On December 20, the Consumer Financial Protection Bureau executed a consent order with Military Credit Services, LLC, whereby the lender was required to pay a $200,000 civil monetary penalty, implement certain compliance measures, and hire an independent consultant to review the company’s compliance with federal laws. The order arose out of Military Credit Services’ alleged
More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA
The United States District Court for the District of New Jersey recently held in Samuel Chisholm v. AFNI, Inc. that a debt collector “could not reasonably be found to violate” the Fair Debt Collection Practices Act by calling a consumer 18 times on his cell phone over the course of 13 days. All calls were
CFPB Files Four Lawsuits Against Lenders for Violation of Truth In Lending Act
On December 19, the Consumer Financial Protection Bureau filed four nearly identical lawsuits against lenders based in the Commonwealth of Virginia. Copies of the complaints can be found here, here, here, and here. The complaints allege that the defendants violated the Truth in Lending Act and Consumer Financial Protection Act by
Requesting Attorneys’ Fees in Court Summons Does Not Misrepresent Amount of Debt
The U.S. District Court for the Eastern District of Tennessee recently held that a debt collector’s civil court summons requesting “reasonable attorney fees” does not violate the Fair Debt Collection Practices Act. In Wilma Jones et al. v. Hospital of Morristown (Case No. 2:16cv13, 2016 LEXIS 153869 (E.D. Tenn. Oct. 6, 2016)), the plaintiff argued
FTC Files Lawsuit Against Bogus Debt Portfolio Seller
On December 16, the Federal Trade Commission filed suit in Kansas federal court against Joel Tucker and the business entities he purportedly controls, alleging that Tucker marketed, distributed, and sold counterfeit debt portfolios that purport to identify consumers who have defaulted on payday loans.
Specifically, Tucker and his companies allegedly sold spreadsheets to debt collectors
Seventh Circuit Relies on Spokeo Reasoning to Dismiss FACTA Case for Lack of Standing
On December 13, the Seventh Circuit Court of Appeals ordered the dismissal of a proposed class action alleging that a restaurant did not properly truncate credit card expiration dates on receipts, finding the plaintiff lacked Article III standing.
The plaintiff, Jeremy Meyers, was given a copy of his receipt after dining at Nicolet Restaurant of
Medical Services Company to Pay $9.25M in TCPA Class Action Settlement
The United States District Court for the Eastern District of Louisiana recently granted final approval of a $9.25 million Telephone Consumer Protection Act class action against Advanced Care Scripts, Inc. (“ACS”).
According to the class action complaint, ACS engages in the management and dispensing of specialty medications and oral oncology products. To advertise their services,
Insurer Denies Coverage in TCPA Class Action
As we previously reported, US Coachways entered into a $49.9 million Telephone Consumer Protection Act class action settlement. Because the motor coach leasing company could not fund the settlement, the company tendered a claim for the action to its insurer, Illinois Union Insurance Company, who subsequently denied coverage to US Coachways. US Coachways assigned
Ninth Circuit Hears Oral Argument in Spokeo Following Remand From Supreme Court
On December 13, the Ninth Circuit Court of Appeals heard arguments in the long‑simmering Robins v. Spokeo Inc. putative class action, following reversal of the appellate court’s previous opinion by the Supreme Court. Robins alleges that Spokeo violated the Fair Credit Reporting Act by maintaining various inaccurate data points about the plaintiff in an online
Telephone Company Settles TCPA Class Action for $11 Million
On December 14, the parties in Mey v. Frontier Communications Corp. filed a motion for preliminary approval of a settlement of a Telephone Consumer Protection Act class action.
According to the Complaint, Frontier, a telephone company that offers voice, broadband, satellite video, and wireless internet data access for individuals and small businesses, uses