Brattle Experts Examine Recurring Issues in Consumer Class Actions
In a new article published by Law360, Brattle Principal Dr. Shastri Sandy and Senior Associates Dr. Anil Donmez and Dr. Alexei Orlov highlight the role of economic analysis in informing the arguments made by plaintiffs and defendants in lending disputes.
In recent years, consumer lending class actions have increased in both frequency and complexity, reflecting a structural shift in how the cost of consumer credit is being assessed. The authors identify four recurring themes: rent-a-tribe arrangements, the price of credit, repeat borrowing, and repayment.
The article, “How Economic Analysis Informs Consumer Lending Disputes,” demonstrates the value of financial and economic analysis in understanding the fundamentals of lending arrangements and clarifying issues in current and future disputes.
Economic analysis can be used in consumer lending disputes to:
- Conceptualize and measure the cost of credit
- Evaluate lending models to provide additional insights into dispute allegations
- Examine consumers’ understanding of the product and its usage over time
- Analyze consumer lending patterns to inform the development of analytical frameworks
Read the full Law360 article below.
