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
CFPB Releases Monthly Report Highlighting Credit Card Complaints
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
Lawmakers in U.S. House of Representatives Considering Bill That Would Reform Class Action Litigation under Federal Rule of Civil Procedure 23
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
Republicans Move to Roll Back CFPB Prepaid Card Rules
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
CFPB Asks FL District Court to Approve $107M Settlement
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
Federal Court Transfers Payment Processor’s Case Seeking Collection of $4.5M Judgment
A New York payment processor successfully defended one personal jurisdiction challenge, but lost the other in the Northern District of Texas. The case represents an attempt by TransFirst Group, Inc. to collect a $4.5 million judgment it obtained against Dominic “Nick” Magliarditi in 2013 related to the group’s purchase of Magliarditi’s payment processing company, Payment
CFPB Orders MasterCard and UniRush to Pay $13 Million
On February 1, the Consumer Financial Protection Bureau ordered payment card companies MasterCard and UniRush to pay $10 million in restitution and a $3 million fine related to service breakdowns that left customers unable to access their funds. “MasterCard and UniRush’s failures cut off tens of thousands
CFPB and Dodd-Frank in Republicans’ Crosshairs
On February 3, President Trump signed an executive order directing the Treasury Secretary to review the Dodd-Frank Wall Street Reform and Consumer Protection Act. Trump earlier characterized Dodd-Frank as “a disaster” and said that his administration would work to cut “a lot out of” the 2010 law.
House Financial Services Committee Chairman Jeb Hensarling (R-Tex.)
CFPB and State AGs Sue Largest Student Loan Servicer
On January 18, the CFPB and the state attorneys general for Illinois and Washington filed three separate enforcement actions against Navient Corporation and its related entities for violations of a number of consumer protection laws. Navient is the largest student loan servicer in the United States, servicing the loans of more than 12
Payment Processing Marketer Seeks Sanctions Against CFPB
On January 4, a defendant in a Fair Debt Collections Practices Act case moved for sanctions against the Consumer Financial Protection Bureau, arguing that it never had proof that the defendant acted wrongfully when it filed suit in early 2015. In support of its Motion, Pathfinder Payment Solutions, Inc. stated that the Bureau “knowingly exceeded