Until October 10, none of the constitutional or scope of enforcement authority challenges to the Consumer Financial Protection Bureau’s (“CFPB” or Bureau”) power have been successful. That changed on October 11 when the U.S. Court of Appeals for the District of Columbia held the Director of the Bureau has too much unilateral, unchecked power and
Navy Federal Credit Union Ordered to Pay $28.5M for Debt Collection Violations
The nation’s largest credit union, Navy Federal Credit Union, has been ordered to pay $28.5 million for alleged violations of the Consumer Financial Protection Act of 2010.
Navy Federal Credit Union limits its membership to military personnel and their immediate family members. According to the Consumer Financial Protection Bureau, during January 2013 and July 2015,
Supreme Court Grants Cert. In FDCPA Claim Related to Filing of Stale Claims in Bankruptcy
On October 11, 2016, the United States Supreme Court granted the petition for certiorari of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that has been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred debt
Summary Judgment Granted to Safeway in Putative TCPA Class Action
On October 11, 2016, the District Court for the Northern District of California granted summary judgment to Safeway, Inc. in a Telephone Consumer Protection Act (TCPA) putative class action arising from the receipt of prerecorded telephone messages promoting Safeway’s flu shots.
Plaintiff first received a seasonal flu shot from Safeway in 2014. In connection with
CFPB Issues Final Prepaid Card Rule
On October 5, the Consumer Financial Protection Bureau issued its much anticipated final rules regulating prepaid card accounts. The final rules follow the proposed rules that the Bureau issued in December 2014, and are mostly unchanged from the proposed rules. The new rules apply to “prepaid accounts,” which the Bureau defines as accounts that are
Illinois Court Refuses to Dismiss Case After Tender of Monetary Relief as Courts Continue to Wrestle with Campbell-Ewald Aftermath
In Practice Management Support Services v. Cirque Du Soleil, Inc., the United States District Court for the Northern District of Illinois denied the defendants’ motion for summary judgment that followed a Rule 67 motion to deposit $15,000 to moot the plaintiff’s claim for relief under the Telephone Consumer Protection Act. The plaintiff seeks, on
Blue Shield and SQM Defeat TCPA Putative Class Action Following Spokeo
U.S. District Judge Cathy A. Bencivengo recently dismissed a plaintiff’s TCPA putative class claim due to lack of standing required under Article III. In Anton Ewing v. SQM US, Inc. et al., No. 3:16-cv-1609-CAB-JLB (S.D. Cal., Sept. 29, 2016), the plaintiff alleged that he received a single survey call made by SQM on Blue
Lyft Avoids FCRA Class Action on Spokeo Grounds
Lyft Inc. avoided a putative background screening class action over alleged privacy violations on Spokeo grounds last week.
In the putative class action, the plaintiff driver alleged that Lyft failed to comply with the Fair Credit Reporting Act when it included “extraneous information” in its FCRA disclosure. In addition, the plaintiff claimed that Lyft failed
$76 Million TCPA Class Action Settlement Preliminarily Approved in Illinois Federal Court
On September 29, the United States District Court for the Northern District of Illinois preliminarily approved a $76 million Telephone Consumer Protection Act class action against several cruise marketing companies in Birchmeier v. Caribbean Cruise Line, Inc.
According to the class action complaint that was filed more than four years ago, a telemarketing company, ESG
Getting Your Legal House in Order: Key Considerations for Selling Your Payment Processing Business
Current mergers and acquisitions (M&A) activity in the payment processing and broader fintech sectors is robust. Private equity sponsors and other financial investors are often attracted to payment processing companies with recurring cash flow streams and relatively low overhead. Strategic buyers in this industry are usually interested in acquiring new customer relationships and complementary product