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

Subscribe to ALL CFS Blog Entries RSS Feed

Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
United States Supreme CourtOn June 12, 2017, the United States Supreme Court rendered a unanimous decision holding that a company collecting debts that it purchased for its own account does not meet the statutory definition of “debt collector” under the Fair Debt Collection Practices Act (FDCPA) because the debts are no longer “owed or due another.” We previously… Continue Reading

CFPB Encourages Retail Credit Card Companies to Consider More Transparent Promotions

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau (“CFPB”) sent letters to the top retail credit card companies at the beginning of June, encouraging the companies to use more transparent promotions, citing a major retailer’s decision to end deferred-interest programs associated with its credit card.  In the letter, the Bureau outlined its concerns that temporary promotions – such… Continue Reading

Pending Changes to Federal Bankruptcy Rules Could Negatively Impact Residential Mortgage Lenders

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
The U.S. Supreme Court has approved changes to the Federal Bankruptcy Rules that, if they become effective, will result in important alterations to the filing of proofs of claim by residential mortgage lenders in Chapter 7, 12 and 13 cases. A proposed change to Bankruptcy Rule 3002 will shorten the time within which a creditor… Continue Reading

Join Us for a Complimentary Webinar: A Review of the Supreme Court’s Decision in Henson v. Santander

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors
Microphone on Stage SizedOn Wednesday, June 21, 2017, from 4:00 – 4:30 p.m. ET, Troutman Sanders attorneys David N. Anthony and Ethan G. Ostroff will explore the Supreme Court’s unanimous decision issued on June 12, 2017 and how it may affect companies in the collection industry. This decision resolves a Circuit split on the narrow issue of whether an entity… Continue Reading

Join Us for a Complimentary Webinar: “The CHOICE Act Passed the House: Now What? An Update on Financial Industry Regulation Under the Trump Administration”

Posted in ALL CFS Blog Entries, CFS Events, Featured Posts, State Attorneys General, CFPB, & FTC
Microphone at Seminar HallOn Thursday, June 29, from 3-4 p.m. ET, Troutman Sanders attorneys Ashley Taylor, Alan Wingfield and Mary Zinsner will present a webinar examining the current status and prospects for the Financial CHOICE Act 2.0, deregulation and the rollback of Dodd Frank, and the ongoing courtroom attacks on the CFPB. The webinar will also cover recent… Continue Reading

WV Appellate Court Finds High Volume of Unanswered Calls Alone Does Not Violate § 46A-2-125(d)

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
Golden Seal SizedOn June 12, the Supreme Court of Appeals of West Virginia reversed a Circuit Court ruling and stated that a high volume of telephone calls from a debt collector to a consumer, absent any evidence the debt collector placed the calls with an intent to annoy, abuse, oppress, or threaten the consumer, is not sufficient… Continue Reading

J. Crew Beats FACTA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On June 6, a federal judge in New Jersey for the second time dismissed a putative class action against clothier J. Crew Group, Inc. on the grounds that the plaintiff, Ahmed Kamal, had not pled a concrete injury sufficient for Article III standing light of Spokeo, Inc. v. Robins.  Kamal alleged that J. Crew violated… Continue Reading

Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures

Posted in ALL CFS Blog Entries, Background Screening
Five Guys Enterprises LLC—franchisor of the popular Five Guys Burger Co.—and a California franchisee are facing a lawsuit from a former employee alleging numerous violations of the federal Fair Credit Reporting Act and California state law.  The plaintiff, Jeremy Lusk, alleges he began working for Five Guys in August 2016.  He alleges that in the… Continue Reading

CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, State Attorneys General, CFPB, & FTC
CFPB Rolling BannerIn July of 2016, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules targeted various areas including: Debt validation, Limits on Contact, Consumer Disputes, and Deceased Consumers. At the time, the CFPB stated it planned to release rules relevant to first-party creditors at a later date. However,… Continue Reading

CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
In its fifth annual fair lending report, the Consumer Financial Protection Bureau highlighted redlining, mortgage and student loan servicing, and small business lending as areas of focus for 2017.  CFPB Director Richard Cordray specifically noted these areas for enhanced enforcement actions, describing them as “significant or emerging fair lending risk to consumers.” “In 2017 we… Continue Reading

Federal and State Regulators Obtain Record Judgment Enforcing TCPA Violations Predicated Upon Insufficient Vendor Oversight

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 5, 2017, an Illinois federal judge awarded $280 million to the federal government and the states of California, Illinois, North Carolina, and Ohio against Dish Network LLC over violations of numerous federal and state do-not-call laws. The district court’s $280 million penalty constitutes the largest ever for violations of telemarketing laws. In addition,… Continue Reading

Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices.  The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership… Continue Reading

District Court Dismisses FCRA Class Action for Lack of Standing Based on Insufficient Risk of Imminent Harm

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
Since the Supreme Court issued its decision in Spokeo, Inc. v. Robins, appellate and district courts throughout the country have been grappling with the ruling’s reach.  Just this past month, the District Court for the Southern District of New York weighed in on the issue and found that a plaintiff must show more than a… Continue Reading

Insurance Company Settles Nationwide TCPA Class Action for $4.25M

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 31, plaintiffs Jim Youngman and Robert Allen filed a motion for preliminary approval of class action settlement for their pending Telephone Consumer Protection Act action against Florida-based insurance company A&B Insurance and Financial Inc.  The case is Youngman v. A&B Insurance and Financial, Inc., No. 6:16-cv-01478-CEM-GJK (M.D. Fla. May 18, 2017).   The action,… Continue Reading

CFPB Releases Snapshot of Complaints Submitted by Senior Citizens

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On May 31, the Consumer Financial Protection Bureau released a report summarizing the complaints the Bureau received from senior citizens since the CFPB opened its doors in July 2011.  In its nearly six years of operation, the Bureau has handled approximately 1,163,200 complaints, with 103,100 complaints coming from consumers 62 years of age and older.… 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

Join Us at the 2017 ACA International Convention & Expo in Seattle July 16-18

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors
We are pleased to announce that Troutman Sanders partners David Anthony and Chad Fuller will be a featured speaker at the 2017 ACA International Convention & Expo in Seattle at the Washington State Convention Center on July 16-18. David will discuss “Debt Collection Litigation Management Best Practices,” where he will focus on litigation management best practices for… Continue Reading

District Court Rejects Notion That An Improper Background Check Disclosure Automatically Renders A Subsequent Background Authorization Improper

Posted in ALL CFS Blog Entries, Background Screening
In the world of background check litigation under the Fair Credit Reporting Act (“FCRA”), one theory that plaintiffs frequently assert is that if the background check disclosure provided by the employer violates the FCRA, then the authorization based on that disclosure is also necessarily inadequate.  Under the FCRA, an employer desiring to obtain a criminal… Continue Reading

FTC Submits Annual Budget Request To Congress

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The Federal Trade Commission (FTC) submitted its Fiscal Year 2018 budget request to Congress, in support of the President’s FY 2018 budget for the federal government. The budget request also includes the FY 2018 Budget Overview Statement, Performance Plan for FY 2017 and FY 2018, and Performance Report for FY 2016, as required under the… Continue Reading

Acting FTC Chair Supports FCC Proposed Rulemaking; Says Will Restore the FTC’s Enforcement Abilities

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Acting Chairman of the Federal Trade Commission (FTC), Maureen Ohlhausen, has issued a statement that endorses a recent proposed rulemaking by the Federal Communications Commission (FCC).  The FCC rulemaking, proposed on May 18, is titled “Restoring Internet Freedom” and seeks to restore a “light-touch regulatory framework” by reversing a 2015 FCC decision that classified… Continue Reading

NY AG Settles with IoT Company over Security Practices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
binary code 3d generated backgroundOn May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC (“Safetech”) over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks.  According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless… Continue Reading

State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
DATA Security SizedOn May 23, state attorneys general from 47 states and the District of Columbia announced a settlement agreement with Target Corporation to resolve the states’ investigation into the company’s 2013 data breach.  Under the terms of the Assurance of Voluntary Compliance (“AVC”), Target will pay $18.5 million to the states – the largest multistate data… Continue Reading

TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Mortgage Lenders & Servicers
While the world eagerly awaits the D.C. Circuit’s forthcoming ruling on the proper interpretation of the Telephone Consumer Protection Act (TCPA), a recent federal court ruling imposing tens of millions of dollars of liability is a reminder of the risks associated with outbound calling activities and of the stakes at play in the ACA International… Continue Reading