Plaintiffs rush to the courthouse to be first in line to pursue lawsuits after notice of a breach is made. The latest example involves Wendy’s, where a plaintiff alleged that “Wendy’s approach at maintaining the privacy of Plaintiff’s and Class members’ [personally identifiable information (PII)] was lackadaisical, cavalier, reckless, or at the
Defense Win on Class Certification in FDCPA Case
Troutman Sanders would like to share the attached favorable decision from the Eastern District of Virginia on behalf of its client, Portfolio Recovery Associates (“PRA”). The district court recently denied plaintiff’s motion for class certification in a case alleging that PRA violated the Fair Debt Collection Practices Act by sending debt
Is Dodd-Frank Doing More Harm Than Good?
The 2010 financial reform law, known as the Dodd-Frank Act, has led to a 14.5 percent cut in consumer revolving credit since its enactment, says the American Action Forum. Based on the AAF’s latest research, consumer credit access is taking a substantial hit as a result of the $30 billion in regulatory costs and 72
Fifth Circuit Establishes Presumption in Favor of Federal Jurisdiction in CAFA Cases
The Fifth Circuit recently adopted a presumption in favor of retaining federal jurisdiction under the Class Action Fairness Act (“CAFA”) and placing the burden squarely on plaintiffs who seek to remand a case based on one of CAFA’s limited exceptions. Specifically, the Court held that “[i]f the applicability of an exception
First 2016 CFPB Bulletin Reinforces Focus on Furnishers
I. Background
On February 3, 2016, the Consumer Financial Protection Bureau (CFPB) issued a bulletin warning companies that furnish information on consumers to consumer reporting agencies (CRAs) yet again of the need to have adequate policies and procedures. This bulletin makes clear that any company that supplies information to CRAs is in an area of
Fourth Circuit: Arbitration Agreements Cannot Renounce Application of Federal Law
On February 2, the Fourth Circuit held that an arbitration agreement “may not flatly and categorically renounce the authority of the federal statutes to which it is and must remain subject.” Because the arbitration agreement at issue sought to “avoid state and federal law and to game the entire system,” the three-judge panel concluded that
Bose Hit With Class Action in California
The Bose Corporation has been sued on a class action basis for its alleged illegal practice of requesting and recording customers’ personal information in its California retail stores.
In December 2015, plaintiff Patrick Keegan was shopping at a Bose retail store in California where he purchased merchandise and paid using his credit card. Keegan
Is the FCRA a Dead End for Data Breach Plaintiffs?
Former FBI Director Robert Mueller stated in 2012, “[T]here are only two types of companies: those that have been hacked and those that will be.” Since then, many diverse companies (and even the federal government) have suffered this fate. Indeed, no company or entity appears immune to the potential reputational and financial risks that follow
District Court Holds Leaving Message with Third Party Violates the FDCPA
Can a debt collector leave a message for a debtor with a third party who answers the debtor’s phone? In Halberstam v. Global Credit and Collection Corp., the District Court for the Eastern District of New York answered in the negative, holding that such action violated the Fair Debt Collection Practices Act (“FDCPA”).
Cyber-Security Flaws Limited to Fiat Chrysler, Says the NHTSA
Fiat Chrysler cars were the only vehicles subject to a cyber-security flaw that allowed “white hat” hackers to take control of a Jeep last July, according to the National Highway Traffic Safety Administration. White hat hackers are computer security experts who specialize in penetration testing to ensure the security of an organization’s information systems, sometimes