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.

Debt Collector Defeats FDCPA Suit with Bona Fide Error Defense

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
A federal judge in Utah has ruled that a debt collector may rely on the “bona fide error” defense to defeat a claim for violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq.  Analyzing the compliance procedures that the debt collector had in place, the Court granted summary judgment for… Continue Reading

CFPB Rule Requires Payday Lenders to Apply “Ability to Repay” Standard to Loans

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Today the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a new rule that will have a significant impact on the payday lending market. The CFPB will now require lenders to conduct a “full-payment test” to determine upfront whether the borrower will have the ability to repay the loan when it becomes due. Lenders… Continue Reading

DOJ Permits Banks to Create Real-Time Payment System

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On September 21, the Department of Justice cleared the way for a group of the twenty-four largest U.S. banks to create a real-time payment system that will permit immediate transfer of funds between financial institutions.  The system was proposed by The Clearing House Payments Co., LLC (“TCH”), a joint venture between the twenty-four banks that… Continue Reading

CFPB Issues First No-Action Letter to Online Lender Using Alternative Data

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On Thursday, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued its first no-action letter to Upstart Network, Inc., an online lender. The no-action letter green-lights the lender’s use of alternative data in marketing and pricing decisions. In exchange, Upstart will report lending and compliance information to the CFPB. UPSTART’S MODEL California-based Upstart provides an… Continue Reading

Federal Court Strikes CFPB’s Counts Against Payment Processors for Violating Discovery Order

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On August 25, the United States District Court for the Northern District of Georgia struck four counts of a complaint filed by the Consumer Financial Protection Bureau because it failed to abide by the Court’s discovery order. This matter began on March 26, 2015, when the CFPB filed a complaint against 12 debt collectors, four… Continue Reading

Join Us for the American Bar Association State and Local 2017 Annual Meeting

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders Partner Ashley Taylor will be a featured speaker at the American Bar Association State and Local 2017 Annual Meeting taking place on August 10, 2017. Ashley will participate in the State Attorneys General and Department of Justices Issues Committee meeting tomorrow to discuss state Attorneys General work… Continue Reading

Pennsylvania AG Follows Trend, Creates Consumer Financial Protection Unit

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On July 20, Pennsylvania Attorney General Josh Shapiro announced the creation of a Consumer Financial Protection Unit to protect Pennsylvanians from “financial scams.” According to Shapiro’s announcement, the new unit will focus on lenders and mortgage and student loan servicers that “prey on seniors, families with students, and military service members.”  This new consumer unit… Continue Reading

New Jersey Legislator Introduces Bill to Prevent Prepaid Account Fees

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On June 8, Assemblyman Troy Singleton (D) introduced New Jersey Assembly Bill 4965, which, if enacted, would closely mirror the Consumer Financial Protection Bureau’s Prepaid Rule, but also would prohibit prepaid account issuers in New Jersey from charging a number of fees to prepaid account holders.  Singleton co-sponsored a similar bill in 2012 that eventually… Continue Reading

Join Us for the Credit and Collection News Annual Creditor Grantor Consortium in Washington, DC

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners Ashley Taylor and David Anthony will be featured speakers at the upcoming Credit and Collections News (CCN) Annual Creditor Grantor Summit.  The conference will be held August 14-16, 2017 at the Ritz-Carlton in Georgetown, Washington, DC. Ashley will speak on a panel entitled “Working with Your Attorney… Continue Reading

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