Skip to main content

Search

Consumer Class Actions: Introduction

California’s operative general class action statute, Code of Civil Procedure § 382, was enacted in 1872 as part of California’s Field Code and has remained essentially unchanged.15 California’s second class action statute, the Consumer Legal Remedies Act, is found at Civil Code §§ 1750, et seq., and lists 23 prohibited acts, violations of which form the basis for class actions seeking damages and a wide variety of other remedies.

Fair Debt Collection: B.2.4 Debt Collection Practices (Regulation F); Time-Barred Debt

The CFPB issued an advisory opinion clarifying that entities that qualify as debt collectors under the FDCPA that bring or threaten to bring state court foreclosure actions on time-barred mortgage debt may violate Regulation F § 1006.26—even if the debt collector did not know that the debt was time barred. See 88 Fed. Reg. 26,475 (May 1, 2023).

Consumer Bankruptcy Law and Practice: 2022-04 Staff Notation

The CARES Act changes Official Forms 122A-1, 122B, and 122C-1 described in the 2020-04 Committee Note lapsed on March 27, 2022. The three forms have reverted to their pre-CARES Act versions (December 2019 in the case of 122A-1, October 2019 as amended in December 2021 in the case of 122B, and October 2019 in the case of 122C-1). In addition, the dollar amounts listed in lines 29 and 40 of 122A-2, and line 29 of 122C-2 are adjusted effective April 1, 2022, as part of the tri-annual dollar adjustments required by 11 U.S.C. § 104.

Consumer Bankruptcy Law and Practice: 2021-12 Committee Note

Official Form 122B is amended in response to the enactment of the Small Business Reorganization Act of 2019, Pub. L. No. 116-54, 133 Stat. 1079. That law gives a small business debtor the option of electing to be a debtor under subchapter V of chapter 11. As amended, the initial instruction in the form includes an exception for subchapter V cases. Because Code § 1129(a)(15) is inapplicable to such cases, there is no need for an individual debtor in a subchapter V case to file a statement of current monthly income.

Consumer Credit Regulation: Ala. Code §§ 5-19-1 to 5-19-33 (Consumer Credit Transactions Law “Mini-Code”).

Scope: Credit transactions in which the party to whom credit is extended is a natural person and the money, property, or services are primarily for personal, family, or household purposes. Some lease transactions. Non-consumer transactions of less than $2,000 are subject to Act’s finance charge limits only. § 5-19-1. Note that the Mini-Code is broader in scope than most state RISAs and is applicable to a wide range of consumer credit transactions.

Consumer Credit Regulation: Alaska Stat. §§ 45.10.010 to 45.10.230 (Retail Installment Sales Act).

Scope: Installment sales of goods or services for personal use from a retail seller under an installment contract or charge agreement including repairs or improvements of real property, but not services of a professional licensed by the state, or some services for which the price is determined or approved by a governmental entity. § 45.10.220

Licensure requirements: None.

Credit terms: The rate agreed upon by the retail seller and the buyer. § 45.10.120.

Restrictions on points or prepaid interest: None.

Consumer Credit Regulation: Ariz. Rev. Stat. Ann. §§ 44-6001 to 44-6006 (Retail Installment Sales Transactions).

Scope: Installment sales of tangible chattels, except motor vehicles, money, things in action, or intangible personal property. Includes fixtures and merchandise certificates or coupons issued by a retail seller that are not redeemable in cash and to be used in the face amount instead of cash for goods or services sold by such seller. Revolving credit. Services. § 44-6001.

Licensure requirements: None.

Credit terms: Rate set by contract. § 44-6002.

Restrictions on points or prepaid interest: None.

Consumer Credit Regulation: Ariz. Rev. Stat. Ann. §§ 44-281 to 44-295 (Motor Vehicle Time Sales Disclosure Act).

Scope: Motor vehicle sales. § 44-281.

Licensure requirements: License required by dealer and any persons to whom dealer sells or transfers any contract. § 44-282(A).

Credit terms: Rate set by contract. § 44-291(A). However, maximum finance rates apply for secondary (non-purchase money) motor vehicle retail installment contracts. § 44-291(G).

Restrictions on points or prepaid interest: None.

Restrictions on length of term: None.

Consumer Credit Regulation: Del. Code Ann. tit. 6, §§ 4301 to 4351 (Retail Installment Sales Act).

Scope: Installment sales of goods for personal, family, or household use or furnishing of services (not commercial or business use). Revolving credit. § 4301. Act does not apply to any retail installment sale made for a cash sale price of $75 or less where no title, lien, or other security interest is taken by the seller. § 4302.

Licensure requirements: None.

Credit terms: Rate established by contract. § 4315.

Restrictions on points or prepaid interest: None.

Consumer Credit Regulation: D.C. Code §§ 28-3801 to 28-3819. See also D.C. Mun. Regs. tit. 16, §§ 100 to 199.

Scope: Consumer credit sales, defined as sale of goods or services for personal, family, household, or agricultural purposes in which seller/creditor regularly engages in such transactions, buyer is natural person, debt is payable in installments or a finance charge is imposed, and amount financed does not exceed $25,000. Some provisions apply to direct installment loans. §§ 28-3801, 28-3802.

Licensure requirements: None.

Credit terms: No restrictions on rate.

Consumer Credit Regulation: D.C. Code §§ 50-601 to 50-610 (Installment Sales of Motor Vehicles Act). See also D.C. Mun. Regs. tit. 16, §§ 320 to 346.

Scope: Installment sales of motor vehicles (automobile, mobile home, motorcycle, truck, truck tractor, trailer, semi-trailer, or bus). § 50-601.

Licensure requirements: According to D.C. Code § 47-2851.03a(j), there is no longer a separate licensure category for motor vehicle dealers. Section 50-603 gives the D.C. Council the authority to require licensed dealers and persons licensed to purchase vehicle installment contracts to be bonded.