On February 19, the CFPB proposed a rule that would suspend the requirement that creditors submit agreements for open-end consumer credit plans to the Bureau under section 1632(d) of the Truth in Lending Act and section 1026.58 of Regulation Z. The temporary suspension would last one year, making it applicable to the next three quarterly
Third Circuit Finds That If the Settlement Does Not Fit, You Must … Revisit
On February 24, the United States Court of Appeals for the Third Circuit addressed, for the second time, an appeal arising out of the Delaware Chapter 11 bankruptcy of SCH Corp., American Corrective Counseling Services, Inc., and ACCS Corp (collectively referred to here as “the Debtors”). (The U.S. Bankruptcy Court for the District of Delaware
CFPB Director Cordray Addresses National Association of Attorneys General
Several attorneys from Troutman Sanders attended this week’s meeting of the National Association of Attorneys General in Washington, during which Richard Cordray, Director of the Consumer Financial Protection Bureau and former Ohio Attorney General, provided an overview of the four obstacles that, in his view, “interfere with justice and dignity for consumers.” He referred to
West Virginia Legislature Considering Amendments to its Consumer Credit Protection Act
On February 23, legislation was introduced in the West Virginia Senate to amend the state’s Consumer Credit Protection Act. Senate Bill 542 would revise sections 46A-2-121, -122, -125, -126, and -128, sections 46A-5-101 and -106, and add new section 46A-5-107.
Among these proposed changes, the Bill seeks to:
- Modify section 46A-2-121(1) regarding a claim for
NY Department of Financial Services Answers FAQs Regarding New Debt Collection Regulations
On February 19, 2015, the New York Department of Financial Services (DFS) issued guidance in the form of FAQs on its recently-enacted debt collection regulation (23 NYCRR 1). The guidance came in response to calls from many significant players in the debt collection industry – including ACA International – to explain certain groundbreaking aspects of
Consent Decree Between DOJ and “Buy Here, Pay Here” Auto Dealer Highlights Continued Focus on Intent-Based Lending Discrimination Claims
We’ve been reporting for almost two years now on federal regulators’ attempts to use an effects-based test for discrimination – disparate impact – to fundamentally alter the auto sales and finance industries, and how those efforts have consistently gained steam from late 2013 through to more recent times. We’ve also reported on challenges to
Dish Network Court Finds Manifest Error in Its Opinion Regarding Millions of Calls Placed by Third-Party Affiliates
On February 17, the Court in United States of America v. Dish Network, LLC reconsidered a portion of its opinion granting partial summary judgment for the United States for tens of millions of calls made by Dish Network in violation of state and federal telemarketing laws. The Court found that it erred by determining liability
FTC Lawsuit Against Debt Relief Servicers Carries Lessons for Structuring Fees Under Telemarketing Sales Rule
On February 18, the Federal Trade Commission filed a complaint against PSC Administrative, LLC and Coastal Acquisitions, LLC seeking injunctive and equitable relief stemming from the defendants’ acts or practices in violation of, among other things, the FTC’s Telemarketing Sales Rule (TSR).
The defendants primarily market debt relief services via radio and Internet advertisements to
Class Action FCRA Lawsuit Challenging Defendant’s Employment Background Screening Disclosure Form Settles for $6.8 Million
In a class action settlement that was recently granted final approval, Publix Super Markets Inc. agreed to pay nearly $6.8 million in a class action lawsuit settlement over background checks under the Fair Credit Reporting Act.
Plaintiff, Erin Knights, applied for a job with Publix in early 2013 through an electronic kiosk. The lawsuit alleges
CFS Bloggers Present on TILA Loan Originator Compensation Rule
At the invitation of Thompson Reuters Legal Insights and Analytics, attorneys Maryia Jones, Jason Manning, and Paige Fitzgerald delivered a presentation on TILA’s loan originator compensation rule (the “Rule”), which remains one of the CFPB’s enforcement priorities and a focus of plaintiffs’ bar in private lawsuits. The presentation was delivered to an audience of mortgage