.3.1
pawnbroker statutes, 2.3.9
purpose, 7.2.1.4
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
small loan laws, see SMALL LOAN LAWS
statutory construction, 7.2.1.4
SPECIALTY FINANCING
see FRINGE LENDERS; SUBPRIME LENDERS
SPLIT RATE INTEREST
see also INTEREST
actuarial rebates, 5.8.7.4.3
add-on interest transactions, 5.3.2.2
calculations, 5.3.4
SPOT DELIVERY
see YO-YO SALES
SPREADING
across notes, 5.5.6.3
contract restrictions, 5.5.6.4
fixed-term loans, 5.5.6.1
open-end transactions, 5.5.6.2
term used, 5.5.6.3
usury ceilings, 5.5.6.1
STANDING
usury claims, 7.7.1
STATE BANKS
see also BANKS
FDIC participation, 1.4.2, 3.1.2.2
federal regulation, 3.1.2.2
indirect regulation, 3.2.6
payday loan guidelines, 9.4.2.3, 9.4.2.4
interstate banking, see INTERSTATE BANKING
most favored lender status, 3.5.2
parity laws, 3.6
rate exportation
see also RATE EXPORTATION
Arkansas state banks, 3.4.2.5
FDIC interpretation letters, Appx. F.3.2
generally, 3.4.2.3
remedies for cap violations, 3.4.6
statutory provisions, Appx. F.3.1
regulatory history, 1.4.2
state regulation, 3.2.6
STATE CLAIMS
contract claims, see CONTRACT LAW
credit card abuses, 8.11
equitable remedies, see EQUITABLE REMEDIES
fiduciary duty, see FIDUCIARY DUTY
fraud, see FRAUD CLAIMS
good faith and fair dealing, see GOOD FAITH AND FAIR DEALING
misrepresentation, see MISREPRESENTATION
tort claims, see TORT CLAIMS
UDAP, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
unconscionability, see UNCONSCIONABILITY
usury, see USURY CLAIMS
STATE LAW
see also USURY LAWS (STATE)
administrative interpretations, deference, 7.2.3
auto title lending, 12.5.5
bad check laws, 9.2.3
banking system, 1.4.2
bounced checks, re-presentment, 9.2.2
choice of law standards, 3.8
federal provision, see RATE EXPORTATION
claims, see STATE CLAIMS; USURY CLAIMS
credit deregulation, see PARITY LAWS (STATE)
credit insurance, 6.4
arbitration clauses, 7.4.2.2
debt protection products, 6.3.4
preemption of federal law, 6.5.5.2, 7.4.2.2
property insurance, 6.2.4.5
credit services, see CREDIT SERVICES LAWS (STATE)
credit statutes, see USURY LAWS (STATE)
electronic transactions, see UNIFORM ELECTRONIC TRANSACTIONS ACT (UETA)
future income assignments, 14.7
labor standards, 2.4.3
lending statutes, see USURY LAWS (STATE)
loan brokers, 4.5.3.3
manufactured homes
classification, 11.6.2
consumer protection, 11.6.1
credit statutes, 11.6.3.2
federal preemption, 11.6.3.1
UDAP, 11.6.3.5
parity laws, see PARITY LAWS (STATE)
preemption by federal law, see FEDERAL PREEMPTION
preemption of federal law, see PREEMPTION
RALs, 15.3
RICO, 7.8.6.2.6
tribal activities, application, 9.6.3.3
UDAP, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
UNIP, see UNFAIR INSURANCE TRADE PRACTICES (UNIP) STATUTES
usury laws, see USURY LAWS (STATE)
wage and hour laws, 2.4.3
“wild card” statutes, see PARITY LAWS (STATE)
STATUTE OF LIMITATIONS
MLA, 2.2.5.11
usury claims, 7.7.6
STATUTORY CONSTRUCTION
see also USURY STATUTES (STATE)
deference to administrative interpretations, 7.2.3
general rules of interpretation, 7.2
broad vs. narrow, 7.2.1
expressio unius, 7.2.2
“interest,” interpretation, 4.2.1
retroactive amendment, 3.11
general standards, 3.11.1
variable or floating ceilings, 3.11.2
usury statutes, 7.2
history and purpose, invoking, 7.2.1.2
remedial vs. penal purposes, 7.2.1.3
special usury laws, 7.2.1.4
STATUTORY PENALTIES
offsetting, 7.8.2.4
usury violations, 7.8.2.4
STEERING
fiduciaries, by, 2.4.6.4
RESPA restrictions, 11.6.3.4
TILA restrictions, 11.6.3.3
STRUCTURED SETTLEMENTS
assignments, 14.5
STUDENT LOANS
NCLC treatise, 1.1.2
proceeds as income, 8.7.2.3.2
servicemembers, 2.2.4
SUBPRIME LENDERS
see also FRINGE LENDERS; LOAN SHARKS
credit cards, 8.5
deep auto finance discounts, 11.4.3.1, 11.4.3.4
installment loans, see INSTALLMENT LOANS
payday loans, see PAYDAY LOANS
variable rate transactions, 5.3.6.1
SUBSIDIARIES
activities of, jurisdiction over parent, 7.9.2.5
credit union service organizations, 9.5.3.9
preemption rights, 3.2.5, 3.4.2.6
SUM OF THE BALANCES
rebate calculations, 5.8.7.3.4
SUM OF THE DIGITS
see RULE OF 78s
SUPPLY OF CREDIT
credit regulation, effect on, 1.3.3, 1.3.4
SURETIES
see ACCOMMODATION PARTIES
TABLE-FUNDED LOANS
described, 3.4.3.1, 3.9.7.3
licensing issues, 3.9.7.3
rate exportation, 3.4.3.1
TALENT-NELSON AMENDMENT
see MILITARY LENDING ACT (MLA)
TAX PREPARERS
credit service organization laws, application, 15.4.4, 15.6.2
fiduciary duty, 2.4.6.2.2, 15.4.1
fraud, 15.5.4
military personnel, loans to, 2.2.5.4
RALs, 2.4.6.2.2
see also REFUND ANTICIPATION LOANS (RALs)
claims against, 15.4.1
cross-lender debt collection, 15.4.3
CSOA violations, 15.4.4, 15.6.2
federal enforcement actions, 15.5.4
IRS rules, 15.2.3.2
licensing requirements, 15.4.4, 15.6.2
state enforcement actions, 15.6.1
UDAP violations, 15.4.2
TAX REFUND ASSIGNMENTS
disguised loans, 15.4.5
no contingency, 15.4.5.2
precedent, 15.4.5.3
sale of chose in action, 15.4.5.1
overview, 15.1.4
TAX-TIME FINANCIAL PRODUCTS
assignment of refund, see TAX REFUND ASSIGNMENTS
RACs, see REFUND ANTICIPATION CHECKS (RACs)
RALs, see REFUND ANTICIPATION LOANS (RALs)
types of products, 15.1
TERM OF CREDIT
see LOAN TERM
TERMS OF CREDIT
see CREDIT AGREEMENTS
THIRD PARTIES
arbitration clause enforcement, 7.4.4
lender liability for actions of, 11.7
payments to as hidden interest
benefitting lender primarily, 4.5.2.3
broker fees, 4.5.3
general principles, 4.5.1
installment loans, 10.2.4
kickbacks and commissions, 4.5.2.2
sham services, 4.5.2.4
sham third parties, 4.5.2.1
unexpended or unnecessary fees, 4.5.2.2
usury claims, standing, 7.7.1
THRIFT INSTITUTIONS
see INDUSTRIAL LOAN COMPANIES; OFFICE OF THRIFT SUPERVISION (OTS); SAVINGS AND LOAN ASSOCIATIONS
TIE-INS
credit insurance, 6.5.3.2, 6.5.5.1
banks, 6.5.6
TILA
see TRUTH IN LENDING ACT (TILA)
TIME-PRICE DOCTRINE
described, 1.2.4, 7.5.2.2.1
erosion, 7.5.2.2.2
inflated sale price, application, 4.4.5, 11.4.3.3
retail installment sales, 11.3.1
usury law exception, 7.5.2.2.1, 7.5.2.2.2
TITLE PAWNS
see AUTO TITLE LOANS
TORT CLAIMS
breach of duty
credit insurance, 6.8.3.3
due care, 2.4.7
fiduciary duty, 2.4.6.4
good faith, 2.4.11.2
fraud, see FRAUD CLAIMS
negligence, see NEGLIGENCE
misrepresentation, see MISREPRESENTATION
TRIBAL PAYDAY LOANS
federal law, application, 9.6.3.3
generally, 9.6.3.1
litigation, 9.6.3.6
state law, application, 9.6.3.3
tribal sovereign immunity
abrogating or waiving, 9.6.3.5
overview, 9.6.3.2
scope, 9.6.3.3
who can claim, 9.6.3.4
TRUTH IN LENDING ACT (TILA)
add-on products in retail installment sales, 6.4.9, 11.5.2, 11.5.4.2
arbitration clause restrictions, 7.4.2.1
assignee liability, 11.7.5
auto leasebacks, application, 12.2
credit card provisions
see also CREDIT CARD ACT (TILA)
change-in-terms notices, 8.9.3
fees and charges, 10.9.4.1
generally, 8.2.5
preemption issues, 8.11.5.2
selected provisions, Appx. A.5.1
selected regulations, Appx. A.5.2
selected staff interpretations, Appx. A.5.3
credit insurance
mortgage loan restrictions, 6.4.9
voluntariness, 6.5.2
disclosure requirements, see DISCLOSURES (TILA)
federal rebate law
relationship, 5.8.5.2.2, 5.8.7.1.2
violations as TILA violations, 5.8.8.4
future payment stream transactions, application, 14.2
inflated sale price, application, 11.4.3.2
interest rate regulation, 10.9.4.1
late charges, application, 5.7.1
late posting of payments, application, 5.5.4.5
manufactured homes, application, 11.6.2.2, 11.6.3.3
negative equity financing, application, 11.4.6.3.1
odd payment periods, application, 5.5.2.2
overview, 2.2.2
purpose, 5.4.1
RACs, application, 15.2.1.3
RALs, application, 15.2.1.1
pay stub RALs, 15.2.1.2
remedies, 2.2.2.2
retail installment sales, application, 11.3.2.1
RISAs, relation to, 11.3.7
RTO transactions, application, 13.3.2.3
state law, relationship, 2.2.2.3, 5.8.7.1.7
substantive protections, 2.2.2.1
tribal activities, application, 9.6.3.3
uncovering violations, 5.11.1
UDAAP
see UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)
UDAP
see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
UNCONSCIONABILITY
arbitration clauses
class action bans, 7.4.6
generally, 7.4.3.7
class actions alleging, 7.8.7
credit card abuses, 8.11.4
elements of claim, 2.4.8.2
improvident lending, 2.4.1.3.2, 2.4.8.4
installment loans, 10.2.6
non-interest rate terms, 2.4.8.5
outer limit on price of credit, 2.4.8.3
payday loans, 9.7
procedural unconscionability, 2.4.8.2
remedies, 2.4.8.6
RTO transactions, 13.4.2.2
sources of law, 2.4.8.1
substantive unconscionability, 2.4.8.2
UDAP violations, 2.4.1.3.2, 2.4.8.1
UNDERWRITING
credit card accounts, requirements, 8.7.2.2, 10.9.5
younger consumers, 8.7.2.3.2
credit insurance, post-claim, 6.8
credit union STS loans, 9.5.3.3
installment loans, 10.5
open-end loans, 10.9.5
UNEARNED FEES AND CHARGES
see also KICKBACKS
intent to collect, 5.8.8.3
rebates, see REBATES OF UNEARNED CHARGES
UNEARNED INTEREST REBATES
see REBATES OF UNEARNED CHARGES
UNEMPLOYMENT INSURANCE
see INVOLUNTARY UNEMPLOYMENT INSURANCE
UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
credit card abuses, application, 8.11.3
credit insurance
application, 6.4.6.1, 6.5.4
post-claim denial, 6.8.3.2, 6.8.3.3
premium financing, 6.4.4
remedies, 6.5.4
dealer markups, application, 11.4.2
federal preemption, 3.2.2.6, 3.2.4.12.3
federal rebate law violations as, 5.8.8.4
FTC Holder Rule violations, application, 11.7.3.2
future payment stream transactions, application, 14.2
hidden finance charges, application, 11.4.3.4.1
inflated sale prices, 11.4.3.4.1
insurance, see UNFAIR INSURANCE TRADE PRACTICES (UNIP) STATUTES
litigation finance companies, 14.6
negative equity financing, application, 11.4.6.3.3
overview, 2.4.1.1, 6.4.6.1
payday loans, application, 9.7
RALs, application, 15.4.2
remedies, 2.4.1.4
RISA document completion and delivery requirements, application, 11.3.8.2
RISA remedies, as supplement to, 11.3.9
RTO transactions, application, 13.4.2.2
scope, 2.4.1.2
settlement assignments, application, 14.5
single document rule, application, 11.3.8.1
substantive prohibitions, 2.4.1.3
deception, 2.4.1.3.5
other statute violations, 2.4.1.3.4
overview, 2.4.1.3.1
unconscionability, 2.4.1.3.2
unfairness, 2.4.1.3.2
violations
credit statute violations, 2.4.1.3.4
excess charges, 2.4.1.3.2
licensing violations, 11.3.3
loan padding, 2.4.1.3.3
nondisclosure, 2.4.1.3.5
overreaching credit, 2.4.1.3.2
spurious open-end credit, 3.9.4
yo-yo sales, application, 11.4.5
UNFAIR, DECEPTIVE, OR ABUSIVE ACTS OR PRACTICES (UDAAP)
see also DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
CFPB rulemaking authority
abusive standard, 2.2.6.2.1, 2.2.6.2.2
covered creditors, 2.2.6.2.3
enforcement, 2.2.6.2.4
general standards, 2.2.6.2.1
unfairness standard, 2.2.6.2.1
credit card abuses, application, 8.11.3
UNFAIR INSURANCE TRADE PRACTICES (UNIP) STATUTES
credit insurance regulation, 6.4.6.2
UNFAIR TRADE PRACTICES REGULATION
see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
UNIFORM COMMERCIAL CODE (UCC)
choice of law rule, 3.8.2
federal preemption, 3.2.4.12.2
RTO transactions, application, 13.3.2.4, 13.4.5
UNIFORM CONSUMER CREDIT CODE (UCCC)
see also CONSUMER CREDIT CODES (STATE)
adoption, 2.3.1, 2.3.10
credit property insurance, 6.6.4.1
force-placed, 11.3.8.3, 11.5.4.6
historical development, 2.3.10
purpose, 7.2.1.4
“supervised loans,” 10.1.4
unconscionability standards, 2.4.8.1
UNIFORM ELECTRONIC TRANSACTIONS ACT (UETA)
see also ELECTRONIC CREDIT TRANSACTIONS
consent requirements, 2.5.2
enforceability of contracts and signatures, 2.5.5
E-Sign, interrelationship, 2.5.2
overview, 2.5.2
scope, 2.5.2
timing and format requirements, 2.5.4
UNITED STATES RULE
see also ACTUARIAL INTEREST TRANSACTIONS
accrued interest calculations, 5.5.1.1
actuarial rule, differences, 5.5.1.1
APR, calculation using, 5.4.2
negative amortization, 5.3.1.3.1
UNJUST ENRICHMENT
see also EQUITABLE REMEDIES
elements of claim, 2.4.9, 7.8.4.1
obstacles to claim, 7.8.4.4
overview, 7.8.4.1
UNPAID BALANCE
see LOAN BALANCE
UNSECURED CREDIT
installment loans, see INSTALLMENT LOANS
small loan lenders, see SMALL LOAN LENDERS
UPCHARGES
see MARKUPS
USED CAR FINANCING
see AUTO FINANCING
U.S. RULE
see UNITED STATES RULE
USURIOUS INTENT
necessary element, proof, 7.5.5
apparent on face of contract, 7.5.5.2
bona fide errors, 7.5.5.2
inference of intent, 7.5.5.4
not apparent on face of contract, 7.5.5.3
when required, 7.5.5.1
saving clauses, 7.7.10
USURY AS DEFENSE
assignees, standing, 7.7.1.3
creditor defenses to usury claims, see CREDITOR DEFENSES
estoppel from asserting, 7.7.2
federal receivers, use against, 7.7.13
guarantors, 7.7.1
holders in due course, against, 7.7.7
jury trial right, 7.3
limitations, 7.7.6
pleading, 7.5.1.2
proof, 7.5.1
res judicata, 7.7.4
standing to assert, 7.7.1
sureties, 7.7.1.2
waiver, 7.7.2.4, 7.8.2.3.3
USURY CEILINGS
see INTEREST CEILINGS
USURY CLAIMS
see also USURY REMEDIES; USURY VIOLATIONS
assignees, claims against, 11.7
assignment, 7.7.1.3
burden of proof, 7.5.1.2
calculations and analysis, 5.11.4
class actions, 7.8.7
common law claims, 7.8.1
recovery of usurious interest, 7.8.2.3.4
compulsory counterclaim, 7.7.4
contract construction, 7.5.1.4
defenses to, see CREDITOR DEFENSES
elements of claim, 7.5
generally, 7.5.1
intent, 7.5.5
interest overcharge, 7.5.4
loan or forbearance, 7.5.2
obligation to repay, 7.5.3
estoppel from asserting, 7.7.2
experts, using, 7.5.4.4
failed banks, 7.7.13
jurisdiction, 7.9
jury trial, right to, 7.3
limitations, 7.7.6
national banks, 7.9.1.3
pleadings, see PLEADINGS
prima facie case, 7.5
recovery of payments made, 7.8.2.3
refinancing, effect, 7.7.3
standard of proof, 7.5.1.3
standing, 7.7.1
uncovering, practice tips, 5.11
waiver, 7.7.2.4, 7.8.2.3.3, 7.7.3.3.2
USURY LAWS (STATE)
see also CONSUMER CREDIT REGULATION; STATE LAW; STATUTORY CONSTRUCTION
administrative interpretations, deference, 7.2.3
applicable statute, 3.9
business credit, 3.9.3
credit sales, 3.9.5
criminal statutes, 3.9.10
frequency standard, 3.9.6
home-secured, 3.9.9
licensed lenders, 3.9.7
loan size, 3.9.8
manufactured homes, 11.6.3
open-end vs. closed-end, 3.9.4
opting-in, 3.9.2
substance over form, 3.9.1
auto title loans, 12.5
state law summaries, 12.5.5
business credit, application, 3.9.3
choice of law, 3.8
combined, see CONSUMER FINANCE LAWS (STATE)
compound interest, 5.5.1.2
consolidated, see CONSUMER CREDIT CODES (STATE)
construction, 7.2
administrative interpretations, 7.2.3
broad vs. narrow, 7.2.1
expressio unius est exclusio alterius, 7.2.2
retroactive amendment, 3.11
contracting for coverage, 3.8.2, 3.9.2
convenience creditors, application, 1.4.7
credit cards, 2.3.8
credit insurance, application, 6.4.5
criminal usury, 2.3.2, 3.9.10
deferral charges, 5.7.2
deregulation, 1.2.5, 2.3.1
detention of money, application, 7.5.2.3
document preparation fees, 4.6.1
federal preemption, see FEDERAL PREEMPTION
fringe lenders, 2.3.11
auto pawns, 2.3.11.3
overview, 2.3.11.1
payday loans, 2.3.11.2
RTO transactions, 2.3.11.4
forbearance, application, 7.5.2.3
future payment stream transactions, application, 14.2, 14.3.4
general laws, 1.2.2, 2.3.2
choice of law rule, 3.8.5
hidden interest, 11.4.3.3
historical development, see LEGISLATIVE HISTORY
home-secured loans, application, 3.9.9
industrial loan laws, see INDUSTRIAL LOAN LAWS
installment loan laws, 10.1.4
see also INSTALLMENT LOAN LAWS
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
summaries, Appx. D
insurance premium financing, 2.3.7, 6.4.4
interest ceilings, see INTEREST CEILINGS
interpretation, 4.2.1, 7.2.1
interstate transactions, 3.4, 3.5, 3.8
late fees, 4.8.3, 5.7.1
licensing statutes, 3.9.7
manufactured homes, 11.6.1, 11.6.3.1, 11.6.3.2
military personnel, application, 2.2.5.12
open-end credit, 2.3.8, 10.9
state law summaries, Appx. E
parity laws, 3.6
pawnbrokers, 2.3.9
payday lending, 9.3
attempts to evade, 9.6
points, 4.3.2, 5.6.2
purpose
remedial vs. penal, 7.2.1.3
special usury laws, 7.2.1.4
statutory construction, 7.2.1.2
RALs, 15.3.1
rebates of unearned charges
federal preemption, 5.8.7.1.7
formulae, 5.8.7.1.6
partial prepayments, 5.8.4.2
rebatable charges, 5.8.5.1
remedies, see USURY REMEDIES
retroactive amendment, 3.11
RISA preemption, 11.3.2.1
RTO transactions
disclosures, 13.4.3.2
generally, 2.3.11.4, 13.4.1
industry-friendly, 13.3.3
price controls, 13.4.2.3
reinstatement rights, 13.4.4
small loan laws, see SMALL LOAN LAWS
special usury statutes, 1.2.3, 2.3.1
see also SPECIAL USURY STATUTES
choice of law rule, 3.8.4
installment loan laws, 10.1.4
MVISAs, see MOTOR VEHICLE INSTALLMENT SALES ACTS (MVISAs)
purpose, 7.2.1.4
RISAs, see RETAIL INSTALLMENT SALES ACTS (RISAs)
state law summaries
closed-end installment loan statutes, Appx. D
lending statutes, Appx. B.1
open-end credit statutes, Appx. E
RISAs, Appx. C
usury statutes, Appx. B.2
structure, 2.3.1
TILA, relationship, 2.2.2.3
time-price exception, see TIME-PRICE DOCTRINE
violation, see USURY VIOLATIONS
USURY REMEDIES
see also REMEDIES; USURY CLAIMS; USURY VIOLATIONS
add-on products and payment packing, 11.5.2
debt protection products, 6.3.5.2
administrative remedies, 7.7.12
auto leaseback schemes, 12.2
auto title pawns, 12.3
banks, 7.9.1.3
common law, see COMMON LAW
credit card abuses, 8.11
fees, 8.4.1.3
credit insurance, 6.4.5.2
excess coverage, 6.6.3
excess premiums, 6.6.2
failure to rebate, 6.10.4
property insurance, 6.6.4
deregulated states, 7.6
equitable remedies, see EQUITABLE REMEDIES
failed banks, 7.7.13
federal remedies
DIDA, 7.8.6.1
National Bank Act, 7.8.6.1
RICO, 7.8.6.2
forfeiture of creditor’s recovery rights, 7.8.2.2
future payment stream transactions, 14.2
generally, 7.8.1
implied private right of action, 7.8.2.1
installment loans, 10.1.7, 10.1.8
national banks, 7.9.1.3
negative equity financing, 11.4.6.3
overreaching credit, challenging, 7.8
RALs, 15.3.1, 15.4
rate exportation violations, 3.4.6
recovery of payments, 7.8.2.3
refinancings, tainted, 7.7.3
rescission, see RESCISSION
RICO, 7.8.6.2
RISAs, 11.3.9
RTO transactions, 13.4.2
state remedies
attorney fees, 7.8.2.5
equitable remedies, 7.8.3
recovery of payments, 7.8.2.3.2
remedies at law, 7.8.2.1
statutory penalties, 7.8.2.4
structured settlement advances, application, 14.5
tribal sovereign immunity, application, 9.6.3.3, 9.6.3.6
tort claims, see TORT CLAIMS
UDAP, see UNFAIR AND DECEPTIVE ACTS AND PRACTICES (UDAP) STATUTES
unconscionability, see UNCONSCIONABILITY
unjust enrichment, 2.4.9
unlicensed lending, 7.8.5
waiver, 7.7.2.4, 7.8.2.3.3, 7.7.3.3.2
USURY STATUTES
see CONSUMER CREDIT REGULATION; INTEREST CEILINGS; USURY LAWS (STATE)
USURY VIOLATIONS
analyzing issues, 5.11
bankers’ year daily interest, 5.5.4.4
claims re, see USURY CLAIMS
common law, 7.2.1.2
compensating balances, 4.4.4
compound interest, 5.5.1.2
contingent events, 5.8.8.2
contract construction, 7.5.1.4
credit insurance
compulsory premiums, 6.5.3.1
excess charges, 6.6.2
excess coverage, 6.6.3
non-filing insurance, 6.7.5
tie-ins, 6.5.3.2
creditor defenses, see CREDITOR DEFENSES
criminal usury, 2.3.2
de minimis violations, 7.7.8
deregulated states, 7.6
elements, 7.5
exported rates, 3.4.6
inflated principal, 4.4
interest overcharge, 7.5.4.2
late charges, 5.7.1
liability, see LIABILITY
license, failure to obtain, 7.8.5
loan or forbearance, 7.5.2
mathematical issues, proving, 5.10
novation, 7.7.3.3.1
odd payment periods, 5.5.2.2
overcharge, necessity, 7.5.4
points as, 5.6.2
prima facie case, elements, 7.5
proof, 7.5.1.2, 7.5.1.3
rebate violations as, 5.8.8.1, 5.9.5.3
refinanced loans, 5.9.5
refinancing, effect, 7.7.3
reformation of contract, 7.8.2.1, 7.8.3.3
remedies, see USURY REMEDIES
rounding, 5.5.5
saving clauses, 7.7.10
spreading defense, 5.5.6
statutory penalties, 7.8.2.4
uncovering, 5.11
unearned charges, intent to collect, 5.8.8.3
unjust enrichment, 7.8.4.1
variable rate transactions, 5.5.6.1
voluntary payment, effect, 7.7.5
UTILITIES
see CONVENIENCE CREDITORS
VARIABLE RATE TRANSACTIONS
amortization, 5.3.6.3
balloon payments, 5.3.6.4.2
caps and floors, 5.3.6.4
payment caps, 5.3.6.4.2
recapture clauses, 5.3.6.4.3
credit card rates, 8.3.2
current rate, determination, 5.3.6.2
described, 5.3.6.1
escalator clauses, 5.3.6.5
index substitution, 5.3.6.5
interest calculations, 5.3.6
errors, 5.3.6.2, 5.3.6.5
interest ceilings, 5.3.6.4.2, 5.3.6.5
misrepresentations, 5.3.6.5
negative amortization, 5.3.6.4.2
restrictions, 5.3.6.5
spreading
fixed-term loans, 5.5.6.1
open-end transactions, 5.5.6.2
TILA disclosures, 5.3.6.2
VEHICLE PROTECTION PRODUCTS (“ETCH”)
insurance, treatment as, 11.5.4.2
Magnuson-Moss Warranty Act, 11.5.4.2
nature of the product, 11.5.4.2
state laws, 11.5.4.2
VEHICLE TITLE LOANS
see AUTO TITLE LOANS
VENDOR’S SINGLE INTEREST (VSI) INSURANCE
see also CREDIT INSURANCE
force-placed, see FORCE-PLACED INSURANCE
generally, 11.5.4.5.1
RISA restrictions, 11.5.4.5.3
TILA rules, 11.5.4.5.2
VETERANS
see MILITARY PERSONNEL
VETERANS ADMINISTRATION (VA) LOANS
see DEPARTMENT OF VETERANS AFFAIRS
VOLUNTARY PAYMENT DOCTRINE
see also WAIVER
creditor defense to usury, 7.7.5, 7.8.2.3.3, 7.8.4.4.3
WAGE ASSIGNMENTS
see also FUTURE PAYMENT STREAM TRANSACTIONS; PAYDAY LOANS
FTC restrictions, 2.2.7, 10.6.2
WAGE LAWS
see LABOR STANDARDS LAWS
WAIVER
arbitration clauses, 7.4.3.6
creditor defense, as, 7.7.2.4, 7.8.2.3.3
GAP waiver coverage, 11.5.4.4
liability damage waivers, 13.4.2.4
refinancing as, 7.7.3.3.2
tribal sovereign immunity, 9.6.3.5
voluntary payment, by, 7.7.5, 7.8.2.3.3, 7.8.4.4.3
waiver-of-defense clauses, 11.7.2
WEB RESOURCES
see also RESEARCH AIDS
discovery, 1.1.5
FDIC website, 3.1.2.2
pleadings, 1.1.5
national bank operating subsidiaries, 3.1.2.5
NCLC, 1.1.1, 1.1.5
practice tools, 1.1.5
primary sources, 1.1.5
unreported cases, 1.1.7
WILD CARD STATUTES
see PARITY LAWS (STATE)
WITNESSES
see EVIDENCE; EXPERT WITNESSES
YIELD SPREAD PREMIUMS
auto financing, 11.4.2, 11.5.1
broker kickback, 4.5.3.2
hidden interest, 4.5.3.2
points, status, 4.5.3.2, 5.6.2
restrictions on, 4.5.3.2
YO-YO SALES
automobile sales, 11.4.5