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"Cable is stuck with a lot of legacy regulations from consumer protection statutes on down".
Commercial law with the Bills of Exchange Act (1882), Sale of Goods Act (1893 and 1979), the Unfair Contract Terms Act (1977), and consumer protection statutes in 1965 and 1974—has become primarily the domain of legislation.
"The effort to shield nationally chartered banks from our capacity to enforce predatory lending and other consumer protection statutes against them will leave New York State consumers naked to rank abuses," Mr. Spitzer said.
The lawsuit's allegations included that Apple's conduct constituted breach of contract, violated the state consumer fraud statute, and violated consumer protection statutes of other states.
At this point, Conway said, the primary goal is to share information and compare notes about violations of consumer protection statutes.
The Education Department's contract with Sallie Mae, now held by Navient, requires it to be in compliance at all times with federal consumer protection statutes, such as the servicemembers law.
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The states are generally suing under their own consumer-protection statutes, which have a lower burden of proof than a federal case accusing fraud.
The Department of Justice, Federal Deposit Insurance Corp., and Consumer Financial Protection Bureau are among the agencies investigating whether the company violated federal consumer protection laws and statutes that prohibit discriminatory lending, overcharged active-duty members of the military and wrongfully processed borrowers' monthly payments.
But the statute also allows the consumer protection bureau to define a category of loans known as "qualified mortgages" that are presumed to meet the ability-to-pay standard, thus reducing the lender's risk of being sued in the event of foreclosure.
State legislators insist that the status quo benefits consumers: the relevant Florida statute claims to be "providing consumer protection and fair trade".
It recently revised its narrow securities statute into a broad state consumer protection law that allows regulators to shut down boiler rooms without first trying to figure whether what they are selling is a security.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com