The Conference of State Bank Supervisors (“CSBS”) announced on June 24 that 23 states have joined a multistate agreement to standardize their licensing process for money services businesses (“MSBs”), such as money transmitters. The agreement centralizes the review of common licensing requirements, such as a MSBs’ “business plan; direct and indirect owners, including background checks;
The Northern District of California recently granted a motion to compel arbitration in a putative class action brought under the Telephone Consumer Protection Act. In doing do, it enforced an arbitration provision that had been provided to the plaintiff by way of a hyperlink in an e-mail confirming her purchase of a subscription to an
On June 20, following unanimous approval by the state legislature, the governor of Maine enacted a new set of laws – “the Student Loan Bill of Rights” – designed to regulate the student loan servicing industry.
The new laws, enacted for the benefit of Maine residents obligated on a student loan as a
On June 25, a district court judge in the Eastern District of Louisiana granted the defendants’ motion to dismiss under Rule 12(b)(6) for failure to state a claim. The Court held that requiring the plaintiff, Iris Calogero, to repay funds arising from the overpayment of grant monies did not constitute a debt under the Fair
Plaintiffs Clint Millien and Felipe Kelly sued Madison Square Garden for its hiring practices relating to applicants’ failure to disclose previous criminal activity when applying for food preparation positions. The plaintiffs claim that Madison Square Garden imposed too strict of requirements for criminal disclosures that had a disparate impact on minority applicants. The parties agreed
The United States Court of Appeals for the Seventh Circuit recently reiterated that the Fair Debt Collection Practices Act was not intended to penalize a company that made an honest mistake that resulted in no harm to the borrower.
In Casillas v. Madison Avenue Associates, Inc., No. 17-3162, Slip Op. (7th Cir. June 4,
On June 14, an Eastern District of North Carolina judge issued the first opinion within the Fourth Circuit addressing the impact of ACA International on the definition of an automatic telephone dialing system, or “ATDS.” In Snow v. GE, Judge Flanagan dismissed plaintiff Marian Snow’s complaint because she failed to allege facts “permitting an
On June 12, a Northern District of Illinois judge ordered loan servicer and debt collector Real Time Resolutions, Inc. to distribute $261,815.82 in unclaimed funds to class members, rather than donating the funds to charity as a cy pres award. In doing so, the Court settled a dispute between the parties as to the proper
On May 29, the Consumer Financial Protection Bureau announced a settlement with BSI Financial Services, a Texas-based mortgage servicer. Acting as a reminder to mortgage servicers of the importance of maintaining rigorous information management systems, the CFPB alleged BSI violated the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act, and the
On May 30, a district court judge in the Middle District of Georgia granted a debt collector’s motion for judgment on the pleadings, ruling that the debt collector’s “submit a dispute” statement did not overshadow the letter’s 15 U.S.C. § 1692g notice under the Fair Debt Collection Practices Act.
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