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

Lillian Macartney

Lillian Macartney

Blog Role:
Contributor – State Attorneys General, CFPB & FTC

CFS Value:
Lillian specializes in government investigations, compliance and enforcement matters.

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New York AG Proposes Changes to Data Breach Law

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman has introduced a bill that would expand that state’s existing data breach laws. This proposed legislation, called the Stop Hacks and Improve Electronic Data Security Act, or the SHIELD Act, is sponsored by two Democratic members of the state legislature (Senator David Carlucci and Assembly member Brian Kavanagh). Schneiderman stated in… Continue Reading

CFPB Issues Guidance on Pay-by-Phone Fees

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau recently released a Compliance Bulletin regarding fees that companies may charge consumers when they pay by phone. The Bulletin highlights certain practices related to phone payment fees that may violate the Dodd-Frank Act’s prohibition on committing unfair, deceptive, or abusive acts and practices (UDAAPs), including: Failing to disclose all available… Continue Reading

CFPB Publishes Data on Consumer Complaints by State

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau recently released a “special edition” of its standard monthly complaint report.  The report gives statistics on the number and types of complaints received by the CFPB, both nationally and broken down by state.  By providing data on all fifty states and the District of Columbia, the CFPB gives consumers and… Continue Reading

Acting FTC Chair Supports FCC Proposed Rulemaking; Says Will Restore the FTC’s Enforcement Abilities

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Acting Chairman of the Federal Trade Commission (FTC), Maureen Ohlhausen, has issued a statement that endorses a recent proposed rulemaking by the Federal Communications Commission (FCC).  The FCC rulemaking, proposed on May 18, is titled “Restoring Internet Freedom” and seeks to restore a “light-touch regulatory framework” by reversing a 2015 FCC decision that classified… Continue Reading

Consumer Protection Remains Stated Focus of Washington AG

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
A recent interview given to the Washington State Tri-City Herald highlights the increased focus of the Washington Attorney General’s office on consumer protection issues.  In the interview, Attorney General Bob Ferguson explained that his focus is to recover money for consumers who have been harmed.  He told the paper that since he has taken office,… Continue Reading

Maryland AG Announces Settlement with Debt Collection Firms

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On March 16, the Consumer Protection Division of the Maryland Attorney General’s Office announced a settlement with five California law firms and Mandip Purewal , the owner of the firms.  The Attorney General alleged that the firms illegally collected advance fees from consumers, ostensibly to settle the consumers’ debts.  In actuality, the firms typically did… Continue Reading

Six Attorneys General File Motion to Intervene in School Accreditation Case

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On January 24, attorneys general for Massachusetts, Maine, Maryland, Illinois, New York, and the District of Columbia filed a motion to intervene in a case between the U.S. Department of Education and the Accrediting Council for Independent Colleges and Schools (“ACICS”).  ACICS, which previously has come under federal scrutiny for its accreditation practices, filed the… Continue Reading

CFPB Releases Tool to Track Consumer Lending

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau has released a new tool designed to help the public track consumer lending trends as well as identify future risks.  The tool, available on the CFPB website, is called “Consumer Credit Trends,” and it currently tracks originations of mortgages, credit cards, auto loans and student loans.  Within each of those… Continue Reading

DraftKings and FanDuel Settle Case with NY A.G. for $12 Million

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
In likely the final chapter of a case covered previously by this blog, the New York Attorney General recently announced settlements with daily fantasy sport companies Draft Kings, Inc. and FanDuel, Inc.  The companies will each pay $6 million in penalties and fees to the state of New York, in order to settle alleged false advertising… Continue Reading

FTC Secures Temporary Injunction Against “Tech Support” Companies

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The FTC has filed a complaint and secured a temporary injunction against five companies and their owners, alleging use of deceptive practices to trick consumers into purchasing unneeded technology services for their computers. As detailed in the complaint, the FTC alleges that the scheme worked as follows: a pop-up ad would appear on a consumer’s… Continue Reading

Federal Court Finds for CFPB in Tribal Lending Case

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
In an opinion issued in a case previously discussed on this blog, a federal district court has found that a California loan company violated federal law by issuing high-interest loans through a separate company based on tribal lands.  The company made the loans to consumers in states where the usury law would ordinarily bar the… Continue Reading

Washington AG Sues Comcast for Alleged Deceptive Practices, Seeks Over $100 Million

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Washington Attorney General has filed a lawsuit against internet and cable company Comcast, alleging more than 1.8 million violations of the Washington state Consumer Protection Act and seeks over $100 million in penalties as well as injunctive relief.  The Washington Attorney General’s Office says that the lawsuit is the “first of its kind in… Continue Reading

FTC Announces $200 Million Settlement with Herbalife, Requires Restructured Business Model

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The FTC announced that it has reached a settlement with Herbalife that includes a $200 million payment to compensate consumers.  In addition to the payment, the settlement agreement has an unusual provision requiring a complete restructuring of Herbalife’s existing business model.  In its complaint against the company, the FTC alleges that Herbalife claimed that people… Continue Reading

Proposed House Bill Would Give States and Tribes an Exemption from CFPB Payday Rules

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
A recently introduced House bill would provide a mechanism to let states opt out of the CFPB’s newly announced rules regulating payday, auto title, and other short-term, small dollar loans.  On June 21, Congressman Scott Tipton (R-Colo.) introduced H.B. 5552 which would effectively amend the CFPB’s recently proposed rules.  If passed, the bill would allow… Continue Reading

CFPB Will Appeal Decision Blocking its Investigation into College Accreditation Organization

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
In a case that looks at the statutory bounds of the Consumer Financial Protection Bureau’s investigative authority, the CFPB announced that it plans to appeal a federal district court decision denying the agency’s request to enforce a civil investigative demand, or “CID”. In August 2015, the CFPB issued a CID to the Accrediting Council for… Continue Reading

Minnesota Attorney General Sues Company for Deceptive Sales

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On June 9, Minnesota Attorney General Lori Swanson filed a lawsuit against Your Magazine Service, Inc., a Minnesota corporation, and the corporation’s owner, Wayne R. Dahl, Jr., alleging that the company used deceptive sales tactics to sign up customers for magazine subscriptions. According to the suit, the company would call individuals who had purchased magazine… Continue Reading

CFPB Announces Rulemaking Agenda for Remainder of 2016

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Twice a year, federal agencies must update and release their regulatory agendas for the current year.  The agendas track agency actions through the phases of federal rulemaking, which often takes months (if not years), and provide insight into an agency’s plans.  On May 18, the Consumer Financial Protection Bureau released its Spring 2016 rulemaking agenda.… Continue Reading

Debt Collector Pays $72,000 to Settle FCRA Charges

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On May 9, the Federal Trade Commission announced that the debt collection agency Credit Protection Association will pay $72,000 to settle charges that the company violated the Fair Credit Reporting Act (“FCRA”).  This case is part of “Operation Collection Protection,” a program the FTC describes as “an ongoing federal, state and local crackdown on debt… Continue Reading

FTC Looks to Purchased Search Terms in Deceptive Advertising Complaints

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Businesses engaged in web-based advertising should pay careful attention to two recent actions by the Federal Trade Commission indicating the Commission is closely scrutinizing online marketing practices. One action involved Lumos Labs, Inc., the owner of the online “brain game” portal Lumosity; the other involved Stratford Career Institute, an online school purporting to offer high… Continue Reading