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

State Attorneys General, CFPB, & FTC

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As CFPB Faces Uncertainty, State Regulators Fill Gap

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Many predicted that newly-elected President Donald Trump would remove Richard Cordray, Director of the Consumer Financial Protection Bureau, upon taking office.  Cordray remains the head of the CFPB, but uncertainty still looms at the agency.  President Trump has characterized the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation which created the CFPB, as… 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

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

CFPB Publishes Guide to Prepaid Card Rule, Delays Rule’s Effective Date

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
At the end of January, the Consumer Financial Protection Bureau published its Prepaid Rule – Small Entity Compliance Guide.  The Bureau intends for the Guide to provide a user-friendly summary of the Prepaid Rule, issued in October, but cautions that the Guide is not a substitute for reviewing the Rule, Regulation E, or Regulation Z. … Continue Reading

Multistate Coalition of AGs Calls on Congress to Support Consumer Protections for Prepaid Debit Cards

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
A multistate coalition of attorneys general led by District of Columbia Attorney General Karl A. Racine is opposing three resolutions before Congress (S.J. Res. 19, H.J. Res. 62, and H.J. Res. 73) that would block a Consumer Financial Protection Bureau final rule intended to give users of prepaid cards some of the same protections given… Continue Reading

U.S. District Court Dismisses CFPB Case Against Payment Processor

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On March 17, the U.S. District Court for the District of North Dakota granted Intercept Corporation (“Intercept”), Bryan Smith, and Craig Dresser’s Motion to Dismiss the Consumer Financial Protection Bureau’s (“CFPB”) Complaint in the case between the CFPB and Intercept. The decision to grant the Motion to Dismiss marks the first time that the Bureau… Continue Reading

Troutman Sanders Welcomes Amy Pritchard Williams

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Amy WilliamsTroutman Sanders LLP announced today that Amy Pritchard Williams has joined the firm’s Financial Services Litigation practice in the Charlotte office. She previously practiced at K&L Gates LLP. Williams’ practice focuses on financial services litigation and bankruptcy. She represents financial institutions in connection with False Claims Act actions, internal investigations and government investigations. She also… Continue Reading

Join Us for the Consero Financial Services and Insurance Litigation Forum April 2-4

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners John Lynch and Ashley Taylor will be featured speakers at this year’s Consero Financial Services & Insurance Litigation Forum on April 2-4, 2017 at The Biltmore Miami – Coral Gables.  Consero’s 2017 Financial Services & Insurance Litigation Forum will address current and looming legal and business challenges faced by today’s… Continue Reading

CFPB Releases Monthly Report Highlighting Credit Card Complaints

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On March 28, the Consumer Financial Protection Bureau released its monthly complaint snapshot, with a specific focus on credit cards.  Since its inception in July 2011, the Bureau has handled 1,136,000 consumer complaints across all products, with 116,200 complaints related to credit cards.  The CFPB received 26,300 complaints in February 2017, with 2,299 of those… Continue Reading

NY AG Announces Settlement with Health App Developers Over Marketing and Privacy Practices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On March 23, New York Attorney General Eric Schneiderman announced settlements with three health-related applications sold in Apple’s App Store and Google’s Play Store.  The settlements arose from allegations of misleading claims and irresponsible privacy practices.  Under the terms of the settlements, the developers agreed to provide additional information about how the apps were tested,… Continue Reading

Lawmakers in U.S. House of Representatives Considering Bill That Would Reform Class Action Litigation under Federal Rule of Civil Procedure 23

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 9, 2017, Judiciary Committee Chair Bob Goodlatte (R.-Va.), introduced H.R. 985, the Fairness in Class Action Litigation Act of 2017 (“the Act”). The Act aims to “amend the procedures used in federal court class actions and multidistrict litigation proceedings to assure fairer, more efficient outcomes for claimants and defendants.” Rep. Goodlatte issued a… Continue Reading

New York AG Announces Settlement with Freedom Stores

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On March 22, New York Attorney General Eric Schneiderman announced that his office reached a $540,000 settlement with Freedom Stores, a Norfolk, Virginia-based retailer that sold furniture and electronics in stores near military bases.  Schneiderman said that the settlement will clear debt and judgments charged to 257 soldiers from New York serving at various locations… Continue Reading

Consumer Protection Remains Stated Focus of Washington AG

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
A recent interview given to the Washington State Tri-City Herald highlights the increased focus of the Washington Attorney General’s office on consumer protection issues.  In the interview, Attorney General Bob Ferguson explained that his focus is to recover money for consumers who have been harmed.  He told the paper that since he has taken office,… Continue Reading

Memorandum of Understanding Signals Continued US-Canada Cooperation

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Federal Trade Commission has signed a memorandum of understanding (“MOU”) with the Royal Canadian Mounted Police (“RCMP”) to strengthen cooperation regarding cross-border fraud matters.  Acting FTC Chairman Maureen K. Ohlhausen signed the MOU on behalf of the United States, and Commissioner Bob Paulson signed on behalf of the RCMP and Canada. The MOU concerns… 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

Federal Reserve Board Expands Financial Stability Presumption for Decisions on M&A Proposals under the Bank Holding Company Act

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On March 16, 2017, the Federal Reserve Board (the “Board”) issued an order approving the merger of two bank holding companies, People’s United Financial, Inc. and Suffolk Bancorp, under Section 3 of the Bank Holding Company Act of 1956 (the “Act”).1 Although the approval of the merger itself is relatively insignificant, the order expanded a key… Continue Reading

Maryland AG Announces Settlement with Debt Collection Firms

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On March 16, the Consumer Protection Division of the Maryland Attorney General’s Office announced a settlement with five California law firms and Mandip Purewal , the owner of the firms.  The Attorney General alleged that the firms illegally collected advance fees from consumers, ostensibly to settle the consumers’ debts.  In actuality, the firms typically did… Continue Reading

DOJ Brief Opposing CFPB Brings More Uncertainty

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case. CFPB’s Single Director Structure The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in… Continue Reading

Virginia AG Reaches Settlement with Two Pawnbrokers Over Illegal Interest

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On March 10, Virginia Attorney General Mark Herring announced settlements with two Fredericksburg, Virginia pawnbrokers – Pawnking, LLC and All Star Pawn & Gold, LLC – over allegations the companies charged consumers illegal interest and fees in violation of Virginia’s pawnbroker statutes and the Virginia Consumer Protection Act.  As part of the settlement, Pawnking and… Continue Reading

Republicans Move to Roll Back CFPB Prepaid Card Rules

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
Republicans in Congress have moved to repeal recently issued Consumer Financial Protection Bureau regulations governing the prepaid card industry.  Rep. Tom Graves (R-Ga.) introduced a bill in the House in early February that would submit the rules to a vote of disapproval under the Congressional Review Act.  A group of Republicans filed a similar measure… Continue Reading

CFPB Asks FL District Court to Approve $107M Settlement

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On February 24, the Consumer Financial Protection Bureau asked a federal district court in Florida to approve a $107 million settlement to resolve claims against Orion Processing LLC.  The Bureau alleged the bankrupt company engaged in a debt-relief scheme that cost consumers millions.  The CFPB filed suit against Orion in August 2015, alleging that the… Continue Reading

Virginia AG and CFPB Settle with Virginia Pawnbroker

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
In early February, Virginia Attorney General Mark Herring and the Consumer Financial Protection Bureau announced that the agencies had reached a settlement with Woodbridge Coins and Jewelry Exchange, Inc. d/b/a Woodbridge Gold & Pawn (“Woodbridge Pawn”) to provide $56,763.60 in refunds to approximately 1,000 consumers. The CFPB and the AG’s Office alleged that the business… Continue Reading

Washington Court Orders 5-Hour Energy To Pay $4.3M For Deceptive Ads in AG Suit

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 7, Living Essentials LLC and Innovative Ventures LLC, the makers of 5-Hour Energy were ordered to pay nearly $4.3 million in penalties and attorneys’ fees and costs after a Washington State court found the makers deceived consumers with misleading claims regarding things like the effectiveness of the flavored energy shots.  Living Essentials and… Continue Reading