On June 12, the Supreme Court of Appeals of West Virginia reversed a Circuit Court ruling and stated that a high volume of telephone calls from a debt collector to a consumer, absent any evidence the debt collector placed the calls with an intent to annoy, abuse, oppress, or threaten the consumer, is not sufficient
J. Crew Beats FACTA Class Action on Spokeo Grounds
On June 6, a federal judge in New Jersey for the second time dismissed a putative class action against clothier J. Crew Group, Inc. on the grounds that the plaintiff, Ahmed Kamal, had not pled a concrete injury sufficient for Article III standing light of Spokeo, Inc. v. Robins. Kamal alleged that J. Crew violated
Five Guys Faces Background Check Lawsuit Over Allegedly Improper Disclosures
Five Guys Enterprises LLC—franchisor of the popular Five Guys Burger Co.—and a California franchisee are facing a lawsuit from a former employee alleging numerous violations of the federal Fair Credit Reporting Act and California state law. The plaintiff, Jeremy Lusk, alleges he began working for Five Guys in August 2016. He alleges that in the
CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices
In July of 2016, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules targeted various areas including: Debt validation, Limits on Contact, Consumer Disputes, and Deceased Consumers. At the time, the CFPB stated it planned to release rules relevant to first-party creditors at a later
CFPB Prioritizes Redlining, Loan Servicing, and Small Business Lending
In its fifth annual fair lending report, the Consumer Financial Protection Bureau highlighted redlining, mortgage and student loan servicing, and small business lending as areas of focus for 2017. CFPB Director Richard Cordray specifically noted these areas for enhanced enforcement actions, describing them as “significant or emerging fair lending risk to consumers.”
“In 2017
Federal and State Regulators Obtain Record Judgment Enforcing TCPA Violations Predicated Upon Insufficient Vendor Oversight
On June 5, 2017, an Illinois federal judge awarded $280 million to the federal government and the states of California, Illinois, North Carolina, and Ohio against Dish Network LLC over violations of numerous federal and state do-not-call laws. The district court’s $280 million penalty constitutes the largest ever for violations of telemarketing laws. In addition,
Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices
On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices. The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership
FTC Obtains Judgments Against Defendants Who Initiated Billions of Illegal Robocalls
On May 31, a California Federal District Court approved default judgments against ten defendants for violations of the Federal Trade Commission Act, 15 U.S.C. § 45 et seq., (“FTC Act”), and Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105 et seq., (“Telemarketing Act”). The case is Federal Trade Commission v. Aaron
District Court Dismisses FCRA Class Action for Lack of Standing Based on Insufficient Risk of Imminent Harm
Since the Supreme Court issued its decision in Spokeo, Inc. v. Robins, appellate and district courts throughout the country have been grappling with the ruling’s reach. Just this past month, the District Court for the Southern District of New York weighed in on the issue and found that a plaintiff must show more
Insurance Company Settles Nationwide TCPA Class Action for $4.25M
On May 31, plaintiffs Jim Youngman and Robert Allen filed a motion for preliminary approval of class action settlement for their pending Telephone Consumer Protection Act action against Florida-based insurance company A&B Insurance and Financial Inc. The case is Youngman v. A&B Insurance and Financial, Inc., No. 6:16-cv-01478-CEM-GJK (M.D. Fla. May 18, 2017).