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.

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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

Join Us for a Webinar on August 24 – A Review of Recent FCRA Trends and Developments

Posted in ALL CFS Blog Entries, Background Screening, CFS Events, Credit Reporting & Data Brokers, Featured Posts
Join Troutman Sanders attorneys David N. Anthony, Cindy D. Hanson and Meagan A. Mihalko for a timely discussion of recent case studies and case law developments affecting the credit reporting and background screening industry. The discussion will include an update on the effects of Spokeo, as well as an overview of other recent Fair Credit Reporting… Continue Reading

Missouri Appellate Court Affirms Dismissal of FCRA Class Action Based on Application of Spokeo and Federal Standing Rules

Posted in ALL CFS Blog Entries, Background Screening
On July 25, the Missouri Court of Appeals affirmed a state trial court’s dismissal of a putative Fair Credit Reporting Act class action against a large retailer based on standing issues.  Most notably, the court did so in reliance on Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (May 16, 2016), and Article III standing… Continue Reading

Defendant Seeks To Stymie Plaintiff’s ‘False Pretense’ Claim Under the FCRA

Posted in ALL CFS Blog Entries, Background Screening
In Patel v. Comcast Corporation, plaintiff consumer Mounang Patel brought a purported class action lawsuit against defendant Comcast Corporation, arguing that Comcast unlawfully obtains background checks (also referred to as consumer reports) on consumers under false pretenses.  On July 17, Comcast moved to dismiss this class claim on the ground that Patel failed to allege… Continue Reading

Indiana Governor Issues Executive Order “Banning the Box”

Posted in ALL CFS Blog Entries, Background Screening
Indiana Governor Eric Holcomb has issued an executive order “banning the box” for jobs within the executive branch.  Effective July 1, applicants for employment in the executive branch will no longer be subject to inquiries about their criminal history at the initial application stage, unless the conviction for a specific crime would disqualify the applicant… Continue Reading

House Thwarts CFPB’s Arbitration Rule

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On July 25, the United States House of Representatives voted to repeal the Consumer Financial Protection Bureau’s latest arbitration rule.   As we reported previously, the CFPB issued a 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… Continue Reading

District Court Allows FCRA Lawsuit Alleging Debt Collector’s Improper Acquisition of Credit Report to Proceed

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
A federal district court in Indiana has allowed a plaintiff’s claim that a debt collector improperly accessed her credit report to proceed because the debt collector did not claim the alleged debt arose from a credit transaction in its motion to dismiss the complaint. Plaintiff Vivian Pigg incurred the alleged debt after defaulting on a… 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

Seventh Circuit Holds Rule 67 Tender of Full Relief Does Not Moot TCPA Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In Campbell-Ewald Co. v. Gomez, 136 S.Ct. 663 (2016), the Supreme Court held that an unaccepted offer of full relief under Rule 68 to a named plaintiff was insufficient to moot class claims.  However, the Supreme Court expressly left open the possibility of a “different result if a defendant deposits the full amount of the… 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

District Court Approves $1.53M Settlement Between CFPB and Credit Repair Companies in Telemarketing Sales Rule Lawsuit

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 27, the Consumer Financial Protection Bureau announced it had filed two consumer protection lawsuits against four credit repair companies and three executives for allegedly misleading consumers and charging improper advance fees.  On that same day, the CFPB filed corresponding stipulated final judgments providing for approximately $2 million in penalties against the named defendants.… Continue Reading

Fifth Circuit Affirms FDCPA Violation Where Debt Collector Failed to Mark Account as Disputed

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The Fifth Circuit Court of Appeals recently affirmed summary judgment on a Fair Debt Collection Practices Act claim in favor of a debtor, finding that the debt collector violated the FDCPA when it failed to mark the debtor’s account as “disputed” when the collector reported the account to the bureaus. Plaintiff Robert Sayles sued Advanced… Continue Reading

CFPB Issues Rule Banning Class Action Waivers In Arbitration Provisions

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Featured Posts, State Attorneys General, CFPB, & FTC
On July 10, 2017, 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… Continue Reading

Debt Collector Prevails by Using Safe Harbor Language on Letters in Current Balance Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In dismissing a claim against a debt collector, brought under the Fair Debt Collection Practices Act, the U.S. District Court for the Eastern District of Wisconsin found that language used by the debt collector clearly informing the consumer that interest and fees would continue to accrue on the balance did not violate the FDCPA. In… Continue Reading

TCPA Class Decertified in Missouri Federal Court

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In a long-running Telephone Consumer Protection Act class action, Missouri District Judge Catherine Perry recently granted defendant Vein Centers for Excellence Inc.’s motion to decertify the class.  As background, Vein Centers is a marketing firm that provides graphic design and other services to doctors.  The named plaintiff, St. Louis Heart Center, Inc., filed this putative… Continue Reading

Cheesecake Factory Tries to Dismiss Putative FACTA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
The Cheesecake Factory Restaurants, Inc. recently asked a New York federal district judge to dismiss a putative Fair and Accurate Transactions Act putative class action that accuses the restaurant chain of printing too many credit card numbers on consumers’ receipts.  Relying on the Supreme Court’s decision in Spokeo, Cheesecake Factory argues that the class action… Continue Reading

Oregon Legislature Passes New Law Regulating Collection Activities of Debt Buyers

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
Oregon has become the next in a line of states to pass legislation regulating debt buyers.  Oregon bill HB2356, initiated by Oregon Attorney General Ellen Rosenblum, passed both the House and Senate prior to legislative adjournment on July 7. The bill’s new debt buyer provisions purport to ensure protections for Oregon consumers, making it unlawful… Continue Reading

CFPB Targets Credit Repair Companies and Their Principals for Allegedly Misleading Consumers and Charging Improper Fees

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On June 27, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced approximately $2 million in fines and penalties against four credit repair companies and three associated individuals for allegedly misleading consumers and charging improper fees.  Under two proposed final judgments that the CFPB filed in United States District Court for the Central District of California,… Continue Reading

Florida District Court Dismisses Consumer’s “Current Balance” Claim

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On June 30, the U.S. District Court for the Southern District of Florida dismissed a consumer’s Fair Debt Collection Practices Act “current balance” claim. Plaintiff Heath Bryant brought an FDCPA claim against defendant Aargon Collection Agency, Inc., alleging Aargon’s collection letter was deceptive because it falsely implied that Bryant’s account balance would increase due to… Continue Reading

Court Denies Cross Motions for Summary Judgment in Current Balance Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 18, a federal judge in Missouri denied cross motions for summary judgment on the issue of whether a letter that did not inform a debtor that interest was, in fact, accruing violated the FDCPA. In Mygatt v. Medicredit, plaintiff Timberly Mygatt incurred medical debt that was being collected by Medicredit.  In order to… Continue Reading

USPS’ Motion to Dismiss Putative FCRA Class Action Denied by Wisconsin Magistrate Judge

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
A Wisconsin federal magistrate judge denied the United States Postal Services’ attempt to dismiss a Fair Credit Reporting Act putative class action, holding that the plaintiff’s complaint sufficiently alleged an injury-in-fact.  According to the complaint, plaintiff Rondo Tyus applied for a security clearance to work at the USPS.  The USPS obtained a criminal background report,… Continue Reading

Court Finds Lack of Attorney Meaningful Involvement Sufficient for Article III Standing

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In what appears to be never-ending litigation, a New Jersey Federal District Court upheld a plaintiff’s summary judgment motion on remand from the Third Circuit Court of Appeals, holding that the defendant law firm’s lack of attorney meaningful involvement created a particularized and concrete injury sufficient for the plaintiff to maintain standing to assert his… Continue Reading

Supreme Court Declines to Weigh in on Spokeo in FACTA Lawsuit

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The United States Supreme Court has denied a petition seeking review of a Seventh Circuit decision holding that a consumer lacked Article III standing to challenge an alleged violation of the Fair and Accurate Transactions Act where the defendant retailer printed more than the last five digits of his credit card number and the expiration… Continue Reading

Employer Seeks Supreme Court Review of Ninth Circuit Finding of Willful FCRA Violation

Posted in ALL CFS Blog Entries, Background Screening
On January 20, 2017, the Ninth Circuit Court of Appeals issued a decision of first impression in Syed v. M-I, LLC, a putative class action, when it held that a prospective employer willfully violated the Fair Credit Reporting Act by including a liability waiver in its FCRA background check disclosure form.  In the underlying case, Syed applied… Continue Reading