On January 17, 2017, the United States Supreme Court heard oral argument in the case of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that had been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred
Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA
On January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a financing company that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al.
CashCall and Western Sky Financial Settle with Florida AG
CashCall Inc. and Western Sky Financial LLC have settled another state action over alleged charging of interest rates in excess of the 18 percent limit. The action, filed by the Florida Office of Attorney General, alleged that loans with illegal interest rates were made to consumers by Western Sky and were later purchased, serviced,
CFPB Releases Tool to Track Consumer Lending
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
FTC and Florida Settle with More Defendants Involved in Alleged Telemarketing Debt Relief Scam
Approximately a year after filing an amended complaint and three months after settling with a group of co-defendants, the Federal Trade Commission and Florida Attorney General have filed papers seeking entry of agreed permanent injunctions and monetary judgments against a second group of co-defendants involved in an alleged nationwide debt relief telemarketing scam. The
DraftKings and FanDuel Settle Case with NY A.G. for $12 Million
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
FTC to Host Identity Theft Conference
On May 24, 2017, the Federal Trade Commission will host an all-day conference in Washington, D.C., examining the state of identity theft and how it may evolve in the future. The conference, titled “Planning for the Future,” corresponds to the ten-year anniversary of the creation of the Identity Theft Task Force, which is co-chaired by
FTC Secures Temporary Injunction Against “Tech Support” Companies
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
FTC and Florida Settle with Defendants Involved in Alleged Telemarketing Debt Relief Scam
Nine months after filing an amended complaint, the FTC and Florida Attorney General have filed papers seeking entry of agreed permanent injunctions and monetary judgments against numerous defendants involved in an alleged nationwide debt relief telemarketing scam. The proposed settlements resolve allegations that the defendants violated the FTC Act, the Telemarketing Act, the Telemarketing
Federal Court Finds for CFPB in Tribal Lending Case
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