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

Paige S. Fitzgerald

Paige S. Fitzgerald

Blog Role:
Contributor – Auto Finance

CFS Value:
Paige specializes in complex federal, state and local regulatory and compliance matters.

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CFPB Director’s Resignation Sparks Conjecture About Future Leadership

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 15, as has been widely reported, the Director of the Consumer Financial Protection Bureau, Richard Cordray, announced by email to his staff that he would be resigning at the end of the month.  While he did not state the reason for his departure, it is believed that Cordray, a former Ohio attorney general,… Continue Reading

Cordray Discusses CFPB’s Priorities During November Consumer Advisory Board Meeting

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 2, Consumer Financial Protection Bureau Director Richard Cordray delivered remarks during the Consumer Advisory Board meeting in Tampa.  Cordray’s public pronouncements reflect and foreshadow the CFPB’s regulatory priorities, and his recent comments indicate the CFPB’s focus on reverse mortgages, consumers with limited English proficiency, and short-term loans. Cordray mentioned the CFPB’s recently-released report… Continue Reading

New York AG Announces Settlements with Two Motor Vehicle Dealer Groups

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman announced two settlements with motor vehicle dealer groups that provide for over $900,000 in restitution to approximately 6,400 New York State consumers.  The settlements also require the dealers to pay $135,000 in penalties and costs to the state for the unlawful sale of credit repair and identity theft protection services… Continue Reading

FTC and State AGs Announce Crackdown on Student Loan Debt Relief Scam

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The Federal Trade Commission, along with 11 states and the District of Columbia, just announced “Operation Game of Loans.”  This is the first coordinated federal-state initiative targeting deceptive student loan debt relief scams.  The nationwide crackdown encompasses 36 actions by the FTC and state attorneys general against bad actors that are alleged to have used deception and false promises… Continue Reading

FTC Issues Guidance on the Revised Used Car Rule

Posted in ALL CFS Blog Entries, Auto Finance
In November 2016, the Federal Trade Commission announced its final changes to the Used Car Rule, formally referred to as the Used Motor Vehicle Trade Regulation Rule, which requires motor vehicle dealers to display a winder sticker, known as the “Buyers  Guide,” on used vehicles offered for sale.  Due to numerous questions raised by dealers… Continue Reading

Massachusetts AG Announces Data Breach Bill

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
Massachusetts Attorney General Maura Healey announced updated legislation that will remove fees for security freezes and consumer credit reports.  The new legislation (SB 130/HB 134) includes several pro-consumer changes: Consent – Any company seeking to obtain or use a consumer’s credit report or credit score will need the written consent of the consumer and must… Continue Reading

State Attorneys General of 41 States Subpoena Opioid Manufacturers and Distributors

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
In response to the nationwide opioid crisis, forty-one state attorneys general issued subpoenas to five opioid drug manufacturers and three drug distributors this week. New York Attorney General Eric Schneiderman made the first public announcement of the multistate investigation.  The subpoena demands information and documentation from the manufacturers and distributors regarding prescription opioid drugs as… Continue Reading

Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers, Payment Processing & Cards
We are pleased to announce that Troutman Sanders attorneys David Anthony, Ashley Taylor, Paige Fitzgerald, and Laura Anne Kuykendall published a survey through Thomson Reuters which focuses on consumer financial regulation issues for the Commonwealth of Virginia.  The survey is formatted as a question and answer guide, and addresses state-specific laws governing the offering and… Continue Reading

House Bill Rescinding CFPB Indirect Auto Financing Guidance Advances

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On July 29, the House Financial Services Committee reported House Bill 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act,” to the House for full consideration.  If passed, the bill would rescind the CFPB’s March 2013 fair credit guidance to indirect auto lenders (CFPB Bulletin 2013-02), and require the CFPB, when proposing and issuing future… Continue Reading

CFPB Files Suit Against Auto Lender that Targeted Servicemembers for UDAAP Violations

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On June 17, the Consumer Financial Protection Bureau filed a lawsuit against Security National Automotive Acceptance Company, LLC, an Ohio-based auto-finance company specializing in lending to members of the United States military to purchase used vehicles.  Security National operates in approximately 30 states. The CFPB’s lawsuit alleges that Security National engaged in unfair, deceptive, or… Continue Reading

CFPB’s Regulation of the Auto Finance Industry Accelerates

Posted in ALL CFS Blog Entries, Auto Finance, Featured Posts, State Attorneys General, CFPB, & FTC
On June 10, the Consumer Financial Protection Bureau issued a final rule defining larger participants of the automobile financing market.  The new rule will become effective 60 days after being published in the Federal Register.  The final rule follows up the CFPB’s proposed rule, issued on September 17, 2014, on which we previously reported here.… Continue Reading

Three National Consumer Reporting Agencies and Thirty-One State Attorneys General Strike Deal

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Featured Posts, State Attorneys General, CFPB, & FTC
On May 20, the three national consumer reporting agencies (CRAs) – Equifax Information Services LLC, Experian Information Solutions Inc., and TransUnion LLC – inked a deal with thirty-one state attorneys general to end an investigation initiated in 2012 by the Ohio Attorney General’s office. Under the multistate settlement, which is in the form of an… Continue Reading

Busted: FTC Speaks About Auto Dealer Fraud and “Operation Ruse Control”

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
On March 26, the Federal Trade Commission conducted a media call regarding the completion of “Operation Ruse Control,” a joint effort targeting deceptive auto dealer practices involving approximately 252 enforcement actions executed by the FTC and approximately 30 other government agencies.  During the media call, two individuals –  Jessica Rich, Director of the FTC’s Bureau… Continue Reading

CFPB’s Winter 2015 Supervisory Highlights Report Provides a Roadmap to Compliance

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Consumer Financial Protection Bureau recently issued its Winter 2015 Supervisory Highlights report which provides an overview of the supervision work completed by the CFPB from July through December 2014.  Matters resolved by the CFPB’s Supervision side are non-public in nature and are resolved, not generally through the payment of large fines and penalties, but… Continue Reading

Repossession Agency Subject to Liability under FDCPA Upon Violation of State Law Self-Help Requirements

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
A recent decision of the Northern District of Ohio, Vantu v. Echo Recovery, L.L.C., held that a repossession agency, while generally not subject to liability under the Fair Debt Collection Practices Act, becomes subject to such liability when it undertakes to repossess collateral that it does not have a present right to possess. This case arises… Continue Reading

CFPB Director Cordray Addresses National Association of Attorneys General

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
Several attorneys from Troutman Sanders attended this week’s meeting of the National Association of Attorneys General in Washington, during which Richard Cordray, Director of the Consumer Financial Protection Bureau and former Ohio Attorney General, provided an overview of the four obstacles that, in his view, “interfere with justice and dignity for consumers.”  He referred to… Continue Reading

Consent Decree Between DOJ and “Buy Here, Pay Here” Auto Dealer Highlights Continued Focus on Intent-Based Lending Discrimination Claims

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
We’ve been reporting for almost two years now on federal regulators’ attempts to use an effects-based test for discrimination – disparate impact – to fundamentally alter the auto sales and finance industries, and how those efforts have consistently gained steam from late 2013 through to more recent times.  We’ve also reported on challenges to disparate… Continue Reading

CFS Bloggers Present on TILA Loan Originator Compensation Rule

Posted in ALL CFS Blog Entries, CFS Events, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
At the invitation of Thompson Reuters Legal Insights and Analytics, attorneys Maryia Jones, Jason Manning, and Paige Fitzgerald delivered a presentation on TILA’s loan originator compensation rule (the “Rule”), which remains one of the CFPB’s enforcement priorities and a focus of plaintiffs’ bar in private lawsuits.  The presentation was delivered to an audience of mortgage… Continue Reading

DOJ and State Regulators Settle Claims of Intentional Discrimination Against North Carolina “Buy Here Pay Here” Auto Dealer

Posted in ALL CFS Blog Entries, Auto Finance, Featured Posts, State Attorneys General, CFPB, & FTC
On February 10, the Department of Justice and the North Carolina Attorney General filed a consent decree to settle claims that a Charlotte-area “buy here pay here” dealer engaged in intentionally discriminatory “reverse redlining” practices.  The regulators alleged that the defendants specifically targeted African-American customers and imposed onerous credit terms upon them without regard to… Continue Reading

FTC Announces Settlements in First Cases Against Auto Title Lenders

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
The Federal Trade Commission announced on January 30 that it has reached settlements with two auto title lenders operating in Georgia and Alabama.  The FTC had alleged that the lenders advertised certain offers without disclosing specific conditions required to receive the advertised rate, and failed to disclose that finance charges may rise after an introductory… Continue Reading

Another Subprime Auto Lender Receives Civil Investigative Subpoena from Justice Department

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
Law360 is reporting that another subprime auto lender, the Nevada-based Consumer Portfolio Services, Inc., has disclosed in an SEC filing that it received a civil investigative subpoena from the Department of Justice.  As we’ve previously reported, both federal and state regulators recently have increased their scrutiny of subprime auto lending. This is not the first… Continue Reading

Supreme Court Hears Disparate Impact Case

Posted in ALL CFS Blog Entries, Auto Finance, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On January 21, the U.S. Supreme Court held oral argument in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., a case in which, as we previously reported here and here, the Petitioner has challenged the applicability of a so-called “disparate impact” theory of liability under the Fair Housing Act (FHA). … Continue Reading

Court Approves Settlement Between New York Department of Financial Services and Auto Lender

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
A settlement between the New York Department of Financial Services and automotive lender Condor Capital Corp., as well as Condor’s owner, Stephen Barron, was approved this week by the United States District Court for the Southern District of New York.  The settlement will result in total payments to the State and consumers of up to $12… Continue Reading

FTC Ends Aggressive Year in Auto Enforcement with Action against Dallas Dealer

Posted in ALL CFS Blog Entries, Auto Finance, State Attorneys General, CFPB, & FTC
By all accounts, 2014 was a particularly busy one for the Federal Trade Commission in taking enforcement actions in the automobile sales and financing industry.  The FTC’s last public action of 2014 in the auto finance and sales area involved a suburban Dallas dealer, charged with using deceptive ads to promote the sale and lease… Continue Reading