Consumer Financial Services

Chapman’s consumer finance and regulatory practice involves advising banks, financial companies, and other lenders on all types of deposit and lending products and the structuring of such programs, assistance with documentation and regulatory disclosures, ongoing advice, transactional representation including the purchase and sale of loans and servicing agreements, securitization of assets, and assistance in the event of litigation. Chapman has developed many online banking programs (both deposit and lending) and is a leader in the evolving marketplace lending space, assisting participants, banks, and platforms in the development of new loan products, compliance with laws, due diligence for loan purchasers, securitization, and trustee representation. Our practice includes all types of consumer loans, from unsecured personal installment loans to student loans, auto loans, mortgage loans, and HELOC loans, as well as credit cards.

Chapman provides advice and assistance to depository institutions and creditors on multi-state programs concerning deposits, loans, insurance, investment, trust, and leasing retail products, as well as Internet-based deposit and lending programs. We have extensive experience working with credit card, mortgage, home equity, auto, and student lending and leasing programs.

Chapman also provides policy and program advice pertaining to federal and state law, regulation, and compliance rules, including disclosure (Truth in Lending Act / Regulation Z); fair lending (Equal Credit Opportunity Act / Regulation B); privacy and data security (Gramm-Leach-Bliley Act / Regulation P); credit reporting (Fair Credit Reporting Act / Regulation V); real estate settlement (Real Estate Settlement Procedures Act / Regulation X); funds transfer (Electronic Funds Transfer Act / Regulation E); debt collection (Fair Debt Collection Practices Act / Regulation F); fiduciary activities (Regulation 9); state licensing, interest and usury, disclosure, fees, privacy and data breach requirements; and credit insurance.

Additionally, Chapman’s thorough understanding of the law and operation of retail banking helps our clients in the defense of litigation claims premised upon consumer finance related matters, including the defense of class actions and CFPB civil investigative demands.

Consumer Credit Transactions

Chapman advises on legal and regulatory aspects of consumer lending, including the planning, structuring, and delivery of consumer financial services on a nationwide basis, and providing state law outlines and summaries on a state-by-state basis for lending programs. We possess extensive experience with various types of consumer lending products, offering advice and counsel on closed-end or revolving, secured, and unsecured programs including credit card, mortgage, home equity, automobile, retail installment, student loan, and small loan products.

Debt Collection Practices

Chapman counsels financial institutions, finance companies, and debt collectors with respect to fair debt collection practices under federal and state law and regulations.

We assist in the development of debt collection policies and procedures, debt collection training, the review and monitoring of debt collection programs for legal and regulatory compliance, and assistance with regulatory examinations related to debt collection practices. We also assist lenders and debt collectors in the purchase and sale of charged-off receivables and with special issues associated with debt collection, such as state licensing requirements and privacy matters.

Deposit and Investment Products

Chapman advises on matters pertaining to a wide array of deposit and non-deposit investment products, including annuities, insurance, securities and derivatives. We advise on "bounced check" protection programs, customer identification, and disclosures for accounts originated on the Internet. We also assist in the development and marketing of debit cards and stored value cards (including gift, loyalty and payroll cards) and in the legal aspects of the procurement, deployment and maintenance of ATMs and the processing of ATM transactions. With respect to non-deposit investment products, Chapmans assists financial institutions and their affiliates with the legal complexities of marketing and cross-marketing these products, including disclosures, sale practices, licensing, and other regulatory matters.

Interest and Usury

Chapman routinely advises on interest and usury issues related to commercial and consumer transactions. We provide advice on federal preemption with respect to virtually every secured and unsecured lending product including mortgages, home equity loans, general and private label credit cards, student loans, retail installment loans, automobile loans, and other installment and revolving credit.

Although many lenders have federal charters permitting the export of home state rates and fees to borrowers in other states, not all lenders are federally chartered. Chapman assists state-chartered finance companies and mortgage lenders that are limited in taking advantage of exportation authority.

Internet Banking

Chapman advises on the legal issues that arise in the design of Internet programs for small business and consumer products and services including credit card, home equity, and mortgage loans and deposit programs. We counsel financial institutions in their role as service providers and processors of payment transactions, as acquirers of debit and credit transactions and as service providers, and in cash management operations and functions.

Our work includes providing website content and disclosure advice for entities offering financial products to customers. We guide clients through the many facets of Uniform Commercial Code requirements, NACHA requirements, debit network and credit card association rules, and regulations to help avoid potential conflict or problems with their website. We also draft, review, and provide counsel on privacy notices under federal and state law.

Mortgage Lending and Home Equity

Chapman has a deep understanding of loan products secured by residential mortgages. We advise creditors on all types of Truth in Lending disclosure issues (including rescission matters), as well as compliance with Regulation C (Home Mortgage Disclosure), HUD Regulation X (Real Estate Settlement Procedures) and Section 32 (HOEPA) loans. Additionally, we provide advice with respect to commitments, rate lock agreements, escrows, flood insurance appraisal, and related topics common to mortgage lending. We also counsel lenders on direct and indirect loan programs, including those who work with brokers, and we draft and negotiate broker agreements for loan origination purposes.

Chapman is on the front lines of new product development, helping clients launch innovative products including home loan programs with fixed and revolving options (in both amounts and rates) and card-accessed home equity programs. We advise clients on developing programs and purchasing portfolios, including issues related to federal high cost (HOEPA) loans and state and local predatory lending restrictions.

Should borrowers file a lawsuit individually or as a class, our litigation team steps in to assist creditors. We have successfully defended a wide range of claims, including those related to interest and fees, yield spread premiums, and the allegation that filling out loan forms constitutes the unauthorized practice of law.

Private Banking and Trust Counsel Services

Chapman counsels financial institutions and trust companies on private banking and trust services including licensing and trust powers. We advise on matters pertaining to personal trust, corporate trust and employee benefits trust programs, high net worth banking (deposit and lending products), and non-deposit investment and derivatives products on a multi-state basis as well as related legal and regulatory compliance.

With respect to trust counsel services, Chapman handles all manner of trustee and trust administration matters. We also represent clients in the purchase and sale of trust businesses, oversee the licensing of trust companies, and are involved with the ongoing representation of clients' trust functions for financial institutions and trust companies.

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