Consumer Finance

When consumer finance firms come under scrutiny from the CFPB or other agencies, they turn to Cornerstone Research staff and experts to respond to such regulatory investigations. We have assisted in responding to allegations of unfair, deceptive, and/or abusive practices (UDAAP) in violation of various U.S. statutes.

• Electronic Funds Transfer Act (EFTA)
• Fair Credit Reporting Act (FCRA)
• Real Estate Settlement Procedures Act (RESPA)
• Right to Financial Privacy Act (RFPA)
• Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFAPA)
• Telephone Consumer Protection Act (TCPA)
• Truth in Lending Act (TLA)

We work with some of the largest providers of consumer finance products in matters involving mortgage and appraisal services, credit card products, student loans, subprime and other loans, credit reporting practices, and collection practices. For client matters that involve issues of customer understanding and expectations, our experts and staff use sophisticated tools of economic analysis to model consumer behavior.

We address pricing, competition, securitization, and business models in the credit card industry. Our staff and affiliated experts have estimated potential damages for banks facing class actions alleging improper overdraft fees on debit cards. Representative matters include:

• Addressed pricing, competition, securitization, and business models in the credit card industry
• Analyzed consumer behavior and repayment expectations for a major credit card issuer that changed agreement terms, and assessed the pertinent regulatory and economic factors
• Estimated potential damages for banks facing class actions alleging improper overdraft fees on debit cards

Representative matters include:

• Reviewed loan term disclosures and analyzed subsequent consumer behavior to assess customer comprehension of the disclosures
• Evaluated the economics of, and capital flows within, the student loan industry

Representative matters include:

• Investigated claims that appraisals were inflated as a result of an alleged conspiratorial agreement between a lender and an appraisal management firm.
• Analyzed consumer behavior to assess if borrowers suffered economic harm as a result of Electronic Funds Transfer (EFT) enrollment

Cornerstone Research provides consulting expertise and supports testifying experts across a wide spectrum of timely and relevant FinTech issues.

• Cryptocurrency Market Microstructure
• Cryptotoken Economics
• Damages and Token Valuation
• Blockchain Technology
• Consumer Financial Services

Representative matters include:

• Evaluated how existing consumer finance regulation applies to new platforms and how borrowers interact with developing technology for loan products
• Analyzed financial “robo-advisors” and how automated investment strategies perform relative to alternative portfolios under different risk-return scenarios