Financial Services Blog

Showing 2 posts in Retail Lending & Disputes.

INDIRECT AUTO LENDING CARRIES FAIR LENDING RISK

A recent guidance published by the Consumer Financial Protection Bureau is a helpful reminder of one of the risks associated with indirect auto lending.[1] The guidance is directed toward auto lenders who rely upon auto dealers to generate consumer loans.  The auto dealer may provide vehicle financing directly to the consumer, or may facilitate indirect financing for a vehicle purchase through a financial institution, a nonbank affiliate of a financial institution, or an independent or “captive” nonbank.

 

[1] CFPB Bulletin 2013-02.

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Should Kentucky Banks include Class Action Waiver Clauses in their Account Agreements?

A recent Kentucky Supreme Court decision, Schnuerle v. Insight Communications Co.,[1] declares that Kentucky courts may no longer strike down a Class Action Waiver Clause, found as part of a contractual Arbitration clause, based on a per se theory of unconscionability.  This ruling is a dramatic reversal of the Court’s previously issued opinion in this same case, which had ruled such waivers “substantively unconscionable.”[2] 

 

[1] Schnuerle v. Insight Communications Company LLC, 2012 WL 3631378 (Ky.) (hereafter “Schnuerle II”).

[2] Schnuerle v. Insight Communications Company LLC, 2010 WL 5129850 (Ky.).  Opinion withdrawn on rehearing Aug. 23, 2012 (hereafter “Schnuerle I”). Read More ›

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Attorney Spotlight

Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.

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