On June 15, the Federal Trade Commission and the Office of the New York State Attorney General hosted a “Debt Collection Dialogue” in Buffalo, New York. FTC Bureau of Consumer Protection Director Jessica Rich and New York State Attorney General Eric Schneiderman delivered opening remarks, and officials from the New York State Department of Financial
New York City “Bans the Box” in Limiting Inquiry into Job Applicants’ Criminal History
On June 10, the New York City Council became the latest governmental body to “ban the box” by prohibiting private employers within the city from inquiring into a job applicant’s criminal history, and instead requiring that criminal background inquiries be deferred until the time of a job offer. In so doing, New York City joins
CFPB Argues Processors Facilitated Debt Collection Fraud
On June 5, 2015, the Consumer Finance Protection Bureau (the “CFPB”) argued that a lawsuit against four payment processors for their involvement in a debt collection scheme should not be dismissed. According to the CFPB’s complaint (found here), filed on March 26, 2015, this scheme involved Marcus Brown and Mohan Bagga and their
District Court Holds That Mailing Pre-Adverse and Adverse Action Letters Five Business Days Apart is Plausible FCRA Claim When It Conflicts With Content of Pre-Adverse Action Letter
In Moore v. Rite Aid Headquarters, the District Court for the Eastern District of Pennsylvania ruled that the plaintiff had stated a plausible employment adverse action claim under the Fair Credit Reporting Act. In doing so, the Court’s decision raises questions about a widely accepted safe harbor of mailing pre-adverse and adverse action notices
Recent FCRA Lawsuit Demonstrates Growing Trend of Class Actions Challenging Employment Background Screening Disclosure Forms
A putative nationwide class action was recently filed under the Fair Credit Reporting Act against Dollar Tree Stores Inc. The lawsuit was filed in federal district court in Florida.
The complaint alleges that Dollar Tree failed to properly disclose in a separate document that it was going to obtain employees’ consumer reports for hiring purposes
Federal Courts in New York and Georgia Grant FTC’s Request to Stop Several Debt Collectors from Engaging in Certain Collection Activities
Federal courts in New York and Georgia have granted the Federal Trade Commission’s request to temporarily stop certain debt collection practices that the FTC alleges violate federal law. Specifically, the FTC alleges that the unlawful and scandalous activity includes threatening and deceiving consumers through text messages, emails, and certain types of phone calls.
On May
The Good, the Bad, and the Unclear: FCC Proposal Foreshadows Major News Under TCPA for Financial Services Companies
A growing avalanche of lawsuits under the Telephone Consumer Protection Act spurred industry groups and businesses, particularly financial services companies, to file more than 20 petitions with the Federal Communications Commission seeking clarifications and interpretations of the TCPA’s requirements. An announcement by FCC Chairman Tom Wheeler indicates that the Commissioners will be acting on the
Ohio Attorney General Files Lawsuit Against Debt Collectors
On May 19, Ohio Attorney General Mike DeWine announced the filing of a lawsuit against the alleged operators of a fictitious debt collection enterprise that threatened and harassed consumers, many of whom were not actual debtors.
The Attorney General’s lawsuit, filed in Cuyahoga Common Pleas Court, names Mohan Bagga of Duluth, Georgia; Marcus Brown of
Supreme Court Grants Petition to Potentially Decide Whether a Rule 68 Offer of Judgment for Complete Relief Moots Potential Class Claims
The U.S. Supreme Court agreed on May 18 to hear an appeal from the U.S. Navy’s advertising partner challenging the Ninth Circuit’s remand of a potential class action over allegedly unsolicited text messages, potentially resolving the issue of whether a putative class claim is mooted by an offer of complete relief under Rule 68 of
FTC and State Attorneys General Charge Cancer Charities With Bilking Over $187 Million from Consumers
On May 19, the Federal Trade Commission and all fifty state attorneys general and the District of Columbia charged four cancer charities and their operators with bilking more than $187 million from consumers. The alleged fraud, detailed in a complaint filed in the United States District Court for the District of Arizona, is said to