The Supreme Court’s latest arbitration decision is but the latest in a long line of decisions enforcing the strong federal policy enforcing arbitration clauses in consumer contracts. In DirecTV v. Imburgia, a 6-3 decision, Justice Breyer held that the Federal Arbitration Act preempts state laws, in this instance California’s, that invalidate arbitration clauses if
Join us at American Conference Institute’s 24th National Conference on CONSUMER FINANCE CLASS ACTIONS & LITIGATION
Expert strategies for in-house and outside counsel on navigating class actions, litigation, and government enforcement actions in the consumer finance industry.
January 26-27, Viceroy Miami, Miami, Florida
We are pleased to announce that John Lynch, partner at Troutman Sanders LLP, will speak on: Consumer Finance Class Action Litigation and Settlement Strategies, Procedural Considerations, Emerging Theories
Congressional Staff Report Criticizes CFPB Tactics and Predicts Next Supreme Court Disparate-Impact Battle
Last month, Republican staff members on the Committee of Financial Services in the U.S. House of Representatives issued a Report criticizing tactics used by the Consumer Financial Protection Bureau in the auto finance area. The Staff Report generally questions the CFPB’s disparate-impact claims under the Equal Credit Opportunity Act (“ECOA”) and the Bureau’s use of
The CFPB Issues Warning and Guidance on Obtaining Consumer Authorization for Preauthorized Electronic Funds Transfers that Confirms a Recording of a Consumer’s Oral Authorization Can Satisfy Regulation E’s Requirements
On November 24, 2015, the Consumer Financial Protection Bureau (CFPB) issued a Compliance Bulletin (2015-06), warning companies that they must ensure that consumer authorization is obtained before automatically debiting a consumer’s account and that required notifications to consumers must clearly describe the terms of the preauthorized electronic funds transfers (EFTs).
Importantly, for the first
Obama Issues Executive Order to “Ban the Box” on Federal Agency Employment Applications
On October 2, President Obama announced a new executive order that prevents federal agencies from making job-applicants reveal they have a criminal record as part of his overall criminal justice reform effort. This “ban the box” initiative would prevent federal agencies from asking about an applicant’s criminal history at the initial application stage.
“It is
The FTC Coordinates with Federal, State, and Local Authorities in Nationwide Attack Against Abusive Debt Collectors
On November 4, 2015, the Federal Trade Commission (FTC), 47 State Attorneys General, and other state and local law enforcement authorities from around the country announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. The initiative, named Operation Collection Protection, aims to crackdown on collectors who use illegal tactics
CFPB Imposes $13 Million FCRA Consent Order on Large Consumer Reporting Agencies Due to Employment Background Check Practices
On October 29, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced the settlement of an enforcement action against two affiliated consumer reporting agencies under the Fair Credit Reporting Act (“FCRA”) based on these companies’ employment background screening practices. The consent order requires these background screeners to pay a total of $13 million in penalties and
Foreclosure Firms Fight CFPB’s Claim That They Don’t Practice Law
On October 27, two law firms accused by the Consumer Financial Protection Bureau of violating the Consumer Financial Protection Act responded to the CFPB’s allegations that they failed to provide consumers with promised legal representation by accusing the CFPB of “improperly [attempting] to create a new federal common law definition of the practice of law.”
CFPB Director Provides Additional Commentary on Efforts to Address Arbitration Issues
On October 22, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks to the Consumer Advisory Board. At the meeting, Cordray discussed arbitration and issues relating to non-English or limited English–speaking consumers.
The issue of arbitration, however, was at the forefront of the discussion. As we previously reported, the CFPB intends
New York City Fair Chance Act Takes Effect and “Bans the Box” in New York City
Effective October 27, under the New York City Fair Chance Act, employers can inquire about a potential employee’s criminal record only after a conditional offer of employment is made. The Act further requires that employers provide a written copy of the inquiry, the employer’s analysis, and any supporting documentation to applicants once such a