On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case.

CFPB’s Single Director Structure

The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in…

Congress recently reintroduced a bill titled United States Call Center Worker and Consumer Protection Act of 2016, which attempts to deter companies from employing offshore call collection centers.  

The bill would require a business that employs 50 or more call center employees to notify the Department of Labor at least 120 days before relocating …

On March 15, the United States District Court for the Central District of California granted final approval of a Fair Credit Reporting Act class action against fast food restaurant McDonald’s. 

The named plaintiff, James Wesley Carter, originally brought the action against McDonald’s in July 2015 alleging that McDonald’s violates the rights of consumers by failing …

The United States District Court for the Southern District of California recently granted summary judgment in favor of defendant United Student Aid Funds, Inc. (“USAF”) in a Telephone Consumer Protection Act class action, holding that the plaintiff had failed to prove that USAF is vicariously liable for the acts of its third party servicers.…

On March 10, Virginia Attorney General Mark Herring announced settlements with two Fredericksburg, Virginia pawnbrokers – Pawnking, LLC and All Star Pawn & Gold, LLC – over allegations the companies charged consumers illegal interest and fees in violation of Virginia’s pawnbroker statutes and the Virginia Consumer Protection Act.  As part of the settlement, Pawnking and…

In Hinderstein v. Advanced Call Ctr. Techs., No. 15-100017 (C.D. Cal. Feb. 27, 2017), a case alleging violation of the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act before the United States District Court for the Central District of California, the Court found that a relatively high call …

Ever since the Supreme Court decided Spokeo, Inc. v. Robins last year, courts have been struggling to define the contours of standing in “no injury” class actions.  In Fields v. Beverly Health and Rehabilitation Services, Inc. et al., the District of Minnesota recently granted a motion to dismiss a Fair Credit Reporting Act c…

Republicans in Congress have moved to repeal recently issued Consumer Financial Protection Bureau regulations governing the prepaid card industry.  Rep. Tom Graves (R-Ga.) introduced a bill in the House in early February that would submit the rules to a vote of disapproval under the Congressional Review Act.  A …

On February 24, the Consumer Financial Protection Bureau asked a federal district court in Florida to approve a $107 million settlement to resolve claims against Orion Processing LLC.  The Bureau alleged the bankrupt company engaged in a debt-relief scheme that cost consumers millions. 

The CFPB filed suit against Orion in August …

The Consumer Financial Protection Bureau recently sued three law firms in the United States District Court for the Central District of California for collecting advance fees from consumers seeking debt relief.  CFPB Director Richard Cordray stated that “[t]he defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees.”…