On December 27, the Consumer Financial Protection Bureau released “The Consumer Credit Card Market,” its report on the state of the industry. Mandated to be released every two years by the Credit Card Accountability and Disclosure Act, the report was last released in 2015. The 2017 report focused on tracking credit card market trends and
CFPB Withdraws Proposal to Conduct Debt Collection Disclosure Survey
On December 14, the Consumer Financial Protection Bureau officially withdrew a proposal to conduct a web-based consumer survey on the various debt collection disclosures required by the Fair Debt Collection Practices Act. According to the accompanying Notice of Action, the proposal was withdrawn at the CFPB’s request because the “Bureau leadership would like to
Fourth Circuit: FCA’s Retaliation Provision Protects Employment Relationship Even if Employer is Not Subject of Whistleblower’s Disclosures
On December 22, a federal court applied the plain language of the “whistleblower-protection provisions” of the False Claims Act, including 31 U.S.C. § 3730(h), to hold that a plaintiff may bring a retaliation claim against a former employer even if that employer was not the subject of any FCA allegations. In O’Hara v. NIKA Technologies
Check Those Pre-Adverse Action Letters – New California Law Goes into Effect
On January 1, 2018, California Government Code § 12952 goes into effect. § 12952 is yet another state law that regulates how employers can use criminal background checks in the hiring process. Although state laws governing this practice have become commonplace, § 12952 is unique in that it contains new requirements as to what
FTC’s New Report Details Law Enforcement Efforts Resulting in More Than $6.4B Returned to Consumers
In its Office of Claims and Refunds Annual Report, the Federal Trade Commission reports that its law enforcement efforts between July 1, 2016, and June 30, 2017, returned $6.4 billion in refunds to consumers, including $391 million sent directly by the FTC to 6.28 million consumers. This is the first such report on money returned
FTC Issues Biennial Report on National Do Not Call Registry
On December 22, the Federal Trade Commission issued its biennial report to Congress on the use of the National Do Not Call Registry, which is the database maintained by the federal government listing the telephone numbers of individuals who have requested that telemarketers not call them.
According to the report, 3.8 million phone numbers were
Eastern District of New York Grants Motion to Dismiss FDCPA Current Balance Claim
On November 8, the Eastern District of New York rendered an opinion granting Credit Control Services’ motion to dismiss plaintiff Yendy Cruz’s claim. Specifically, the Court found Credit Control’s collection letter was not false or misleading under the Fair Debt Collection Practices Act because Credit Control was not including either interest or fees on its
CFPB Withdraws its Consumer Disclosures Survey Signaling that Debt Collection Rulemaking Is No Longer at the Top of the CFPB’s Priorities
Until last week, the CFPB was accepting comments on its proposal to conduct a survey on debt collection disclosures. This survey was closely linked to the CFPB’s planned debt collection rule that would impose additional restrictions and burdensome regulations on the debt collection industry. However, on December 14, 2017 – the last day to submit
NY Division of Consumer Protection Issues “Emergency Regulation” Regarding Identity Theft Prevention and Mitigation Program
The New York Department of State’s Division of Consumer Protection recently implemented an “Identity Theft Prevention and Mitigation Program” and adopted emergency regulations, effective immediately. According to the Division, the program is intended to “(1) inform consumers about how to protect their personal identifying information; (2) help consumers prevent identity theft, including taking steps to
Northern District of New York: No FDCPA Violation Where Pre-Judgment Interest Not Disclosed in Collection Letters
On November 15, the U.S. District Court for the Northern District of New York ruled that a law firm did not violate the Fair Debt Collection Practices Act when it stated in its collection letter that the “amount due” was $5,794.54 but failed to indicate that this amount could increase due to interest assessed pursuant