Two major groups within the financial industry began the month of March with renewed advocacy for structural modifications to the student loan program managed by the U.S. Department of Education, which currently issues about 90% of student loans.
First, in early March, the Consumer Bankers Association, a trade organization representing financial
On February 21, the United States Department of Education, led by Secretary Elisabeth Dee DeVos, issued a memorandum indicating it was considering stepping into the debate over the standard used to determine whether a student loan can be discharged under the Bankruptcy Code. The request for public comment appears aimed in part at revisiting allowing
Can the United States Government be liable for reporting inaccurate credit information on a consumer and then failing to investigate the consumer’s dispute? Many courts are divided as to whether the Fair Credit Reporting Act (“FCRA”) applies to the United States Government. In Jones v. United States Department of Agriculture, the District Court for
The Seventh Circuit recently heard argument in Robertson v. Allied Solutions LLC after the U.S. District Court for the Southern District of Indiana dismissed a class action while the plaintiff’s motion for preliminary approval of class settlement was pending. Although the motion was pending, the district court dismissed the case against Allied Solutions in light
In Culberson v. Walt Disney Parks and Resorts, the Culbersons brought a class action lawsuit against Disney under the Fair Credit Reporting Act (“FCRA”). The suit alleges that Disney violated the FCRA by obtaining a background report without providing a proper disclosure and by taking adverse action without following a proper adverse action process.
In recent years, defendants have been attempting to curtail class actions in federal court by arguing that the named plaintiff lacked standing under the Supreme Court’s holding in Spokeo, Inc. v. Robins. Although defendants have had success in asserting Spokeo in “no injury” class actions, this success has not been without a price. Often,
The Moore v. Rite Aid Headquarters Corp. case has a long history of addressing significant questions regarding an employer’s adverse action responsibilities under the Fair Credit Reporting Act. That history recently ended in the District Court for the Eastern District of Pennsylvania, with a dismissal of Moore’s claims and a denial of her motion for
On January 1, 2018, California Government Code § 12952 goes into effect. § 12952 is yet another state law that regulates how employers can use criminal background checks in the hiring process. Although state laws governing this practice have become commonplace, § 12952 is unique in that it contains new requirements as to what
The New York Department of State’s Division of Consumer Protection recently implemented an “Identity Theft Prevention and Mitigation Program” and adopted emergency regulations, effective immediately. According to the Division, the program is intended to “(1) inform consumers about how to protect their personal identifying information; (2) help consumers prevent identity theft, including taking steps to
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