In Dupreez v. GMAC, Inc., 2017 WL 6016592, at *3–4 (Md.App., 2017), the Maryland Court of Appeals confirmed that automobile RISCs are not subject to Maryland's usury statute because they are not "loans". Maryland courts have long held that the term “loan” in the Usury Statute does not extend to installment sales contracts for personalty. This is because under Maryland law,… Read More
A copy of the GAO's letter is here: GAO Letter on Indirect Financing Rule The Congressional Review Act requires all federal agencies to submit each rule to Congress and to the Comptroller General, and, as it did with regard to the CFPB's Arbitration Rule, Congress can disapprove of the rule within 60 legislative days by simple majority vote. Read More
The Senate voted 51 to 50 late Tuesday to repeal the Consumer Financial Protection Bureau’s rule banning mandatory arbitration clauses in financial contracts. Vice-President Pence cast the deciding vote to break the tie. Senate Republicans relied on the Congressional Review Act ("CRA") to overturn the CFPB's anti-Arbitration Rule. The CFPB's Rule had been challenged by the Department of Treasury… Read More
Dear Subscribers, We are proud to announce that Severson & Werson's Personal Property Finance weblog (www.calautofinance.com) enters its 10th year, we have decided to export it to the Firm's main (and new and improved!) website (www.severson.com). Your subscriptions to receive our periodic e-mails also will be exported to the new site and yours truly is proud to continue my involvement… Read More
McDonald v. Wells Fargo Bank, N.A., 2016 WL 6205302, at *2 (W.D.Pa., 2016), Judge Kearny addressed what happens when a decedent is current on her car loan at the time of death, but the creditor allegedly breaches the contract after death. Judge Kearny found that the administrator lacks standing to sue under the survivor statute because there was no pre-death… Read More
The OCC Semi-Annual Report for 2016 stated: Auto lending risk is increasing because of notable and unprecedented growth across all types of lenders. Recently, delinquencies on auto loans have begun to increase and used car values have started to decline. As banks have competed for market share, some banks have responded with less stringent underwriting standards, or both, for direct… Read More
In Milligan v. Ally Financial, Inc., 2016 WL 2939786, at *1 (D.Md., 2016), Judge Chmsanow granted summary judgment to Ally against a customer who refused to believe that the RISC had been assigned to Ally. On May 10, 2014, Plaintiff purchased a used vehicle from Waldorf Chevrolet Cadillac (the “Dealership”) in Waldorf, Maryland by entering into a Retail Installment Sale… Read More
In Digital Recognition Network, Inc. v. Hutchinson, 2015 WL 5933168, at *1 (C.A.8 (Ark.),2015), the Court of Appeals for the 8th Circuit held that Digital Recognition Network and Vigilant Solutions lack standing to sue the Arkansas Attorney General and Governor to enjoin enforcement of the Arkansas Automatic License Plate Reader System Act, Ark.Code § 12–12–1801 et seq., which prohibited -- and… Read More
In Clark v. C.I.R., 2015 WL 5243760, at *2 (U.S.Tax Ct.,2015), Judge Cohen held that an automobile finance company's charge-off of a post-repossession deficiency was taxable income to a debtor. The facts were as follows, and were not uncommon. Petitioner resided in California when she filed her petition. On December 22, 1999, petitioner entered into a retail installment contract with an… Read More
August 25, 2015 2015 Marks the 70th Anniversary of Severson & Werson “To be trusted as “Counselor” to our clients - that is what it's all about.” James B. Werson We at Severson & Werson are both proud and humbled to celebrate our 70th Anniversary as a firm of Counselors at Law - providing consistent, reliable, unwavering support to those… Read More
Today, we made our 1,000th post, demonstrating the weblog's longevity and continuity, as well as the Firm's commitment to keeping the consumer finance industry properly informed of legal developments in disclosure laws, the FDCPA, the FCRA, and the TCPA. What started as an electronic form-file has developed into an extensive, specialized research tool for industry. Thank you for constantly taking… Read More
The FTC announced today that nine auto dealers agreed to settle deceptive advertising charges, and the agency is taking action against a 10th dealer, in a nationwide sweep focusing on the sale, financing, and leasing of motor vehicles. As to California dealers, the FTC announced: Casino Auto Sales of La Puente, Calif., and Rainbow Auto Sales, of South Gate, Calif., allegedly… Read More
In Colonia Chevrolet v. US, Alley's of Kingsport, Inc. v. US, and Spitzer Motor City, Inc. v. US, the Unitied States Court of Federal Claims allowed a Fifth Amendment takings case filed by former GM and Chrysler car dealers against the US Government to proceed past the pleading stage. The car dealers theorized that the United States imposed its vision… Read More
[liveblog]Presentation on Indirect Auto Finance, Discretionary Pricing, by Richard Hackett, Installment and Liquidity Lending Markets - Consumer Financial Protection Bureau; John C. Redding, BuckleySandler . Read More
With the FTC supporting federal legislation to regulate automobile finance, and the government's involvment in private automobile manufacturers, economists for the Obama Administration's Antitrust Division of the Department of Justice are evaluating the effects of state law prohibitions on direct automobile sales to consumers by manufacturers. Economic Effects of State Bans on Direct Manufacturer Sales (5/09) Read More
In early may, the SBA expanded eligibility for its 7(a) loan guarantee program. On May 29, the SBA announced a pilot program to, for the first time — provide eligible car dealers with government-backed lines of credit to finance their automobile and RV vehicle inventory. SBA 5.28.09 Press Release Read More
