On November 7, the Rosen Law Firm, P.A. announced that it had filed a class action lawsuit against national chain Jimmy John’s Gourmet Sandwiches relating to a security breach involving customers’ credit and debit cards earlier this year. The lawsuit alleges that the company’s grossly inadequate information systems and network security oversight led to an
On November 3, the Basel Committee on Banking Supervision issued its final version of the Net Stable Funding Ration (NSFR) standard, which can be found here. The NSFR is a long-term liquidity standard that measures the structural funding designed to ensure that internationally active banks maintain a stable funding profile. It is included in
For the second time in recent weeks, a federal official has issued a warning regarding potential security weaknesses with the Consumer Financial Protection Bureau’s consumer data-mining program. In an October 30 report, United States Inspector General Mark Bialek warned CFPB Director Richard Cordray that the IG office had “identified information security as a major management
On October 30, a California appellate court approved a settlement in two class actions challenging Visa and MasterCard’s allegedly anti-competitive debit and credit policies. According to the court, the revised version of the $31 million settlement fixed an improper release of claims. The court said the revised deal properly takes into account the value of
The Federal Deposit Insurance Corporation has ordered Merrick Bank to pay $16.1 million to settle charges related to the marketing of a credit card add-on product. According to the terms of the settlement agreement, Merrick will pay a $1.1 million penalty and $15 million in restitution costs stemming from violations of the Federal Trade Commission
On October 15, Minnesota’s attorney general sued a Texas credit card processor, accusing the Apex Merchant Group (“Apex”) of using bait and switch tactics to rip off small businesses. Apex allegedly promised small businesses it could save them money on credit card processing services, then hit them with higher undisclosed fees.
According to Minnesota Attorney
The Consumer Financial Protection Bureau will review how credit unions and banks use reporting agencies to screen members when they open a checking account, according to CFPB Director Richard Cordray’s remarks at an October 8 forum in Washington. The CFPB is concerned about the accuracy of reports from these databases, whether customers can access and
The United States Supreme Court today issued an order inviting the U.S. Solicitor General to file a brief on the pending cert petition filed in Spokeo, Inc. v. Robins, which is on appeal from the Ninth Circuit. The issue in Spokeo is whether Congress may confer Article III standing upon a plaintiff who suffers
On September 25, the Consumer Financial Protection Bureau announced a Project Catalyst research pilot to examine the effectiveness of early intervention credit counseling for consumers who are at risk of default on their credit card debt. The project is aimed at exploring ways to help consumers better manage their credit card debt and avoid default.
On September 24, a federal judge in Minnesota declined to dismiss a proposed class action alleging that Sempris LLC (“Sempris”) sold “memberships” in supposed money-saving programs that instead resulted in illegal, unauthorized monthly credit card charges.
The plaintiff, a Georgia resident, alleges Sempris, which operates “membership loyalty programs” that offer discounts and coupons, was responsible