On January 21, the U.S. District Court for the Eastern District of Pennsylvania struck a class action under the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. (“FDCPA”) and the Telephone Consumer Protection Act of 1991, 47 U.S.C. §§ 227 et seq. (“TCPA”). Although the judge allowed the lead plaintiff to pursue
CFPB Issues Bulletin Advising Entities Undergoing Regulatory Exams Not To Share Information With Third Parties Or Withhold Information From the CFPB
On January 28, 2015, the Consumer Financial Protection Bureau issued a bulletin warning financial institutions about entering into agreements with third parties that share or hide information related to regulatory exams, as well as warning entities under investigation about sharing information with third parties.
The bulletin is intended to assist supervised entities in complying with
Coalition Urges New York City to Ban Use of Credit Checks in Hiring
On January 15, the NYC Coalition to Stop Credit Checks in Employment published an open letter to New York City Mayor de Blasio and the City Council, urging them to support legislation banning the use of credit checks in employment decisions. To the extent New York City enacts such a law, it would create
FTC Shows Texas-based Debt Collector ‘the Horns’ by Filing Suit Alleging Illegal Collection Tactics
On January 20, 2015, the Department of Justice, on the Federal Trade Commission’s behalf, filed a complaint against Commercial Recovery Systems, Inc. (CRS), a Texas-based debt collector, including its current and former principals, for allegedly using illegal tactics, such as threatening consumers with false claims of lawsuits and potential garnishments, in the United States District
CFPB to Promulgate New Overdraft Rules in the New Year
New rules on overdraft protections and fees are one of the top items on the CFPB regulatory agenda this year. In its Fall 2014 Rulemaking Agenda, the CFPB noted that they were “continuing to research overdraft services and considering whether rules governing overdraft and related services are warranted and what such rules may be”
New FCRA Lawsuit Demonstrates Growing Trend of Consumers Challenging Employer Disclosure Forms
A new putative class action lodged in California federal court against Paramount Pictures Corporation made it the latest employer to be accused of violating the Fair Credit Reporting Act by obtaining credit reports from current and prospective employees without adequate disclosure of their rights under the FCRA. The lawsuit alleges that the company has a
Another Subprime Auto Lender Receives Civil Investigative Subpoena from Justice Department
Law360 is reporting that another subprime auto lender, the Nevada-based Consumer Portfolio Services, Inc., has disclosed in an SEC filing that it received a civil investigative subpoena from the Department of Justice. As we’ve previously reported, both federal and state regulators recently have increased their scrutiny of subprime auto lending.
This is not the first
Colorado Attorney General’s Office Continues to Focus on In-State Consumer Protection
The Colorado Attorney General’s Office, in a recent press release, warned its in-state consumers of a “debt-collection” scam whereby imposters pose as law enforcement officials or government agencies. This warning was triggered by a sharp increase in the number of reports to the AG’s Office of threatening telephone calls and emails as part of
FTC Creates Graphic Novel to Educate Spanish-Speaking Consumers on Debt Collection
As part of the Federal Trade Commission’s ongoing initiative to promote consumer education and protection in the Latino community through its fotonovelas series, it recently announced the creation of a new Spanish-language graphic novel. As the third and most recent installment of the FTC’s fotonovelas series, the graphic novel titled “Cobradodres de Dueda”,
FTC Issues Follow-Up Study on Credit Reporting Accuracy
The Federal Trade Commission has issued a follow-up study of credit report accuracy (the “Follow-Up Study”) that found most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.
The congressionally-mandated study is the sixth