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 To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

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Troutman Sanders Named Among 2016 Practice Groups of the Year

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District Court Finds That “Complete and Up to Date” Requirement of FCRA § 1681K Does Not Include an Accuracy Component

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More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA

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D.C. Circuit Rules CFPB “For Cause” Removal of the Director Unconstitutional, but Declines to Shut it Down

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Attorney and Mortgage Relief Scam Operator Banned from Debt Relief Business

By Laura Anne Kuykendall on January 13, 2017

An operator of a mortgage relief scam and an attorney agreed to court orders banning them from the debt relief business in order to resolve allegations brought by the FTC that they swindled millions of dollars from financially distressed homeowners. According to the FTC’s Complaint, in the scheme, Damian Kutzner and four attorneys operating as...
California Supreme Court Finds Two Payday Lenders Not Immune From State Lending Laws
Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Miami
CFPB Files Four Lawsuits Against Lenders for Violation of Truth In Lending Act
Troutman Sanders Partner John Lynch Awarded Law 360 MVP Award

Payment Processing Marketer Seeks Sanctions Against CFPB

By Brooke Conkle on January 17, 2017

On January 4, a defendant in a Fair Debt Collections Practices Act case moved for sanctions against the Consumer Financial Protection Bureau, arguing that it never had proof that the defendant acted wrongfully when it filed suit in early 2015.  In support of its Motion, Pathfinder Payment Solutions, Inc. stated that the Bureau “knowingly exceeded...
District Court Rejects TILA Suit as “Litigation Out of Control”
California Supreme Court Finds Two Payday Lenders Not Immune From State Lending Laws
CFPB Updates Rulemaking Agenda
Southern District of New York Relies on Spokeo to Dismiss TILA Credit Card Suit

Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

By David N. Anthony on January 19, 2017

On January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a bank that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al. v....
Telecommunications Service Provider Does Not Have Standing to Sue Under TCPA
CFPB Monthly Snapshot Focused on Debt Collection
Arkansas AG Files Suit Against Credit Repair Organization
Federal Communications Commission Chairman Tom Wheeler Announces Resignation on Dec. 15, 2016, Signaling Potential Reform to the Telephone Consumer Protect Act (TCPA)

District Court Finds That “Complete and Up to Date” Requirement of FCRA § 1681K Does Not Include an Accuracy Component

By Tim J. St. George on December 30, 2016

A consumer reporting agency complies with § 1681k(a)(2) of the Fair Credit Reporting Act (“FCRA”) if it “maintain[s] strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date.” In Kelly v....
Arkansas AG Files Suit Against Credit Repair Organization
OPM Issues Final Rule on Inquiring into Job Applicants’ Criminal History and Credit Information
CFPB Signals Intent to Move Forward With System Allowing Consumers to Rate Companies’ Responses to Complaints
Cross-Motions for Summary Judgment Filed in Costco FCRA Class Action

Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

By David N. Anthony on January 19, 2017

On January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a bank that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al. v....
Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Miami
Blue Shield and SQM Defeat TCPA Putative Class Action Following Spokeo
Join Us on November 3 for a Webinar on “The Ten Commandments to Avoid Lender Liability”
Join Us at the Institute of Continuing Legal Education in Georgia’s Class Actions Seminar

Lands’ End Faces TCPA Class Action from Alleged Junk Faxes

By Ross Andre on January 18, 2017

Lands’ End, a Wisconsin-based clothing retailer, was named as a defendant in a putative class action filed January 4 under the Telephone Consumer Protection Act in federal court in Connecticut.  The TCPA includes, as a result of the Junk Fax Protection Act of 2005, prohibitions on sending unsolicited fax advertisements without a required opt-out notice...
District Court Finds That “Complete and Up to Date” Requirement of FCRA § 1681K Does Not Include an Accuracy Component
L.A. Becomes Latest Jurisdiction to “Ban the Box” for Private Employers
Ninth Circuit Hears Oral Argument in Spokeo Following Remand From Supreme Court
Court Finds That Spokeo Does Not Bar Enforcement of Background Check Class Action Settlement

Telecommunications Service Provider Does Not Have Standing to Sue Under TCPA

By Julie Hoffmeister on January 16, 2017

In Telephone Science Corporation v. Asset Recovery Solutions, the United States District Court for the Northern District of Illinois recently held that Telephone Science Corporation (“TSC”), a telecommunications company, did not have standing to pursue its Telephone Consumer Protection Act claims against Asset Recovery Solutions, LLC (“ARS”), a debt collection company. TSC operates a service...
New York Financial Regulator Revises Proposed Cybersecurity Regulation
Summary Judgment Motion is Filed in TCPA Class Action Involving Airbag Recall
Federal Communications Commission Chairman Tom Wheeler Announces Resignation on Dec. 15, 2016, Signaling Potential Reform to the Telephone Consumer Protect Act (TCPA)
Medical Services Company to Pay $9.25M in TCPA Class Action Settlement

Payment Processing Marketer Seeks Sanctions Against CFPB

By Brooke Conkle on January 17, 2017

On January 4, a defendant in a Fair Debt Collections Practices Act case moved for sanctions against the Consumer Financial Protection Bureau, arguing that it never had proof that the defendant acted wrongfully when it filed suit in early 2015.  In support of its Motion, Pathfinder Payment Solutions, Inc. stated that the Bureau “knowingly exceeded...
FTC Holds Second Annual PrivacyCon
Attorney and Mortgage Relief Scam Operator Banned from Debt Relief Business
Republican Senators Press Vice President-Elect Pence for Removal of CFPB Director
House Democrats Urge President-Elect Trump Not to Remove CFPB Director