All items from Credit Slips

There's a fascinating long magazine piece in the NYTimes about consumer debt sales and collection. The piece ends by asking why we don't have a national debt registry, as if that were the solution to all debt collection problems.  Unfortunately, the author only asked the FTC about this issue (and acknowledges that it isn't in FTC jurisdiction), not the CFPB, and the author doesn't consider any of the problems with creating and implementing a debt registry.  (I'm guessing Dalie will have something to say about this...) As the case of MERS shows, it isn't so easy to create a well-functioning registry of property rights of any sort.  Let me illustrate a few challenges to creating a debt registry:  



Posted 2 weeks 1 day ago

That's the name of a new book by Jake Halpern coming out in October. The New York Times has an excerpt on their site. If the excerpt is anything like the book, it's going to be gripping.
What's even cooler is that someone actually created a video game based on the book. Or at least on the debt collector business part of the book. You can play as a debtor or a debt collector and see the story through. It's web-based image-and-text but really well done (just some minor innacuracies).
 



Posted 2 weeks 2 days ago

ISI_logo_FinalInitial results of the bargaining process in the new Irish personal insolvency system have been unsurprisingly disappointing. This is particularly true with respect to the most pressing problem for which the system was designed: bargaining with secured creditors over distressed home loans. The new system provides a framework for debtors and their secured creditors to negotiate a so-called Personal Insolvency Arrangement, or PIA, to reduce and/or otherwise restructure home loans and other secured (and unsecured) debt. Someone by the initials JK colorfully predicted in April 2012 that the new "PIA is DOA." I was wrong about this, but not too far off the mark.



Posted 2 weeks 4 days ago

My Consumer Finance students used to think I was wasting their time by spending a whole class session on usury laws and taking them into the nitty-gritty of their application (or non-application). I think usury is important conceptually (but for the Marquette decision and its fallout, our regulation of consumer credit would likely be very different), has a lot of neat statutory reading twists and turns, and it actually can matter for non-bank lenders.  Among other things I cover is the NY state usury statute, including its criminal provisions. Cyrus Vance's prosecution of payday lenders under the usury statute would seem to vindicate my choice of class materials. 



Posted 2 weeks 5 days ago

 A little bit of payday loan news for our readers. First, the New Mexico Supreme Court has held that 1100% high cost installment loans (the payday loan substitute in states where payday loans are illegal) are unconscionable.
Also, did you see John Oliver’s bit on payday loans this weekend? Take a look.  It even features Sarah Silversman. Warning: There is some bad language in the video.



Posted 2 weeks 6 days ago

The Harvard Law School Forum on Corporate Governance and Financial Regulation has a feature on my new paper about the resolution of CCPs (aka clearinghouses).



Posted 3 weeks 11 hours ago

I recently read a review of the book Financial Justice: The People’s Campaign to Stop Industry Abuse, by economist Larry Kirsch and University of Utah professor Robert N. Mayer. The favorable review induced me to sit down and read the book, all in one sitting. This book about how grassroots efforts helped create the CFPB is a page-tuner. Written for lawyer and non-lawyer alike, it chronicles the entire political battle, along with the political personalities, the policy, the compromises, and the people who made it happen, both up front and behind the scenes. Written for lawyers and non-lawyers alike it is, informal, campy in a good way, and very entertaining.



Posted 3 weeks 1 day ago

2014 Projected Filings from AugustIn June, I said we are on track for just over 900,000 bankruptcy filings for 2014. The latest data are in from Epiq Systems, and that 900,000 figure remains the best estimate for the calendar year. We have had 556,875 total bankruptcy filings this year, and in 2012 and 2013, the last five months added 39.5% more filings. That gives an estimate of abut 907,000 filings for 2014.
Year-over-year declines remain large. There were 77,489 total bankruptcy filings in July or 3,521 filings per business day, a 11.7% decline from the previous year.



Posted 3 weeks 4 days ago

WWPP Text coverA dubious ROI you might think, but the long-awaited update to the classic is now here!



Posted 3 weeks 6 days ago

The National Law School of India University (NLSIU), Bangalore, sponsored by the Indian Ministry of Consumer Affairs Department, New Delhi. India, is involved in various research activities in the area of Consumer Protection. It publishes the International Journal on Consumer Law and Practices and seeks articles on the topic of consumer law, which might be of use to students, academicians, consumer lawyers, policy-makers, consumers themsleves, and non-governmental organizations worldwide.
The Journal hereby invites contributions to the second Volume of Journal 2014.

For information and to make submissions, please contact:
Prof.(Dr.)Ashok R. Patil Chair Professor Chair on Consumer Law & Practice [Ministry of Consumer Affairs,Government of India] NATIONAL LAW SCHOOL OF INDIA UNIVERSITY, Nagarbhavi, Post Bag No.7201, Bangalore - 560 242, INDIA. www.nls.ac.in Email: ashok1patil@gmail.com



Posted 3 weeks 6 days ago