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

Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project

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Potential Expansion of HMDA Reporting Requirements

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Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme

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

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Auto Finance Summit 2014 – October 6-8 – Las Vegas

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Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project

By Maryia Y. Jones on August 27, 2014

On August 21, the Consumer Financial Protection Bureau (CFPB) has selected seven mortgage companies and five vendors to participate in a three-month pilot program that will aim to determine whether electronic filings could improve mortgage closings.  The pilot program is a part of the CFPB’s “Know Before You Owe” mortgage initiative. Earlier this year in...
Potential Expansion of HMDA Reporting Requirements
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
Federal Reserve’s Quarterly Report Reveals Banks Are Making Fewer Mortgages
Seventh Circuit Favors Simplified and Neutral Class Action Notices

SEC Finalizes Tougher Credit Rating Agency Rules

By Scott Kelly on August 28, 2014

On August 27, the Securities and Exchange Commission adopted new rules for credit rating agencies to enhance governance, protect against conflicts of interest, and increase transparency to improve the quality of credit ratings and increase credit rating agency accountability. Industry observers hope that the new rules will address problems that have contributed to the failure...
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

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 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

Auto Finance Summit 2014 - October 6-8 - Las Vegas

By Virginia Bell Flynn on August 22, 2014

The annual Auto Finance Summit is quickly approaching and their roster and agenda look superb. AutoFinanceSummit.com describes this year's event: "Sharing insights and innovations make it more than the industry’s premier event, it’s your annual opportunity to meet, network and learn from the best. This conference has grown into the “can’t miss” event of the...
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”.
OCC Identifies Signs of Risk in Auto Lending Industry

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,...
Auto Finance Summit 2014 - October 6-8 - Las Vegas
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

Contracting and Text Sending is Sufficient for Exercise of Personal Jurisdiction in TCPA Class Action

By David N. Anthony on August 29, 2014

In Payton v. Kale Realty, LLC, plaintiff Payton filed an amended complaint, asserting that defendant Kale used newly added defendant Voiceshot’s services to send unsolicited advertisements to potential customers’ cell phones.  Voiceshot provides web-based cloud telecommunication services by which users can send mass text messages for a fee.  Voiceshot is a Delaware company with its...
Auto Finance Summit 2014 - October 6-8 - Las Vegas
11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision
Court Decision Issued on Background Check Adjudication
Seventh Circuit Favors Simplified and Neutral Class Action Notices

SEC Finalizes Tougher Credit Rating Agency Rules

By Scott Kelly on August 28, 2014

On August 27, the Securities and Exchange Commission adopted new rules for credit rating agencies to enhance governance, protect against conflicts of interest, and increase transparency to improve the quality of credit ratings and increase credit rating agency accountability. Industry observers hope that the new rules will address problems that have contributed to the failure...
Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project
Potential Expansion of HMDA Reporting Requirements
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
Auto Finance Summit 2014 - October 6-8 - Las Vegas