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

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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

Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
Supreme Court Hearing Paperwork SizedOn January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a financing company that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al. v. Santander… Continue Reading

Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Miami

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners John Lynch and Chad Fuller will be featured moderators and speakers, respectively, at the American Conference Institute’s 27th National Conference on Consumer Finance Class Actions and Litigation on January 24, 2017 at the W Miami Hotel. John will moderate the  second portion of the panel discussion,… Continue Reading

Blue Shield and SQM Defeat TCPA Putative Class Action Following Spokeo

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers
GavelU.S. District Judge Cathy A. Bencivengo recently dismissed a plaintiff’s TCPA putative class claim due to lack of standing required under Article III.  In Anton Ewing v. SQM US, Inc. et al., No. 3:16-cv-1609-CAB-JLB (S.D. Cal., Sept. 29, 2016), the plaintiff alleged that he received a single survey call made by SQM on Blue Shield’s… Continue Reading

Join Us on November 3 for a Webinar on “The Ten Commandments to Avoid Lender Liability”

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Featured Posts, Mortgage Lenders & Servicers
Conference RoomIn good times and bad, one of the single largest legal risks for lenders is liability claims brought by borrowers.  Either asserted defensively when the borrower is unable to repay, offensively when the borrower has suffered a loss in a transaction financed by the loan, or as in an entrepreneurial effort to recover money based… Continue Reading

Join Us at the Institute of Continuing Legal Education in Georgia’s Class Actions Seminar

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, CFS Events, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
We are pleased to announce that Troutman Sanders partner Cindy Hanson will be a featured speaker at the Class Actions seminar, offered by the Institute of Continuing Legal Education in Georgia, on Friday, September 2. Cindy will speak on a panel entitled “Offers of Judgment and Mootness after Campell-Ewald,” where she will discuss the effects… Continue Reading

FCC Sets Tight Boundaries for TCPA Government-Backed Loan Exception

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
As we previously reported, section 301(b) of the Bipartisan Budget Act of 2015 permits an exception to the Telephone Consumer Protection Act of 1991 for calls and text messages “made solely to collect a debt owed to or guaranteed by the United States.”  Although the TCPA generally prohibits calls and text messages using automatic telephone dialing… Continue Reading

FTC Consent Order With Two Ohio Auto Dealers Resolves Misleading Advertising Claims

Posted in Auto Finance, State Attorneys General, CFPB, & FTC
On July 14, the Federal Trade Commission announced that it had entered into a final consent order with Ohio auto dealers Progressive Chevrolet Company and Progressive Motors Inc. (collectively, the “Progressive Dealers”), which the FTC had “charged with deceiving consumers by using advertising that touted low monthly car lease payments and down payments but failed… Continue Reading

CFPB Monthly Report Highlights Complaints About Various Consumer Loans

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On June 28, the Consumer Financial Protection Bureau released its Monthly Complaint Report, which aims to provide “a high-level snapshot of trends in consumer complaints” concerning products such as auto loans, installment loans, and title loans.  The CFPB claims that since it began collecting such complaints in July 2011, it has handled a total of… Continue Reading

Sirius XM Settles TCPA Class Action for $35 Million

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In one of the largest settlements in history under the Telephone Consumer Protection Act (“TCPA”), Sirius XM Radio Inc. agreed to pay $35 million to resolve putative class actions filed throughout the country alleging that it had used an automatic telephone dialing system to engage in telemarketing to trial users of its satellite radio service… Continue Reading

A Serious Circuit Split On Class Ascertainability

Posted in ALL CFS Blog Entries, Auto Finance, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Law360, New York (June 30, 2016, 4:42 PM ET) — The Eighth Circuit’s recent ruling in Sandusky Wellness Center LLC v. Medtox Scientific Inc. on ascertainability deepened a circuit split on one of the most important and challenging class certification issues. Until theU.S. Supreme Court resolves the split, the legal standard for ascertainability will remain… Continue Reading

Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Chicago

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
We are pleased to announce that Troutman Sanders partner John Lynch will be a featured speaker at the American Conference Institute’s 26th National Conference on Consumer Finance Class Actions & Litigation on July 29, 2016 at the Omni Chicago Hotel. John will participate in a panel entitled, “The Telephone Consumer Protection Act (TCPA): Litigation and… Continue Reading

CFPB Releases “Know Before You Owe” Guide for Auto Purchases

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau (“CFPB”) has released an “auto loan shopping sheet” and other online resources as part of its “Know Before You Owe” initiative, which aims to assist consumers with comparison shopping and financing auto purchases. The initiative “walks consumers through each step of the auto finance process to help them decide how… Continue Reading

Campbell-Ewald Court Rejects Defendant’s Attempt to Pay Up

Posted in ALL CFS Blog Entries, Auto Finance, Cyber Security, Information Governance & Privacy, Payment Processing & Cards
As we previously reported, the Supreme Court recently issued its decision in Campbell-Ewald Co. v. Gomez, where the Court held that an unaccepted offer that would fully satisfy a plaintiff’s individual claim is insufficient to render that claim moot in a class case.  The Supreme Court’s opinion, however, left open the question of whether actual… Continue Reading

Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers, Payment Processing & Cards
We are pleased to announce that Troutman Sanders attorneys David Anthony, Ashley Taylor, Paige Fitzgerald, and Laura Anne Kuykendall published a survey through Thomson Reuters which focuses on consumer financial regulation issues for the Commonwealth of Virginia.  The survey is formatted as a question and answer guide, and addresses state-specific laws governing the offering and… Continue Reading

CFPB Warns of Debt Risks for Car Title Loans, Foreshadows Upcoming Regulation

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On May 18, the Consumer Financial Protection Bureau issued a 24-page report regarding consumer usage and default patterns for vehicle title loans.  Such loans are made to borrowers who sign over their car titles as collateral, and are commonly made to individuals with poor credit histories in need of fast cash.  Although the borrower retains… Continue Reading

Illinois Appellate Court Rejects Coverage for Blast-Fax Class Action Under the TCPA

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
On May 18, 2016, in First Mercury Insurance Company v. Nationwide Security Services, Inc. et al., the First District of the Illinois Appellate Court affirmed the Circuit Court of Cook County’s ruling of no coverage after the insured settled a “Blast-Fax” class action lawsuit brought under the Telephone Consumer Protection Act. The TCPA provides for a $500 statutory… Continue Reading

Join Us for a Troutman Sanders Webinar: A Year in Review – TCPA Developments since the FCC’s Landmark Declaratory Ruling

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Microphone on Stage Sized  Join Troutman Sanders partners Alan Wingfield and Chad Fuller, and associate Virginia Flynn for a webinar entitled, “A Year in Review – TCPA Developments since the FCC’s Landmark Declaratory Ruling,” on Tuesday, June 7, from 12:00-1:00 p.m. EDT. The Federal Communications Commission’s landmark July 10, 2015 Declaratory Ruling interpreting the Telephone Consumer Protection Act… Continue Reading

CFPB Attempts to Sound Death Knell for Consumer Class Action Waivers Used by Financial Institutions

Posted in ALL CFS Blog Entries, Auto Finance, Credit Reporting & Data Brokers, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On May 5, 2016, the CFPB announced proposed rules that would further restrict the ability of financial institutions to enter into mandatory arbitration clauses with consumers, including an outright ban on provisions that would prohibit consumers from pursuing class actions in court. The proposed rules do not forbid all mandatory arbitration clauses, however. Financial institutions… Continue Reading

Eighth Circuit Joins Minority in Circuit Split as to Ascertainability Standard for Class Actions

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Golden Seal SizedOn May 3, the United States Court of Appeals for the Eighth Circuit reversed a lower court’s rejection of class certification in Sandusky Wellness Ctr., LLC v. Medtox Scientific, Inc., a case brought under the Telephone Consumer Protection Act (“TCPA”) relating to junk faxes sent by a lead testing company.  In its opinion, the Court… Continue Reading

Auto Lenders Settle Excessive Interest Claims With Massachusetts Attorney General for $7.4 Million

Posted in ALL CFS Blog Entries, Auto Finance
On March 16, Massachusetts Attorney General Maura Healey announced a $7.4 million settlement with two national auto lenders, American Credit Acceptance LLC (“ACA”) and Westlake Services LLC (“Westlake”).  The settlement resolves claims against the lenders that they charged excessive interest rates on subprime automotive loans.  ACA settled for $1.7 million, and Westlake for $5.7 million.… Continue Reading

House Democrats Join Senate Colleagues With Introduction of Identical HANGUP Act

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
House Democrats have joined an effort to ensure that the Telephone Consumer Protection Act of 1991 (“TCPA”) applies to calls to collect government-backed debt.  We previously reported that on November 4, 2015, Sen. Edward Markey (D-Mass.) introduced the Help Americans Never Get Unwanted Phone calls Act of 2015, also known as the HANGUP Act.  The… Continue Reading

Join Us at the ABA Business Law Section Spring Meeting in Montreal

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Debt Buyers & Collectors, Mortgage Lenders & Servicers
We are pleased to announce that Troutman Sanders partner David Anthony will be a panelist at the American Bar Association’s Business Law Section Spring Meeting at Fairmont The Queen Elizabeth in Montreal, Canada on April 6-9.  David will speak on a panel sponsored by the Consumer Financial Services Committee entitled “Update on the Telephone Consumer… Continue Reading

FCC Circulates Draft Rule to Implement TCPA Exception for Government-Backed Loans

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
As we previously reported, section 301(b) of the Bipartisan Budget Act of 2015 permits an exception to the Telephone Consumer Protection Act of 1991 for calls and text messages “made solely to collect a debt owed to or guaranteed by the United States.” The  TCPA generally prohibits calls made and text messages sent utilizing artificial… Continue Reading