Industry

Consumer Finance

Strategic Counsel for Consumer Finance

Sheppard advises lenders, servicers, fintechs and investors on the full spectrum of consumer finance law.

With deep regulatory, transactional and litigation experience, we help clients bring products to market, stay compliant and manage disputes in a complex, evolving legal landscape.

End-to-End Support Across the Sector

Sheppard’s Consumer Finance team supports clients across the lifecycle of consumer financial products, from development and launch through regulatory scrutiny and enforcement.

We advise on consumer credit, payment products, deposit accounts, privacy and data security, debt collection, fair lending, and the responsible use of AI and automated decisioning in consumer-facing systems.

Our clients include:

Banks
Non-bank lenders
Card issuers
Mortgage and auto finance companies
Private equity funds
Fintechs

Areas of Focus

Clients rarely face a challenge that fits neatly into a single box, so we built a team that reflects the reality of today’s market. Whether the issue involves digital assets, embedded finance, consumer lending, or payments, our lawyers work as one group across the regulatory, transactional and enforcement landscape.

This integrated approach allows us to:

Advise on products that blend traditional financial services with blockchain and tokenization
Design compliant structures for consumer and commercial finance offered through digital platforms
Navigate overlapping federal and state regulatory frameworks that touch lending, custody, payments, and digital assets
Support hybrid business models like tokenized credit, embedded banking, regulated stablecoin use and marketplace lending
Represent clients before agencies focused on these intersections, including the CFPB, OCC, Federal Reserve, FDIC, FinCEN, SEC, CFTC and state regulators

We advise clients across the full spectrum of consumer finance regulatory and compliance matters, from licensing and chartering new entities to managing examinations by federal and state regulators. Our team supports product development and lifecycle compliance, including disclosures, advertising and marketing practices, privacy and cybersecurity and fair lending considerations. We also conduct multistate regulatory analyses and compliance assessments to help clients operate and scale nationally.

We support transactions across the consumer finance and fintech ecosystem, including bank partnerships, mergers and acquisitions, loan sales and securitizations. Our team integrates regulatory diligence and structuring into each transaction to identify and mitigate risk while advancing commercial objectives. Clients rely on us for practical guidance that allows deals to move forward efficiently and responsibly.

Our team regularly defends financial institutions and fintech companies in complex investigations and enforcement actions led by CFPB, DOJ, FTC, HUD, state attorneys general and prudential regulator actions, including alleged UDAAP violations, fraud claims and False Claims Act matters. We provide rapid, coordinated responses to investigations, civil investigative demands and subpoenas, working to resolve issues efficiently while protecting our clients’ reputations and ongoing business operations.

Sheppard’s litigators handle high-stakes consumer finance disputes nationwide. We defend against class actions, individual claims and complex cases involving truth in lending, fair servicing, discriminatory or predatory lending, overdraft fees, mortgage insurance, privacy and advertising. Our experience spans federal and state courts, appellate litigation and arbitration. We handle cases involving federal and state law claims, including claims brought under California’s Gift Card Law, the Song-Beverly Credit Card Act, the Telephone Consumer Protection Act, the Consumer Legal Remedies Act, California’s Rosenthal Act and other statutory claims.

Our team has extensive experience navigating the multistate licensing landscape for consumer lenders, earned waged access (EWA) and buy now pay later (BNPL) providers and fintech platforms, including through both bank partnership and direct lending models. We regularly lead 50-state licensing analyses, prepare and submit license applications, respond to regulator follow-up requests and manage license maintenance and reporting obligations. We also support clients in designing and maintaining robust internal licensing trackers, including integrating NMLS reporting, renewal calendars and periodic regulatory updates. Whether you’re launching new products, responding to shifting state-level requirements or preparing for direct lending across jurisdictions, we provide strategic and efficient licensing support tailored to your business model and regulatory risk profile.

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Experience

Enforcement & Investigations

Represented indirect auto finance company in a DOJ and state AG investigation into subprime auto loan origination and securitization practices.
Represented several card issuers in CFPB enforcement actions relating to unfair billing tactics and deceptive marketing with respect to credit card add-on products.
Represented a large student loan servicer in parallel federal government investigations, focusing on issues related to UDAAP and SCRA compliance.
Represented a credit reporting bureau in a CFPB enforcement action alleging UDAAP violations relating to the marketing of credit scores to consumers.
Represent financial institutions in connection with data breach and cyber matters, including in connection with related state regulatory and enforcement investigations into breaches.
Represent multiple companies stemming from a CFPB sweep of investigations, which led to enforcement actions and negotiated settlements, alleging violations of the CFPA prohibition against deceptive acts and practices, the MAP Rule, and Regulation Z.
Represented multiple mortgage companies in FCA and FIRREA investigations by the DOJ, various U.S. attorneys’ offices, HUD, and VA, concerning compliance with the Fair Housing Administration (FHA) Direct Endorsement Lender program guidelines, VA loan requirements, HECMs, and Fannie Mae and Freddie Mac origination and servicing guidelines.
Represented a non-bank in a confidential bank regulator enforcement matter based on a referral from the CFPB to the DOJ for alleged fair lending violations.
Responded to FDIC investigation subpoena on behalf of a national bank alleging RESPA violations arising out of co-marketing agreements and desk rentals.

Transactions

Represented private equity companies in acquisitions and regulatory due diligence of mortgage, commercial equipment, automobile, and specialty finance company targets.
Represented “challenger banks” and other fintech platforms in bank partnership agreements.
Represented helped equipment lessors in financing transactions and state regulatory and licensing matters.
Represented mortgage companies in warehouse financings, affiliated business arrangement joint ventures, and loan purchase and sale agreements.
Represented fintech companies preparing for funding rounds and initial public offerings.
Represented financial institutions in acquiring core provider, information technology, and business process outsourcing services from domestic and foreign-based service providers.
Participated on due diligence teams to assess regulatory risks related to the acquisition of financial services entities, including mortgage originators and servicers.

Examinations

Represented banks and nonbanks in CFPB, FTC, OCC, FDIC, and state regulatory examinations involving bank vendor activities.
Represented several banks and non-banks through CFPB examinations and pre-enforcement matters and responding to Proposed Action and Request for Response (PARR).
Representing large financial institution in connection with CFPB supervisory examination into fair lending activities.
Represented a bank in connection with an FDIC examination that alleged RESPA violations.

Regulatory & Compliance

Assisted financial institutions to develop new products and services, including consumer and small business financing products, banking services, point-of-sale financing options, and home acquisition and investment alternatives.
Advised multiple non-banks on issues related to their advertising and marketing practices in compliance with TCPA, TILA, the MAP Rule, and UDAP/UDAAP
Advised a FinTech payments processor on matters related to disclosure delivery, advertising and marketing compliance, and risk management.
Represented a major card issuer in identifying, self-reporting to CFPB, and remediating UDAAP non-compliance, resulting in the avoidance of a consent order and civil money penalties.
Helped a card issuer redesign existing rewards program, create benchmarks against best in class standards, conduct risk assessments, integrate grandfathered balances, and terminate legacy programs.
Advised credit, debit, and prepaid card issuers in compliance management, deferred interest, and technical compliance with consumer financial laws and regulations.

Consumer Litigation

Major auto finance companies in consumer class actions challenging financing and leasing issues, including Toyota Financial Services, GM Financial, Nissan Motor Acceptance Corporation, Consumer Portfolio Services and Santander Consumer USA, among others. E.g. In re Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices, and Products Liability Litigation, 785 F. Supp. 2d 883, 904 (C.D. Cal. 2011) (granting motion to dismiss with prejudice); AmeriCredit Financial Services, Inc. (now GM Financial), including Bankston v. AmeriCredit, 2011 WL 89730 (N.D. Cal.) (granting dismissal for lack of standing); and Wright v AmeriCredit, 2010 WL 5058345 (S.D. Cal.) (upholding validity of notice and dismissing action).
Defended residential mortgage lender in FCA qui tam litigation in Southern District of California regarding the FHA government-insured loan program.
Represented several national retailers (in separate cases) against class action complaints challenging clients’ gift card policies.
Represented several national retailers and restaurants (in separate cases) against class action complaints challenging clients’ respective credit card policies under the Song-Beverly Credit Card Act and California’s unfair competition law.
Represented several clients in defense of (separate) complaints asserting alleged violations of the Telephone Consumer Protection Act based on calls made by autodialers and allegedly unsolicited text messages.

Consumer Finance

End-to-End Support Across the Sector

Sheppard’s Consumer Finance team supports clients across the lifecycle of consumer financial products, from development and launch through regulatory scrutiny and enforcement.

Areas of Focus

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Experience

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Related Capabilities

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Areas of Focus

Experience

Related Capabilities

Consumer Finance

End-to-End Support Across the Sector Sheppard’s Consumer Finance team supports clients across the lifecycle of consumer financial products, from development and launch through regulatory scrutiny and enforcement.

Areas of Focus

Integrating Blockchain, Fintech and Consumer Finance

Regulatory and Compliance

Transactions

Enforcement and Investigations

Consumer Litigation

Licensing

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Experience

Representative Matters

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Related Capabilities

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Areas of Focus

Integrating Blockchain, Fintech and Consumer Finance

Regulatory and Compliance

Transactions

Enforcement and Investigations

Consumer Litigation

Licensing

Experience

Representative Matters

Related Capabilities

End-to-End Support Across the Sector

Sheppard’s Consumer Finance team supports clients across the lifecycle of consumer financial products, from development and launch through regulatory scrutiny and enforcement.