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

Featured Posts

Subscribe to Featured Posts RSS Feed

Join Us on March 23 for a Complimentary Webinar on Electronic Fund Transfer Act (EFTA) – Latest Trends and Developments

Posted in ALL CFS Blog Entries, CFS Events, Featured Posts, Payment Processing & Cards
Microphone at Seminar HallOver the past few years, Regulation E, which implements the Electronic Fund Transfer Act, has been cited by federal regulators in rulemaking, enforcement actions and bulletins. The CFPB has not only used the EFTA in its rulemaking concerning prepaid accounts, but it has filed enforcement actions for alleged violations of EFTA and issued bulletins concerning… 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

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

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

Democratic AGs File Motion to Intervene in CFPB “For Cause” Removal Case

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Decorative Scales of Justice in the CourtroomOn January 23, Democratic attorneys general from 16 states and the District of Columbia filed a motion to intervene in the closely watched PHH Corp. v. Consumer Financial Protection Bureau case, currently pending in the U.S. Court of Appeals for the District of Columbia.  As we reported here and here, in October 2016, a divided… 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

Troutman Sanders Named Among 2016 Practice Groups of the Year

Posted in ALL CFS Blog Entries, Featured Posts
ATLFinancial Services Practice Recognized for Excellence by Law360 Troutman Sanders LLP announced today that its Consumer Financial Services practice has been selected as one of Law360’s 2016 Practice Groups of the Year. Troutman Sanders was recognized in Law360’s Consumer Protection category for excellence in representing and advising clients with respect to high-stakes litigation and regulatory… 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

More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
RobotThe United States District Court for the District of New Jersey recently held in Samuel Chisholm v. AFNI, Inc. that a debt collector “could not reasonably be found to violate” the Fair Debt Collection Practices Act by calling a consumer 18 times on his cell phone over the course of 13 days.  All calls were… Continue Reading

D.C. Circuit Rules CFPB “For Cause” Removal of the Director Unconstitutional, but Declines to Shut it Down

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Golden Seal SizedUntil October 10, none of the constitutional or scope of enforcement authority challenges to the Consumer Financial Protection Bureau’s (“CFPB” or Bureau”) power have been successful. That changed on October 11 when the U.S. Court of Appeals for the District of Columbia held the Director of the Bureau has too much unilateral, unchecked power and… Continue Reading

Supreme Court Grants Cert. In FDCPA Claim Related to Filing of Stale Claims in Bankruptcy

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
United States Supreme CourtOn October 11, 2016, the United States Supreme Court granted the petition for certiorari of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that has been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred debt in… Continue Reading

CFPB Issues Final Prepaid Card Rule

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
Credit Cards SizedOn October 5, the Consumer Financial Protection Bureau issued its much anticipated final rules regulating prepaid card accounts.  The final rules follow the proposed rules that the Bureau issued in December 2014, and are mostly unchanged from the proposed rules.  The new rules apply to “prepaid accounts,” which the Bureau defines as accounts that are… 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

Troutman Sanders Expands Financial Services Litigation Practice

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers
TS-SkylineAd_RichmondWe are pleased to announce that Andrew B. Buxbaum has joined the firm’s Financial Services Litigation practice as Of Counsel in the Richmond Office. He joins the firm from SunTrust Banks, Inc., where he was First Vice President & Senior Counsel of Substantial Litigation. At SunTrust, Andrew managed major litigation, class actions, government investigations and… Continue Reading

Court Certified FCRA Class Over Spokeo Objections

Posted in ALL CFS Blog Entries, Background Screening, Featured Posts
GavelA federal judge in the Northern District of California certified a class of job applicants in a lawsuit claiming a background check firm violated the federal Fair Credit Reporting Act.  The Court certified the class over the arguments of the defendant that the members of the putative class lacked Article III standing under the standard… Continue Reading

CFPB Introduces New Protections for Borrowers

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
House Calculator SizedOn August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule… Continue Reading

Payment Processor Group Files Amicus Brief in CFPB v. Intercept Case

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
binary code 3d generated backgroundOn August 15, the Third Party Payment Processors Association (“TPPPA”), a national, not-for-profit organization of payment processors, payroll processors, and banks, this week filed a brief, amicus curiae, in support of the defendants’ motion to dismiss in the Consumer Financial Protection Bureau’s lawsuit against Intercept.  The TPPPA filed the amicus brief in the United States… Continue Reading

Troutman Sanders Expands Financial Services Litigation Practice in Atlanta

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts
????????????????????????????????????Troutman Sanders LLP announced today that Cindy Hanson has joined the firm’s Financial Services Litigation practice as a partner in Atlanta. Prior to joining Troutman Sanders, Cindy was a partner at Kilpatrick Townsend & Stockton LLP. Cindy focuses on class action defense and has handled hundreds of matters under the Fair Credit Reporting Act (FCRA). Her practice… Continue Reading

New York AG Announces Data Breach Settlement with EZcontactsUSA

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
Information Security SizedOn August 5, the New York Attorney General announced a settlement with Provision Supply, LLC, d/b/a EZcontactsUSA.com over a data breach resulting in the potential exposure of over 25,000 credit card numbers and other cardholder data.  Provision Supply, the operator of EZContactsUSA.com, a Brooklyn-based e-tailer that sells contact lenses and eyewear, agreed to pay $100,000… Continue Reading

CFPB Outlines Overhaul of Acceptable Debt Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Past Due SizedOn July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations.  The new rules seek to curb “excessive or disruptive” communication by restricting collectors from calling debtors numerous times a day, require debt collection companies to have “more and better information” about the… Continue Reading

Federal Judge Rejects Challenge to CFPB Director’s Recess Appointment

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
GavelOn July 13, a federal judge tossed out a challenge to the recess appointment of Consumer Financial Protection Bureau Director Richard Cordray. In State National Bank of Big Spring et al. v. Lew et al., the State National Bank of Big Spring, Texas, joined by conservative advocacy groups The Competitive Enterprise Institute and The 60… Continue Reading

House Financial Services Committee Releases Draft of Bill to Replace Dodd-Frank

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
Business People Meeting SizedOn June 23, a discussion draft of “The Financial CHOICE Act” was released by the House Financial Services Committee.  A primary purpose of this bill is to replace the Dodd-Frank Act, including reforming financial institution regulations and significantly changing the structure and authority of the Consumer Financial Protection Bureau.    Specifically, the CFPB’s leadership would change… Continue Reading

EU Member States Approve Privacy Shield

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy, Featured Posts
DATA Security SizedOn July 8, European Union member states approved the Trans-Atlantic Privacy Shield data transfer deal, finally paving the way for the pact to be formally approved by EU and U.S. officials on July 12.  The Article 31 committee, which is made up of representatives of each EU member state, held their highly anticipated final vote… Continue Reading