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

Ashley L. Taylor, Jr.

Ashley L. Taylor, Jr.

Blog Role:
Blog Leader
Editor – State Attorneys General, CFPB & FTC; Payment Processing & Credit Cards

CFS Value:
Ashley specializes in multi-state enforcement and state Attorneys General investigations work. 

Subscribe to all posts by Ashley L. Taylor, Jr.

Federal and State Regulators Obtain Record Judgment Enforcing TCPA Violations Predicated Upon Insufficient Vendor Oversight

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 5, 2017, an Illinois federal judge awarded $280 million to the federal government and the states of California, Illinois, North Carolina, and Ohio against Dish Network LLC over violations of numerous federal and state do-not-call laws. The district court’s $280 million penalty constitutes the largest ever for violations of telemarketing laws. In addition,… 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

CFPB Releases Snapshot of Complaints Submitted by Senior Citizens

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On May 31, the Consumer Financial Protection Bureau released a report summarizing the complaints the Bureau received from senior citizens since the CFPB opened its doors in July 2011.  In its nearly six years of operation, the Bureau has handled approximately 1,163,200 complaints, with 103,100 complaints coming from consumers 62 years of age and older.… Continue Reading

NY AG Settles with IoT Company over Security Practices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC (“Safetech”) over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks.  According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless… Continue Reading

State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On May 23, state attorneys general from 47 states and the District of Columbia announced a settlement agreement with Target Corporation to resolve the states’ investigation into the company’s 2013 data breach.  Under the terms of the Assurance of Voluntary Compliance (“AVC”), Target will pay $18.5 million to the states – the largest multistate data… Continue Reading

As CFPB Faces Uncertainty, State Regulators Fill Gap

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Many predicted that newly-elected President Donald Trump would remove Richard Cordray, Director of the Consumer Financial Protection Bureau, upon taking office.  Cordray remains the head of the CFPB, but uncertainty still looms at the agency.  President Trump has characterized the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation which created the CFPB, as… Continue Reading

Chipotle Discloses Data Security Breach Related to Network Supporting Payment Processing for Restaurant

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Payment Processing & Cards
In its Form 10-Q dated April 25, 2017 for the quarterly period that ended on March 31, 2017, Chipotle Mexican Grill, Inc. announced that it had detected a data security breach in its electronic processing and transmission of confidential customer and employee information.  Specifically, Chipotle’s information security team detected unauthorized activity on the network that… Continue Reading

State Banking Regulators File Suit Challenging OCC Fintech Charter

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On April 26, a group of state bank regulators filed a lawsuit to block the Office of the Comptroller of the Currency from issuing special charters to fintech firms.  The regulators argue that the OCC fintech charter will improperly displace already effective state laws regulating fintech companies, that the OCC lacks the authority to issue… Continue Reading

CFPB Meets With Community Bankers to Discuss Use of Alternative Data in Credit Decisions

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On April 25, the Consumer Financial Protection Bureau held its Spring 2017 Community Bank Advisory Council meeting in Washington.  The purpose of the meeting was to allow representatives from community banks an opportunity to provide additional input on the Bureau’s Request for Information (“RFI”) on the use of alternative data to assess creditworthiness of consumers… Continue Reading

U.S. District Court Dismisses CFPB Case Against Payment Processor

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On March 17, the U.S. District Court for the District of North Dakota granted Intercept Corporation (“Intercept”), Bryan Smith, and Craig Dresser’s Motion to Dismiss the Consumer Financial Protection Bureau’s (“CFPB”) Complaint in the case between the CFPB and Intercept. The decision to grant the Motion to Dismiss marks the first time that the Bureau… Continue Reading

Join Us for the Consero Financial Services and Insurance Litigation Forum April 2-4

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners John Lynch and Ashley Taylor will be featured speakers at this year’s Consero Financial Services & Insurance Litigation Forum on April 2-4, 2017 at The Biltmore Miami – Coral Gables.  Consero’s 2017 Financial Services & Insurance Litigation Forum will address current and looming legal and business challenges faced by today’s… Continue Reading

DOJ Brief Opposing CFPB Brings More Uncertainty

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case. CFPB’s Single Director Structure The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in… Continue Reading

Join Us at the NAPBS 2017 Mid-Year Legislative & Regulatory Conference

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson,  Ron Raether, and Ashley Taylor will be featured panelists at the National Association of Professional Background Screeners (“NAPBS”) 2017 Mid-Year Legislative & Regulatory Conference to be held March 20-21 in Arlington, Virginia.  In an interview-style format, David will have a conversation with… Continue Reading

Washington Court Orders 5-Hour Energy To Pay $4.3M For Deceptive Ads in AG Suit

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 7, Living Essentials LLC and Innovative Ventures LLC, the makers of 5-Hour Energy were ordered to pay nearly $4.3 million in penalties and attorneys’ fees and costs after a Washington State court found the makers deceived consumers with misleading claims regarding things like the effectiveness of the flavored energy shots.  Living Essentials and… Continue Reading

CFPB and Dodd-Frank in Republicans’ Crosshairs

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 3, President Trump signed an executive order directing the Treasury Secretary to review the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Trump earlier characterized Dodd-Frank as “a disaster” and said that his administration would work to cut “a lot out of” the 2010 law.   House Financial Services Committee Chairman Jeb Hensarling (R-Tex.)… Continue Reading

2016 Consumer Financial Services Year in Review and a Look Ahead

Posted in ALL CFS Blog Entries, Featured Posts
This year is sure to be a transformative one for the consumer financial services world. As we navigate an unprecedented volume of industry regulation and forthcoming changes from a new administration, Troutman Sanders is uniquely positioned to help its clients find successful resolutions and stay ahead of the compliance curve. We are honored to have… Continue Reading

NY AG Settles with Acer for $115,000 over Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On January 26, New York Attorney General Eric Schneiderman announced a settlement with Acer Service Corporation over an alleged data breach involving more than 35,000 credit card numbers, including the credit card information and other personal information of 2,250 New York residents.  As part of the settlement, Acer agreed to pay $115,000 in penalties and… Continue Reading

Democratic AGs File Motion to Intervene in CFPB “For Cause” Removal Case

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On January 23, Democratic attorneys general from 16 states and the District of Columbia filed a motion to intervene in the closely watched PHH Corp. v. Consumer Financial Protection Bureau case, currently pending in the U.S. Court of Appeals for the District of Columbia.  As we reported here and here, in October 2016, a divided… Continue Reading

CFPB and State AGs Sue Largest Student Loan Servicer

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 18, the CFPB and the state attorneys general for Illinois and Washington filed three separate enforcement actions against Navient Corporation and its related entities for violations of a number of consumer protection laws.  Navient is the largest student loan servicer in the United States, servicing the loans of more than 12 million borrowers,… Continue Reading

Payment Processing Marketer Seeks Sanctions Against CFPB

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On January 4, a defendant in a Fair Debt Collections Practices Act case moved for sanctions against the Consumer Financial Protection Bureau, arguing that it never had proof that the defendant acted wrongfully when it filed suit in early 2015.  In support of its Motion, Pathfinder Payment Solutions, Inc. stated that the Bureau “knowingly exceeded… Continue Reading

FTC Holds Second Annual PrivacyCon

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 12, the FTC held its second annual PrivacyCon conference in Washington.  The day-long event featured presentations and exhibits by a number of scholars and privacy experts offering their research on consumer privacy and security in the digital age.  Chairwoman Edith Ramirez opened PrivacyCon by noting the myriad ways that consumer data is collected,… Continue Reading

Republican Senators Press Vice President-Elect Pence for Removal of CFPB Director

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On the same day that House Democrats wrote to President-elect Donald Trump to defend controversial Consumer Financial Protection Bureau Director Richard Cordray, two Republican senators sent a letter to Vice President-elect Mike Pence to press for his removal.  The letter, signed by Ben Sasse (Neb.) and Mike Lee (Utah), requested that Trump dismiss Cordray “promptly… Continue Reading

House Democrats Urge President-Elect Trump Not to Remove CFPB Director

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 9, twenty-one Democrats from the House of Representatives sent a letter to President-elect Trump in defense of controversial Consumer Financial Protection Bureau Director Richard Cordray, urging Trump not to remove Cordray from his post.  The letter began by noting that no President has ever removed an independent agency head for cause and threatened… Continue Reading

Troutman Sanders Named Among 2016 Practice Groups of the Year

Posted in ALL CFS Blog Entries, Featured Posts
Financial Services Practice Recognized for Excellence by Law360 Troutman Sanders LLP announced today that its Consumer Financial Services practice has been selected as one of Law360’s 2016 Practice Groups of the Year. Troutman Sanders was recognized in Law360’s Consumer Protection category for excellence in representing and advising clients with respect to high-stakes litigation and regulatory… Continue Reading