Congress Looks to Judicial Overrides to Strengthen Consumer Protections

IN A UNANIMOUS decision last Thursday, the U.S. Supreme Court issued a ruling that would limit the ability of the Federal Trade Commission to seek monetary relief for borrowers who have been defrauded by corporate lenders. Under the new ruling, the FTC would only be allowed to pursue restitution in the form of injunctions, not cash payments, for customers who have fallen victim to deceptive practices like short-term or payday loans.

“An uncertain impending Supreme Court decision on the FTC’s 13(b) authorities has given scammers new opportunities to take advantage...