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

David N. Anthony

David N. Anthony

Blog Role:
Blog Leader
Editor – Debt Buyers & Collectors

CFS Value:
David specializes in consumer financial services litigation, including class actions. He also serves as a leader for the firm’s Financial Services Litigation practice.

Subscribe to all posts by David N. Anthony

FTC and State AGs to Announce Major Coordinated Consumer Fraud Enforcement Initiative

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
The Federal Trade Commission (FTC) issued a press release earlier today alerting the media and other interested parties that it will announce a “major coordinated consumer fraud enforcement initiative” Friday, October 13 at 11:30 a.m. EST. The Acting Director of the FTC’s Bureau of Consumer Protection, Thomas Pahl, and Illinois Attorney General Lisa Madigan will headline… Continue Reading

House Financial Services Committee Hears Bill to Exempt Lawyers from FDCPA in Connection with Legal Proceedings and Related Communications

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On September 7, the Financial Services Committee held hearings on a bill, H.R. 1849: Practice of Law Technical Clarification Act of 2017 (Trott), that seeks to amend the Fair Debt Collection Practices Act. The current definition of “debt collector” under the FDCPA does not make clear whether it applies to attorneys, especially in the context… 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

CFPB Issues Guidance to Small Businesses on Complying With Rule Banning Class Action Waivers

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On July 10, 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 consumer… Continue Reading

Starbucks Hit with FCRA Class Action

Posted in ALL CFS Blog Entries, Background Screening
Starbucks Corp. has been sued in a proposed class action in the Northern District of Georgia for alleged violations of the Fair Credit Reporting Act with its employment application process.  Plaintiff Kevin Wills claims Starbucks rejected job applicants based on consumer reports without first providing a copy of the reports to the applicants and notifying… 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

Bill to Cap FCRA Liability Gets Hearing Before Congressional Subcommittee

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
This past May, Rep. Barry Loudermilk (R-Ga.) introduced H.R. 2359, the FCRA Liability Harmonization Act, which would cap class action damages in Fair Credit Reporting Act claims at $500,000 or one percent of the defendant’s net worth, whichever is less, and eliminate punitive damages.  Such changes would align the Fair Credit Reporting Act with numerous… Continue Reading

Second Circuit Affirms Dismissal of FACTA Class Action Against Donna Karan for Lack of Standing

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On September 20, the Second Circuit Court of Appeals in Katz v. The Donna Karan Company, LLC, affirmed the lower court’s dismissal of a Fair and Accurate Credit Transactions Act putative class action for failure to establish a concrete injury sufficient to maintain Article III standing to bring suit. As we previously reported, plaintiff Yehuda… 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 Appellate Court Rejects Attorneys’ Fees-Only Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In January 2013, a teenager in Australia posted a photo online showing that his “footlong” Subway sandwich was in fact only 11 inches, setting off a viral storm of consumers discovering their “footlong” sandwiches were similarly not as large as advertised.  That spawned a number of class action lawsuits in America accusing Subway’s franchisor, Doctor’s… Continue Reading

NY and NJ Render Conflicting FDCPA Decisions Involving Credit Repair Companies

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
Two recent decisions from the Southern District of New York and the District of New Jersey have expressly disagreed about a credit repair company’s dispute of a debt on behalf of a consumer in two Fair Debt Collection Practices Act cases.  In Taylor-Burns v. AR Resources, Inc., plaintiff Tonya Taylor-Burns alleged that the debt collector… Continue Reading

Federal District Court Sanctions CFPB for Failing to Provide Knowledgeable Deposition Witness

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 25, 2017, the United States District Court for the Northern District of Georgia entered an order granting multiple Defendants’ consolidated motion for sanctions against the Consumer Financial Protection Bureau. Defendants’ Rule 37 motion alleged the CFPB failed to produce a knowledgeable deposition witness and also failed to follow the Court’s various orders to… Continue Reading

CFPB Shuts Down Credit Repair Company for Charging Illegal Fees

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
A California district court approved a settlement between Prime Marketing Holdings LLC and the Consumer Financial Protection Bureau, whereby Prime Marketing agreed to pay $150,000 and be banned from offering credit repair services.  The settlement was a result of the CFPB’s September 2016 suit against Prime Marketing for allegedly misleading consumers and charging illegal fees. … Continue Reading

11th Circuit Rules That Consent Under TCPA Can Be Partially Revoked

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The Eleventh Circuit ruled in Schweitzer v. Comenity Bank that a consumer can verbally revoke consent to be called on her cell phone using an automatic telephone dialing system “in the morning and during the work day.”  As a result, the district court improperly granted summary judgment to the bank because a jury could find the… Continue Reading

Join Us at the National Association of Professional Background Screeners Annual Conference

Posted in ALL CFS Blog Entries, Background Screening, CFS Events
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson, and Tim St. George will be featured speakers at the upcoming National Association of Professional Background Screeners (NAPBS) Annual Conference, to be held in Orlando, Florida on September 17-19, 2017. On Tuesday, September 19, David, Cindy and Tim will speak on a panel entitled “FCRA… Continue Reading

Federal Appellate Court Affirms Dismissal of Putative FCRA Class Action

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On August 24, the United States Court of Appeals for the Eleventh Circuit affirmed the dismissal of a putative class action against TransUnion on the basis that it failed to allege a plausible claim for relief, holding that TransUnion was not objectively unreasonable in its reading of the Fair Credit Reporting Act. The plaintiff, Kathleen… Continue Reading

Federal District Court Grants Preliminary Approval of $3.2M TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 10, Massachusetts District Court Judge Richard G. Stearns granted preliminary approval of a $3.2 million class settlement agreement in a Telephone Consumer Protection Act class action filed against Collecto, Inc.  The four named plaintiffs allege that Collecto made unauthorized telephone calls to class members’ cellular phones using an automated telephone dialing system in… Continue Reading

Indiana Becomes First State to Prohibit Ban-the-Box Ordinances

Posted in ALL CFS Blog Entries, Background Screening
Countering a nationwide trend of “ban the box” ordinances that prohibit employers from asking about an individual’s criminal history at the initial application stage, Indiana has become the first state to ensure through legislation that employers can inquire into applicants’ criminal histories.  The legislation prohibits localities from implementing “ban the box” ordinances.  The measure has… Continue Reading

Courier Service Settles Lawsuit Challenging Background Check Disclosure Form and Notices

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Featured Posts
The recent matter of Nesbitt, et al. v. Postmates Inc., Case No. CGC15547146 in the Superior Court of the State of California, County of San Francisco, demonstrates the continuing trend of litigation regarding the content of background disclosure forms, as well as ongoing issues regarding the failure of employers to provide notice of adverse action… Continue Reading

Seventh Circuit Holds That Debt Collector Cannot Avoid Liability Under FDCPA Despite Strict Compliance With Controlling Precedent

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In a surprising decision involving a vigorous and scathing dissent, the Seventh Circuit ruled that a debt collector was liable under the Fair Debt Collection Practices Act even when it followed the law that was in effect at the time the alleged violation took place.  This alarming ruling raises an obvious question:  Is compliance with… Continue Reading

Illinois Federal Court Refuses to Certify TCPA Robocall Class Action Based in Part on Article III Standing

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On August 15, the United States District Court for the Northern District of Illinois denied a motion for class certification in Legg v. PTZ Insurance Agency, Ltd., a putative class action under the Telephone Consumer Protection Act.  The plaintiffs in the lawsuit, Christopher Legg and Page Lozano, sued PTZ and affiliated companies alleging violations of… Continue Reading

Spokeo Update: Ninth Circuit Holds that Plaintiff Adequately Alleged Article III Standing

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts
On August 15, 2017, the Ninth Circuit issued its decision on remand in Spokeo, reversing and remanding the case to the District Court after finding that the named Plaintiff, Thomas Robins, has standing to pursue his claims. Background In Spokeo, Inc. v. Robins, Plaintiff Robins sued the “people search engine” for alleged violations of the… Continue Reading

Barclays Hit with Putative Class Action Over Background Checks

Posted in ALL CFS Blog Entries, Background Screening
On August 4, the Brooklyn Events Center, LLC d/b/a Barclays Center, Levy Premium Foodservice Limited Partnership, and Professional Sports Catering LLC were hit with a putative class action alleging that the businesses use discriminatory criminal history screening policies to deny employment to qualified job applicants. According to the complaint, the named plaintiff, Felipe Kelly, applied… Continue Reading

Northern District of Illinois Rules for Debt Collector on Challenge to 1099-C Language

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 9, the Northern District of Illinois granted summary judgment to a debt collector who included 1099-C language in its collection letter.  The Court held the language was not false or deceptive, and that no reasonable person could read the language otherwise. In Moses v. LTD Financial Services I, Inc., et al., plaintiff Kirk… Continue Reading