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

Alan D. Wingfield

Alan D. Wingfield

Blog Role:
Editor – Auto Finance

CFS Value:
Alan specializes in regulatory compliance as well as litigation matters.

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California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018

Posted in ALL CFS Blog Entries, Background Screening, Featured Posts
On October 14, 2017, California became the most recent state to adopt a “ban-the-box” law. The law, signed by Governor Jerry Brown, goes into effect on January 1, 2018, prohibiting pre-offer inquiries regarding applicants’ conviction histories, and regulating employers’ decisions to deny employment to an applicant based on his or her convictions. This law is… Continue Reading

New York AG Announces Settlements with Two Motor Vehicle Dealer Groups

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman announced two settlements with motor vehicle dealer groups that provide for over $900,000 in restitution to approximately 6,400 New York State consumers.  The settlements also require the dealers to pay $135,000 in penalties and costs to the state for the unlawful sale of credit repair and identity theft protection services… Continue Reading

Massachusetts AG Accuses Used Car Dealer of Deceptive Practices

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On September 26, Massachusetts Attorney General Maura Healey’s office filed a complaint against used car dealer JD Byrider, accusing the dealership of using predatory practices in its sale of allegedly defective vehicles.  The AG’s Office contends that JD Byrider sold allegedly defective vehicles with high cost loans to Massachusetts consumers in the “JD Byrider Program,”… Continue Reading

U.S. Chamber of Commerce and Other Business Associations Sue to Overturn Ban on Class Action Waivers

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The U.S. Chamber of Commerce and other business groups have filed a federal lawsuit seeking to invalidate the Consumer Financial Protection Bureau’s Rule banning class action waivers in arbitration provisions contained in financial institutions’ contracts with consumers.  Compliance with the Rule would be required beginning March 19, 2018.  The lawsuit was filed in the United… Continue Reading

Cursory Investigations and Misleading Reporting Leads to Partial Summary Judgment Win for Consumer

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts
A recent federal court decision granting summary judgment to a plaintiff on a claim that a lender violated the Fair Credit Reporting Act (the “FCRA”), 15 U.S.C. § 1681 et seq., by failing to conduct a “reasonable” investigation of a credit reporting dispute – an issue normally reserved for a jury – illustrates the difficulty… Continue Reading

FTC Issues Guidance on the Revised Used Car Rule

Posted in ALL CFS Blog Entries, Auto Finance
In November 2016, the Federal Trade Commission announced its final changes to the Used Car Rule, formally referred to as the Used Motor Vehicle Trade Regulation Rule, which requires motor vehicle dealers to display a winder sticker, known as the “Buyers  Guide,” on used vehicles offered for sale.  Due to numerous questions raised by dealers… Continue Reading

West Virginia Federal Court Preliminarily Approves Nearly $30M TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In re Monitronics International, Inc., pending in the Northern District of West Virginia, is a consolidated class action lawsuit brought under the Telephone Consumer Protection Act.  After years of contentious litigation, this past week the Court preliminarily approved a class action settlement of $28 million.  This significant settlement serves as another example of the high… Continue Reading

New TCPA Class Action: Expansion into Service Calls

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On August 29, yet another Telephone Consumer Protection Act class action was filed in the Middle District of Florida. This suit, however, is a bit different than others that we have seen. In Gillmore v. Lokey Automotive Group, Inc., the complaint alleges that text messages sent to the plaintiff April Gillmore by an automobile dealership… Continue Reading

Court Finds Congress Has Waived Governmental Sovereign Immunity for FCRA Violations

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
In Kent v. TransUnion, plaintiff Rowdy Kent sued multiple consumer reporting agencies and the United States Defense Finance and Accounting Services for alleged violations of the Fair Credit Reporting Act.  DFAS moved to dismiss Kent’s claims, arguing that it possesses sovereign immunity from claims under the FCRA.  On August 25, the District Court for the… Continue Reading

Defendant Seeks To Stymie Plaintiff’s ‘False Pretense’ Claim Under the FCRA

Posted in ALL CFS Blog Entries, Background Screening
In Patel v. Comcast Corporation, plaintiff consumer Mounang Patel brought a purported class action lawsuit against defendant Comcast Corporation, arguing that Comcast unlawfully obtains background checks (also referred to as consumer reports) on consumers under false pretenses.  On July 17, Comcast moved to dismiss this class claim on the ground that Patel failed to allege… Continue Reading

Arbitration Rule Compliance Date Set for March 19, 2018

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts, State Attorneys General, CFPB, & FTC
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… Continue Reading

CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Featured Posts, State Attorneys General, CFPB, & FTC
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… Continue Reading

Court Certifies FCRA Background Check Disclosure Claim Against Employer That Relied on Vendor’s Disclosure Form

Posted in ALL CFS Blog Entries, Background Screening
A new Florida federal district court case is yet another reminder of the minefield of federal and state regulations governing employer criminal background check forms.  In Graham v. Pyramid Healthcare Solutions, the Court certified a class action against the employer under the federal Fair Credit Reporting Act and ruled that whether the employer willfully violated… Continue Reading

CFPB Targets Credit Repair Companies and Their Principals for Allegedly Misleading Consumers and Charging Improper Fees

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On June 27, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced approximately $2 million in fines and penalties against four credit repair companies and three associated individuals for allegedly misleading consumers and charging improper fees.  Under two proposed final judgments that the CFPB filed in United States District Court for the Central District of California,… Continue Reading

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

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
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… Continue Reading

Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures

Posted in ALL CFS Blog Entries, Background Screening
Five Guys Enterprises LLC—franchisor of the popular Five Guys Burger Co.—and a California franchisee are facing a lawsuit from a former employee alleging numerous violations of the federal Fair Credit Reporting Act and California state law.  The plaintiff, Jeremy Lusk, alleges he began working for Five Guys in August 2016.  He alleges that in the… Continue Reading

Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices.  The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership… Continue Reading

District Court Dismisses FCRA Class Action for Lack of Standing Based on Insufficient Risk of Imminent Harm

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
Since the Supreme Court issued its decision in Spokeo, Inc. v. Robins, appellate and district courts throughout the country have been grappling with the ruling’s reach.  Just this past month, the District Court for the Southern District of New York weighed in on the issue and found that a plaintiff must show more than a… Continue Reading

District Court Rejects Notion That An Improper Background Check Disclosure Automatically Renders A Subsequent Background Authorization Improper

Posted in ALL CFS Blog Entries, Background Screening
In the world of background check litigation under the Fair Credit Reporting Act (“FCRA”), one theory that plaintiffs frequently assert is that if the background check disclosure provided by the employer violates the FCRA, then the authorization based on that disclosure is also necessarily inadequate.  Under the FCRA, an employer desiring to obtain a criminal… Continue Reading

TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Mortgage Lenders & Servicers
While the world eagerly awaits the D.C. Circuit’s forthcoming ruling on the proper interpretation of the Telephone Consumer Protection Act (TCPA), a recent federal court ruling imposing tens of millions of dollars of liability is a reminder of the risks associated with outbound calling activities and of the stakes at play in the ACA International… Continue Reading

Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Featured Posts
In one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the viability… Continue Reading

Sodexo Defends FCRA Class Action Alleging Failures in Hiring Process

Posted in ALL CFS Blog Entries, Background Screening
Sodexo, Inc. was recently named as the defendant in a putative Fair Credit Reporting Act class action based on alleged improprieties in its hiring procedures.  The case, Piveronas v. Sodexo, Inc., was originally filed in the Court of Common Pleas of Allegheny County, Pennsylvania, and removed to the United States District Court for the Western… Continue Reading

Virginia Federal Court Dismisses FCRA Permissible Purpose Claim on Standing Grounds

Posted in ALL CFS Blog Entries, Background Screening
On March 29, 2017, a judge in the United States District Court for the Eastern District of Virginia dismissed a Fair Credit Reporting Act claim against Equifax Information Services, LLC alleging that Equifax provided the plaintiff’s consumer report to a third party without an FCRA permissible purpose.  Dilday v. DIRECTV, LLC et al., No. 3:16CV996-HEH. … Continue Reading

Court Rejects FCRA Background Check Settlement As Providing Insufficient Recovery For Class Members In Light Of Ninth Circuit Ruling

Posted in ALL CFS Blog Entries, Background Screening
This past week, the U.S. District Court for the Northern District of California declined to preliminarily approve a class action settlement of a Fair Credit Reporting Act (FCRA) claim because the payment to class members was unreasonably low.  In the Court’s view, the class members deserved more in light of the strengths of the plaintiff’s… Continue Reading