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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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

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

OPM Issues Final Rule on Inquiring into Job Applicants’ Criminal History and Credit Information

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
Effective January 3, 2017, the Office of Personnel Management will require that, unless an exception has been granted, federal hiring agencies cannot inquire into an applicant’s criminal history or adverse credit information until after a conditional offer of employment has been made.  This federal initiative is consistent with, and provides a timely reminder of, the… Continue Reading

CFPB Signals Intent to Move Forward With System Allowing Consumers to Rate Companies’ Responses to Complaints

Posted in Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors
According to a Federal Register notice published on November 29, the Consumer Financial Protection Bureau is soliciting further comments on its proposal to provide consumers with the option to fill out a short survey on their satisfaction with companies’ resolution of consumer complaints.  In the notice, the CFPB described the proposal: The purpose of this… Continue Reading

Cross-Motions for Summary Judgment Filed in Costco FCRA Class Action

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Payment Processing & Cards
As we previously reported, the named plaintiff in Paci v. Costco Wholesale Corporation filed a Fair Credit Reporting Act putative class action against Costco alleging that the retailer’s receipts contained more digits of the payment card’s account number than is permitted under the Act.  The parties recently filed cross-motions for summary judgment.  Costco argued that… Continue Reading

FCRA Lawsuits Increase in 2016

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors
While the number of lawsuits filed under the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act remained relatively steady or fell, claims under the Fair Credit Reporting Act rose sharply between October 2015 and October 2016.  The total number of FCRA lawsuits increased from 283 to 355 – a 25.4 percent increase. … Continue Reading

California Court Grants Final Approval of $1.5 Million TCPA Robocall Settlement

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Mortgage Lenders & Servicers
On November 7, the United States District Court for the Southern District of California granted final approval of the class settlement in Stemple v. QC Holdings, Inc., No. 3:12-cv-01997 (S.D. Cal.).  The plaintiff in the case alleged that QC Holdings, a check-cashing and short-term loan company, negligently and willfully violated the Telephone Consumer Protection Act… Continue Reading

Join Us on November 10 for a Discussion on Spokeo

Posted in ALL CFS Blog Entries, CFS Events, Credit Reporting & Data Brokers
Microphone on Stage SizedJoin Troutman Sanders partners David N. Anthony and Ronald I. Raether, Jr. for a complimentary webinar discussion on November 10 at 12:00 noon EST on the Spokeo Inc. v. Robins case which was decided by the United States Supreme Court on May 16, 2016.  Troutman Sanders has been following this case throughout its lifecycle and reporting… Continue Reading

TD Bank USA Escapes State Law Credit Reporting Class Action

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On October 24, the Middle District of Pennsylvania dismissed a putative class action against TD Bank USA, holding that the plaintiff’s state law claims were preempted by the Fair Credit Reporting Act.  The case is Prukala v. TD Bank United States, 2016 U.S. Dist. LEXIS 146614 (M.D. Pa. October 24, 2016).  Plaintiff Michael Prukala alleged that… Continue Reading

TCPA Case Survives Spokeo Motion to Dismiss

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On October 19, the United States District Court for the District of New Mexico denied defendants’ motion to dismiss a TCPA putative class action on Spokeo grounds. In LaVigne v. First Community Bancshares, Inc., et al., the plaintiff contends that the defendants called her on her cell phone approximately 195 to 265 times using an… Continue Reading

Judge Grants Summary Judgment for Bank of America in Putative FCRA Disclosure and Authorization Class Action

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On October 13, Judge Christina A. Snyder of the United States District Court for the Central District of California granted summary judgment in favor of Bank of America and other defendants in a putative Fair Credit Reporting Act class action.  In Robert Berrellez v. Pontoon Solutions, Inc. et al., No. 2:15-cv-01898, the plaintiff alleged that… Continue Reading

Motion for Class Certification Filed Against Costco in FCRA Lawsuit

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Payment Processing & Cards
On October 12, the named plaintiff in a Fair Credit Reporting Act class action asked the Northern District of Illinois to certify her putative class against Costco Wholesale Corporation.  According to the Complaint, the plaintiff used her credit card to make a purchase at one of Costco’s stores in January 2016.  By the time she… Continue Reading

Illinois Court Refuses to Dismiss Case After Tender of Monetary Relief as Courts Continue to Wrestle with Campbell-Ewald Aftermath

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
In Practice Management Support Services v. Cirque Du Soleil, Inc., the United States District Court for the Northern District of Illinois denied the defendants’ motion for summary judgment that followed a Rule 67 motion to deposit $15,000 to moot the plaintiff’s claim for relief under the Telephone Consumer Protection Act.  The plaintiff seeks, on behalf… Continue Reading

Preliminary Approval of $10.5M TCPA Class Action Settlement Granted

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On September 28, the United States District Court for the Central District of California preliminarily approved a $10.5 million Telephone Consumer Protection Act class action settlement against Dun & Bradstreet Credibility Corporation (“DBCC”).  According to the class action complaint that was originally filed in April 2015, DBCC, a seller of credit-building and credibility solutions for… Continue Reading

Join Us at ACI’s 20th Advanced Global Legal and Compliance Forum on Privacy & Security of Consumer and Employee Information

Posted in ALL CFS Blog Entries, CFS Events, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured speaker at the American Conference Institute’s 20th Advanced Global Legal and Compliance Forum on Privacy & Security of Consumer and Employee Information, taking place October 13-14 in San Francisco. Ron will participate on a panel entitled “Big Data in the… Continue Reading

Illinois Appellate Court Reverses Ruling in Favor of Neiman Marcus in Background Check Case

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On September 27, the Illinois Court of Appeals reversed a ruling in favor of Neiman Marcus, finding that the department store violated the Illinois Employee Credit Privacy Act, 820 ILCS 70/1 et seq., when it ran background checks on potential employees.  The Act prohibits an employer from inquiring into a potential employee’s credit history, and… Continue Reading

FTC Issues Staff Paper Focusing on Lead Generation

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On September 15, the Federal Trade Commission published a staff paper providing its perspective on the lead generation business.  Although the FTC recognized some of the advantages of lead generation, the paper was a clear warning to “unscrupulous actors in the lead generation industry” of potential consequences.  The staff paper signals that the FTC is… Continue Reading

FTC Seeks Comment on Disposal Rule

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Mortgage Lenders & Servicers
On September 12, the Federal Trade Commission announced that it is seeking comment on its rule regarding the Disposal of Consumer Report Information and Records.  Under the Disposal Rule, a person is required to properly dispose of consumer information by taking reasonable measures to protect against unauthorized access or use of the information in connection… Continue Reading

Florida Federal Court Denies Motion to Dismiss FACTA Class Action Under Spokeo

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On August 29, a Florida federal court rejected a motion to dismiss filed by Doctor’s Associates, Inc., doing business as Subway, which relied on the U.S. Supreme Court’s recent decision in Spokeo v. Robins in a Fair and Accurate Credit Transactions Act (“FACTA”) putative class action.  Plaintiff Shane Flaum claimed that Subway violated FACTA by… Continue Reading

Recent CFPB Supervisory Highlights Address FCRA Compliance Issues

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau has continued to address FCRA-related compliance issues in its most recent Supervisory Highlights publications from March and June 2016.  The Supervisory Highlights once again reiterate the importance of FCRA compliance for a broad spectrum of FCRA-regulated entities, including mortgage originators, furnishers of consumer information, and nationwide specialty consumer reporting agencies… Continue Reading

Northern District of Illinois Holds Third-Party Disclosure Required for FCRA Claim Under § 1681e(b)

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
Earlier this month, a federal court in the Northern District of Illinois granted a motion to dismiss a claim under 15 U.S.C. § 1681e(b), finding that a credit score purchased by the plaintiff was not a consumer report under the Fair Credit Reporting Act because it was not disclosed to any third party.   The plaintiff… Continue Reading