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

Seventh Circuit Reverses Class Action “Coupon” Settlement Under the Fair Credit Reporting Act

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Flagstar Reaches $37.5M Mortgage Servicing Settlement with CFPB

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Comment Period on CFPB’s Proposal to Include Narratives in Consumer Complaint Database Closes With Strong Protest from the American Bankers Association and Other Industry Groups

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National Association of Professional Background Screeners 2014 Annual Conference

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New Debt Collection Rules Announced for New York State Courts

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FDIC Reaches Settlement with Merrick Bank for Credit Card Add-On Charges

By Scott Kelly on October 01, 2014

The Federal Deposit Insurance Corporation has ordered Merrick Bank to pay $16.1 million to settle charges related to the marketing of a credit card add-on product. According to the terms of the settlement agreement, Merrick will pay a $1.1 million penalty and $15 million in restitution costs stemming from violations of the Federal Trade Commission...
CFPB Scrutinizes Checking Account Screening
CFPB Announces Project Catalyst Research Initiative on Credit Counseling
New Debt Collection Rules Announced for New York State Courts
Minnesota Federal Court Allows Class Action Involving Money-Saving Memberships to Proceed

FDCPA Class Certified in a Seemingly Individualized Dispute over Repayment Options Calculation

By Maryia Y. Jones on October 23, 2014

In Alexander v. Coast Professional, Inc., No. 12-cv-1461, (E.D. Pa. Sept. 5, 2014), the United States District Court for the Eastern District of Pennsylvania certified a class of Pennsylvania residents with defaulted student loans serviced by Coast Professional.  The class action under the FDCPA is based on the allegations that Coast Professional failed to calculate...
Game Changers for the Industry Webinar
New Debt Collection Rules Announced for New York State Courts
Federal Court Affirms Debt Collector’s Right to Collect Pre-Judgment Statutory Interest After Charge-Off by Original Creditor
CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice

CFPB Turns Attention to Specialty Consumer Reporting Agencies and Access to Checking Accounts

By David M. Gettings on October 20, 2014

On October 8, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks on screening policies and practices associated with the opening of checking accounts.  These remarks, which focused on the specialty credit reports used by banking institutions to determine a potential customer’s credit risk, may signal the CFPB’s increased interest in access to checking...
Seventh Circuit Reverses Class Action “Coupon” Settlement Under the Fair Credit Reporting Act
U.S. Supreme Court Invites Solicitor General to File Comment on Pending Spokeo Appeal
CFPB Scrutinizes Checking Account Screening
GAO Insists That CFPB Must Improve Financial Data Security

House Financial Services Head Criticizes Proposed CFPB Auto Finance Regulation

By Reade Jacob on October 09, 2014

House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) recently sent a letter to CFPB Director Richard Cordray expressing concern about the Bureau’s proposed regulation of nonbank auto lenders. According to Hensarling, it would be “inappropriate” for the agency to regulate nonbank auto lenders until it clarifies the “rules of the road.”  The letter echoes a...
Supreme Court Agrees to Hear Challenge to Disparate Impact
The TCPA Balance Shifts: The Eleventh Circuit Decision in Mais is Extremely Favorable for Collectors
Auto Finance Summit 2014 - October 6-8 - Las Vegas
CFPB Conducts Field Hearing on Indirect Auto Lending

FDIC Reaches Settlement with Merrick Bank for Credit Card Add-On Charges

By Scott Kelly on October 01, 2014

The Federal Deposit Insurance Corporation has ordered Merrick Bank to pay $16.1 million to settle charges related to the marketing of a credit card add-on product. According to the terms of the settlement agreement, Merrick will pay a $1.1 million penalty and $15 million in restitution costs stemming from violations of the Federal Trade Commission...
Federal Judge Freezes Law Firm Assets in Multi-State Mortgage Rescue Scam Case
Trade Association Responds to Louisiana Attorney General’s Lawsuit Aimed at Limiting Use of Recycled Parts in Auto Repairs
Ninth Circuit Rejects Federal Jurisdiction in Credit Card Fee Suit
National Association of Attorneys General (NAAG) Hosts Fall Consumer Protection Seminar

FDCPA Class Certified in a Seemingly Individualized Dispute over Repayment Options Calculation

By Maryia Y. Jones on October 23, 2014

In Alexander v. Coast Professional, Inc., No. 12-cv-1461, (E.D. Pa. Sept. 5, 2014), the United States District Court for the Eastern District of Pennsylvania certified a class of Pennsylvania residents with defaulted student loans serviced by Coast Professional.  The class action under the FDCPA is based on the allegations that Coast Professional failed to calculate...
Federal Court Rejects District of Columbia’s Defense of Tax Sale Statute
Supreme Court Hears Case on Evidentiary Requirements in a Notice of Removal
House Financial Services Head Criticizes Proposed CFPB Auto Finance Regulation
U.S. Supreme Court Invites Solicitor General to File Comment on Pending Spokeo Appeal

House Financial Services Head Criticizes Proposed CFPB Auto Finance Regulation

By Reade Jacob on October 09, 2014

House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) recently sent a letter to CFPB Director Richard Cordray expressing concern about the Bureau’s proposed regulation of nonbank auto lenders. According to Hensarling, it would be “inappropriate” for the agency to regulate nonbank auto lenders until it clarifies the “rules of the road.”  The letter echoes a...
Comment Period on CFPB’s Proposal to Include Narratives in Consumer Complaint Database Closes With Strong Protest from the American Bankers Association and Other Industry Groups
CFPB Scrutinizes Checking Account Screening
CFPB Announces Project Catalyst Research Initiative on Credit Counseling
GAO Insists That CFPB Must Improve Financial Data Security