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

Arbitration Rule Compliance Date Set for March 19, 2018

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CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions

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New Federal Appeals Court Ruling Provides Ray of Sunshine for TCPA Defendants: Contractual Consent to Receive Calls Cannot be Revoked

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Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company

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Join Us for a Complimentary Webinar: “The CHOICE Act Passed the House: Now What? An Update on Financial Industry Regulation Under the Trump Administration”

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Texas Man Pleads Guilty to Felony Charge for Role in Foreclosure Rescue Scheme

By Laura Anne Kuykendall on June 27, 2017

The Department of Justice announced that Bruce Kevin Hawkins, 52, of Desoto, Texas, recently pled guilty in a federal court in Texas regarding his role in a foreclosure rescue scheme that ran from February 2012 to January 2013 and bilked over $240,000 from homeowners facing foreclosures.  Hawkins pled guilty to one count of mail fraud...
Pending Changes to Federal Bankruptcy Rules Could Negatively Impact Residential Mortgage Lenders
TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision
New WVCCPA Amendments are Enacted by Governor Justice
Troutman Sanders Welcomes Amy Pritchard Williams

CFPB Encourages Retail Credit Card Companies to Consider More Transparent Promotions

By Brooke Conkle on June 19, 2017

The Consumer Financial Protection Bureau (“CFPB”) sent letters to the top retail credit card companies at the beginning of June, encouraging the companies to use more transparent promotions, citing a major retailer’s decision to end deferred-interest programs associated with its credit card.  In the letter, the Bureau outlined its concerns that temporary promotions – such...
CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending
CFPB Releases Snapshot of Complaints Submitted by Senior Citizens
District Court Rules SeaWorld Breached Customer Contracts and Violated Electronic Funds Transfer Act
Chipotle Discloses Data Security Breach Related to Network Supporting Payment Processing for Restaurant

Debt Collector Prevails by Using Safe Harbor Language on Letters in Current Balance Case

By Reiss Wilks on July 10, 2017

In dismissing a claim against a debt collector, brought under the Fair Debt Collection Practices Act, the U.S. District Court for the Eastern District of Wisconsin found that language used by the debt collector clearly informing the consumer that interest and fees would continue to accrue on the balance did not violate the FDCPA. In...
Florida District Court Dismisses Consumer’s “Current Balance” Claim
Court Denies Cross Motions for Summary Judgment in Current Balance Case
Court Finds Lack of Attorney Meaningful Involvement Sufficient for Article III Standing
New Federal Appeals Court Ruling Provides Ray of Sunshine for TCPA Defendants: Contractual Consent to Receive Calls Cannot be Revoked

District Court Allows FCRA Lawsuit Alleging Debt Collector’s Improper Acquisition of Credit Report to Proceed

By David N. Anthony on July 21, 2017

A federal district court in Indiana has allowed a plaintiff’s claim that a debt collector improperly accessed her credit report to proceed because the debt collector did not claim the alleged debt arose from a credit transaction in its motion to dismiss the complaint. Plaintiff Vivian Pigg incurred the alleged debt after defaulting on a...
CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions
USPS’ Motion to Dismiss Putative FCRA Class Action Denied by Wisconsin Magistrate Judge
Supreme Court Declines to Weigh in on Spokeo in FACTA Lawsuit
J. Crew Beats FACTA Class Action on Spokeo Grounds

New Federal Appeals Court Ruling Provides Ray of Sunshine for TCPA Defendants: Contractual Consent to Receive Calls Cannot be Revoked

By Alan Wingfield on June 23, 2017

Lawsuits under the Telephone Consumer Protection Act (TCPA) have become the second most common form of consumer protection claim brought in federal court. Many of these lawsuits are premised on the idea that a consumer has the absolute right to revoke previously given consent to receive calls. A calling party could be subject to statutory...
Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices
Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry
High Call Volume Not Necessarily a Violation of FDCPA or Rosenthal Act
DOJ Issues New Guidance on Corporate Compliance Programs

CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions

By David N. Anthony on July 10, 2017

On July 10, 2017, the Consumer Financial Protection Bureau issued its long-awaited final rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the CFPB regarding any efforts to compel arbitration. This rule is of significance to any financial services company that utilizes...
USPS’ Motion to Dismiss Putative FCRA Class Action Denied by Wisconsin Magistrate Judge
Employer Seeks Supreme Court Review of Ninth Circuit Finding of Willful FCRA Violation
Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures
District Court Rejects Notion That An Improper Background Check Disclosure Automatically Renders A Subsequent Background Authorization Improper

Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels

By Julie Hoffmeister on May 31, 2017

On May 23, 2017, in Whalen v. Michaels Stores, Inc., the United States Court of Appeals for the Second Circuit issued a summary order affirming the district court’s dismissal of a putative data breach class action based on lack of Article III standing. As background, the named plaintiff Mary Jane Whalen made credit card purchases at...
NY AG Settles with IoT Company over Security Practices
State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach
TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision
Class Action Filed Against Chipotle for Data Security Breach Involving Payment Processing System

Arbitration Rule Compliance Date Set for March 19, 2018

By David N. Anthony on July 19, 2017

Financial institutions with arbitration clauses in consumer contracts are on the clock. The Consumer Financial Protection Bureau’s (CFPB) new Arbitration Rule was published in the Federal Register today, with an effective date of September 18, 2017 and a compliance date of March 19, 2018. Absent congressional action or successful litigation challenge, those financial institutions that...
District Court Approves $1.53M Settlement Between CFPB and Credit Repair Companies in Telemarketing Sales Rule Lawsuit
CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions
FTC and International Consumer Protection Agencies Announce Website Revamp
Texas Man Pleads Guilty to Felony Charge for Role in Foreclosure Rescue Scheme