On January 2, 2014, the Eleventh Circuit Court of Appeals found that the Fair Debt Collection Practices Act prohibits collection agencies from charging consumers a percentage fee of the balance of their debt unless the consumer has explicitly agreed to such a fee arrangement. In Bradley v. Franklin Collection Services, Inc., a unanimous
Cordray’s Renewed Questioning Concerning Recess Authority
In a letter dated July 29, addressed to Richard Cordray, Director of the Consumer Financial Protection Bureau, two Republicans – Representative Jeb Hensarling, Chairman of the House Committee on Financial Services, and Mike Crapo, Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs – continue to question the validity of the CFPB’s
Is Your Smartphone an ATDS? The United States Says “No”.
TCPA litigation is running rampant in courts throughout the country. Automatic telephone dialing systems, or “ATDSs” or “autodialers”, are at the heart of virtually every TCPA case involving cell phones. Why? Because if a call to a person’s cell phone was not made with an ATDS as defined by the statute, there is virtually no
Third Circuit Holds that “Gateway” Issue of Classwide Arbitrability is for Courts to Decide
On July 30, the Third Circuit held that whether an arbitration agreement permits classwide arbitration is a question for courts, not arbitrators, to decide. Through its decision, the Third Circuit expressly aligned itself with a prior ruling to the same effect from the Sixth Circuit.
The Third Circuit reversed a 2011 decision of a district
New York AG and FTC Allege New York Based Debt Collector Used Illegal and Fraudulent Methods to Collect Debts
The Federal Trade Commission and the New York Attorney General’s Office filed a joint complaint against a New York based debt collector that goes by several names, including National Check Registry. As a result of the complaint, the U.S. District Court for the Western District of New York froze the operation’s assets and appointed a
OCC Identifies Signs of Risk in Auto Lending Industry
The Office of the Comptroller of the Currency (OCC) in its Spring 2014 Semiannual Risk Perspective report has stated that signs of risk in the auto lending industry are beginning to emerge, based on data that the OCC reviewed as of December 31, 2013. The OCC’s Semiannual Risk Perspective is published by the OCC’s National
Eight New Jersey Motor Vehicle Dealers and State Attorney General’s Office Enter into $1.8 Million Settlement to Resolve Allegations of Deceptive Practices
The Division of Consumer Affairs of the New Jersey Attorney General’s office has reached a $1.8 million settlement with eight New Jersey motor vehicle dealerships, all under common ownership, to resolve multiple claims of deceptive business practices that were discovered during the Division’s investigation. The settlement also provides for restitution for certain identified consumers affected
FCC Strengthens Consent Requirements by Limiting Scope Based upon Individual’s Expectations
The Federal Communications Commission (FCC) in late June 2014 responded to the Second Circuit Court of Appeals’ request in Nigro v. Mercantile Adjustment Bureau for the FCC to opine on a specific question. The Second Circuit asked whether prior express consent existed under the Telephone Consumer Protection Act (TCPA) for an individual’s provision of a
CFPB to Issue White Paper Regarding Identification of Discrimination in Indirect Auto Lending
The Consumer Financial Protection Bureau’s 2013 bulletin cautioning lenders offering auto loans through dealerships that they remain accountable for complying with fair lending laws has sparked questions regarding how the CFPB identifies problematic discriminatory practices. In an effort to address these concerns, CFPB Director Cordray reported during the House Financial Services Committee’s hearing on the
7th Circuit Ruling Provides Further Support That Supreme Court’s Comcast Decision Does Not Preclude Individual Damages Inquiries
In IKO Roofing Shingle Products Liability Litigation, the Seventh Circuit Court of Appeals reversed a denial of class certification in a products liability multidistrict litigation on the grounds that the plaintiffs’ two damages theories complied with the U.S. Supreme Court’s holding in Comcast Corp. v. Behrend, even though these theories would not allow