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

Federal Judge Rejects Challenge to CFPB Director’s Recess Appointment

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House Financial Services Committee Releases Draft of Bill to Replace Dodd-Frank

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EU Member States Approve Privacy Shield

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Final Days of Payday? CFPB Proposes Update to Payday Lending Rule

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U.S. Supreme Court Remands Spokeo in Ruling that Mere Technical, Statutory Violation Is Insufficient to Confer Article III Standing

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Sirius XM Settles TCPA Class Action for $35 Million

By Justin M. Brandt on July 01, 2016

In one of the largest settlements in history under the Telephone Consumer Protection Act (“TCPA”), Sirius XM Radio Inc. agreed to pay $35 million to resolve putative class actions filed throughout the country alleging that it had used an automatic telephone dialing system to engage in telemarketing to trial users of its satellite radio service...
A Serious Circuit Split On Class Ascertainability
Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Chicago
CFPB Issues Update to Its Supervision and Examination Manual
Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey

Settlement Between North Carolina and Payday Lender Serves as Reminder to Payment Processors

By Keith Barnett on June 30, 2016

On June 6, the Attorney General for the State of North Carolina executed a settlement agreement with a payday lender, Future Income Payments, LLC, arising out of the payday lender’s alleged violation of that state’s usury laws.  The settlement agreement requires the lender to pay North Carolina $50,000 in attorneys’ and investigation fees, plus a...
Final Days of Payday? CFPB Proposes Update to Payday Lending Rule
Vermont Executes Assurance of Discontinuance with Payday Lender Payment Processor
Campbell-Ewald Court Rejects Defendant’s Attempt to Pay Up
Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey

House Financial Services Committee Releases Draft of Bill to Replace Dodd-Frank

By Ethan G. Ostroff on July 13, 2016

On June 23, a discussion draft of “The Financial CHOICE Act” was released by the House Financial Services Committee.  A primary purpose of this bill is to replace the Dodd-Frank Act, including reforming financial institution regulations and significantly changing the structure and authority of the Consumer Financial Protection Bureau.    Specifically, the CFPB’s leadership would change...
CFPB Seeks $40 Million Penalty Against Purported Debt Relief Providers
CFPB Monthly Report Highlights Complaints About Various Consumer Loans
$4.5 Million TCPA Class Action Settlement Preliminarily Approved in California Federal Court
Sirius XM Settles TCPA Class Action for $35 Million

A Serious Circuit Split On Class Ascertainability

By Chad R. Fuller on June 30, 2016

Law360, New York (June 30, 2016, 4:42 PM ET) -- The Eighth Circuit’s recent ruling in Sandusky Wellness Center LLC v. Medtox Scientific Inc. on ascertainability deepened a circuit split on one of the most important and challenging class certification issues. Until theU.S. Supreme Court resolves the split, the legal standard for ascertainability will remain...
Fannie Mae is Target of New FCRA Class Action
Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Chicago
Spokeo Starts to Show Its Effects
Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey

FTC Consent Order With Two Ohio Auto Dealers Resolves Misleading Advertising Claims

By Justin M. Brandt on July 21, 2016

On July 14, the Federal Trade Commission announced that it had entered into a final consent order with Ohio auto dealers Progressive Chevrolet Company and Progressive Motors Inc. (collectively, the “Progressive Dealers”), which the FTC had “charged with deceiving consumers by using advertising that touted low monthly car lease payments and down payments but failed...
CFPB Monthly Report Highlights Complaints About Various Consumer Loans
Sirius XM Settles TCPA Class Action for $35 Million
A Serious Circuit Split On Class Ascertainability
Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Chicago

City of Brotherly Love has Little Love for Employment Credit Checks

By David M. Gettings on June 27, 2016

Earlier this month, the Mayor of Philadelphia signed legislation regulating the use of credit checks in employment decisions.  By enacting this legislation, Philadelphia joins a growing cast of cities and states throughout the country prohibiting employment credit checks in certain instances.  When coupled with recent federal Equal Employment Opportunity Commission enforcement actions against employers based...
New Putative Class Action Challenges FCRA Disclosure Form
Connecticut Becomes Latest State to “Ban the Box”
Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey
California Federal Court Tentatively Approves $5.7 Million Deal to Settle Class Action Alleging FCRA Violations Based on Background Checks

Microsoft Fix for MiTM Security Patch Reveals Need for Thoughtful Patching Procedures

By Ronald I. Raether, Jr. on July 18, 2016

Most organizations understand the importance of timely implementing software updates and patches.  However, open platforms have permitted a level of customization such that a patch in one application may have unintended consequences in other parts of the overall system architecture, including customization of the software being updated.  A good example is the recent Microsoft security...
FTC Issues APEC CBPRs Warning Letters to Companies Claiming Compliance
Ransomware in Healthcare - A Clear and Present Danger
EU Member States Approve Privacy Shield
FCC Holds that TCPA Does Not Apply to the Federal Government

FTC Consent Order With Two Ohio Auto Dealers Resolves Misleading Advertising Claims

By Justin M. Brandt on July 21, 2016

On July 14, the Federal Trade Commission announced that it had entered into a final consent order with Ohio auto dealers Progressive Chevrolet Company and Progressive Motors Inc. (collectively, the “Progressive Dealers”), which the FTC had “charged with deceiving consumers by using advertising that touted low monthly car lease payments and down payments but failed...
FTC Approves Increasing Civil Penalty Amounts
FTC and Florida Attorney General Settle with Lead Generator Over Technical Support Scam
Federal Judge Rejects Challenge to CFPB Director’s Recess Appointment
CFPB Monthly Report Highlights Complaints About Various Consumer Loans