Donnelly McDowell Quoted in American Banker

American Banker

Kelley Drye’s Donnelly McDowell was quoted in the American Banker with a warning for cash-advance fintech’s due to the FTC’s recent $18-million fine against consumer finance app Brigit.

For those operating in this space it’s a good reminder that you have to be exercising caution,” from how firms market their services to the fees they disclose, said McDowell. There are likely to be more enforcement actions if there are not already ones coming down the pipeline.”

McDowell points to legal action from the FTC that touched on the hot-button issues of hidden fees and false claims, including an $18 million settlement with LendingClub in 2021 and a $3 million fine levied on Credit Karma in 2022. The FTC also filed a complaint against RCG Advances for deceptive practices surrounding its merchant cash advances and collection practices in 2022; in October a federal court ruled in favor of the FTC.

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