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

Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB

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Supreme Court Declines to Revisit Third Circuit’s Decision That Debtors Are Not Required to Dispute a Debt Prior to Filing an FDCPA Lawsuit

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CFPB Issues New Proposed Rules for Prepaid Debit Cards

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Law Firm Files Class Action Lawsuit Against Jimmy John’s for Credit Card Data Breach

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CFPB Supervision Report Targets Illegal Debt Collection Practices

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CFPB Proposes Expanded Foreclosure Protections

By Massie P. Cooper on November 24, 2014

On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers.  These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers.  Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages.  The new mortgage rules can...
HUD Breaks from CFPB, Refuses to Adopt Cure Provisions in Definition of Qualified Mortgage
CFPB Finalizes Qualified Mortgage Cure and Other Amendments to 2013 Mortgage Rules
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
Supreme Court Skeptical of Lender’s Interpretation of TILA Rescission Statute

Pennsylvania A.G. Files Suit Against Payday Lender

By Reade Jacob on November 26, 2014

Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet.  The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.  The suit...
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
CFPB Issues New Proposed Rules for Prepaid Debit Cards
NBPCA Issues Statement Regarding CFPB’s Proposed Rules for Prepaid Cards
Law Firm Files Class Action Lawsuit Against Jimmy John’s for Credit Card Data Breach

CFPB Delays Proposed Rulemakings on Overdraft, Payday Lending, and Debt Collection Until 2015

By Amanda L. Genovese on November 26, 2014

On November 25, the Consumer Financial Protection Bureau announced that it plans to push back three key rulemakings until next year.  These rulemakings center on overdraft protection, payday lending, and debt collection.  The agenda released by the CFPB stated that it would issue proposals on these issues in the first seven months of 2015.  This...
Pennsylvania A.G. Files Suit Against Payday Lender
Maine’s Attorney General Issues Warning to Residents Regarding Calls from “Scammers”
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
Supreme Court Declines to Revisit Third Circuit’s Decision That Debtors Are Not Required to Dispute a Debt Prior to Filing an FDCPA Lawsuit

CFPB Urges Industry to Develop Faster System for Electronic Transfers

By David M. Gettings on November 26, 2014

On November 20, Consumer Financial Protection Bureau Director Richard Cordray urged financial institutions to develop faster systems for processing electronic funds transfers (EFTs).  In his prepared remarks, however, he insisted that these faster systems must offer robust consumer protections. According to Cordray, the U. S. banking system needs improvement in the ability to process payments...
New FCRA Background Check Lawsuit Demonstrates Compliance Minefield Pertaining to Employment Background Checks
Florida AG and FTC File Complaints Against Technical Support Services
Electronic Funds Transfers on CFPB’s Enforcement Radar
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB

Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB

By Scott Kelly on November 20, 2014

An $8 million settlement announced November 19, 2014, between the Consumer Financial Protection Bureau (CFPB) and the nation’s largest “buy here pay here” auto dealer represents yet another warning coming out of Washington, D.C. that: 1. Compliance with the requirements of the Fair Credit Reporting Act (FCRA) when businesses furnish credit information to consumer reporting...
House Financial Services Head Criticizes Proposed CFPB Auto Finance Regulation
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

Pennsylvania A.G. Files Suit Against Payday Lender

By Reade Jacob on November 26, 2014

Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet.  The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.  The suit...
Florida AG and FTC File Complaints Against Technical Support Services
Maine’s Attorney General Issues Warning to Residents Regarding Calls from “Scammers”
California Attorney General Releases Data Breach Report
FCC Steps into Data Privacy Fray with Action Against Telecommunications Company

New FCRA Background Check Lawsuit Demonstrates Compliance Minefield Pertaining to Employment Background Checks

By David M. Gettings on November 26, 2014

After facing speculation as to whether Uber sufficiently screens the backgrounds of its drivers, Uber is now facing a class action under the Fair Credit Reporting Act for allegedly failing to conduct background checks in accordance with the FCRA.  This lawsuit provides another example of the minefield companies face when conducting pre-employment background checks. According...
FTC and State Attorneys General Reach $22 Million Proposed Settlement with Companies Offering Hidden-Fee Access to Credit Reports
Supreme Court Declines to Revisit Third Circuit’s Decision That Debtors Are Not Required to Dispute a Debt Prior to Filing an FDCPA Lawsuit
Supreme Court Skeptical of Lender’s Interpretation of TILA Rescission Statute
Law Firm Files Class Action Lawsuit Against Jimmy John’s for Credit Card Data Breach

CFPB Delays Proposed Rulemakings on Overdraft, Payday Lending, and Debt Collection Until 2015

By Amanda L. Genovese on November 26, 2014

On November 25, the Consumer Financial Protection Bureau announced that it plans to push back three key rulemakings until next year.  These rulemakings center on overdraft protection, payday lending, and debt collection.  The agenda released by the CFPB stated that it would issue proposals on these issues in the first seven months of 2015.  This...
CFPB Urges Industry to Develop Faster System for Electronic Transfers
Electronic Funds Transfers on CFPB’s Enforcement Radar
CFPB Proposes Expanded Foreclosure Protections
HUD Breaks from CFPB, Refuses to Adopt Cure Provisions in Definition of Qualified Mortgage