On Wednesday, the New York Department of Financial Services (DFS) became the first state financial regulator to use the Dodd-Frank Act’s “UDAAP” consumer protection standards against a corporation when it filed a lawsuit against an auto lender. The 2010 Dodd-Frank Act gives state regulators the ability to sue companies for engaging in unfair, deceptive, or
New Legislation Proposes Amendments to FCRA
On Wednesday, April 9, 2014, Senators Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio) announced legislation seeking to amend the Fair Credit Reporting Act (FCRA) to protect consumers from inaccurate credit reports and credit scores. Their legislation, the Stop Errors in Credit Use and Reporting (SECURE) Act, is aimed at easing the process by which
West Virginia Adds New Disclosure Requirement for Out-of-Statute Debts
A recently passed bill by the West Virginia Legislature requires debt collectors to make new disclosures in initial letters to consumers. Effective June 6, 2014, section 46A-2-128(f) of the West Virginia Consumer Credit Protection Act (WVCCPA) is amended to require the initial written communication with a consumer to disclose the subject debt is beyond the
Settlement in FDCPA Class-Action Over Collection Letters Approved
On April 15, 2014, a federal judge in New Jersey approved the settlement of a class-action suit against a law firm that allegedly violated the Fair Debt Collection Practices Act (FDCPA). Plaintiffs claimed that Mattleman, Weinroth & Miller, whose principal office is in Cherry Hill, NJ, and Executive Credit Management, located in Stanhope, NJ, had
Senate Aims to Increase Transparency in Credit Reporting
On April 8, 2014, Senate Democrats introduced a bill that addresses a laundry list of frequent criticisms by federal and state regulators of the consumer reporting industry. The legislation, titled the Stop Errors in Credit Use and Reporting (SECURE) Act, is aimed at increasing the accuracy of consumer reports and assisting consumers who have information
American Conference Institute’s 18th National Forum on Consumer Finance Class Actions & Litigation
Troutman Sanders’ lawyer David Anthony will be presenting at the upcoming American Conference Institute’s 18th National Forum on Consumer Finance Class Actions & Litigation. The conference will be held April 8-9, 2014 at the Westin Bonaventure Hotel &Suites in Los Angeles, CA. David will be presenting on , “CLASS ACTIONS: New and Emerging
CFPB Annual Report Shows 80% Increase in Consumer Complaints in 2013
In an annual report issued by the Consumer Financial Protection Bureau on Monday, March 31, 2014, the Bureau announced that it had received nearly double the number of consumer complaints in 2013 as compared to 2012. The report noted that 163,700 total complaints were brought to the Bureau’s attention in 2013, a jump from approximately
CFPB Highlights Debt Collection Industry in Annual Report to Congress
In its annual FDCPA report to Congress released on March 20, 2014, the CFPB stated that the industry continues to be plagued by aggressive collection tactics and inaccurate record-keeping. According to the Bureau, since it began receiving consumer complaints about the industry in July, it has received more than 30,000 complaints concerning debt collection practices.
Seventh Circuit Finds Collectors Settlement Letters “Misleading”
On March 11, 2014, the Seventh Circuit ruled that settlement letters sent to debtors concerning the settlement of time-barred debt were misleading even though the letters did not threaten litigation.
The plaintiffs were both Illinois residents with outstanding debt that was subject to the state’s four-year statutes of limitations, and the collection firms named in
CFBP to Begin Conducting Surveys on Consumer Experiences with Debt Collection Industry
As a part of its plans to modernize regulation of the debt collection industry, the CFPB announced on February 26, 2014, that it will begin the process of soliciting consumer input to “learn about their experiences interacting with the debt collection industry” – specifically their most recent contact with debt collectors and whether they recognized