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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Court Denies Background Screener’s Spokeo Motion Related to Address History Reporting

Posted in ALL CFS Blog Entries, Background Screening
On February 13, a judge in the United States District Court for the Southern District of New York denied a background screening company’s motion to dismiss a putative Fair Credit Reporting Act class action on the basis of the Supreme Court’s holding in Spokeo v. Robins, 136 S. Ct. 1540 (2016).  As has been the… Continue Reading

Validation Notice Including Request for Payment and Identifying Creditor by Acronym Does Not Violate FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the Southern District of California recently dismissed all of a plaintiff’s claims in the putative class action Matthew Stuppiello v. Southwest Credit Systems, L.P.   The Court held that a validation notice does not violate the Fair Debt Collection Practices Act by including a request for payment “and explain[ing] that… Continue Reading

CFPB Orders MasterCard and UniRush to Pay $13 Million

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On February 1, the Consumer Financial Protection Bureau ordered payment card companies MasterCard and UniRush to pay $10 million in restitution and a $3 million fine related to service breakdowns that left customers unable to access their funds.  “MasterCard and UniRush’s failures cut off tens of thousands of vulnerable consumers from their own money, and… Continue Reading

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
Protection of personal information.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

First Defendant Prosecuted Under New Arizona Telemarketing Law Pleads Guilty

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 18, Lukeroy Rose, owner of Phoenix-based Rose Marketing LLC, pled guilty pursuant to a plea agreement to charges of theft, unlawful telephone solicitations, and conspiracy to commit theft.  Rose was arrested in December 2016 pursuant to the newly amended Arizona Telephone Solicitations statute, Ariz. Rev. Stat. § 44-1277, which makes it a Class… Continue Reading

CFPB Takes Action Against Law Firm Debt Collectors for Lack of Meaningful Involvement

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc., Works & Lentz of Tulsa, Inc., two medical debt collection law firms, and their president, Harry A. Lentz, Jr., for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation… Continue Reading

OCC Releases Semiannual Risk Perspective – January 2017

Posted in ALL CFS Blog Entries, Payment Processing & Cards
The Office of the Comptroller of the Currency’s National Risk Committee, which is tasked with monitoring the overall condition of the federal banking system and any emerging threats to the system’s safety and soundness, released its “Semiannual Risk Perspective for Fall 2016” on January 5.  Using data from the first half of 2016, the publication… Continue Reading

Join Us on February 22 for a Complimentary Webinar on Bankruptcy and Debt Collection – Latest Trends and Developments

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors, Featured Posts
Microphone on Stage SizedDebt collection is becoming an increasingly regulated industry and the CFPB has signaled its intention to further regulate the industry by extending regulations to first party creditors.  Please join Troutman Sanders Partner David N. Anthony and Of Counsel Andrew B. Buxbaum for a complimentary webinar for a discussion of debt collection issues including how debt… Continue Reading

Join Us on February 22-24 for the NACHA Payments Innovation Alliance Meeting in Los Angeles

Posted in ALL CFS Blog Entries, CFS Events, Payment Processing & Cards
We are proud to announce that Troutman Sanders partner Keith Barnett will be a featured speaker at the upcoming National Automated Clearing House Association’s (“NACHA”) Payments Innovation Alliance Meeting at the Omni Los Angeles Hotel at California Plaza on February 24. Keith will speak on a panel titled, Regulatory Landscape for 2017 – What Can You Expect?,… Continue Reading

Join Us on February 9 for the ETA & BAFT for International Payments Policy Day in Washington, DC

Posted in ALL CFS Blog Entries, CFS Events, Payment Processing & Cards
We are proud to announce that Troutman Sanders partner Keith Barnett will be a featured speaker at the upcoming Electronic Transactions Association (“ETA”) and Bankers Association for Finance and Trade (“BAFT”) International Payments Policy Day, “A New World: The Changing Policy Landscape for International Payments and Financial Technology,” at the Washington, DC offices of Troutman Sanders on… Continue Reading

Blue Shield Avoids Potential TCPA Class Action Liability in Prerecorded Phone Call Case

Posted in ALL CFS Blog Entries, Background Screening
A judge in California recently dismissed a putative Telephone Consumer Protection Act class action against Blue Shield of California, an insurance provider.  In Smith v. Blue Shield of California Life & Health Insurance Co. (C.D. Cal.), the judge found that the telephone call at issue was, as a matter of law, not the type of… Continue Reading

2016 Consumer Financial Services Year in Review and a Look Ahead

Posted in ALL CFS Blog Entries, Featured Posts
open book over black backgroundThis year is sure to be a transformative one for the consumer financial services world. As we navigate an unprecedented volume of industry regulation and forthcoming changes from a new administration, Troutman Sanders is uniquely positioned to help its clients find successful resolutions and stay ahead of the compliance curve. We are honored to have… Continue Reading

FTC’s Latest Message to IoT Industry Comes as Complaint Against D-Link Alleging UDAP Violation Related to Security Vulnerabilities

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On January 5, the Federal Trade Commission filed a complaint against D-Link Corporation, a Taiwanese corporation, and D-Link Systems, Inc., a California corporation and a subsidiary of D-Link Corporation.  D-Link sells Internet of Things (“IoT”) devices and software to support such devices.  Specifically, D-Link sells routers which transfer data packets along a network and which… Continue Reading

West Virginia Federal Court First Reconsiders, Then Restricts, Vicarious Liability for TCPA Claims in MDL

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the Northern District of West Virginia recently reversed its position on vicarious liability under the Telephone Consumer Protection Act, granting summary judgment for defendants UTC Fire and Security Americas Corporation, Inc. and Honeywell International, Inc. in multi-district litigation.  In doing so, the court joined the growing list of federal… Continue Reading

FDA’s Postmarket Management of Cybersecurity in Medical Devices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On December 28, the U.S. Food and Drug Administration issued its “nonbinding recommendations” guidance for addressing post-market cybersecurity vulnerabilities in medical devices under the title “Postmarket Management of Cybersecurity in Medical Devices.”[1] By its terms, the recommendations are for a “risk-based framework for assessing when changes to medical devices for cybersecurity vulnerabilities require reporting to… Continue Reading

Student Loan Servicer Agrees to $17.5M TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
On January 26, the United States District Court for the Southern District of Indiana granted preliminary approval of a $17.5 million Telephone Consumer Protection Act class action against Navient Solutions Inc.  According to the original Complaint, plaintiff Randy Johnson received multiple telephone calls on his cell phone from Navient, a student loan servicing and collection… Continue Reading

NHTSA and DOT Propose Rule Mandating Vehicle-to-Vehicle Communication on Light Vehicles

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The National Highway Traffic Safety Administration and the Department of Transportation have issued a Notice of Proposed Rulemaking for autonomous and connected cars.  The NPRM “proposes to establish a new Federal Motor Vehicle Safety Standard” under 40 CFR 571 to mandate vehicle-to-vehicle (V2V) communications for new light vehicles and to standardize the message and format… Continue Reading

Join Us on February 9 for a Complimentary Webinar on Redlining and Fair Lending

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Featured Posts, Mortgage Lenders & Servicers
Microphone at Seminar HallJoin Troutman Sanders Partners James W. Stevens and Alan D. Wingfield on Thursday, February 9 at 12 p.m. ET for a complimentary webinar to discuss current trends and outlook for the key fair lending issues of redlining and disparate impact. Specific topics of discussion include the basics of federal regulators’ theories and methodologies in assessing redlining… Continue Reading

Ninth Circuit Reverses Dismissal of Plaintiffs’ FCRA Complaint against Fannie Mae

Posted in ALL CFS Blog Entries, Background Screening
In an unpublished decision, the Ninth Circuit Court of Appeals ruled that a complaint sufficiently alleged that Federal National Mortgage Association (“Fannie Mae”) may act as a consumer reporting agency (“CRA”) under the Fair Credit Reporting Act, which could potentially subject Fannie Mae to the accuracy requirements imposed by section 1681e(b) of the FCRA. In… 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
DATA Security SizedOn 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

Six Attorneys General File Motion to Intervene in School Accreditation Case

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 24, attorneys general for Massachusetts, Maine, Maryland, Illinois, New York, and the District of Columbia filed a motion to intervene in a case between the U.S. Department of Education and the Accrediting Council for Independent Colleges and Schools (“ACICS”).  ACICS, which previously has come under federal scrutiny for its accreditation practices, filed the… Continue Reading

Ban the Box Bill Passes Virginia State Senate, Awaits Review by House

Posted in ALL CFS Blog Entries, Background Screening
On January 27, Sen. Rosalyn Dance’s “ban the box” bill, SB 1171, passed the Virginia Senate by a 22-17 vote.  The bill proposes to “ban the box” by preventing prospective employers from asking about a job applicant’s criminal history at the initial employment application stage.  The bill was introduced as follows:  “Public employment; inquiries by… Continue Reading

New Jersey District Court Grants Michaels Stores’ Spokeo Motion on Consolidated FCRA Action

Posted in ALL CFS Blog Entries, Background Screening
Last week, a district court in New Jersey dismissed a consolidated action against Michaels Stores, Inc., finding that the plaintiffs lacked Article III standing to bring their FCRA claims. In the consolidated action, plaintiffs Christina Graham, Gary Anderson, Michele Castro, Janice Bercut, and Michelle Bercut applied for and were hired by Michaels.  Despite obtaining employment,… Continue Reading

Employers Beware: Ninth Circuit Finds Inclusion of Liability Waiver in FCRA Background Check Disclosure Form is a Willful 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 (FCRA) by including a liability waiver in its FCRA background check disclosure form. Any employer who… Continue Reading