Showing 2 posts in Retail Lending & Disputes.
A recent guidance published by the Consumer Financial Protection Bureau is a helpful reminder of one of the risks associated with indirect auto lending. 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.
 CFPB Bulletin 2013-02.
A recent Kentucky Supreme Court decision, Schnuerle v. Insight Communications Co., 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.”
 Schnuerle v. Insight Communications Company LLC, 2012 WL 3631378 (Ky.) (hereafter “Schnuerle II”).
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William T. Repasky practices with the Litigation Department at Frost Brown Todd. He focuses on lending and commercial services; banking litigation and financial institutions.