On September 27, LendUp, an online payday lending company based in San Francisco, entered into a Consent Order with the Consumer Financial Protection Bureau and the California Department of Business Oversight over allegations that LendUp violated the Consumer Financial Protection Act and Regulation Z of the Truth In Lending Act by
Illinois Appellate Court Reverses Ruling in Favor of Neiman Marcus in Background Check Case
On September 27, the Illinois Court of Appeals reversed a ruling in favor of Neiman Marcus, finding that the department store violated the Illinois Employee Credit Privacy Act, 820 ILCS 70/1 et seq., when it ran background checks on potential employees. The Act prohibits an employer from inquiring into a potential employee’s credit history,
Court Certified FCRA Class Over Spokeo Objections
A federal judge in the Northern District of California certified a class of job applicants in a lawsuit claiming a background check firm violated the federal Fair Credit Reporting Act. The Court certified the class over the arguments of the defendant that the members of the putative class lacked Article III standing under the standard
House Finance Committee Approves CFPB Reforms
On September 13, the U.S. House of Representatives Financial Services Committee passed an amended version of the Financial CHOICE Act, which will result in significant changes to the Consumer Financial Protection Bureau if it becomes law. The amended CHOICE Act would reform the CFPB’s structure and limit its regulatory authority, while also repealing several sections
DISH Network Agrees to Settle Fair Credit Reporting Act Claims
DISH Network, LLC and DISH Network Service, LLC have agreed to pay $1.75 million to settle class action claims that they violated certain provisions of the Fair Credit Reporting Act related to ordering consumer reports for employment purposes. The December 4, 2012 complaint alleged that DISH required companies contracted to install DISH products to obtain
Georgia Debt Collectors Banned from Debt Collection Business
In August, the United States District Court for the Northern District of Georgia entered the Federal Trade Commission’s stipulated order banning a group of debt collectors from the debt collection business and collectively fining them $4.4 million.
The FTC filed a Complaint in November 2015 against defendants National Client Services LLC, Omar Smith, and Ernest
New York Debt Collectors Banned from Debt Collection Business
In August, the United States District Court for the Western District of New York entered the Federal Trade Commission’s stipulated order banning a group of debt collectors from engaging in collection activities and imposing $27 million in fines.
In May 2015, the FTC filed a Complaint against defendants Unified Global Group LLC; ARM WNY, LLC;
U.S. District Court Rules Letter with Internal Reference Number Does Not Violate Fair Debt Collection Practices Act
A federal judge in the Eastern District of New York ruled that a debt collection company’s internal reference number, which may have been visible through a glassine envelope, did not violate the Fair Debt Collection Practices Act (“FDCPA”).
In the case, the Plaintiff, Wendy Torres Rodriguez, brought an FDCPA claim against Defendant I.C. Systems, Inc.,
Florida Federal Court Denies Motion to Dismiss FACTA Class Action Under Spokeo
On August 29, a Florida federal court rejected a motion to dismiss filed by Doctor’s Associates, Inc., doing business as Subway, which relied on the U.S. Supreme Court’s recent decision in Spokeo v. Robins in a Fair and Accurate Credit Transactions Act (“FACTA”) putative class action. Plaintiff Shane Flaum claimed that Subway violated FACTA by
Recent CFPB Supervisory Highlights Address FCRA Compliance Issues
The Consumer Financial Protection Bureau has continued to address FCRA-related compliance issues in its most recent Supervisory Highlights publications from March and June 2016. The Supervisory Highlights once again reiterate the importance of FCRA compliance for a broad spectrum of FCRA-regulated entities, including mortgage originators, furnishers of consumer information, and nationwide specialty consumer reporting agencies