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

Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company

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Join Us for a Complimentary Webinar: “The CHOICE Act Passed the House: Now What? An Update on Financial Industry Regulation Under the Trump Administration”

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WV Appellate Court Finds High Volume of Unanswered Calls Alone Does Not Violate § 46A-2-125(d)

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CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices

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NY AG Settles with IoT Company over Security Practices

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Pending Changes to Federal Bankruptcy Rules Could Negatively Impact Residential Mortgage Lenders

By Harris Winsberg on June 19, 2017

The U.S. Supreme Court has approved changes to the Federal Bankruptcy Rules that, if they become effective, will result in important alterations to the filing of proofs of claim by residential mortgage lenders in Chapter 7, 12 and 13 cases. A proposed change to Bankruptcy Rule 3002 will shorten the time within which a creditor...
TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision
New WVCCPA Amendments are Enacted by Governor Justice
Troutman Sanders Welcomes Amy Pritchard Williams
DOJ Brief Opposing CFPB Brings More Uncertainty

CFPB Encourages Retail Credit Card Companies to Consider More Transparent Promotions

By Brooke Conkle on June 19, 2017

The Consumer Financial Protection Bureau (“CFPB”) sent letters to the top retail credit card companies at the beginning of June, encouraging the companies to use more transparent promotions, citing a major retailer’s decision to end deferred-interest programs associated with its credit card.  In the letter, the Bureau outlined its concerns that temporary promotions – such...
CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending
CFPB Releases Snapshot of Complaints Submitted by Senior Citizens
District Court Rules SeaWorld Breached Customer Contracts and Violated Electronic Funds Transfer Act
Chipotle Discloses Data Security Breach Related to Network Supporting Payment Processing for Restaurant

Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company

By David N. Anthony on June 19, 2017

On June 12, 2017, the United States Supreme Court rendered a unanimous decision holding that a company collecting debts that it purchased for its own account does not meet the statutory definition of “debt collector” under the Fair Debt Collection Practices Act (FDCPA) because the debts are no longer “owed or due another.” We previously...
Join Us for a Complimentary Webinar: A Review of the Supreme Court's Decision in Henson v. Santander
WV Appellate Court Finds High Volume of Unanswered Calls Alone Does Not Violate § 46A-2-125(d)
CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices
Insurance Company Settles Nationwide TCPA Class Action for $4.25M

J. Crew Beats FACTA Class Action on Spokeo Grounds

By Ross Andre on June 14, 2017

On June 6, a federal judge in New Jersey for the second time dismissed a putative class action against clothier J. Crew Group, Inc. on the grounds that the plaintiff, Ahmed Kamal, had not pled a concrete injury sufficient for Article III standing light of Spokeo, Inc. v. Robins.  Kamal alleged that J. Crew violated...
District Court Dismisses FCRA Class Action for Lack of Standing Based on Insufficient Risk of Imminent Harm
Credit Score Attached to Collection Action Complaint Violates the FCRA and FDCPA, Contends New Putative Class Action Complaint
Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels
FTC Submits Annual Budget Request To Congress

Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices

By Brooke Conkle on June 06, 2017

On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices.  The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership...
Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry
High Call Volume Not Necessarily a Violation of FDCPA or Rosenthal Act
DOJ Issues New Guidance on Corporate Compliance Programs
Join Us on February 9 for a Complimentary Webinar on Redlining and Fair Lending

Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures

By Ross Andre on June 13, 2017

Five Guys Enterprises LLC—franchisor of the popular Five Guys Burger Co.—and a California franchisee are facing a lawsuit from a former employee alleging numerous violations of the federal Fair Credit Reporting Act and California state law.  The plaintiff, Jeremy Lusk, alleges he began working for Five Guys in August 2016.  He alleges that in the...
District Court Rejects Notion That An Improper Background Check Disclosure Automatically Renders A Subsequent Background Authorization Improper
Pennsylvania to “Ban the Box” by Executive Order
Plaintiff Seeks Remand of Sodexo FCRA Lawsuit
Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels

By Julie Hoffmeister on May 31, 2017

On May 23, 2017, in Whalen v. Michaels Stores, Inc., the United States Court of Appeals for the Second Circuit issued a summary order affirming the district court’s dismissal of a putative data breach class action based on lack of Article III standing. As background, the named plaintiff Mary Jane Whalen made credit card purchases at...
NY AG Settles with IoT Company over Security Practices
State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach
TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision
Class Action Filed Against Chipotle for Data Security Breach Involving Payment Processing System

CFPB Encourages Retail Credit Card Companies to Consider More Transparent Promotions

By Brooke Conkle on June 19, 2017

The Consumer Financial Protection Bureau (“CFPB”) sent letters to the top retail credit card companies at the beginning of June, encouraging the companies to use more transparent promotions, citing a major retailer’s decision to end deferred-interest programs associated with its credit card.  In the letter, the Bureau outlined its concerns that temporary promotions – such...
Join Us for a Complimentary Webinar: “The CHOICE Act Passed the House: Now What? An Update on Financial Industry Regulation Under the Trump Administration”
CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices
CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending
Federal and State Regulators Obtain Record Judgment Enforcing TCPA Violations Predicated Upon Insufficient Vendor Oversight