On July 1, the Consumer Financial Protection Bureau announced that it had agreed to consent orders in pending lawsuits against two sets of defendants – Affinion Group Holdings Inc. and its subsidiaries (“Affinion”), as well as Intersections, Inc. (“Intersections”) – over allegations that the vendors had unfairly charged consumers for credit card add-on benefits that
ACA Provides Commentary to CFPB on Credit Card Market
On June 17, ACA International – a trade group representing collection agencies and attorneys, creditors, debt buyers, and industry service providers – presented substantive comments to the Consumer Financial Protection Bureau in response to the agency’s recent request for information related to the consumer credit card market. The CFPB’s request contained four debt collection questions,
ACA Provides Commentary to CFPB on Credit Card Market
On June 17, ACA International – a trade group representing collection agencies and attorneys, creditors, debt buyers, and industry service providers – presented substantive comments to the Consumer Financial Protection Bureau in response to the agency’s recent request for information related to the consumer credit card market. The CFPB’s request contained four debt collection questions,
CUNA and ABA Join Chorus of Objections Against CFPB’s Overdraft Information Requests
Piggy-backing on the recent criticisms lodged by the Independent Community Bankers of America, the Credit Union National Association (“CUNA”) and American Banks Association (“ABA”) recently joined the chorus of objections against the CFPB’s burdensome requests to data processors for information regarding bank and credit union overdraft policies. In November 2014, the CFPB ordered Fiserv, FIS
CFPB Argues that Guarantor is Credit Applicant in Supreme Court Amicus Brief
According to a Supreme Court amicus brief filed last month by the Consumer Financial Protection Bureau, consumers who are required to guarantee their spouses’ credit applications are themselves credit applicants who are protected from discrimination under the Equal Credit Opportunity Act and Regulation B.
The CFPB claims that courts should defer to Regulation B’s “reasonable”
Small Banks Criticize CFPB’s Information Requests to Data Processors on Overdraft Fees
On June 1, 2015, the Independent Community Bankers of America (“ICBA”) heavily criticized the CFPB’s decision to lodge information requests to data processing firms regarding checking account overdraft fees, particularly because of their alleged high costs and unwarranted breadth. The requests are targeted at information on community bank and credit union overdraft plans and seek
Second Circuit Rules That Unaccepted Offer of Judgment Does Not End Case
In the wake of the U.S. Supreme Court’s May 18 announcement that it may decide whether a Rule 68 offer of judgment for complete relief moots potential class claims, the Second Circuit issued an amended ruling on May 21 that partially answered that question in the negative, further compounding a split among the federal circuit
CFPB Extends CARD Act Comment Period Regarding Four Areas of Interest
As we discussed in March, the Consumer Financial Protection Bureau is soliciting public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers.
To allow interested persons additional time to consider and submit their responses, the CFPB announced it is extending the comment period on
Virginia Governor Signs Directive Requiring Enhanced Card Payment Security
On May 5, Virginia Governor Terry McAuliffe signed an executive directive which sets enhanced security requirements for the purchase card program used by state agencies, including the implementation of “chip and pin” technology by December. The directive further instructed Virginia’s treasurer, comptroller, and secretaries of finance and technology to implement enhanced payment technologies that “meet
FTC Settles $26M Enforcement Action Against Credit Card Payment Processor
On May 5, the Federal Trade Commission obtained court approval of a settlement against CardFlex, Inc. and its CEO and President, Andrew Phillips, and Executive Vice President of Operations, John Blaugrund. The lawsuit, captioned FTC v. CardFlex Inc. et al., No. 3:14-cv-00397 (D. Nev.), involved allegations that the defendants operated a $26 million credit