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 Long, Jr.

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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

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

IRS Debt Collector Engages in Unscrupulous Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On June 23, several United States senators, led by Sen. Elizabeth Warren (D-Mass.), accused a debt collector of relying on unscrupulous collection practices while collecting on behalf of the Internal Revenue Service. The IRS is owed approximately $138 billion in back taxes.  To reduce the backlog of taxes owed and to supplement the agency’s internal… Continue Reading

FTC Obtains Judgments Against Defendants Who Initiated Billions of Illegal Robocalls

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 31, a California Federal District Court approved default judgments against ten defendants for violations of the Federal Trade Commission Act, 15 U.S.C.  § 45 et seq., (“FTC Act”), and Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105 et seq., (“Telemarketing Act”).  The case is Federal Trade Commission v. Aaron… Continue Reading

FTC Settles with Nationwide Debt Relief Provider

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On February 27, the Federal Trade Commission filed a stipulated order, which includes a $9 million judgment, against another debt relief provider, United Debt Counselors, LLC, its owners, and officers (collectively “United”) for violating the FTC Act and the Telemarketing Sales Rule.  This serves as another warning from the FTC that debt relief companies need… Continue Reading

Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
On January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a financing company that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al. v. Santander… Continue Reading

TD Bank USA Escapes State Law Credit Reporting Class Action

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On October 24, the Middle District of Pennsylvania dismissed a putative class action against TD Bank USA, holding that the plaintiff’s state law claims were preempted by the Fair Credit Reporting Act.  The case is Prukala v. TD Bank United States, 2016 U.S. Dist. LEXIS 146614 (M.D. Pa. October 24, 2016).  Plaintiff Michael Prukala alleged that… Continue Reading

Navy Federal Credit Union Ordered to Pay $28.5M for Debt Collection Violations

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The nation’s largest credit union, Navy Federal Credit Union, has been ordered to pay $28.5 million for alleged violations of the Consumer Financial Protection Act of 2010.  Navy Federal Credit Union limits its membership to military personnel and their immediate family members.  According to the Consumer Financial Protection Bureau, during January 2013 and July 2015,… Continue Reading

House Finance Committee Approves CFPB Reforms

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On September 13, the U.S. House of Representatives Financial Services Committee passed an amended version of the Financial CHOICE Act, which will result in significant changes to the Consumer Financial Protection Bureau if it becomes law.  The amended CHOICE Act would reform the CFPB’s structure and limit its regulatory authority, while also repealing several sections… Continue Reading

Georgia Debt Collectors Banned from Debt Collection Business

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In August, the United States District Court for the Northern District of Georgia entered the Federal Trade Commission’s stipulated order banning a group of debt collectors from the debt collection business and collectively fining them $4.4 million. The FTC filed a Complaint in November 2015 against defendants National Client Services LLC, Omar Smith, and Ernest… Continue Reading

New York Debt Collectors Banned from Debt Collection Business

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In August, the United States District Court for the Western District of New York entered the Federal Trade Commission’s stipulated order banning a group of debt collectors from engaging in collection activities and imposing $27 million in fines. In May 2015, the FTC filed a Complaint against defendants Unified Global Group LLC; ARM WNY, LLC;… Continue Reading

U.S. District Court Rules Letter with Internal Reference Number Does Not Violate Fair Debt Collection Practices Act

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
A federal judge in the Eastern District of New York ruled that a debt collection company’s internal reference number, which may have been visible through a glassine envelope, did not violate the Fair Debt Collection Practices Act (“FDCPA”). In the case, the Plaintiff, Wendy Torres Rodriguez, brought an FDCPA claim against Defendant I.C. Systems, Inc.,… Continue Reading

Fourth Circuit Rejects FDCPA Liability For Filing Proofs of Claim On Time-Barred Debt

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 25, 2016, the Fourth Circuit held in In re Eric Dubois, Case No. 15-1945, that filing a proof of claim based on a time-bared debt in a Chapter 13 bankruptcy does not violate the Fair Debt Collection Protection Act (FDCPA) when the applicable state statute of limitations does not extinguish the debt. This… Continue Reading

CFPB Uses “Mystery Shoppers” to Combat Home Loan Lending Discriminations

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On July 25, the United States District Court for the Northern District of Mississippi signed a consent order among BancorpSouth, the United States Department of Justice, and the Consumer Financial Protection Bureau, whereby BancorpSouth agreed to pay an aggregate of $10.6 million and to adhere to non-monetary penalties arising out of the DOJ’s and CFPB’s… Continue Reading

FTC Seeks $22.5 Million in Damages from Debt Collectors

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 19, 2016, the Federal Trade Commission and the New York Attorney General filed a summary judgment motion against Buffalo, New York area debt collectors who allegedly harassed and threatened consumers into paying millions on debts allegedly owed by the consumers. The FTC and New York State Attorney General filed a joint Complaint in… Continue Reading

CFPB Reaches $107M Settlement Related to Corporate Consumer Debt Defrauding Scheme

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On July 19, the Consumer Financial Protection Bureau reached a $107 million settlement agreement with three individuals who conspired with World Law Group to swindle millions of dollars from consumers in a debt-relief scheme.  In August 2015, the CFPB brought suit in U.S. District Court for the Southern District of Florida against several defendants, including… Continue Reading