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

ALL CFS Blog Entries

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Seventh Circuit Affirms Dismissal of FCRA Disclosure Claim on Standing Grounds

Posted in ALL CFS Blog Entries, Background Screening
On August 1, the Seventh Circuit Court of Appeals in Groshek v. Time Warner Cable, Inc. affirmed the Eastern District of Wisconsin’s dismissal of a putative Fair Credit Reporting Act class action on the basis of Article III standing.  Specifically, applying the Supreme Court’s decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016),… Continue Reading

Join Us for the American Bar Association State and Local 2017 Annual Meeting

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders Partner Ashley Taylor will be a featured speaker at the American Bar Association State and Local 2017 Annual Meeting taking place on August 10, 2017. Ashley will participate in the State Attorneys General and Department of Justices Issues Committee meeting tomorrow to discuss state Attorneys General work… 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

CFPB Publishes Data on Consumer Complaints by State

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau recently released a “special edition” of its standard monthly complaint report.  The report gives statistics on the number and types of complaints received by the CFPB, both nationally and broken down by state.  By providing data on all fifty states and the District of Columbia, the CFPB gives consumers and… 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

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

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

Join Us on August 10 for a Webinar on A Review of the New York Cybersecurity Framework

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy, Featured Posts
Join Troutman Sanders attorneys Shannon VanVleet Patterson and Sheila M. Pham for a complimentary webinar on August 10, 2017 from 3:00 – 4:00 p.m. ET. On March 1, 2017, the revised Cybersecurity Requirements for Financial Services Companies adopted by the New York Department of Financial Services (“NY DFS”) became effective.  This regulation requires banks, insurance companies, and other financial… Continue Reading

Financial Investment Company Named in Background Check Lawsuit

Posted in ALL CFS Blog Entries, Background Screening
A nationwide financial investment firm was named on June 30 in a putative class action lawsuit filed in federal district court in Oregon.  The case, filed by plaintiff Dustin Kampert, alleges the firm violated the Fair Credit Reporting Act in its background check process related to employment or, alternatively, procured consumer reports without a permissible… Continue Reading

New Jersey Legislator Introduces Bill to Prevent Prepaid Account Fees

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On June 8, Assemblyman Troy Singleton (D) introduced New Jersey Assembly Bill 4965, which, if enacted, would closely mirror the Consumer Financial Protection Bureau’s Prepaid Rule, but also would prohibit prepaid account issuers in New Jersey from charging a number of fees to prepaid account holders.  Singleton co-sponsored a similar bill in 2012 that eventually… Continue Reading

CFPB Seeks Commentary on Proposed Changes to Prepaid Rule

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau has issued a formal request for public commentary on proposed changes to the Prepaid Rule, which was issued in October 2016.  According to the Bureau, the proposed changes address those concerns raised by prepaid card issuers about potential problem areas for compliance.  The Bureau’s suggested changes would adjust error resolution… 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 a Complimentary Webinar: “A Review: The CFPB’s Rule on Arbitration and What It Might Mean for Your Company”

Posted in ALL CFS Blog Entries, CFS Events
On Tuesday, July 18, from 2-3 p.m. ET, Troutman Sanders attorneys David Anthony, Cindy Hanson and Tim St. George will present a webinar examining the impact of the CFPB’s new July 10, 2017 rule that bans class action waivers in contracts involving consumer financial services and products, and which also imposes a number of other… 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

Join Us on August 17 for a Clear Law Institute Webinar “Game of Phones: Current Trends in Collection Calls under the TCPA, FDCPA, and other Regulatory Frameworks”

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
Join Troutman Sanders attorneys James Trefil and Jonathan Floyd for a webinar hosted by the Clear Law Institute on August 17 from 1:00 – 2:15 p.m. In this webinar, you will learn to navigate the various layers of rules and regulations that govern the use of debt collection telephone calls. This presentation will focus on… 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

FTC and International Consumer Protection Agencies Announce Website Revamp

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Partnering with the Federal Trade Commission, the International Consumer Protection and Enforcement Network (“ICPEN”) recently unveiled significant enhancements to its online portal – www.icpen.org – designed to help members identify and respond to consumer challenges crossing international borders. ICPEN is a network of consumer protection agencies from over 60 countries that strives to protect consumers… Continue Reading