In Redman v. RadioShack Corporation, 2014 U.S. App. LEXIS 18181 (7th Cir. Sept. 19, 2014), the Seventh Circuit held that the lower court erred when it approved a settlement in a class action that was filed under the Fair and Accurate Credit Transactions Act (FACTA), 15 U.S.C. § 1681c(g), against a company that sold
Federal Court Affirms Debt Collector’s Right to Collect Pre-Judgment Statutory Interest After Charge-Off by Original Creditor
On September 18, in Peters v. Financial Recovery Services, Inc., the United States District Court for the Western District of Missouri held that neither the federal Truth in Lending Act (TILA) nor the Federal Debt Collection Practices Act (FDCPA) prohibit a debt collector from charging state statutory pre-judgment interest after charge-off. In reaching that
Congresswoman Proposes Fundamental Changes to FCRA
On September 10, Congresswoman Maxine Waters released a draft proposal entitled “Fair Credit Reporting Improvement Act of 2014” that, if passed, could lead to fundamental changes in the credit reporting industry.
According to the published summary of the key provisions of the proposed legislation, the legislation would alter various aspects of credit reporting in favor
Data Breach Generates Putative FCRA Class Action Against Hospital
On September 4, in Tierney et al. v. Advocate Health and Hospitals Corp., the United States District Court for the Northern District of Illinois issued an order dismissing a putative Fair Credit Reporting Act class action accusing Advocate Health and Hospitals Corp. of violating the FCRA by failing to secure health data stolen from
Court Decision Issued on Background Check Adjudication
Employers utilizing background checks in their applicant screening process often battle two competing forces – the need to screen and hire employees quickly and the requirement that they wait a reasonable time before taking adverse action under the Fair Credit Reporting Act. The District Court for the Eastern District of Pennsylvania recently issued a decision
Study of Consumer Class Action Settlements Confirms Steady Increase in Number of Settlements Since 2010
On July 22, National Economic Research Associates (“NERA”) Economic Consulting released a study entitled “Consumer Class Action Settlements: 2010-2013”. The study is available online here. This study concluded empirically what many businesses have been experiencing in practice: Consumer class action settlements have been increasing steadily in the years between 2010 and 2013.
NERA’s analysis
CFPB Director Discusses Perceived Benefits of Public Complaint Database
The Consumer Financial Protection Bureau has announced an initiative to allow consumers to contribute a public “narrative of their own experiences” when posting to the CFPB’s Consumer Complaint Database. We discussed the creation of this narrative section in our July 18 blog titled “CFPB Adds Narrative to Complaint Database.” Recently, Richard Cordray, Director
Plaintiff has Standing to Sue Under FDCPA for Misrepresentation He Never Knew About
Consistent with its expansive view of constitutional standing, the Ninth Circuit recently held that a plaintiff has constitutional standing under the Fair Debt Collection Practices Act to sue for a misrepresentation that was never actually communicated to him.
In Tourgeman v. Collins Financial Services, Inc., the plaintiff brought a class action lawsuit against multiple
Amicus Briefs Join the Push for Supreme Court Review of “No Injury” Class Actions
On May 1, 2014, Spokeo, Inc. filed a writ of certiorari in the United States Supreme Court requesting the Court decide whether a plaintiff has Article III standing in a federal court when he or she has suffered no actual harm besides the violation of a statute alone. Resolution of this question could have a
Spokeo Brings “No Concrete Harm” FCRA Fight to the Supreme Court
On May 1, 2014, Spokeo, Inc. petitioned the United States Supreme Court for a writ of certiorari to decide a significant question regarding Article III standing applicable to numerous federal consumer protection statutes. Specifically, Spokeo asked the Supreme Court to weigh in on whether Congress can confer Article III standing to sue upon a plaintiff