The two principal owners of Rincon Debt Management – Jason R. Begley and Wayne W. Lunsford – will surrender more than $3.3 million worth of assets that will be used to provide refunds to victims under a settlement with the Federal Trade Commission. In addition to the permanent ban from the debt collection business
CFPB Launches Regulation Z on eRegulations Platform
The CFPB posted Regulation Z, which implements the Truth in Lending Act, on its eRegulations platform. The posting brings together all materials related to the regulation on a single website. Users of eRegulations can view the currently effective regulation text, search past and present versions of regulations, compare two versions of the regulation,
CFPB Issues New (TILA-RESPA) Guidelines
The Consumer Financial Protection Bureau recently issued guidelines aimed to increase clarity regarding the Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated mortgage disclosure rule. The CFPB stated that the “TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide” makes mortgage disclosures easier for consumers to understand and use, while also helping
CFPB Issues Proposed Amendments to Mortgage Rules under Regulation Z
The Consumer Financial Protection Bureau has issued a rule containing proposed amendments to its mortgage rules under the Truth in Lending Act (Regulation Z). The proposed rule was published in the Federal Register on May 6, 2014. The proposal includes amendments to certain rules that were issued in January 2013 and went into effect in
Court Finds Uncapped Punitive Damages Available Under the FCRA Precludes Dismissal When Offer of Judgment Not Accepted
On April 7, 2014, the United States District Court in the Eastern District of Virginia declined to dismiss a class action under the Fair Credit Reporting Act as moot because it could not conclude with certainty that an offer of judgment under Rule 68 afforded complete relief.
New York State Judge Institutes New Court Rules Governing Actions of Debt Collectors
On April 30, 2014, New York State’s chief judge, Jonathan Lippman, announced that he would institute new court rules and protocols aimed at the issue of obtaining default judgments against debtors. These rules offer more protection to debtors.
In a speech, the judge claimed that many debtors are never served papers and only learn a
White House Issues Report Urging Future Regulation of Big Data
On Thursday, May 1, 2014, the White House issued a report outlining initiatives to supposedly better protect privacy in light of the growing realm of big data, the term used to describe a collection of large and complex data sets. The report, titled “Big Data and Privacy: A Technological Perspective,” was presented to the President
New York Federal Court Dismisses Class Action Against Credit Card Issuer
Last month, the United States District Court for the Southern District of New York granted a motion to dismiss (opinion here) in favor of a defendant credit card issuer because the plaintiff lacked standing to bring his claims. The plaintiff had received a full refund of the disputed interest charge prior to the filing of
CFPB Publishes New Guidance on Credit Reporting for Child Welfare Caseworkers
On May 1, 2014, the Consumer Financial Protection Bureau published action letters for child welfare caseworkers to send to credit bureaus if they find errors on the credit reports of the children in their care. The CFPB stated that the nearly 400,000 children in the United States foster care system often lack a permanent address,
Credit Card Issuer Settles UDAAP Class Action in California
On April 23, 2014, the parties reached a settlement in a putative class action pending in California federal court between a bank credit card issuer and consumers alleging misrepresentations and improper practices related to customer payments. The plaintiffs alleged that the bank misled consumers about how it applied credit card payments to promotional purchases by