The 2010 financial reform law, known as the Dodd-Frank Act, has led to a 14.5 percent cut in consumer revolving credit since its enactment, says the American Action Forum. Based on the AAF’s latest research, consumer credit access is taking a substantial hit as a result of the $30 billion in regulatory costs and 72
Fifth Circuit Establishes Presumption in Favor of Federal Jurisdiction in CAFA Cases
By David N. Anthony & Julie D. Hoffmeister on
The Fifth Circuit recently adopted a presumption in favor of retaining federal jurisdiction under the Class Action Fairness Act (“CAFA”) and placing the burden squarely on plaintiffs who seek to remand a case based on one of CAFA’s limited exceptions. Specifically, the Court held that “[i]f the applicability of an exception …
First 2016 CFPB Bulletin Reinforces Focus on Furnishers
I. Background
On February 3, 2016, the Consumer Financial Protection Bureau (CFPB) issued a bulletin warning companies that furnish information on consumers to consumer reporting agencies (CRAs) yet again of the need to have adequate policies and procedures. This bulletin makes clear that any company that supplies information to CRAs is in an area of…
Join Us for the RSA Conference – Where the World Talks Security
By Ronald I. Raether, Jr. on
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured panelist at the 2016 USA RSA Conference at the Moscone Center in San Francisco. Ron will participate on a panel entitled “Data Breach Litigation: How to Avoid It and Be Better Prepared for Defense” on Thursday, March 3 from 11:30…
Join Us for an Information Systems Security Association Webinar on February 5
By Ronald I. Raether, Jr. on
We are pleased to announce that Troutman Sanders Partner Ron Raether will be a featured speaker during a live webinar, entitled, “Why are Transnational Criminal Enterprises Targeting the Financial Services Sector and is My Organization Prepared or are We the Next Victim?,” hosted by the Information Systems Security Association (ISSA) Financial Special Interest Group. The …
Fourth Circuit: Arbitration Agreements Cannot Renounce Application of Federal Law
By David N. Anthony & Julie D. Hoffmeister on
On February 2, the Fourth Circuit held that an arbitration agreement “may not flatly and categorically renounce the authority of the federal statutes to which it is and must remain subject.” Because the arbitration agreement at issue sought to “avoid state and federal law and to game the entire system,” the three-judge panel concluded that …
CFPB Sends Letters on Checking Account-Access Issues
On February 3, the Consumer Financial Protection Bureau announced that it is taking steps to help consumers get better access to checking accounts. The CFPB has “concerns that consumers are being sidelined by the lack of account options and by inaccurate information used to screen potential customers.” Towards that end, the CFPB sent …
Fourth Circuit Affirms Dismissal of Claims that Loan in Excess of Property Value is Unconscionable under the West Virginia Consumer Credit Protection Act
By Jason E. Manning & John C. Lynch on
On January 15, 2016, the Fourth Circuit issued a published decision affirming summary judgment to the defendant national bank on plaintiff’s unconscionable contract claim under WVCCPA 46A-2-121. Plaintiff relied on a retroactive appraisal in an attempt to prove the loan was “predatory” because “the loan amount was in excess of the property value.”
The ruling…
District Judge Throws Out Facebook Biometric Suit for Lack of Personal Jurisdiction
By Jessica Lohr & Ronald I. Raether, Jr. on
On January 21, U.S. District Judge Jorge L. Alonso dismissed a lawsuit against Facebook for lack of personal jurisdiction, holding that Facebook did not target its alleged biometric collection activities at Illinois residents. Judge Alonso did not grant plaintiff Frederick Gullen leave to amend.
The class action complaint, which was filed last August, …
FTC Unveils Upgrades to IdentityTheft.gov
The Federal Trade Commission recently unveiled significant enhancements to its online portal designed to help victims recover from identity theft. Victims can now file a complaint with the FTC at identitytheft.gov and get a free, personalized identity theft recovery plan. The upgraded site comes in response to an October 2014 executive order issued by President …