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

State Attorneys General File Lawsuits against 5-Hour ENERGY® for Deceptive Marketing

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Seventh Circuit Favors Simplified and Neutral Class Action Notices

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Cordray’s Renewed Questioning Concerning Recess Authority

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2014 ABA Annual Meeting – Showcase CLE Presentations

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FCC Strengthens Consent Requirements by Limiting Scope Based upon Individual’s Expectations

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CFPB Provides Insight into Advertising Guidelines by Ordering Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme

By Nicola Harrison on August 26, 2014

On August 12, the Consumer Financial Protection Bureau issued an order related to the advertising of mortgage rates that may provide valuable insight into the CFPB’s broader perspective on what constitutes misleading statements in advertising and publishing of rates. The CFPB accused Amerisave Mortgage Corporation (“Amerisave”), its affiliate company Novo Appraisal Management Company (“Novo”), and...
Federal Reserve’s Quarterly Report Reveals Banks Are Making Fewer Mortgages
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”.

Seventh Circuit Favors Simplified and Neutral Class Action Notices

By Tim J. St. George on August 13, 2014

In a June 2 decision, Judge Richard Posner, writing for a unanimous panel of the United States Court of Appeals for the Seventh Circuit, criticized a number of statements and other aspects within a notice of class action settlement that had been approved by the district court.  In response to a number of objections that...
Cordray's Renewed Questioning Concerning Recess Authority
Is Your Smartphone an ATDS? The United States Says “No”.
FICO Announces New Scoring Model that Could Raise Credit Scores
The CFPB Admits False Allegations?

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

Court Decision Issued on Background Check Adjudication by Consumer Reporting Agency

By David M. Gettings on August 15, 2014

Employers utilizing background checks in their applicant screening process often battle two competing forces – the need to screen and hire employees quickly and the requirement that they wait a reasonable time before taking adverse action under the Fair Credit Reporting Act.  The District Court for the Eastern District of Pennsylvania recently issued a decision...
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”.
FICO Announces New Scoring Model that Could Raise Credit Scores

Seventh Circuit Favors Simplified and Neutral Class Action Notices

By Tim J. St. George on August 13, 2014

In a June 2 decision, Judge Richard Posner, writing for a unanimous panel of the United States Court of Appeals for the Seventh Circuit, criticized a number of statements and other aspects within a notice of class action settlement that had been approved by the district court.  In response to a number of objections that...
Cordray's Renewed Questioning Concerning Recess Authority
Is Your Smartphone an ATDS? The United States Says “No”.
OCC Identifies Signs of Risk in Auto Lending Industry
Eight New Jersey Motor Vehicle Dealers and State Attorney General’s Office Enter into $1.8 Million Settlement to Resolve Allegations of Deceptive Practices

State Attorneys General File Lawsuits against 5-Hour ENERGY® for Deceptive Marketing

By Amanda L. Soberick on August 25, 2014

State Attorneys General from Washington, Oregon and Vermont filed suit against Living Essentials, the manufacturer of the popular energy supplement, 5-Hour ENERGY®, for allegedly deceptive marketing.  The lawsuits seek injunctive relief as well as civil penalties and restitution to consumers.  In a statement late last week, Oregon Attorney General Ellen Rosenblum said, “[p]lainly and simply,...
2014 ABA Annual Meeting - Showcase CLE Presentations
New York AG and FTC Allege New York Based Debt Collector Used Illegal and Fraudulent Methods to Collect Debts
CFPB and 13 State AGs Team Up to Obtain Roughly $92 Million in Debt Relief from Rome Finance
FTC Enforcement Action Recovers More Than $3.3 Million for Consumers and Agreement to Permanent Ban from the Debt Collection Business

11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision

By Scott Kelly on August 18, 2014

On January 2, 2014, the Eleventh Circuit Court of Appeals found that the Fair Debt Collection Practices Act prohibits collection agencies from charging consumers a percentage fee of the balance of their debt unless the consumer has explicitly agreed to such a fee arrangement.  In Bradley v. Franklin Collection Services, Inc., a unanimous panel ruled...
Court Decision Issued on Background Check Adjudication by Consumer Reporting Agency
Consumer Data Class Actions Filed Against Foot Locker and Macy’s
Study of Consumer Class Action Settlements Confirms Steady Increase in Number of Settlements Since 2010
American Conference Institute’s 18th National Forum on Consumer Finance Class Actions & Litigation

Cordray's Renewed Questioning Concerning Recess Authority

By Paige S. Fitzgerald on August 11, 2014

In a letter dated July 29, addressed to Richard Cordray, Director of the Consumer Financial Protection Bureau, two Republicans – Representative Jeb Hensarling, Chairman of the House Committee on Financial Services, and Mike Crapo, Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs – continue to question the validity of the CFPB’s...
Prepaid Cards - CFPB's Latest Target
CFPB Issues Supervisory Highlights Focusing on Nonbank Compliance Programs
CFPB Releases Small-Entity Compliance Guide on TILA-RESPA Integration Rule
NADA Issues Guidance to Members on Dealer Reserve and Fair Lending Compliance