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

Julie D. Hoffmeister

Julie D. Hoffmeister

Blog Role:
Contributor – Debt Buyers & Collectors; Cyber Security, Information Governance and Privacy

CFS Value:
Julie Hoffmeister specializes in consumer financial services litigation with a focus on debt buyers and collectors.

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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

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

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

New Jersey Bill Limits Use of Driver’s License Information by Retailers

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The New Jersey legislature recently passed a bill that places restrictions on retailers’ ability to collect and use personal information gleaned from driver’s licenses.  The bill, known as the Personal Information and Privacy Protection Act, is intended to give consumers more control and security over their personal information.  A copy of the bill can be… 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

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

Credit Score Attached to Collection Action Complaint Violates the FCRA and FDCPA, Contends New Putative Class Action Complaint

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
According to a new class action Complaint filed in the United States District Court for the Western District of Wisconsin, Discover Bank (“Discover”) and Kohn Law Firm S.C. (“Kohn”) violated the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) by publishing consumers’ credit scores as part of state court collection actions… Continue Reading

Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On May 23, 2017, in Whalen v. Michaels Stores, Inc., the United States Court of Appeals for the Second Circuit issued a summary order affirming the district court’s dismissal of a putative data breach class action based on lack of Article III standing. As background, the named plaintiff Mary Jane Whalen made credit card purchases at… Continue Reading

Defendants Move to Dismiss Putative FACTA Class Action Based on Spokeo

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On April 7, defendants Wolfgang’s Steakhouse, Inc. and ZMF Restaurants LLC again urged a New York federal court judge to dismiss a Fair and Accurate Transactions Act putative class action based on the Supreme Court’s decision in Spokeo, Inc. v. Robins.  In Fullwood v. Wolfgang’s Steakhouse, Inc., plaintiff Cynthia Fullwood alleged that the defendants violated… Continue Reading

Supreme Court Hears Oral Argument Involving Rule 23(f) Interlocutory Appeals

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
The United States Supreme Court recently heard oral argument in the case of Microsoft Corp. v. Baker, where the Court is set to determine whether a plaintiff can tactically circumvent Rule 23(f) of the Federal Rules of Civil Procedure.  Rule 23(f) provides for an interlocutory appeal of a district court’s denial of class certification.  The… Continue Reading

$5.3M Settlement of TCPA Class Action Against Taxi Cab Companies Preliminarily Approved

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The United States District Court for the Western District of Washington preliminarily approved a $5.3 million settlement of a Telephone Consumer Protection Act class action against taxi cab companies Orange Cab Company, Inc. and RideCharge, Inc.  According to the complaint, the defendants worked together to develop an app, known as “Taxi Magic,” for cell phones… Continue Reading

District of New Jersey Tosses FDCPA Putative Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the District of New Jersey recently dismissed a putative Fair Debt Collection Practices Act class action against defendant debt collector, Retrieval-Masters Creditors Bureau, Inc. (“RMCB”), over allegedly violative letters dealing with unpaid E-ZPass tolls.  A copy of the opinion can be found here. As background, plaintiff Thomas E. St.… Continue Reading

Ninth Circuit Reverses District Court’s Dismissal of Putative TCPA Class Action

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
The Ninth Circuit recently reversed a lower court’s dismissal of a Telephone Consumer Protection Act (TCPA) putative class action against Adir International, LLC (“Adir”), holding that Plaintiff Ned Flores (“Flores”) sufficiently alleged that Adir used an automatic telephone dialing system (“ATDS”) to send text messages to Flores. According to the First Amended Complaint, Adir is… Continue Reading

Largest Settlement of FACTA Class Action Against Restaurant Chain Granted Preliminary Approval

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On March 23, the United States District Court for the Southern District of Florida granted preliminary approval of a nearly $31 million Fair and Accurate Credit Transactions Act (“FACTA”) class action settlement against Doctor’s Associates, Inc., doing business as Subway – the largest settlement to date in the history of FACTA.  According to the complaint,… Continue Reading

Court Preliminarily Approves $1.2M FACTA Class Action Settlement Against Microsoft

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The United States District Court for the Southern District of Florida recently granted preliminary approval of a Fair and Accurate Credit Transactions Act (“FACTA”) class action against Microsoft Corporation. In Guarisma v. Microsoft Corp., the named plaintiff, Carlos Guarisma, filed a putative class action against Microsoft in November 2015, alleging that the software company’s retail… Continue Reading

Offshore Call Center Bill Reintroduced in Congress

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
Congress recently reintroduced a bill titled United States Call Center Worker and Consumer Protection Act of 2016, which attempts to deter companies from employing offshore call collection centers.   The bill would require a business that employs 50 or more call center employees to notify the Department of Labor at least 120 days before relocating such… Continue Reading

Courts Approve $950,000 FCRA Class Action Settlement Against McDonald’s

Posted in ALL CFS Blog Entries, Background Screening
On March 15, the United States District Court for the Central District of California granted final approval of a Fair Credit Reporting Act class action against fast food restaurant McDonald’s.  The named plaintiff, James Wesley Carter, originally brought the action against McDonald’s in July 2015 alleging that McDonald’s violates the rights of consumers by failing… Continue Reading

TCPA Class Action Dismissed Based on Lack of Vicarious Liability

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
The United States District Court for the Southern District of California recently granted summary judgment in favor of defendant United Student Aid Funds, Inc. (“USAF”) in a Telephone Consumer Protection Act class action, holding that the plaintiff had failed to prove that USAF is vicariously liable for the acts of its third party servicers.  In… Continue Reading

SuperAmerica Convenience Store Agrees to $3.5 Million TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The parties in Soular v. Northern Tier Energy, LP et al. recently filed a motion for preliminary approval of a $3.5 million Telephone Consumer Protection Act (“TCPA”) class action in the District of Minnesota.  The three named plaintiffs in the case alleged that they received unsolicited marketing text messages from the defendant convenience store, known… Continue Reading

CFPB Issues Monthly Complaint Snapshot on Credit Reporting

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On February 28, the Consumer Financial Protection Bureau released its monthly snapshot highlighting consumer complaints about credit reporting.  A copy of the CFPB’s report can be found here. Debt collection, student loan, and credit reporting were the top three most-complained about consumer financial products and services, representing about 60 percent of complaints submitted in January. … Continue Reading

Bebe’s Motion to Decertify TCPA Classes Denied by California Federal Court

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On February 10, the United States District Court for the Northern District of California denied defendant Bebe Stores, Inc.’s motion to decertify the plaintiffs’ proposed classes in a Telephone Consumer Protection Act class action.  In Meyer v. Bebe Stores, Inc., the named plaintiffs alleged that they provided their cell phone numbers to Bebe in connection… Continue Reading