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

Credit Reporting & Data Brokers

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Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Featured Posts
Credit report with scoreIn one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the viability… Continue Reading

Defendants Move to Dismiss Putative FACTA Class Action Based on Spokeo

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On April 7, defendants Wolfgang’s Steakhouse, Inc. and ZMF Restaurants LLC again urged a New York federal court judge to dismiss a Fair and Accurate Transactions Act putative class action based on the Supreme Court’s decision in Spokeo, Inc. v. Robins.  In Fullwood v. Wolfgang’s Steakhouse, Inc., plaintiff Cynthia Fullwood alleged that the defendants violated… Continue Reading

New WVCCPA Amendments are Enacted by Governor Justice

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Senate Bill No. 563 amends several provisions of the West Virginia Consumer Credit Protection Act (WVCCPA). The Bill passed the West Virginia Senate and the House of Delegates with high approval margins, and was signed into law by Governor Jim Justice on April 21, 2017. These amendments to the WVCCPA will have an impact on… Continue Reading

Supreme Court Hears Oral Argument Involving Rule 23(f) Interlocutory Appeals

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
The United States Supreme Court recently heard oral argument in the case of Microsoft Corp. v. Baker, where the Court is set to determine whether a plaintiff can tactically circumvent Rule 23(f) of the Federal Rules of Civil Procedure.  Rule 23(f) provides for an interlocutory appeal of a district court’s denial of class certification.  The… Continue Reading

Join Us for a Complimentary Webinar – Post-Spokeo Survey – An Analysis of Trends and Developments in the Courts

Posted in ALL CFS Blog Entries, Background Screening, CFS Events, Credit Reporting & Data Brokers, Featured Posts
Microphone on Stage SizedOn Wednesday, April 19 from 12-1 p.m. ET, Troutman Sanders attorneys Mary Zinsner and Jon Hubbard will present a survey of consumer protection decisions from across the country interpreting and applying the Supreme Court’s ruling in Spokeo, Inc. v. Robins.  The decisions from the federal circuits are conflicting and some “no-injury” class action proceedings are… Continue Reading

Largest Settlement of FACTA Class Action Against Restaurant Chain Granted Preliminary Approval

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On March 23, the United States District Court for the Southern District of Florida granted preliminary approval of a nearly $31 million Fair and Accurate Credit Transactions Act (“FACTA”) class action settlement against Doctor’s Associates, Inc., doing business as Subway – the largest settlement to date in the history of FACTA.  According to the complaint,… Continue Reading

Vague Allegations Of Actual Damages Insufficient To Withstand Motion To Dismiss On FCRA Negligence Claim

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The Fair Credit Reporting Act (FCRA) is not a strict liability statute.  To prevail, a plaintiff must prove that the statute was violated willfully or negligently.  While plaintiffs typically pursue willfulness claims because of the possibility of statutory and punitive damages, they often include vague allegations of emotional distress and actual damages in order to… Continue Reading

California’s Regulation Regarding Consideration of Criminal History in Employment Decisions

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
The Fair Employment and Housing Council published the final text for the “Consideration of Criminal History in Employment Decisions” regulation on March 27, 2017.  This regulation, effective July 1, 2017, impacts employers’ consideration of criminal history information for employment purposes, including those related to layoffs.  Employers are well-advised to take a fresh look at their… Continue Reading

TCPA Defendant Settles Class Claims on Individual Basis Following Counterclaims for Harassment and Racketeering

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
BrandRep, the defendant in a Telephone Consumer Protection Act putative class action lawsuit pending in the United States District Court for the Central District of California, recently settled putative nationwide class claims on an individual basis, resulting in dismissal of the case.  The settlement came on the heels of BrandRep’s assertion of counterclaims that put… Continue Reading

Court Preliminarily Approves $1.2M FACTA Class Action Settlement Against Microsoft

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The United States District Court for the Southern District of Florida recently granted preliminary approval of a Fair and Accurate Credit Transactions Act (“FACTA”) class action against Microsoft Corporation. In Guarisma v. Microsoft Corp., the named plaintiff, Carlos Guarisma, filed a putative class action against Microsoft in November 2015, alleging that the software company’s retail… Continue Reading

FTC Releases Annual Summary of Consumer Complaints

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, State Attorneys General, CFPB, & FTC
The Federal Trade Commission has released its annual summary of consumer complaints for 2016, contained in the FTC’s latest Consumer Sentinel Network Data Book.  The FTC compiles the report annually based on complaints received by the Consumer Sentinel Network.  Complaints include those made directly by consumers to the FTC, as well as complaints received by… Continue Reading

High Call Volume Not Necessarily a Violation of FDCPA or Rosenthal Act

Posted in ALL CFS Blog Entries, Auto Finance, Credit Reporting & Data Brokers, Debt Buyers & Collectors
In Hinderstein v. Advanced Call Ctr. Techs., No. 15-100017 (C.D. Cal. Feb. 27, 2017), a case alleging violation of the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act before the United States District Court for the Central District of California, the Court found that a relatively high call volume… Continue Reading

Kansas Federal Court Grants Partial Approval to Background Check Disclosure Class Action Settlement

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On January 25, the United States District Court for the District of Kansas granted partial preliminary approval to the class settlement in Lengel v. HomeAdvisor, Inc., No. 15-2198-KHV.  The plaintiff, Emerald Lengel, brought a class action lawsuit in January 2015, alleging that HomeAdvisor, her then-potential employer, violated the Fair Credit Reporting Act.  Lengel alleged HomeAdvisor… Continue Reading

CFPB Indicates Online Complaint Portal Upgrades are Coming

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The Consumer Financial Protection Bureau maintains an online portal for consumers to submit complaints across a wide variety of regulated industries, including credit reporting, background screening, and debt collection.  The CFPB has announced that it will upgrade its online portal system in early 2017.  The CFPB has released a preview document, which states that the… Continue Reading

District of Arizona Grants CenturyLink’s Spokeo Motion in FCRA Class Case

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The District of Arizona recently granted a Spokeo motion filed by CenturyLink, holding that plaintiff Lydia Bultemeyer lacked standing to bring a purported class action under the Fair Credit Reporting Act. In her suit, Bultemeyer alleged that CenturyLink violated the FCRA when it accessed her credit report when she visited the company’s website to see… Continue Reading

Join Us at the NAPBS 2017 Mid-Year Legislative & Regulatory Conference

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson,  Ron Raether, and Ashley Taylor will be featured panelists at the National Association of Professional Background Screeners (“NAPBS”) 2017 Mid-Year Legislative & Regulatory Conference to be held March 20-21 in Arlington, Virginia.  In an interview-style format, David will have a conversation with… Continue Reading

CFPB Issues Monthly Complaint Snapshot on Credit Reporting

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On February 28, the Consumer Financial Protection Bureau released its monthly snapshot highlighting consumer complaints about credit reporting.  A copy of the CFPB’s report can be found here. Debt collection, student loan, and credit reporting were the top three most-complained about consumer financial products and services, representing about 60 percent of complaints submitted in January. … Continue Reading

TransUnion Agrees to Settlement with CFPB

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, State Attorneys General, CFPB, & FTC
Late last year, TransUnion agreed to pay approximately $17 million as part of a settlement with the Consumer Financial Protection Bureau in connection with TransUnion’s advertising and marketing practices.  The settlement stems from a civil investigative demand that addressed TransUnion’s common industry practices relating to the advertising, marketing, and sale of consumer reports, credit scores,… Continue Reading

Third Circuit Finds Consumer Standing in FCRA Data Breach Litigation

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On January 20, the Third Circuit in In re Horizon Healthcare Services Data Breach Litigation reversed a district court’s dismissal of a lawsuit under the Fair Credit Reporting Act involving a data breach at Horizon Healthcare.  The Third Circuit held that the plaintiffs had standing to pursue their claims under the FCRA without any accompanying… Continue Reading

Ninth Circuit Agrees to Remand Action to State Court Based on Spokeo

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Payment Processing & Cards
The Ninth Circuit in Medellin v. IKEA U.S. West Inc. recently remanded a plaintiff’s appeal to the district court with instructions to dismiss the case after the plaintiff admitted that she lacked Article III standing to proceed in federal court.  As background, Rita Medellin’s class action complaint alleged that IKEA violated the Song-Beverly Credit Card… Continue Reading

Plaintiff Has Standing in FCRA Class Action Suit, Says Pennsylvania Magistrate Judge

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On January 18, a United States magistrate judge for the Middle District of Pennsylvania opined that a plaintiff has standing under Spokeo to pursue his Fair Credit Reporting Act class action complaint in federal court.   In Miller v. Trans Union LLC, plaintiff Ronald J. Miller alleges that Trans Union violated section 1681g(a) of the FCRA… Continue Reading

Federal Court Grants Temporary Injunction to FTC Over Credit Bureau Center’s Allegedly Fraudulent Practices

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, State Attorneys General, CFPB, & FTC
On January 10, the FTC filed a complaint in the U.S. District Court for the Northern District of Illinois against Credit Bureau Center LLC and three individuals for allegedly luring consumers into signing up for credit monitoring services using fake rental property ads and offers of free credit reports. The complaint alleged that all the… Continue Reading

District Court Finds That “Complete and Up to Date” Requirement of FCRA § 1681K Does Not Include an Accuracy Component

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Featured Posts
GavelA consumer reporting agency complies with § 1681k(a)(2) of the Fair Credit Reporting Act (“FCRA”) if it “maintain[s] strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date.” In Kelly v.… Continue Reading

Arkansas AG Files Suit Against Credit Repair Organization

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On December 20, Arkansas Attorney General Leslie Rutledge filed a consumer protection lawsuit in the United States District Court for the Eastern District of Arkansas against Florida-based Capital Credit Solutions Inc. and Willie J. McKenzie for alleged violations of the Federal Credit Repair Organization Act, the Arkansas Deceptive Trade Practices Act, and the Arkansas Credit… Continue Reading