March 2017

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…

In Hinderstein v. Advanced Call Ctr. Techs., No. 15-100017 (C.D. Cal. Feb. 27, 2017), a case alleging violation of the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act before the United States District Court for the Central District of California, the Court found that a relatively high call …

Ever since the Supreme Court decided Spokeo, Inc. v. Robins last year, courts have been struggling to define the contours of standing in “no injury” class actions.  In Fields v. Beverly Health and Rehabilitation Services, Inc. et al., the District of Minnesota recently granted a motion to dismiss a Fair Credit Reporting Act c…

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 …

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 …

The Consumer Financial Protection Bureau recently sued three law firms in the United States District Court for the Central District of California for collecting advance fees from consumers seeking debt relief.  CFPB Director Richard Cordray stated that “[t]he defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees.”…

On January 25, the United States District Court for the District of Kansas granted partial preliminary approval to the class settlement in Lengel v. HomeAdvisor, Inc., No. 15-2198-KHV.  The plaintiff, Emerald Lengel, brought a class action lawsuit in January 2015, alleging that HomeAdvisor, her then-potential employer, violated the Fair Credit Reporting Act.  Lengel …

The parties in Soular v. Northern Tier Energy, LP et al. recently filed a motion for preliminary approval of a $3.5 million Telephone Consumer Protection Act (“TCPA”) class action in the District of Minnesota.  The three named plaintiffs in the case alleged that they received unsolicited marketing text messages from the …

The Consumer Financial Protection Bureau maintains an online portal for consumers to submit complaints across a wide variety of regulated industries, including credit reporting, background screening, and debt collection.  The CFPB has announced that it will upgrade its online portal system in early 2017.  The CFPB has released a preview document, which states that the …

On February 27, the Federal Trade Commission filed a stipulated order, which includes a $9 million judgment, against another debt relief provider, United Debt Counselors, LLC, its owners, and officers (collectively “United”) for violating the FTC Act and the Telemarketing Sales Rule.  This serves as another warning from the FTC that debt relief companies need …