On February 13, a judge in the United States District Court for the Southern District of New York denied a background screening company’s motion to dismiss a putative Fair Credit Reporting Act class action on the basis of the Supreme Court’s holding in Spokeo v. Robins, 136 S. Ct. 1540 (2016). As has been
Validation Notice Including Request for Payment and Identifying Creditor by Acronym Does Not Violate FDCPA
The United States District Court for the Southern District of California recently dismissed all of a plaintiff’s claims in the putative class action Matthew Stuppiello v. Southwest Credit Systems, L.P. The Court held that a validation notice does not violate the Fair Debt Collection Practices Act by including a request for payment “and explain[ing]
CFPB Orders MasterCard and UniRush to Pay $13 Million
On February 1, the Consumer Financial Protection Bureau ordered payment card companies MasterCard and UniRush to pay $10 million in restitution and a $3 million fine related to service breakdowns that left customers unable to access their funds. “MasterCard and UniRush’s failures cut off tens of thousands
Virginia AG and CFPB Settle with Virginia Pawnbroker
In early February, Virginia Attorney General Mark Herring and the Consumer Financial Protection Bureau announced that the agencies had reached a settlement with Woodbridge Coins and Jewelry Exchange, Inc. d/b/a Woodbridge Gold & Pawn (“Woodbridge Pawn”) to provide $56,763.60 in refunds to approximately 1,000 consumers. The CFPB and the AG’s Office alleged that the business
Washington Court Orders 5-Hour Energy To Pay $4.3M For Deceptive Ads in AG Suit
On February 7, Living Essentials LLC and Innovative Ventures LLC, the makers of 5-Hour Energy were ordered to pay nearly $4.3 million in penalties and attorneys’ fees and costs after a Washington State court found the makers deceived consumers with misleading claims regarding things like the effectiveness of the flavored energy shots.
Living Essentials
FTC and NJ AG Announce Settlement with Vizio over Collecting Consumer Viewing Habits
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
First Defendant Prosecuted Under New Arizona Telemarketing Law Pleads Guilty
On January 18, Lukeroy Rose, owner of Phoenix-based Rose Marketing LLC, pled guilty pursuant to a plea agreement to charges of theft, unlawful telephone solicitations, and conspiracy to commit theft. Rose was arrested in December 2016 pursuant to the newly amended Arizona Telephone Solicitations statute, Ariz. Rev. Stat. § 44-1277, which makes it a Class
CFPB Takes Action Against Law Firm Debt Collectors for Lack of Meaningful Involvement
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc., Works & Lentz of Tulsa, Inc., two medical debt collection law firms, and their president, Harry A. Lentz, Jr., for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation
OCC Releases Semiannual Risk Perspective – January 2017
The Office of the Comptroller of the Currency’s National Risk Committee, which is tasked with monitoring the overall condition of the federal banking system and any emerging threats to the system’s safety and soundness, released its “Semiannual Risk Perspective for Fall 2016” on January 5. Using data from the first half of 2016, the publication
TransUnion Agrees to Settlement with CFPB
Late last year, TransUnion agreed to pay approximately $17 million as part of a settlement with the Consumer Financial Protection Bureau in connection with TransUnion’s advertising and marketing practices. The settlement stems from a civil investigative demand that addressed TransUnion’s common industry practices relating to the advertising, marketing, and sale of consumer reports, credit scores,