On August 10, Massachusetts District Court Judge Richard G. Stearns granted preliminary approval of a $3.2 million class settlement agreement in a Telephone Consumer Protection Act class action filed against Collecto, Inc. The four named plaintiffs allege that Collecto made unauthorized telephone calls to class members’ cellular phones using an automated telephone dialing system in
Indiana Becomes First State to Prohibit Ban-the-Box Ordinances
Countering a nationwide trend of “ban the box” ordinances that prohibit employers from asking about an individual’s criminal history at the initial application stage, Indiana has become the first state to ensure through legislation that employers can inquire into applicants’ criminal histories. The legislation prohibits localities from implementing “ban the box” ordinances. The measure has
Courier Service Settles Lawsuit Challenging Background Check Disclosure Form and Notices
The recent matter of Nesbitt, et al. v. Postmates Inc., Case No. CGC15547146 in the Superior Court of the State of California, County of San Francisco, demonstrates the continuing trend of litigation regarding the content of background disclosure forms, as well as ongoing issues regarding the failure of employers to provide notice of adverse
Seventh Circuit Holds That Debt Collector Cannot Avoid Liability Under FDCPA Despite Strict Compliance With Controlling Precedent
In a surprising decision involving a vigorous and scathing dissent, the Seventh Circuit ruled that a debt collector was liable under the Fair Debt Collection Practices Act even when it followed the law that was in effect at the time the alleged violation took place. This alarming ruling raises an
Operation Choke Point Terminated
The U.S. Department of Justice announced the end of Operation Choke Point in an August 16 letter to the Chairman of the House Judiciary Committee. Operation Choke Point, which began under the Obama Administration, sought to prohibit banks and other financial firms from giving so-called “bad actors” access to bank accounts and payment processing systems.
Illinois Federal Court Refuses to Certify TCPA Robocall Class Action Based in Part on Article III Standing
On August 15, the United States District Court for the Northern District of Illinois denied a motion for class certification in Legg v. PTZ Insurance Agency, Ltd., a putative class action under the Telephone Consumer Protection Act. The plaintiffs in the lawsuit, Christopher Legg and Page Lozano, sued PTZ and affiliated companies alleging violations
CFPB Issues Guidance on Pay-by-Phone Fees
The Consumer Financial Protection Bureau recently released a Compliance Bulletin regarding fees that companies may charge consumers when they pay by phone.
The Bulletin highlights certain practices related to phone payment fees that may violate the Dodd-Frank Act’s prohibition on committing unfair, deceptive, or abusive acts and practices (UDAAPs), including:
- Failing to disclose all available
Democratic State AGs Urge Senate Leaders to Uphold CFPB’s Arbitration Rule
Twenty-one Democratic state attorneys general wrote to Senate leaders Mitch McConnell and Charles Schumer to express their opposition to S.J. Res. 47, which would nullify the Arbitration Rule issued by the Consumer Financial Protection Bureau under the Congressional Review Act. The AGs requested that both senators oppose the Joint Resolution of Disapproval
CFPB Warns Older Consumers of Risks of Reverse Mortgage
Financial professionals often recommend a reverse mortgage loan as a way to delay claiming Social Security benefits. A reverse mortgage, federally insured through the Federal Housing Association’s (“FHA”) Home Equity Conversion Mortgage Program (“HECM”), allows homeowners age 62 and older to borrow against the equity in their homes and defer payment of the loan until
Minnesota AG Cracks Down on Pension Advance Companies Allegedly Targeting Veterans and Senior Citizens
On August 16, Minnesota Attorney General Lori Swanson announced the filing of a lawsuit against two pension advance companies alleged to have preyed on veterans and senior citizens, convincing borrowers into signing over large portions of their monthly pensions in exchange for small loans to cover household emergencies and basic living expenses.
The suit, filed