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
FDIC Obtains $64 Million Penalty Against Comenity Bank for Credit Card Add-Ons
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
Oneida Tribe Wins Dismissal of FACTA Class Action on Sovereignty Grounds
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,
FACTA Class Action Filed Against Miami-Dade County and Its Software Provider
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
Putative FACTA Class Action Moves Forward Against J. Crew
On August 4, a New Jersey federal judge denied a motion to dismiss a putative class action against J. Crew Group involving allegations of Fair and Accurate Credit Transactions Act violations for printing more than the last five digits of consumers’ credit card numbers on sales receipts. The named plaintiff alleged that J. Crew violated
Federal Indictments Issued for Individuals Skimming Michaels Credit Cards
On July 30, federal prosecutors in New Jersey filed criminal indictments against two California residents for stealing credit and debit card information from over 90,000 Michaels Stores locations in 19 states. According to the indictments, the individuals skimmed the customers’ card account information for purposes of generating counterfeit bank cards and withdrawing cash from the
Missouri Federal Court Finds FDCPA’s Limitations Period is Jurisdictional and Rejects Credit Reporting Claims Against Debt Collector
On July 14, the U.S. District Court for the Eastern District of Missouri granted United Collection Bureau’s motion for summary judgment in an individual action brought under the Fair Debt Collection Practices Act. Troutman Sanders served as counsel for UCB in this matter. See Martin v. United Collection Bureau, Inc., No. 4:14cv804-JAR, 2015 U.S.
New York Judge Dismisses Fraud Suit Against Credit Ratings Agencies
On July 31, Justice Anil Singh, a Manhattan Commercial Division judge, dismissed a $1 billion suit filed against various credit ratings agencies alleging fraud connected to the sale of residential mortgage-backed securities prior to the 2008 financial crisis. According to the court, New York’s six-year statute of limitations barred the lawsuit, which was brought by
Seventh Circuit Finds Plaintiffs Have Standing in Neiman Marcus Data Breach Suit
On July 20, the Seventh Circuit Court of Appeals ruled that a group of plaintiffs who sued Neiman Marcus over the theft of their credit card information in a data security breach had standing to sue for fraudulent charges, as well as fraud-prevention expenses and credit monitoring. The appellate court reversed a prior decision from
Director Cordray Comments on Ability-to-Repay, TRID, and Credit Cards
On July 15, Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray provided insightful testimony on a number of subjects in an appearance before the Senate Banking Committee. During the question-and-answer session, Cordray indicated that the CFPB will be revisiting the income-verification standards of the Ability-to-Repay Rule at some point in the near term. He commented