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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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

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

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

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

Supreme Court Rules That Filing a Proof of Claim on a Time-Barred Debt Does Not Violate the FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
United States Supreme CourtOn May 15, 2017, the United States Supreme Court ruled that the Eleventh Circuit erred when it found a debt buyer liable under the Fair Debt Collection Practices Act for filing proofs of claim in bankruptcy on debts that had become time-barred. A copy of the Court’s opinion can be found here. Background In Johnson… Continue Reading

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

State Banking Regulators File Suit Challenging OCC Fintech Charter

Posted in ALL CFS Blog Entries, Featured Posts, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
PrintOn April 26, a group of state bank regulators filed a lawsuit to block the Office of the Comptroller of the Currency from issuing special charters to fintech firms.  The regulators argue that the OCC fintech charter will improperly displace already effective state laws regulating fintech companies, that the OCC lacks the authority to issue… Continue Reading

CFPB Files Suit Against Four Online Lenders Operated by Native American Tribe

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
CFPB Rolling BannerOn April 27, the Consumer Financial Protection Bureau filed a lawsuit in an Illinois federal court against four online installment loan companies operated by a California Native American tribe.  Although the tribe operates the installment loan companies, the CFPB’s complaint alleges that the defendants are not “arms of the tribe” and therefore should not be… Continue Reading

U.S. Supreme Court Rejects “Meaningful Attorney Involvement” Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
GavelThe United States Supreme Court declined a petition for writ of certiorari by a consumer regarding a collection letter on law firm letterhead with attorney signatures.  The ruling of the United States Court of Appeals for the District of Columbia in Tawanda Jones v. David Sean Dufek, Sr. was left in place, holding that a… Continue Reading

CFPB Meets With Community Bankers to Discuss Use of Alternative Data in Credit Decisions

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Meeting Illustration SizedOn April 25, the Consumer Financial Protection Bureau held its Spring 2017 Community Bank Advisory Council meeting in Washington.  The purpose of the meeting was to allow representatives from community banks an opportunity to provide additional input on the Bureau’s Request for Information (“RFI”) on the use of alternative data to assess creditworthiness of consumers… Continue Reading

Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
Decorative Scales of Justice in the CourtroomOn April 18, the United States Supreme Court heard long-awaited oral arguments in a case that addresses the fundamental issue of the definition of a “debt collector” under the Fair Debt Collection Practices Act.  The Supreme Court’s decision will resolve an existing Circuit split on whether an entity that purchases defaulted debts and then attempts… 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

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