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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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

CFPB Seeks Commentary on Proposed Changes to Prepaid Rule

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau has issued a formal request for public commentary on proposed changes to the Prepaid Rule, which was issued in October 2016.  According to the Bureau, the proposed changes address those concerns raised by prepaid card issuers about potential problem areas for compliance.  The Bureau’s suggested changes would adjust error resolution… 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 Encourages Retail Credit Card Companies to Consider More Transparent Promotions

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
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… Continue Reading

CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
In its fifth annual fair lending report, the Consumer Financial Protection Bureau highlighted redlining, mortgage and student loan servicing, and small business lending as areas of focus for 2017.  CFPB Director Richard Cordray specifically noted these areas for enhanced enforcement actions, describing them as “significant or emerging fair lending risk to consumers.” “In 2017 we… 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

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

District Court Rules SeaWorld Breached Customer Contracts and Violated Electronic Funds Transfer Act

Posted in ALL CFS Blog Entries, Payment Processing & Cards
A federal district court in Florida entered summary judgment against SeaWorld in a class action case, finding the theme park violated the Electronic Funds Transfer Act (EFTA)  by renewing class members’ contracts during their one-year term and collecting unauthorized payments after the contracts expired. Lead Plaintiff Jason Herman commenced the action in December 2014, alleging… 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