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 Rules That Filing a Proof of Claim on a Time-Barred Debt Does Not Violate the FDCPA

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Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

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State Banking Regulators File Suit Challenging OCC Fintech Charter

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CFPB Files Suit Against Four Online Lenders Operated by Native American Tribe

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U.S. Supreme Court Rejects “Meaningful Attorney Involvement” Case

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New WVCCPA Amendments are Enacted by Governor Justice

By Jason E. Manning on April 27, 2017

Senate Bill No. 563 amends several provisions of the West Virginia Consumer Credit Protection Act (WVCCPA). The Bill passed the West Virginia Senate and the House of Delegates with high approval margins, and was signed into law by Governor Jim Justice on April 21, 2017. These amendments to the WVCCPA will have an impact on...
Troutman Sanders Welcomes Amy Pritchard Williams
DOJ Brief Opposing CFPB Brings More Uncertainty
DOJ Issues New Guidance on Corporate Compliance Programs
Join Us on February 9 for a Complimentary Webinar on Redlining and Fair Lending

Chipotle Discloses Data Security Breach Related to Network Supporting Payment Processing for Restaurant

By Keith Barnett on May 04, 2017

In its Form 10-Q dated April 25, 2017 for the quarterly period that ended on March 31, 2017, Chipotle Mexican Grill, Inc. announced that it had detected a data security breach in its electronic processing and transmission of confidential customer and employee information.  Specifically, Chipotle’s information security team detected unauthorized activity on the network that...
State Banking Regulators File Suit Challenging OCC Fintech Charter
CFPB Publishes Guide to Prepaid Card Rule, Delays Rule’s Effective Date
U.S. District Court Dismisses CFPB Case Against Payment Processor
Join Troutman Sanders at the Third Party Payment Processors Annual Conference in Washington, DC

Supreme Court Rules That Filing a Proof of Claim on a Time-Barred Debt Does Not Violate the FDCPA

By David N. Anthony on May 16, 2017

On May 15, 2017, the United States Supreme Court ruled that the Eleventh Circuit erred when it found a debt buyer liable under the Fair Debt Collection Practices Act for filing proofs of claim in bankruptcy on debts that had become time-barred. A copy of the Court’s opinion can be found here. Background In Johnson...
Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds
U.S. Supreme Court Rejects “Meaningful Attorney Involvement” Case
New WVCCPA Amendments are Enacted by Governor Justice
Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry

Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

By David N. Anthony on May 15, 2017

In one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the viability...
Defendants Move to Dismiss Putative FACTA Class Action Based on Spokeo
New WVCCPA Amendments are Enacted by Governor Justice
Supreme Court Hears Oral Argument Involving Rule 23(f) Interlocutory Appeals
Join Us for a Complimentary Webinar - Post-Spokeo Survey - An Analysis of Trends and Developments in the Courts

Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry

By Chad R. Fuller on April 20, 2017

On April 18, the United States Supreme Court heard long-awaited oral arguments in a case that addresses the fundamental issue of the definition of a “debt collector” under the Fair Debt Collection Practices Act.  The Supreme Court’s decision will resolve an existing Circuit split on whether an entity that purchases defaulted debts and then attempts...
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
Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

Plaintiff Seeks Remand of Sodexo FCRA Lawsuit

By Ross Andre on May 18, 2017

Sodexo, Inc. recently found itself named in a putative Fair Credit Reporting Act class action based on alleged improprieties in its background check disclosure forms and its pre-adverse action process.  Sodexo removed the case from Pennsylvania state court to the United States District Court for the Western District of Pennsylvania on April 7, claiming the...
Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds
FTC Issues Guidance for Employment Background Screening
Sodexo Defends FCRA Class Action Alleging Failures in Hiring Process
California Approves New Regulations Regarding Consideration of Criminal History in Employment Decisions

Class Action Filed Against Chipotle for Data Security Breach Involving Payment Processing System

By Ronald I. Raether, Jr. on May 19, 2017

On May 4, Bellwether Community Credit Union filed a class action suit on behalf of a proposed class of financial institutions in Colorado federal court against Chipotle Mexican Grill, Inc., claiming that the chain’s recently announced data breach caused significant financial harm to the credit union.  Bellwether’s complaint alleges that Chipotle’s purportedly lax security standards...
Join Us for the ISSA Summit in LA on May 18-19
Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds
Chipotle Discloses Data Security Breach Related to Network Supporting Payment Processing for Restaurant
Defendants Move to Dismiss Putative FACTA Class Action Based on Spokeo

As CFPB Faces Uncertainty, State Regulators Fill Gap

By Brooke Conkle on May 23, 2017

Many predicted that newly-elected President Donald Trump would remove Richard Cordray, Director of the Consumer Financial Protection Bureau, upon taking office.  Cordray remains the head of the CFPB, but uncertainty still looms at the agency.  President Trump has characterized the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation which created the CFPB, as...
State Banking Regulators File Suit Challenging OCC Fintech Charter
CFPB Files Suit Against Four Online Lenders Operated by Native American Tribe
CFPB Meets With Community Bankers to Discuss Use of Alternative Data in Credit Decisions
CFPB Publishes Guide to Prepaid Card Rule, Delays Rule’s Effective Date