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

Brooke Conkle

Brooke Conkle

Blog Role:
Contributor – Payment Processing & Cards

CFS Value:
Brooke focuses on complex litigation and federal consumer protection statutes, including the Fair Debt Collection Practices Act (FDCPA) and Truth in Lending Act (TILA).

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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

CFPB Publishes Guide to Prepaid Card Rule, Delays Rule’s Effective Date

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
At the end of January, the Consumer Financial Protection Bureau published its Prepaid Rule – Small Entity Compliance Guide.  The Bureau intends for the Guide to provide a user-friendly summary of the Prepaid Rule, issued in October, but cautions that the Guide is not a substitute for reviewing the Rule, Regulation E, or Regulation Z. … Continue Reading

CFPB Releases Monthly Report Highlighting Credit Card Complaints

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On March 28, the Consumer Financial Protection Bureau released its monthly complaint snapshot, with a specific focus on credit cards.  Since its inception in July 2011, the Bureau has handled 1,136,000 consumer complaints across all products, with 116,200 complaints related to credit cards.  The CFPB received 26,300 complaints in February 2017, with 2,299 of those… Continue Reading

Lawmakers in U.S. House of Representatives Considering Bill That Would Reform Class Action Litigation under Federal Rule of Civil Procedure 23

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 9, 2017, Judiciary Committee Chair Bob Goodlatte (R.-Va.), introduced H.R. 985, the Fairness in Class Action Litigation Act of 2017 (“the Act”). The Act aims to “amend the procedures used in federal court class actions and multidistrict litigation proceedings to assure fairer, more efficient outcomes for claimants and defendants.” Rep. Goodlatte issued a… Continue Reading

Republicans Move to Roll Back CFPB Prepaid Card Rules

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
Republicans in Congress have moved to repeal recently issued Consumer Financial Protection Bureau regulations governing the prepaid card industry.  Rep. Tom Graves (R-Ga.) introduced a bill in the House in early February that would submit the rules to a vote of disapproval under the Congressional Review Act.  A group of Republicans filed a similar measure… Continue Reading

CFPB Asks FL District Court to Approve $107M Settlement

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On February 24, the Consumer Financial Protection Bureau asked a federal district court in Florida to approve a $107 million settlement to resolve claims against Orion Processing LLC.  The Bureau alleged the bankrupt company engaged in a debt-relief scheme that cost consumers millions.  The CFPB filed suit against Orion in August 2015, alleging that the… Continue Reading

Federal Court Transfers Payment Processor’s Case Seeking Collection of $4.5M Judgment

Posted in ALL CFS Blog Entries, Payment Processing & Cards
A New York payment processor successfully defended one personal jurisdiction challenge, but lost the other in the Northern District of Texas.  The case represents an attempt by TransFirst Group, Inc. to collect a $4.5 million judgment it obtained against Dominic “Nick” Magliarditi in 2013 related to the group’s purchase of Magliarditi’s payment processing company, Payment… Continue Reading

CFPB Orders MasterCard and UniRush to Pay $13 Million

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On February 1, the Consumer Financial Protection Bureau ordered payment card companies MasterCard and UniRush to pay $10 million in restitution and a $3 million fine related to service breakdowns that left customers unable to access their funds.  “MasterCard and UniRush’s failures cut off tens of thousands of vulnerable consumers from their own money, 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

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

District Court Rejects TILA Suit as “Litigation Out of Control”

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 22, the United States District Court for the Eastern District of Pennsylvania entered judgment in favor of the defendant in an action involving a Truth in Lending Act claim, and issued a stern rebuke to the plaintiff and his counsel, instituting Rule 11 proceedings and describing the case as “litigation out of control.”   … Continue Reading

CFPB Updates Rulemaking Agenda

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 2, the Consumer Financial Protection Bureau issued a statement highlighting its updated rulemaking agenda for Fall 2016.  The Bureau specifically mentioned a number of supervisory and developmental initiatives scheduled for implementation in the coming months. In the area of mortgages, the CFPB expects to finalize proposed tweaks to the Know Before You Owe… Continue Reading

Southern District of New York Relies on Spokeo to Dismiss TILA Credit Card Suit

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 16, U.S. District Judge Paul A. Engelmayer dismissed a putative class action suit alleging that Nordstrom department store’s credit card account disclosures violated the Truth in Lending Act (“TILA”).  Relying on the Supreme Court’s decision in Spokeo, Inc. v. Robins, the Court concluded that the plaintiff did not have standing to bring the… Continue Reading

Seventh Circuit Relies on Spokeo Reasoning to Dismiss FACTA Case for Lack of Standing

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 13, the Seventh Circuit Court of Appeals ordered the dismissal of a proposed class action alleging that a restaurant did not properly truncate credit card expiration dates on receipts, finding the plaintiff lacked Article III standing.  The plaintiff, Jeremy Meyers, was given a copy of his receipt after dining at Nicolet Restaurant of… Continue Reading

District Court Rules Credit Card Debt Collection Dispute Must Be Arbitrated

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 2, Judge Valerie Caproni of the Southern District of New York ruled that a class action suit alleging violations of the Fair Debt Collection Practices Act must be arbitrated.  The class plaintiff, Alicia Zambrana, applied for and received a Best Buy-branded credit card from Household Bank N.A. (“HSBC”).  While the court could not… Continue Reading

CFPB Publishes Prepaid Card Fact Sheet

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On November 15, the Consumer Financial Protection Bureau issued a fact sheet to highlight the new requirements and deadlines imposed by the Bureau’s latest Prepaid Rule, which was finalized last month.  The fact sheet notes the effective dates of new requirements under the Rule and lists any related exceptions or accommodations.  The Bureau issued the… Continue Reading

FTC Alleges Prepaid Card Company Deceptively Marketed Reloadable Debit Cards

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On November 10, the Federal Trade Commission filed a complaint in the Northern District of Georgia against NetSpend Corporation, alleging that the company repeatedly deceived consumers about their ability to access funds deposited on the company’s debit cards.    NetSpend markets, sells, and services prepaid debit cards, including general purpose reloadable cards.  According to the FTC,… Continue Reading

CFPB to Publish Public List of Companies Offering Free Credit Scores

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
The CFPB has announced plans to produce a list of companies offering existing customers free access to their credit score.  According to the CFPB, “educating and empowering consumers to take more control over their financial lives” constitutes a core part of the Bureau’s mission.  Credit scores are vitally important to the Bureau in this regard… Continue Reading

Payment Card Industry Security Standards Council Announces New Protections for Payment Devices

Posted in ALL CFS Blog Entries, Payment Processing & Cards
The Security Standards Council of the Payment Card Industry (“PCI”) announced updates to its payment device standard, which will enable stronger protections for cardholder data, including data such as cardholders’ personal identification numbers (PINs) and cardholder data stored on the magnetic stripe of cards or on mobile devices.  The updated standard addresses the increased threats… Continue Reading

CFPB Orders First National Bank of Omaha to Pay $32 Million for Credit Card Add-On Products

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On August 25, the Consumer Financial Protection Bureau ordered First National Bank of Omaha to pay more than $32 million for alleged unlawful credit card practices related to add-on products and services.  In addition to a penalty of $4.5 million, the bank must provide $27.75 million in relief to nearly 257,000 consumers. The CFPB’s order… Continue Reading