Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Whitepaper Issued by CFPB in Defense of its Use of “Proxy” Statistical Methods to Prove Unlawful Credit Discrimination

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Cordray to Speak at CFPB’s Auto Finance Field Hearing on September 18

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Congresswoman Proposes Fundamental Changes to FCRA in Fair Credit Reporting Improvement Act of 2014

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Connecticut Attorney General Discusses His Leadership Role in Privacy Policy

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Attorneys General Request Opinion from FCC on Call-Blocking Technology

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Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project

By Maryia Y. Jones on August 27, 2014

On August 21, the Consumer Financial Protection Bureau (CFPB) has selected seven mortgage companies and five vendors to participate in a three-month pilot program that will aim to determine whether electronic filings could improve mortgage closings.  The pilot program is a part of the CFPB’s “Know Before You Owe” mortgage initiative. Earlier this year in...
Potential Expansion of HMDA Reporting Requirements
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
Federal Reserve’s Quarterly Report Reveals Banks Are Making Fewer Mortgages
Seventh Circuit Favors Simplified and Neutral Class Action Notices

CFPB Issues Bulletin to Credit Card Issuers on Deceptive Interest-Rate Promotions

By Scott Kelly on September 05, 2014

On September 3, the Consumer Financial Protection Bureau issued a new bulletin warning credit card issuers against certain interest-rate promotions that, it claimed, posed a risk of deceptive or abusive conduct.  The transactions at issue involve solicitations that “offer a promotional annual percentage rate on a particular transaction over a defined period of time” and...
SEC Finalizes Tougher Credit Rating Agency Rules
Seventh Circuit Favors Simplified and Neutral Class Action Notices
Cordray's Renewed Questioning Concerning Recess Authority
Is Your Smartphone an ATDS? The United States Says “No”.

CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice

By Massie P. Cooper on August 25, 2014

On August 20, the Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief in Hernandez v. Williams, Zinman & Parham, P.C.  The case concerns the interpretation and enforcement of the Fair Debt Collection Practices Act, and is currently on appeal to the U.S. Court of Appeals for the Ninth Circuit....
11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision
USA Discounters Investigated and Penalized by CFPB
Seventh Circuit Favors Simplified and Neutral Class Action Notices
USA Discounters Scrutinized by State and Federal Regulators for Debt Collection Practices

Congresswoman Proposes Fundamental Changes to FCRA in Fair Credit Reporting Improvement Act of 2014

By David M. Gettings on September 15, 2014

On September 10, Congresswoman Maxine Waters released a draft proposal entitled “Fair Credit Reporting Improvement Act of 2014” that, if passed, could lead to fundamental changes in the credit reporting industry. According to the published summary of the key provisions of the proposed legislation, the legislation would alter various aspects of credit reporting in favor...
Court Rejects Putative FCRA Class Action Against Hospital Resulting from Data Breach
Court Decision Issued on Background Check Adjudication
Seventh Circuit Favors Simplified and Neutral Class Action Notices
Cordray's Renewed Questioning Concerning Recess Authority

Whitepaper Issued by CFPB in Defense of its Use of “Proxy” Statistical Methods to Prove Unlawful Credit Discrimination

By Nick R. Klaiber on September 19, 2014

The Consumer Financial Protection Bureau, under fire from both industry and Congressional constituencies for using unexplained statistical methodologies to reach conclusions that auto lenders have engaged in unlawful credit discrimination, issued a report on September 17 that provided details of its methodologies and argued for their validity. The CFPB and other federal regulators have generally...
Cordray to Speak at CFPB’s Auto Finance Field Hearing on September 18
Auto Finance Summit 2014 - October 6-8 - Las Vegas
Seventh Circuit Favors Simplified and Neutral Class Action Notices
Cordray's Renewed Questioning Concerning Recess Authority

National Association of Attorneys General Hosts Fall Consumer Protection Seminar

By Paige S. Fitzgerald on September 22, 2014

Several members of the Troutman Sanders State Attorneys General team will be in attendance at the upcoming National Association of Attorneys General Fall Consumer Protection Seminar, being held on October 20-22, in Providence, Rhode Island.  State Attorneys General as well as their Consumer Protection staff members will be in attendance at this important event.  We...
Connecticut Attorney General Discusses His Leadership Role in Privacy Policy
Attorneys General Request Opinion from FCC on Call-Blocking Technology
CFPB Issues Bulletin to Credit Card Issuers on Deceptive Interest-Rate Promotions
State Attorneys General File Lawsuits against 5-Hour ENERGY® for Deceptive Marketing

Contracting and Text Sending is Sufficient for Exercise of Personal Jurisdiction in TCPA Class Action

By David N. Anthony on August 29, 2014

In Payton v. Kale Realty, LLC, plaintiff Payton filed an amended complaint, asserting that defendant Kale used newly added defendant Voiceshot’s services to send unsolicited advertisements to potential customers’ cell phones.  Voiceshot provides web-based cloud telecommunication services by which users can send mass text messages for a fee.  Voiceshot is a Delaware company with its...
Auto Finance Summit 2014 - October 6-8 - Las Vegas
11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision
Court Decision Issued on Background Check Adjudication
Seventh Circuit Favors Simplified and Neutral Class Action Notices

SEC Finalizes Tougher Credit Rating Agency Rules

By Scott Kelly on August 28, 2014

On August 27, the Securities and Exchange Commission adopted new rules for credit rating agencies to enhance governance, protect against conflicts of interest, and increase transparency to improve the quality of credit ratings and increase credit rating agency accountability. Industry observers hope that the new rules will address problems that have contributed to the failure...
Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project
Potential Expansion of HMDA Reporting Requirements
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
Auto Finance Summit 2014 - October 6-8 - Las Vegas