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

C. Reade Jacob, Jr.

C. Reade Jacob, Jr.

Blog Role:
Contributor – State Attorneys General, CFPB & FTC; Cyber Security, Information Governance and Privacy

CFS Value:
Reade specializes in regulatory compliance and enforcement matters.

Subscribe to all posts by C. Reade Jacob, Jr.

FTC and NJ AG Announce Settlement with Vizio over Collecting Consumer Viewing Habits

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On February 6, the FTC and the New Jersey Office of the Attorney General announced a $2.2 million settlement with Vizio, Inc. over allegations the TV manufacturer installed software on its TVs to collect viewing data on 11 million consumers without their knowledge or consent.  According to the complaint, Vizio manufactured smart TVs that allowed… Continue Reading

NY AG Settles with Acer for $115,000 over Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On January 26, New York Attorney General Eric Schneiderman announced a settlement with Acer Service Corporation over an alleged data breach involving more than 35,000 credit card numbers, including the credit card information and other personal information of 2,250 New York residents.  As part of the settlement, Acer agreed to pay $115,000 in penalties and… Continue Reading

Democratic AGs File Motion to Intervene in CFPB “For Cause” Removal Case

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On January 23, Democratic attorneys general from 16 states and the District of Columbia filed a motion to intervene in the closely watched PHH Corp. v. Consumer Financial Protection Bureau case, currently pending in the U.S. Court of Appeals for the District of Columbia.  As we reported here and here, in October 2016, a divided… 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

New York Financial Regulator Revises Proposed Cybersecurity Regulation

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On December 28, the New York Department of Financial Services (“NY DFS”) released its highly anticipated revised cyber security rule.  As we previously noted here, the proposed regulations would require banks, insurance companies, and other financial services institutions to establish and maintain a cybersecurity program and to take other measures to protect against data breaches… Continue Reading

Investigation of Ashley Madison by FTC and State AGs Ends in Settlement Agreement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On December 14, the FTC, along with a coalition of 13 states and the District of Columbia, entered into a settlement agreement with Ashley Madison over allegations that the online dating site deceived consumers and failed to protect 36 million users’ account and profile information in relation to a massive July 2015 data breach.  The… Continue Reading

D.C. Circuit Rules CFPB “For Cause” Removal of the Director Unconstitutional, but Declines to Shut it Down

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Until October 10, none of the constitutional or scope of enforcement authority challenges to the Consumer Financial Protection Bureau’s (“CFPB” or Bureau”) power have been successful. That changed on October 11 when the U.S. Court of Appeals for the District of Columbia held the Director of the Bureau has too much unilateral, unchecked power and… Continue Reading

CFPB Issues Final Prepaid Card Rule

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On October 5, the Consumer Financial Protection Bureau issued its much anticipated final rules regulating prepaid card accounts.  The final rules follow the proposed rules that the Bureau issued in December 2014, and are mostly unchanged from the proposed rules.  The new rules apply to “prepaid accounts,” which the Bureau defines as accounts that are… Continue Reading

LendUp to Pay $6.3M in CFPB-California Deal

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On September 27, LendUp, an online payday lending company based in San Francisco, entered into a Consent Order with the Consumer Financial Protection Bureau and the California Department of Business Oversight over allegations that LendUp violated the Consumer Financial Protection Act and Regulation Z of the Truth In Lending Act by  misleading consumers about the… Continue Reading

NY Proposes Regulations Requiring Financial Services Companies to Implement Cyber Security Measures

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On September 13, the New York Department of Financial Services issued proposed regulations that would require banks, insurance companies, and other financial services institutions to establish and maintain a cybersecurity program and to take other measures to protect against data breaches and cyber attacks.   Among the planned requirements, regulated financial institutions will be required to… Continue Reading

Payment Processor Group Files Amicus Brief in CFPB v. Intercept Case

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On August 15, the Third Party Payment Processors Association (“TPPPA”), a national, not-for-profit organization of payment processors, payroll processors, and banks, this week filed a brief, amicus curiae, in support of the defendants’ motion to dismiss in the Consumer Financial Protection Bureau’s lawsuit against Intercept.  The TPPPA filed the amicus brief in the United States… Continue Reading

New York AG Announces Data Breach Settlement with EZcontactsUSA

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On August 5, the New York Attorney General announced a settlement with Provision Supply, LLC, d/b/a EZcontactsUSA.com over a data breach resulting in the potential exposure of over 25,000 credit card numbers and other cardholder data.  Provision Supply, the operator of EZContactsUSA.com, a Brooklyn-based e-tailer that sells contact lenses and eyewear, agreed to pay $100,000… Continue Reading

South Carolina Governor Signs Money Transmitter Law

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On June 9, South Carolina Governor Nikki Haley signed into law the South Carolina Anti-Money Laundering Act.  The South Carolina AML Act, among other requirements, imposes a licensing requirement for persons and entities engaged in money transmission in the state.  South Carolina is now the 49th state to implement a law regulating money transmitters, leaving… Continue Reading

Federal Judge Rejects Challenge to CFPB Director’s Recess Appointment

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On July 13, a federal judge tossed out a challenge to the recess appointment of Consumer Financial Protection Bureau Director Richard Cordray. In State National Bank of Big Spring et al. v. Lew et al., the State National Bank of Big Spring, Texas, joined by conservative advocacy groups The Competitive Enterprise Institute and The 60… Continue Reading

EU Member States Approve Privacy Shield

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy, Featured Posts
On July 8, European Union member states approved the Trans-Atlantic Privacy Shield data transfer deal, finally paving the way for the pact to be formally approved by EU and U.S. officials on July 12.  The Article 31 committee, which is made up of representatives of each EU member state, held their highly anticipated final vote… Continue Reading

Arkansas Attorney General Announces Settlement with Online Payday Lender

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 24, 2016, Arkansas Attorney General Leslie Rutledge announced a settlement agreement with payday lender, Western Sky Financial LLC, and loan servicer, CashCall Inc., to resolve allegations that the companies conspired to offer illegal online loans to Arkansas consumers while claiming to be shielded by tribal sovereign immunity. According to the Arkansas Attorney General,… Continue Reading

FTC Hosts FinTech Forum on Marketplace Lending

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 10, Troutman Sanders attended the Federal Trade Commission’s FinTech Forum on marketplace lending. The event marked the first in the FTC’s FinTech Forum series, which is part of the FTC’s ongoing efforts to examine marketplace lending and its impact on consumers. The topics discussed during the forum included adequate lending disclosures, issues related to… Continue Reading

Texas AG Reaches AVC With PayPal

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On May 20, PayPal entered into an Assurance of Voluntary Compliance (AVC) with the Texas Attorney General over allegations that it failed to clearly explain how the personal information belonging to users of its Venmo mobile payment application would be used and with whom it would be shared. The AVC stems from Texas Attorney General… Continue Reading

Verizon Enterprise Publishes Data Breach Report

Posted in Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
A recently published 2016 Data Breach Investigations Report by Verizon Enterprise reports that cybercriminals are continuing to exploit human nature as they rely on familiar attack patterns such as phishing, and increase their reliance on ransomware, where data is encrypted and a ransom is demanded in return for release of the encrypted data.  The report, now… Continue Reading

U.S. Senate Passes Energy Bill with Cyber Security Provisions

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On April 20, the United States Senate passed a sweeping energy bill that would give the Department of Energy authority to step in during a cyber attack and tell electric utilities what to do to protect the nation’s power grid.  The bill also authorizes funding for cyber research and testing, and more clearly defines DOE’s… Continue Reading

FCC Releases Proposed Rule Requiring Internet Service Providers to Comply with New Privacy Obligations

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On April 1, the Federal Communications Commission issued a notice of proposed rulemaking (“NPRM”) that would require Internet service providers (“ISPs”) to clearly disclose how customer data is being used, take reasonable steps to protect that information, and notify affected customers within 10 days of discovering a data breach.  The NPRM — formally approved by… Continue Reading

ASUS Settles with FTC Over Router Security

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
In February, the FTC settled claims against Taiwan-based computer hardware maker ASUSTek Computer, Inc. over allegations the company misled consumers about the security of its routers and cloud services.  ASUS routers are used primarily in private homes to establish internet connections for personal devices such as laptops, tablets, and phones.  The cloud services were provided… Continue Reading

Why 2016 Will Be a Big Year for Big Data

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The coming year will raise many questions about how e-commerce, social media and “ad tech” may continue collecting and using consumer data. Last year, legal developments left organizations that store and collect consumer information to wonder: (1) What are the limitations of data collection on the Internet; (2) how can data be used; and (3)… Continue Reading

ALJ Delivers Blow to FTC’s Authority to Bring Data Breach Actions Under Unfairness Prong

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On November 13, 2015, an administrative law judge dismissed the Federal Trade Commission’s action against LabMD, ruling the FTC failed to show that the laboratory’s alleged conduct caused or would cause harm to consumers. The decision represents a significant blow to the FTC and its ability to bring actions under the unfairness prong of Article 5… Continue Reading