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

H. Scott Kelly

H. Scott Kelly

Blog Role:
Contributor – Payment Processing & Credit Cards

CFS Value:
Scott specializes in complex litigation and business disputes.

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Avis Settles FCRA Background Check Lawsuit for $2.7 Million

Posted in ALL CFS Blog Entries, Background Screening
On November 17, car rental company Avis filed its memorandum in support of final approval of a $2.7 million class action settlement to resolve Fair Credit Reporting Act claims related to its background screening practices. The case is Angela Fuller v. Avis Budget Car Rental LLC, et al., No. 2:15-cv-03856, pending in the U.S. District… Continue Reading

CA Federal Court Denies TransUnion’s Post-Trial Motions in $60M Ramirez Case

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On November 6, in Sergio L. Ramirez v. TransUnion LLC, Magistrate Judge Jacqueline Corley of the United States District Court for the Northern District of California denied TransUnion’s post-trial motion for judgment as a matter of law, for a new trial, and to reduce the $60 million verdict previously entered by the jury.  Ramirez remains… Continue Reading

Arizona Governor Signs Executive Order Banning the Box

Posted in ALL CFS Blog Entries, Background Screening
On November 6, Arizona governor Doug Ducey signed an executive order making Arizona the most recent state to adopt a “ban the box” law.  The state joins Pima County and Tucson – Arizona localities that have already joined the “ban the box” movement. Under the new policy, state agencies will delay questions related to an… Continue Reading

FCRA Suits Increase 60% from August to September

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
According to a litigation statistics report issued by WebRecon LLC, consumer lawsuits alleging violation of the Fair Credit Reporting Act increased by nearly 60% in September from the prior month.  That increase “keeps it in line with the aggressive growth in recent years.” FCRA filings increased 58.4% from 351 in August to 556 in September… Continue Reading

NYDFS Directed to Regulate Consumer Reporting Agencies

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On September 18, New York Governor Andrew Cuomo issued a press release directing the New York Department of Financial Services to impose new rules on consumer reporting agencies (“CRAs”).  The new regulation would require CRAs to register with New York for the first time and comply with the state’s cybersecurity standard.  The standard – which… Continue Reading

Lawmakers in U.S. House of Representatives Considering Bill That Would Reform Class Action Litigation under Federal Rule of Civil Procedure 23

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On February 9, 2017, Judiciary Committee Chair Bob Goodlatte (R.-Va.), introduced H.R. 985, the Fairness in Class Action Litigation Act of 2017 (“the Act”). The Act aims to “amend the procedures used in federal court class actions and multidistrict litigation proceedings to assure fairer, more efficient outcomes for claimants and defendants.” Rep. Goodlatte issued a… Continue Reading

Florida Federal Court Denies Motion to Dismiss FACTA Class Action Under Spokeo

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
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… Continue Reading

U.S. Supreme Court Remands Spokeo in Ruling that Mere Technical, Statutory Violation Is Insufficient to Confer Article III Standing

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Featured Posts
On May 16, 2016, the Supreme Court of the United States issued its much-anticipated decision in Spokeo, Inc. v. Robins. Spokeo considered whether Congress may confer Article III standing by authorizing a private right of action based on the violation of a federal statute alone, despite a plaintiff having suffered no “real world” harm. The… Continue Reading

FTC Settles Enforcement Action Against Bitcoin Mining Operation

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On February 18, the Federal Trade Commission announced that it had settled charges against Butterfly Labs and two of its operators stemming from the alleged deception of consumers regarding new mining machines for the virtual currency, Bitcoin.  According to the FTC, the company and its corporate officers charged consumers thousands of dollars for its Bitcoin… Continue Reading

Defense Win on Class Certification in FDCPA Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
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 collection letters in Spanish… Continue Reading

CFPB Sends Letters on Checking Account-Access Issues

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On February 3, the Consumer Financial Protection Bureau announced that it is taking steps to help consumers get better access to checking accounts.  The CFPB has “concerns that consumers are being sidelined by the lack of account options and by inaccurate information used to screen potential customers.”  Towards that end, the CFPB sent letters to… Continue Reading

FTC Settles Charges Involving Credit Card Laundering Scheme Participants

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On December 22, the Federal Trade Commission announced a settlement of a pending lawsuit brought under the Telemarketing Sales Rule against participants in an alleged credit card “laundering” scheme.  According to the FTC’s complaint, PayBasics, Todd Hatch, and Jimmy Shin took an active role in helping the defendants behind the Tax Club fraud to open… Continue Reading

CFPB Alerts Colleges to Surprise Fees in Campus Credit Card Contracts

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 16, the Consumer Financial Protection Bureau sent warning letters to 17 colleges directing them to improve disclosure of school-sponsored credit card agreements, based on deficiencies identified in a recent agency investigation.  According to the CFPB, more than 10 million college students attend a school that has made a deal with a financial institution… Continue Reading

CFPB Releases Second CARD Act Report

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On December 3, the Consumer Financial Protection Bureau released its updated report on the impact of the Credit Card Accountability Responsibility and Disclosure Act (“CARD Act”) since its inception.  According to the CFPB, the CARD Act has helped reduce the cost of credit card fees by eliminating certain back-end pricing practices.  The CFPB also found… Continue Reading

CFPB Releases Data on Credit Card Complaints

Posted in ALL CFS Blog Entries, Payment Processing & Cards
The Consumer Financial Protection Bureau’s latest monthly report revealed that credit card complaints represent approximately 11% of total product complaints from consumers.  Late fees and credit report problems due to confusing payment processing schedules are the most frequent complaint topics for consumers.  Other problems identified by consumers include: Billing issues related to surprise late fees… Continue Reading

Tennessee AG Settles Investigation of Credit Card Payment Processor

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On November 11, Tennessee Attorney General Herbert H. Slatery III and the Tennessee Division of Consumer Affairs announced that it had settled allegations against credit card payment processor Elavon, Inc. to resolve claims that it violated state consumer protection laws by misrepresenting the cancellation policy of its credit card processing equipment leases, the duration of… Continue Reading

OCC Releases Updated Booklet on Credit Card Lending

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On November 4, the Office of the Comptroller of the Currency (“OCC”) released its “Credit Card Lending” booklet of the Comptroller’s Handbook, replacing the outdated booklet issued in October 1996.  A copy can be found here. The Comptroller’s Handbook is intended as a summary restatement of existing laws, regulations, and policies.  The “Credit Card Lending” booklet… Continue Reading

ABA Letter Attacks CFPB Plan for Overdraft Survey

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On October 30, the American Bankers Association (“ABA”) filed a letter opposing the Consumer Financial Protection Bureau’s plan, under the Paperwork Reduction Act, to conduct a nationwide web-based survey of 8,000 individuals as part of the Bureau’s study of overdraft protection services.  The ABA urged the CFPB to re-submit its proposed plan with a draft… Continue Reading

CFPB Plans to Pave the Way for Yet More Class Actions Against Financial Services Companies

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, CFS Events, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
According to remarks made by Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray on October 7, 2015 (and a subsequent press release), the CFPB is planning to issue regulations that would prohibit many financial services companies from requiring consumers to waive their right to bring a class action lawsuit via a pre-dispute arbitration agreement and… Continue Reading

CFPB to Host Community Bank Advisory Counsel Meeting

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
The CFPB will hold a Community Bank Advisory Counsel meeting with Richard Cordray on Wednesday, September 30, from 3:00-4:00 p.m.  The meeting will be held in the Second Floor Auditorium of the Bureau’s offices, located at 1275 First Street, N.E., Washington, D.C. 20002. The topics to be discussed with the Director include consumer challenges in… Continue Reading

CFPB Refuses to Use Florida Payday Lending Rules as Federal Model

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On September 10, Consumer Financial Protection Bureau Director Richard Cordray refused an appeal by members of Florida’s congressional delegation and the state’s top financial regulator to use Florida’s payday-lending rules as a model for planned federal regulation.  According to one source, Cordray indicated in a private meeting that he disagreed with certain aspects of Florida’s… Continue Reading

FDIC Obtains $64 Million Penalty Against Comenity Bank for Credit Card Add-Ons

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On September 8, the Federal Deposit Insurance Corporation announced that it had ordered Comenity LLC to pay nearly $64 million in civil money penalties and restitution for alleged deceptive advertising and marketing of credit card add-ons, in violation of Section 5 of the Federal Trade Commission Act.  Comenity LLC manages credit card programs for several… Continue Reading

Oneida Tribe Wins Dismissal of FACTA Class Action on Sovereignty Grounds

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On September 4, the Oneida Tribe of Indians of Wisconsin won dismissal of a putative class action alleging that it printed expiration dates and more than the last five digits of credit cards on receipts at its retail stores.  In Jeremy Meyers, et al. v. Oneida Tribe of Indians of Wisconsin (Civil Action No. 1:15-cv-00445,… Continue Reading

FACTA Class Action Filed Against Miami-Dade County and Its Software Provider

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On August 7, a putative class action was filed in the U.S. District Court for the Southern District of Florida by plaintiff Nataly Cano Lopez against Miami-Dade County for allegedly printing more than the allowed number of credit card digits on traffic ticket receipts.  The complaint alleges that Miami-Dade and its software provider printed more… Continue Reading