On March 28, the Consumer Financial Protection Bureau released its monthly complaint snapshot, with a specific focus on credit cards. Since its inception in July 2011, the Bureau has handled 1,136,000 consumer complaints across all products, with 116,200 complaints related to credit cards. The CFPB received 26,300 complaints in February 2017, with 2,299 of those
Republicans Move to Roll Back CFPB Prepaid Card Rules
Republicans in Congress have moved to repeal recently issued Consumer Financial Protection Bureau regulations governing the prepaid card industry. Rep. Tom Graves (R-Ga.) introduced a bill in the House in early February that would submit the rules to a vote of disapproval under the Congressional Review Act. A
Federal Court Transfers Payment Processor’s Case Seeking Collection of $4.5M Judgment
A New York payment processor successfully defended one personal jurisdiction challenge, but lost the other in the Northern District of Texas. The case represents an attempt by TransFirst Group, Inc. to collect a $4.5 million judgment it obtained against Dominic “Nick” Magliarditi in 2013 related to the group’s purchase of Magliarditi’s payment processing company, Payment
2016 Consumer Financial Services Year in Review and a Look Ahead
This year is sure to be a transformative one for the consumer financial services world. As we navigate an unprecedented volume of industry regulation and forthcoming changes from a new administration, Troutman Sanders is uniquely positioned to help its clients find successful resolutions and stay ahead of the compliance curve.
We are honored to have
Troutman Sanders Named Among 2016 Practice Groups of the Year
Financial Services Practice Recognized for Excellence by Law360
Troutman Sanders LLP announced today that its Consumer Financial Services practice has been selected as one of Law360’s 2016 Practice Groups of the Year.
Troutman Sanders was recognized in Law360’s Consumer Protection category for excellence in representing and advising clients with respect to high-stakes litigation and
Seventh Circuit Relies on Spokeo Reasoning to Dismiss FACTA Case for Lack of Standing
On December 13, the Seventh Circuit Court of Appeals ordered the dismissal of a proposed class action alleging that a restaurant did not properly truncate credit card expiration dates on receipts, finding the plaintiff lacked Article III standing.
The plaintiff, Jeremy Meyers, was given a copy of his receipt after dining at Nicolet Restaurant of
District Court Rules Credit Card Debt Collection Dispute Must Be Arbitrated
On December 2, Judge Valerie Caproni of the Southern District of New York ruled that a class action suit alleging violations of the Fair Debt Collection Practices Act must be arbitrated. The class plaintiff, Alicia Zambrana, applied for and received a Best Buy-branded credit card from Household Bank N.A. (“HSBC”). While the court could not
FTC Alleges Prepaid Card Company Deceptively Marketed Reloadable Debit Cards
On November 10, the Federal Trade Commission filed a complaint in the Northern District of Georgia against NetSpend Corporation, alleging that the company repeatedly deceived consumers about their ability to access funds deposited on the company’s debit cards.
NetSpend markets, sells, and services prepaid debit cards, including general purpose reloadable cards. According
Fourth Circuit Rejects FDCPA Liability For Filing Proofs of Claim On Time-Barred Debt
On August 25, 2016, the Fourth Circuit held in In re Eric Dubois, Case No. 15-1945, that filing a proof of claim based on a time-bared debt in a Chapter 13 bankruptcy does not violate the Fair Debt Collection Protection Act (FDCPA) when the applicable state statute of limitations does not extinguish the debt.
CFPB Introduces New Protections for Borrowers
On August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule