On Wednesday, April 9, 2014, Senators Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio) announced legislation seeking to amend the Fair Credit Reporting Act (FCRA) to protect consumers from inaccurate credit reports and credit scores. Their legislation, the Stop Errors in Credit Use and Reporting (SECURE) Act, is aimed at easing the process by which
West Virginia Adds New Disclosure Requirement for Out-of-Statute Debts
A recently passed bill by the West Virginia Legislature requires debt collectors to make new disclosures in initial letters to consumers. Effective June 6, 2014, section 46A-2-128(f) of the West Virginia Consumer Credit Protection Act (WVCCPA) is amended to require the initial written communication with a consumer to disclose the subject debt is beyond the
FTC Settles Claims Against Data Brokers Under FCRA
Two data brokers settled charges brought by the FTC for $1.5 million based on allegations that they violated the Fair Credit Reporting Act (FCRA) when selling consumer data.
The FTC alleged the companies operated as consumer reporting agencies when providing reports about consumers to users such as prospective employers and landlords. The complaints filed by
Settlement in FDCPA Class-Action Over Collection Letters Approved
On April 15, 2014, a federal judge in New Jersey approved the settlement of a class-action suit against a law firm that allegedly violated the Fair Debt Collection Practices Act (FDCPA). Plaintiffs claimed that Mattleman, Weinroth & Miller, whose principal office is in Cherry Hill, NJ, and Executive Credit Management, located in Stanhope, NJ, had
Larger Participant Rule on Horizon for Auto Finance Industry
In early April, Deputy Director Steven Antonakes of the Consumer Financial Protection Bureau delivered the keynote speech at a meeting of the Consumer Bankers Association. During his speech, he specifically targeted the auto finance industry, articulating the CFPB’s concern over dealer mark-up and comparing the practice to mortgage yield spread premiums. Deputy Director Antonakes stated:
Senate Aims to Increase Transparency in Credit Reporting
On April 8, 2014, Senate Democrats introduced a bill that addresses a laundry list of frequent criticisms by federal and state regulators of the consumer reporting industry. The legislation, titled the Stop Errors in Credit Use and Reporting (SECURE) Act, is aimed at increasing the accuracy of consumer reports and assisting consumers who have information
CFPB Outlines Expansion of Nonbank Supervision, In Particular Increasing Consumer Access to Credit Scoring Information and Education
In a speech at the Consumer Bankers Association, CFPB Deputy Director Steve Antonakes discussed the nonbank segments of the financial services industry where the CFPB recently has expanded its supervision, including debt collection, student loan servicing, and large nonbank auto lenders.
Antonakes cited the receipt of more than 20,000 consumer complaints in March 2014 as
TCPA Clarification: FCC and Eleventh Circuit Attempt to Clarify “Called Party” and “Prior Express Consent”
On March 27, 2014, the Federal Communications Commission (“FCC”) issued two declaratory rulings regarding the definition of “prior express consent” under the Telephone Consumer Protection Act (“TCPA”). In the first ruling, Cargo Airline Association obtained an exemption under the TCPA’s “prior express consent” restriction on autodialed and prerecorded telephone calls and text messages to wireless
Proposed Legislation Would Require CFPB to Create Advisory Board of Small Financial Services Companies
Earlier today a bipartisan bill was introduced into the US House of Representatives which would require the CFPB to create an advisory panel of small financial services companies similar to other boards the Bureau has created. The Bureau of Consumer Financial Protection Small Business Advisory Board Act, introduced by Rep. Robert Pittenger, R-N.C., and
CFPB Releases Small-Entity Compliance Guide on TILA-RESPA Integration Rule
On March 31, the CFPB released a Small Entity Compliance Guide for its integrated disclosure rule for the Truth in Lending (TILA) and Real Estate Settlement Acts (RESPA). The CFPB issued the final rule in November to integrate the initial and final mortgage loan disclosures under TILA and RESPA. The final rule appeared in the