Last year, on January 10, 2014, extensive amendments by the Consumer Financial Protection Bureau Regulation X, which implements the Real Estate Settlement Procedures Act (“RESPA”) and Regulation Z, which implements the Truth in Lending Act (“TILA”), went into effect. Among the numerous new requirements imposed upon mortgage lenders and servicers were significant changes to written
FTC Issues Follow-Up Study on Credit Reporting Accuracy
The Federal Trade Commission has issued a follow-up study of credit report accuracy (the “Follow-Up Study”) that found most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.
The congressionally-mandated study is the sixth
Supreme Court Hears Disparate Impact Case
On January 21, the U.S. Supreme Court held oral argument in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., a case in which, as we previously reported here and here, the Petitioner has challenged the applicability of a so-called “disparate impact” theory of liability under the Fair Housing
Update: Banking Industry Protests CFPB Military Lending Study
On January 16, the American Bankers Association (ABA) issued a letter opposing a proposal offered by the Department of Defense to amend the regulations that implement the Military Lending Act. Although the ABA had already joined other trade associations in a December 18 joint comment letter criticizing this proposal, the organization submitted this latest letter
Supreme Court Rejects Retailers’ Appeal on Debit Card “Swipe Fees”
On January 20, the U.S. Supreme Court declined to take up a challenge by retailers to the Federal Reserve’s controversial rules for debit card “swipe fees,” effectively ending their fight over the Dodd-Frank Act’s Durbin amendment. The court’s rejection of the appeal means a March 2014 ruling by the U.S. Court of Appeals for the
CFPB Accepting Applications for Three Advisory Groups
On January 16, the CFPB announced it is accepting applications for membership on the Consumer Advisory Board (CAB), Community Bank Advisory Council, and Credit Union Advisory Council.
Members of the CAB and the Advisory Councils include representatives of consumers, communities, and the financial services industry, as well as academics. Membership on the CAB lasts three
Ninth Circuit Affirms Use of “Reasonable Assumptions” in Calculating Amount in Controversy Under CAFA
On January 7, the United States Court of Appeals for the Ninth Circuit reversed and remanded the district court’s decision to grant a plaintiff’s motion to remand and kept a putative employment class action against trucking company Knight Transportation Inc. in federal court. In so doing, the Ninth Circuit held that defendants trying to establish
Genesis Healthcare Hit with Background Check Class Action on Theory that Adverse Action Occurs When Consumer Reporting Agency Provides Background Check Review Services
On January 7, 2015, Genesis Healthcare became one of the most recent companies to face a class action lawsuit under the FCRA based on its background check practices. This lawsuit should serve as a reminder to companies to verify that their procedures for obtaining and using background checks comply with the FCRA’s disclosure and adverse
NY AG Proposes Strengthened Data Breach Law
On January 15, 2015, New York Attorney General Eric Schneiderman announced that he would be proposing legislation to overhaul New York’s data security law and require new and unprecedented safeguards for personal data of consumers. While the proposal has yet to be released, the Attorney General’s press release indicates that the proposal will include a
Eighth Circuit Reinforces Rigorous Inquiry Standard for Class Certification in FDCPA Suit
On January 13, the Eighth Circuit Court of Appeals overturned the District Court’s grant of class certification in a case where plaintiffs allege violation of the Fair Debt Collection Practices Act. In Powers v. Credit Management Services, the defendant filed standard-form complaints and discovery requests against the plaintiffs in state court to collect past