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

California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018

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FTC and State AGs to Announce Major Coordinated Consumer Fraud Enforcement Initiative

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CFPB Rule Requires Payday Lenders to Apply “Ability to Repay” Standard to Loans

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Cursory Investigations and Misleading Reporting Leads to Partial Summary Judgment Win for Consumer

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Join Us for a Complimentary Webinar: “Litigators Discuss the Current State of Individual and Class Action Consumer Mortgage Claims”

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11th Circuit Applies Totality-of-the-Circumstance Analysis to Judicial Estoppel

By David Long, Jr. on September 29, 2017

On September 18, in an en banc review, the Court of Appeals for the Eleventh Circuit overruled, in part, seminal cases Barger v. City of Cartersville, 348 F.3d 1289 (11th Cir. 2003) and Burnes v. Pemco Aeroplex, Inc., 291 F.3d 1282 (11th Cir. 2002), adopting a totality-of-the-circumstances analysis when facing questions of judicial estoppel.  In...
CFPB Proposes Modifications to Home Mortgage Law to Protect Borrowers’ Privacy
FTC Says Its Focus Must Be on Instances of Real Harm to Consumers
CFPB’s Latest Supervisory Highlights Provides Valuable Statistics and Insight on Enforcement Efforts
Join Us for a Complimentary Webinar on September 12: A Review of Recent Fair Housing Act Municipality Cases and other Municipality Claims

DOJ Permits Banks to Create Real-Time Payment System

By Brooke Conkle on September 29, 2017

On September 21, the Department of Justice cleared the way for a group of the twenty-four largest U.S. banks to create a real-time payment system that will permit immediate transfer of funds between financial institutions.  The system was proposed by The Clearing House Payments Co., LLC (“TCH”), a joint venture between the twenty-four banks that...
Federal Reserve Publishes Updates on Efforts to Improve Payment Systems
Federal Court Strikes CFPB’s Counts Against Payment Processors for Violating Discovery Order
New Jersey Legislator Introduces Bill to Prevent Prepaid Account Fees
CFPB Seeks Commentary on Proposed Changes to Prepaid Rule

Debt Collector Defeats FDCPA Suit with Bona Fide Error Defense

By Patrick Dillard on October 13, 2017

A federal judge in Utah has ruled that a debt collector may rely on the “bona fide error” defense to defeat a claim for violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq.  Analyzing the compliance procedures that the debt collector had in place, the Court granted summary judgment for...
House Financial Services Committee Hears Bill to Exempt Lawyers from FDCPA in Connection with Legal Proceedings and Related Communications
District of New Jersey Judge Allows Consumer’s 1099C Disclosure Case to Continue
Court Finds Terrason Spinks and Jet Processing Liable for $281M IWorks Scheme
Northern District of Illinois Says that Revocation of Consent for One is Not Revocation of Consent for All

CFPB Issues Guidance to Small Businesses on Complying With Rule Banning Class Action Waivers

By Tim J. St. George on October 02, 2017

On July 10, the Consumer Financial Protection Bureau issued its long-awaited final Rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the CFPB regarding any efforts to compel arbitration.  This Rule is of significance to any financial services company that utilizes consumer...
No Vacancy – Court Denies Class Certification in FCRA Case Against Hyatt
U.S. Chamber of Commerce and Other Business Associations Sue to Overturn Ban on Class Action Waivers
Cursory Investigations and Misleading Reporting Leads to Partial Summary Judgment Win for Consumer
NYDFS Directed to Regulate Consumer Reporting Agencies

New York AG Announces Settlements with Two Motor Vehicle Dealer Groups

By Paige S. Fitzgerald on October 16, 2017

New York Attorney General Eric Schneiderman announced two settlements with motor vehicle dealer groups that provide for over $900,000 in restitution to approximately 6,400 New York State consumers.  The settlements also require the dealers to pay $135,000 in penalties and costs to the state for the unlawful sale of credit repair and identity theft protection services...
Massachusetts AG Accuses Used Car Dealer of Deceptive Practices
FTC Issues Guidance on the Revised Used Car Rule
CFPB’s Latest Supervisory Highlights Provides Valuable Statistics and Insight on Enforcement Efforts
New Federal Appeals Court Ruling Provides Ray of Sunshine for TCPA Defendants: Contractual Consent to Receive Calls Cannot be Revoked

California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018

By Ronald I. Raether, Jr. on October 20, 2017

On October 14, 2017, California became the most recent state to adopt a “ban-the-box” law. The law, signed by Governor Jerry Brown, goes into effect on January 1, 2018, prohibiting pre-offer inquiries regarding applicants’ conviction histories, and regulating employers’ decisions to deny employment to an applicant based on his or her convictions. This law is...
District Court Rejects FCRA Class Action Settlement for Lack of Standing
New York Passes Law Overhauling Process for Sealing Old Felony Convictions
District Court Denies Motion to Strike in FCRA Background Check Class Action
Starbucks Hit with FCRA Class Action

House Financial Services Committee Chairman Urges National Data Breach and Data Security Standards

By Timothy Butler on October 06, 2017

On October 5, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) called for national standards for data breach notification and data security. While voicing concerns about a “Washington-forced technology solution,” Hensarling said, “We do need a consistent national standard for both data security and breach notification in order to better protect our consumers, hold companies...
Join Us on October 2 for a PLUS Webinar: Underwriting Emerging Connective Technologies
Massachusetts AG Announces Data Breach Bill
Join Us at the 2017 ISSA International Conference in San Diego
Join Us at the 8th Annual ABA Consumer Financial Services Institute

New York AG Announces Settlements with Two Motor Vehicle Dealer Groups

By Paige S. Fitzgerald on October 16, 2017

New York Attorney General Eric Schneiderman announced two settlements with motor vehicle dealer groups that provide for over $900,000 in restitution to approximately 6,400 New York State consumers.  The settlements also require the dealers to pay $135,000 in penalties and costs to the state for the unlawful sale of credit repair and identity theft protection services...
FTC and State AGs Announce Crackdown on Student Loan Debt Relief Scam
FTC and State AGs to Announce Major Coordinated Consumer Fraud Enforcement Initiative
California Adds Fraudulently Created Accounts to List of Exclusions from Compelled Arbitration
House Financial Services Committee Chairman Urges National Data Breach and Data Security Standards