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

Ronald I. Raether, Jr.

Ronald I. Raether, Jr.

Blog Role:
Editor – Cyber Security, Information Governance & Privacy

CFS Value:
Ron Raether understands technology and specializes in responding to data integrity events (breach response) and advising companies on maximizing data use through multiple regulatory environments.

Subscribe to all posts by Ronald I. Raether, Jr.

Congress Kills CFPB’s Arbitration Ban for Financial Services Companies, Returning Focus to State v. Federal Court Wars

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
On Tuesday, October 24, 2017, the Senate voted to nullify the Consumer Financial Protection Bureau’s (“CFPB”) arbitration rule (the “Rule”) in a 51-50 vote. Only two Republicans voted against the measure – Lindsey Graham (SC) and John Kennedy (LA). President Trump praised the vote, saying that he will sign the resolution when it reaches his… Continue Reading

California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018

Posted in ALL CFS Blog Entries, Background Screening, Featured Posts
On October 14, 2017, California became the most recent state to adopt a “ban-the-box” law. The law, signed by Governor Jerry Brown, goes into effect on January 1, 2018, prohibiting pre-offer inquiries regarding applicants’ conviction histories, and regulating employers’ decisions to deny employment to an applicant based on his or her convictions. This law is… Continue Reading

Join Us at the 2017 ISSA International Conference in San Diego

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured speaker at the upcoming 2017 ISSA International Conference taking place on October 9-11, 2017 at the Sheraton Hotel & Marina in San Diego, California.  Ron will speak on “Governing without Clear Standards: Lessons from the Trenches,” on October 11, 2017,… Continue Reading

Join Us at the 8th Annual ABA Consumer Financial Services Institute

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured speaker at the upcoming American Bar Association Consumer Financial Services Institute taking place October 19-20, 2017 at the Waterview Conference Center in Arlington, Virginia.  Ron will co-panel a discussion entitled, “Financial Privacy, Data Security and Cybersecurity,” on Thursday, October 19,… Continue Reading

Eleventh Circuit Weighs In on DPPA Remedies Provision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In Ela v. Kathleen Destefano, the Eleventh Circuit recently commented on the remedies provision of the Driver’s Privacy Protection Act (“DPPA”), holding that the liquidated damages provision does not apply to individual violations of the statute in instances where multiple violations are alleged. As background, plaintiff Theresa Ann Ela sued Kathleen Destefano, an Orange County,… Continue Reading

Federal Appellate Court Rejects Attorneys’ Fees-Only Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In January 2013, a teenager in Australia posted a photo online showing that his “footlong” Subway sandwich was in fact only 11 inches, setting off a viral storm of consumers discovering their “footlong” sandwiches were similarly not as large as advertised.  That spawned a number of class action lawsuits in America accusing Subway’s franchisor, Doctor’s… Continue Reading

Join Us for a NAPBS Webinar on September 27: Compliance Management Systems – The Next Generation

Posted in ALL CFS Blog Entries, Background Screening, CFS Events, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders attorneys Ron Raether and Megan Nicholls will be featured speakers for a webinar hosted by the National Association of Professional Background Screeners on September 27, 2017 from 3:00 – 4:00 p.m. ET. In this session, they will discuss the basic elements of a compliance management system, how to maintain… Continue Reading

Join Us at the ASIS International 63rd Annual Seminar and Exhibits in Dallas

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders partner Ronald Raether will be a featured speaker at the ASIS International 63rd Annual Seminar and Exhibits event in Dallas September 25-28, 2017. Ron will speak on Tuesday, September 26 from 2:00 – 3:00 p.m. on “Governing Without Clear Standards: Lessons Learned.” The term “standard” is used… Continue Reading

New Jersey Bill Limits Use of Driver’s License Information by Retailers

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The New Jersey legislature recently passed a bill that places restrictions on retailers’ ability to collect and use personal information gleaned from driver’s licenses.  The bill, known as the Personal Information and Privacy Protection Act, is intended to give consumers more control and security over their personal information.  A copy of the bill can be… Continue Reading

Second Circuit Affirms Dismissal of Putative Data Breach Class Action Against Michaels

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
On May 23, 2017, in Whalen v. Michaels Stores, Inc., the United States Court of Appeals for the Second Circuit issued a summary order affirming the district court’s dismissal of a putative data breach class action based on lack of Article III standing. As background, the named plaintiff Mary Jane Whalen made credit card purchases at… Continue Reading

NY AG Settles with IoT Company over Security Practices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC (“Safetech”) over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks.  According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless… Continue Reading

Class Action Filed Against Chipotle for Data Security Breach Involving Payment Processing System

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On May 4, Bellwether Community Credit Union filed a class action suit on behalf of a proposed class of financial institutions in Colorado federal court against Chipotle Mexican Grill, Inc., claiming that the chain’s recently announced data breach caused significant financial harm to the credit union.  Bellwether’s complaint alleges that Chipotle’s purportedly lax security standards… Continue Reading

Join Us for the ISSA Summit in LA on May 18-19

Posted in ALL CFS Blog Entries, CFS Events, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders partner Ronald Raether will be a featured speaker at the Ninth Annual Information Security Summit hosted by the Los Angeles Chapter of the Information Systems Security Association (ISSA) at the Universal City Hilton.  During a lunch panel discussion on May 19, Ron will address emerging topics in privacy and… Continue Reading

Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Featured Posts
In one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the viability… Continue Reading

FTC and NHTSA to Hold Workshop on Connected Vehicles

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The Federal Trade Commission and the National Highway Traffic Safety Administration are teaming up to hold a workshop on June 28, 2017 related to privacy and security issues posed by connected vehicles.  The FTC has requested that comments related to this issue be submitted online or by mail by May 1. “Connected vehicles” include most… Continue Reading

California’s Regulation Regarding Consideration of Criminal History in Employment Decisions

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
The Fair Employment and Housing Council published the final text for the “Consideration of Criminal History in Employment Decisions” regulation on March 27, 2017.  This regulation, effective July 1, 2017, impacts employers’ consideration of criminal history information for employment purposes, including those related to layoffs.  Employers are well-advised to take a fresh look at their… Continue Reading

Court Preliminarily Approves $1.2M FACTA Class Action Settlement Against Microsoft

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
The United States District Court for the Southern District of Florida recently granted preliminary approval of a Fair and Accurate Credit Transactions Act (“FACTA”) class action against Microsoft Corporation. In Guarisma v. Microsoft Corp., the named plaintiff, Carlos Guarisma, filed a putative class action against Microsoft in November 2015, alleging that the software company’s retail… Continue Reading

Join Us at the NAPBS 2017 Mid-Year Legislative & Regulatory Conference

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson,  Ron Raether, and Ashley Taylor will be featured panelists at the National Association of Professional Background Screeners (“NAPBS”) 2017 Mid-Year Legislative & Regulatory Conference to be held March 20-21 in Arlington, Virginia.  In an interview-style format, David will have a conversation with… Continue Reading

FTC and NJ AG Announce Settlement with Vizio over Collecting Consumer Viewing Habits

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Featured Posts, State Attorneys General, CFPB, & FTC
On February 6, the FTC and the New Jersey Office of the Attorney General announced a $2.2 million settlement with Vizio, Inc. over allegations the TV manufacturer installed software on its TVs to collect viewing data on 11 million consumers without their knowledge or consent.  According to the complaint, Vizio manufactured smart TVs that allowed… Continue Reading

FTC’s Latest Message to IoT Industry Comes as Complaint Against D-Link Alleging UDAP Violation Related to Security Vulnerabilities

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On January 5, the Federal Trade Commission filed a complaint against D-Link Corporation, a Taiwanese corporation, and D-Link Systems, Inc., a California corporation and a subsidiary of D-Link Corporation.  D-Link sells Internet of Things (“IoT”) devices and software to support such devices.  Specifically, D-Link sells routers which transfer data packets along a network and which… Continue Reading

FDA’s Postmarket Management of Cybersecurity in Medical Devices

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On December 28, the U.S. Food and Drug Administration issued its “nonbinding recommendations” guidance for addressing post-market cybersecurity vulnerabilities in medical devices under the title “Postmarket Management of Cybersecurity in Medical Devices.”[1] By its terms, the recommendations are for a “risk-based framework for assessing when changes to medical devices for cybersecurity vulnerabilities require reporting to… Continue Reading

Student Loan Servicer Agrees to $17.5M TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
On January 26, the United States District Court for the Southern District of Indiana granted preliminary approval of a $17.5 million Telephone Consumer Protection Act class action against Navient Solutions Inc.  According to the original Complaint, plaintiff Randy Johnson received multiple telephone calls on his cell phone from Navient, a student loan servicing and collection… Continue Reading

NHTSA and DOT Propose Rule Mandating Vehicle-to-Vehicle Communication on Light Vehicles

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
The National Highway Traffic Safety Administration and the Department of Transportation have issued a Notice of Proposed Rulemaking for autonomous and connected cars.  The NPRM “proposes to establish a new Federal Motor Vehicle Safety Standard” under 40 CFR 571 to mandate vehicle-to-vehicle (V2V) communications for new light vehicles and to standardize the message and format… Continue Reading

Ninth Circuit Reverses Dismissal of Plaintiffs’ FCRA Complaint against Fannie Mae

Posted in ALL CFS Blog Entries, Background Screening
In an unpublished decision, the Ninth Circuit Court of Appeals ruled that a complaint sufficiently alleged that Federal National Mortgage Association (“Fannie Mae”) may act as a consumer reporting agency (“CRA”) under the Fair Credit Reporting Act, which could potentially subject Fannie Mae to the accuracy requirements imposed by section 1681e(b) of the FCRA. In… Continue Reading