This course will survey the state and federal regulation of consumer credit transactions such as home mortgages, credit cards, personal property loans (such as automobiles, boats, furniture and appliances); pay day loans, and other alternative credit devices. The course will include a study of traditional consumer protection laws such as those contained in state usury laws and the Texas Consumer Credit Code, as well as emerging legislative and regulatory trends such as recent laws on predatory lending; mortgage loan suitability standards; and the recent amendments to the consumer real estate rules under Truth in Lending. The course will address the availability and limitations of private remedies (including class actions) as well as public agency enforcement. The course will also look at the tension between state regulation and federal preemption as highlighted in such recent Supreme Court cases as Watters v. Wachovia (holding that states may not enforce state mortgage licensing laws against the employees of the subsidiaries of a national bank) and Cuomo vs. Clearing House (holding that the exclusive visitorial powers of the OCC under the National Banking Act does not prohibit a State Attorney General from suing a national bank to enforce its state lending laws). It is anticipated that the class would include guests or panels from the state consumer financial regulatory community and consumer advocacy groups that are active in litigation and legislative efforts on the consumer lending front.
Fleming, John C.