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

GAO Sounds Death Knell for the CFPB’s Key Statement of its “Disparate Impact” Theories in Indirect Auto Finance

Continue Reading

Federal Judge Denies Injunction, Leaving Trump Appointee Mick Mulvaney Head of CFPB

Continue Reading

Join Us on December 5 for an ABA Webinar – State Attorneys General Series: Enforcement Agencies Confront Class Actions

Continue Reading

President Likely Has Authority To Appoint Acting Director To Replace Cordray At CFPB

Continue Reading

CFPB Director Richard Cordray to Step Down

Continue Reading

Bank to Pay $2.8 Million in Consumer Restitution to Settle Alleged Deceptive Fee Practices

By Paige S. Fitzgerald on November 30, 2017

The Board of Governors of the Federal Reserve System recently issued a Consent Order against Peoples Bank, based in Lawrence, Kansas, to settle claims of deceptive residential mortgage origination practices that arose from the bank’s charging of fees in mortgage originations.  The Federal Reserve alleged that Peoples told mortgage borrowers that certain additional fees that...
Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal
Federal Court Rejects Dish Network’s Motions to Set Aside or Reduce $61M Damages Award in TCPA Class Action
11th Circuit Applies Totality-of-the-Circumstance Analysis to Judicial Estoppel
CFPB Proposes Modifications to Home Mortgage Law to Protect Borrowers’ Privacy

District Court Relies on Spokeo to Dismiss FACTA Suit

By Brooke Conkle on November 09, 2017

On November 6, a judge in the Southern District of New York dismissed a proposed class action alleging that Wolfgang’s Steakhouse impermissibly printed payment card expiration dates on customers’ receipts, relying on the U.S. Supreme Court’s decision in Spokeo to find that customers were not actually harmed by any information revealed. Relying on the Second...
Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal
Join Us November 8-9 for the Third Party Payment Processors Association Executive Summit
U.S. Treasury Criticizes Arbitration Rule
Judge Preliminarily Authorizes Settlement in Heartland Payment Systems Case

Health Care Debt Collector Pays $600K to Settle TCPA Class Action

By Justin M. Brandt on November 28, 2017

On November 21, the United States District Court for the Northern District of Illinois granted preliminary approval of a proposed $600,000 settlement of a class action lawsuit filed by a consumer against M3 Financial Services, Inc., an Illinois-based health care debt collector. The lawsuit, styled Elaine Mason et al. v. M3 Financial Services Inc., alleged...
Federal Court Finds 29 Calls in 24 Days Sufficient to State FDCPA Claim
Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal
Current Balance Decision Creates Uncertainty in Eastern District of New York
CFPB Issues Interim Final Rule Amending Time Requirement for Servicers to Send Subsequent Early Intervention Notices

State Court Among First to Dismiss FCRA Claim for Lack of Injury-in-Fact

By David M. Gettings on November 27, 2017

In Miles v. The Company Store, consumer Timothy Miles brought a claim in state court against retailer The Company Store for alleged violations of the federal Fair Credit Reporting Act.  Specifically, Miles claimed that The Company Store violated 15 U.S.C. § 1681c for printing too many digits of his credit card number on his receipt. ...
CFPB Solicits Comments on Access to Free Credit Scores
CA Federal Court Denies TransUnion’s Post-Trial Motions in $60M Ramirez Case
Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal
Alabama AG Shuts Down Credit Repair Services Company

GAO Sounds Death Knell for the CFPB’s Key Statement of its “Disparate Impact” Theories in Indirect Auto Finance

By Alan Wingfield on December 06, 2017

On Tuesday, December 5, 2017, the Government Accountability Office (“GAO”) levelled a heavy blow on a major regulatory initiative of the Consumer Financial Protection Bureau (“CFPB”): its highly controversial “disparate impact” discrimination theories as applied to pricing in the indirect automobile financing industry. The specific GAO ruling finds that a 2013 “Bulletin” stating the CFPB’s...
Auto Lending—and Delinquencies—Stay on Upward Trend
Auto Finance Company Unable to Shake TCPA Class Action
New York AG Announces Settlements with Two Motor Vehicle Dealer Groups
Massachusetts AG Accuses Used Car Dealer of Deceptive Practices

District Court Rejects Argument that Background Check Disclosure is Not “Standalone” Document

By David M. Gettings on November 30, 2017

The Fair Credit Reporting Act regulates more than credit.  It includes provisions that govern employers who obtain consumer reports on applicants in connection with the application process.  One such provision deals with the disclosure that an employer must provide to an applicant before obtaining a background check.  According to the FCRA, the employer must provide...
Avis Settles FCRA Background Check Lawsuit for $2.7 Million
Supreme Court Declines to Hear Appeal of Ninth Circuit Decision on FCRA Willfulness in Disclosure Forms
Arizona Governor Signs Executive Order Banning the Box
Sodexo Escapes FCRA Putative Class Action

Join Us for a Complimentary Webinar: Preserving and Protecting Confidentiality when Sharing Information with Regulators

By John C. Lynch on November 30, 2017

On Tuesday, December 12, from 3-4 p.m. ET, Join Troutman Sanders for a webinar focused on a practical issue of great importance to mortgage loan originators and servicers: how to ensure confidential information is protected, when faced with an investigation by state or federal regulators. The webinar will (1) outline the common law principles and...
Ninth Circuit: ESPN App User Data is Not Personal Information
FCC Adopts New Rules on Blocking Robocalls
New York AG Proposes Changes to Data Breach Law
Tax Preparation Firm Settles FTC Claims Flowing from Data Breach

N.C. Attorney General Josh Stein Reorganizes DOJ

By Ashley L. Taylor, Jr. on December 06, 2017

Just shy of one year as the N.C. Attorney General, Josh Stein has reorganized NC DOJ – eliminating one prior Division (the Administrative Division), shifting responsibilities within DOJ, and renaming certain Divisions. Additionally, several recent retirements, new hires and promotions have significantly altered the senior attorneys at the helm of the DOJ’s legal services. Under...
Consulting New Leadership on Case Against Tribal Lenders, CFPB Obtains Extension
Bad Day for Payday Lender: Jury Convicts Online Lender of $220M
Bank to Pay $2.8 Million in Consumer Restitution to Settle Alleged Deceptive Fee Practices
Join Us for a Complimentary Webinar: Preserving and Protecting Confidentiality when Sharing Information with Regulators