Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Julie D. Hoffmeister

Julie D. Hoffmeister

Blog Role:
Contributor – Debt Buyers & Collectors; Cyber Security, Information Governance and Privacy

CFS Value:
Julie Hoffmeister specializes in consumer financial services litigation with a focus on debt buyers and collectors.

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FCC Adopts New Rules on Blocking Robocalls

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On November 16, the Federal Communications Commission adopted new rules to allow telephone carriers to block robocalls as potentially fraudulent when they come from certain types of phone numbers. According to the FCC’s press release, robocalls are the top consumer complaint submitted to the FCC, with more than 200,000 annually.  The FCC’s report also highlights… Continue Reading

CFPB Solicits Comments on Access to Free Credit Scores

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
In recent years, many financial institutions and credit card companies have begun offering consumers free access to their credit score. On November 13, the Consumer Financial Protection Bureau published a request for information in the Federal Register regarding consumers’ experiences “with access to free credit scores and the experience of companies, and nonprofits, offering their… Continue Reading

Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, Payment Processing & Cards
A Texas-based payment processor agreed on November 1 to pay $9 million to settle a putative class action brought under the Telephone Consumer Protection Act in the United States District Court for the Northern District of California.  According to the plaintiffs, Pivotal Payments, Inc. failed to ensure that a third party it hired to make… Continue Reading

Sodexo Escapes FCRA Putative Class Action

Posted in ALL CFS Blog Entries, Background Screening
As we previously reported, consumer plaintiff Robert Piveronas filed a putative Fair Credit Reporting Act class action in Pennsylvania state court against Sodexo, Inc., alleging that the multinational corporation routinely violates the FCRA’s mandate that employers provide consumers with a “clear and conspicuous” background check disclosure, consisting solely of the disclosure, before procuring a consumer… Continue Reading

Illinois Federal Court Denies Certification of Junk Fax TCPA Class Action

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The November 3 decision in Alpha Tech Pet, Inc. v. Lagasse, LLC, et al. highlights that one of the key individualized issues present in many TCPA class actions – whether consumers provided their consent to be called, texted, or, as in this case, sent faxes – can defeat class claims. In its complaint, Alpha Tech… Continue Reading

Alabama AG Shuts Down Credit Repair Services Company

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
Alabama Attorney General Steve Marshall recently filed a complaint against Scott’s Credit Repair and its owners, John C. Scott and Krystal Scott, in Montgomery, Alabama Circuit Court.  The complaint alleged that “from beginning to end, the consumer experience with Scott’s Credit Repair is rooted in deception and illegality.”  More specifically, the complaint alleged that the… Continue Reading

Court Grants Summary Judgment to Thomson Reuters; Company Does Not Qualify as Consumer Reporting Agency

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
In Kidd v. Thomson Reuters, plaintiff Lindsay A. Kidd brought a Fair Credit Reporting Act putative class action claim against mass media and information firm Thomson Reuters after she was allegedly denied a job with the Georgia Department of Public Health based on criminal history information obtained by the Department from Thomson Reuters’ subscription-based online… Continue Reading

Häagen-Dazs Can’t Escape TCPA Class Action for “Thank You” Text

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
Recent attempts by The Häagen-Dazs Shoppe Company, Inc., Nestlé Dreyer’s Ice Cream Company, and Nestlé USA, Inc. to have a Telephone Consumer Protection Act putative class action dismissed proved unsuccessful after the United States District Court for the Northern District of California found that the “thank you” text messages at issue could arguably constitute telemarketing.… Continue Reading

CFPB Rule Requires Payday Lenders to Apply “Ability to Repay” Standard to Loans

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Today the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a new rule that will have a significant impact on the payday lending market. The CFPB will now require lenders to conduct a “full-payment test” to determine upfront whether the borrower will have the ability to repay the loan when it becomes due. Lenders… Continue Reading

Eleventh Circuit Weighs In on DPPA Remedies Provision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In Ela v. Kathleen Destefano, the Eleventh Circuit recently commented on the remedies provision of the Driver’s Privacy Protection Act (“DPPA”), holding that the liquidated damages provision does not apply to individual violations of the statute in instances where multiple violations are alleged. As background, plaintiff Theresa Ann Ela sued Kathleen Destefano, an Orange County,… Continue Reading

Second Circuit Affirms Dismissal of FACTA Class Action Against Donna Karan for Lack of Standing

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On September 20, the Second Circuit Court of Appeals in Katz v. The Donna Karan Company, LLC, affirmed the lower court’s dismissal of a Fair and Accurate Credit Transactions Act putative class action for failure to establish a concrete injury sufficient to maintain Article III standing to bring suit. As we previously reported, plaintiff Yehuda… Continue Reading

NY and NJ Render Conflicting FDCPA Decisions Involving Credit Repair Companies

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
Two recent decisions from the Southern District of New York and the District of New Jersey have expressly disagreed about a credit repair company’s dispute of a debt on behalf of a consumer in two Fair Debt Collection Practices Act cases.  In Taylor-Burns v. AR Resources, Inc., plaintiff Tonya Taylor-Burns alleged that the debt collector… Continue Reading

CFPB Shuts Down Credit Repair Company for Charging Illegal Fees

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
A California district court approved a settlement between Prime Marketing Holdings LLC and the Consumer Financial Protection Bureau, whereby Prime Marketing agreed to pay $150,000 and be banned from offering credit repair services.  The settlement was a result of the CFPB’s September 2016 suit against Prime Marketing for allegedly misleading consumers and charging illegal fees. … Continue Reading

Spokeo Update: Ninth Circuit Holds that Plaintiff Adequately Alleged Article III Standing

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts
On August 15, 2017, the Ninth Circuit issued its decision on remand in Spokeo, reversing and remanding the case to the District Court after finding that the named Plaintiff, Thomas Robins, has standing to pursue his claims. Background In Spokeo, Inc. v. Robins, Plaintiff Robins sued the “people search engine” for alleged violations of the… Continue Reading

Barclays Hit with Putative Class Action Over Background Checks

Posted in ALL CFS Blog Entries, Background Screening
On August 4, the Brooklyn Events Center, LLC d/b/a Barclays Center, Levy Premium Foodservice Limited Partnership, and Professional Sports Catering LLC were hit with a putative class action alleging that the businesses use discriminatory criminal history screening policies to deny employment to qualified job applicants. According to the complaint, the named plaintiff, Felipe Kelly, applied… Continue Reading

New Jersey Bill Limits Use of Driver’s License Information by Retailers

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The New Jersey legislature recently passed a bill that places restrictions on retailers’ ability to collect and use personal information gleaned from driver’s licenses.  The bill, known as the Personal Information and Privacy Protection Act, is intended to give consumers more control and security over their personal information.  A copy of the bill can be… Continue Reading

TCPA Class Decertified in Missouri Federal Court

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In a long-running Telephone Consumer Protection Act class action, Missouri District Judge Catherine Perry recently granted defendant Vein Centers for Excellence Inc.’s motion to decertify the class.  As background, Vein Centers is a marketing firm that provides graphic design and other services to doctors.  The named plaintiff, St. Louis Heart Center, Inc., filed this putative… Continue Reading

Cheesecake Factory Tries to Dismiss Putative FACTA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
The Cheesecake Factory Restaurants, Inc. recently asked a New York federal district judge to dismiss a putative Fair and Accurate Transactions Act putative class action that accuses the restaurant chain of printing too many credit card numbers on consumers’ receipts.  Relying on the Supreme Court’s decision in Spokeo, Cheesecake Factory argues that the class action… Continue Reading

USPS’ Motion to Dismiss Putative FCRA Class Action Denied by Wisconsin Magistrate Judge

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
A Wisconsin federal magistrate judge denied the United States Postal Services’ attempt to dismiss a Fair Credit Reporting Act putative class action, holding that the plaintiff’s complaint sufficiently alleged an injury-in-fact.  According to the complaint, plaintiff Rondo Tyus applied for a security clearance to work at the USPS.  The USPS obtained a criminal background report,… Continue Reading

Court Finds Lack of Attorney Meaningful Involvement Sufficient for Article III Standing

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In what appears to be never-ending litigation, a New Jersey Federal District Court upheld a plaintiff’s summary judgment motion on remand from the Third Circuit Court of Appeals, holding that the defendant law firm’s lack of attorney meaningful involvement created a particularized and concrete injury sufficient for the plaintiff to maintain standing to assert his… Continue Reading

Credit Score Attached to Collection Action Complaint Violates the FCRA and FDCPA, Contends New Putative Class Action Complaint

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
According to a new class action Complaint filed in the United States District Court for the Western District of Wisconsin, Discover Bank (“Discover”) and Kohn Law Firm S.C. (“Kohn”) violated the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) by publishing consumers’ credit scores as part of state court collection actions… Continue Reading

Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On May 23, 2017, in Whalen v. Michaels Stores, Inc., the United States Court of Appeals for the Second Circuit issued a summary order affirming the district court’s dismissal of a putative data breach class action based on lack of Article III standing. As background, the named plaintiff Mary Jane Whalen made credit card purchases at… Continue Reading

Defendants Move to Dismiss Putative FACTA Class Action Based on Spokeo

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On April 7, defendants Wolfgang’s Steakhouse, Inc. and ZMF Restaurants LLC again urged a New York federal court judge to dismiss a Fair and Accurate Transactions Act putative class action based on the Supreme Court’s decision in Spokeo, Inc. v. Robins.  In Fullwood v. Wolfgang’s Steakhouse, Inc., plaintiff Cynthia Fullwood alleged that the defendants violated… Continue Reading

Supreme Court Hears Oral Argument Involving Rule 23(f) Interlocutory Appeals

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
The United States Supreme Court recently heard oral argument in the case of Microsoft Corp. v. Baker, where the Court is set to determine whether a plaintiff can tactically circumvent Rule 23(f) of the Federal Rules of Civil Procedure.  Rule 23(f) provides for an interlocutory appeal of a district court’s denial of class certification.  The… Continue Reading