Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

ALL CFS Blog Entries

Subscribe to ALL CFS Blog Entries RSS Feed

Ohio Appellate Court Dismisses FCRA Class Claim for Lack of Article III Standing, Citing Spokeo

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
On December 5, a Court of Appeals for the state of Ohio affirmed dismissal of a putative FCRA class claim against Ohio State University on the basis that the plaintiffs lacked standing to assert their no-injury, statutory claim in Ohio state court.  The state appellate court declined to adopt a “statutory standing” doctrine in Ohio… Continue Reading

GAO Sounds Death Knell for the CFPB’s Key Statement of its “Disparate Impact” Theories in Indirect Auto Finance

Posted in ALL CFS Blog Entries, Auto Finance, Featured Posts
On Tuesday, December 5, 2017, the Government Accountability Office (“GAO”) levelled a heavy blow on a major regulatory initiative of the Consumer Financial Protection Bureau (“CFPB”): its highly controversial “disparate impact” discrimination theories as applied to pricing in the indirect automobile financing industry. The specific GAO ruling finds that a 2013 “Bulletin” stating the CFPB’s… Continue Reading

Consulting New Leadership on Case Against Tribal Lenders, CFPB Obtains Extension

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
With President Trump’s pick, Mick Mulvaney, remaining as the Acting Director of the Consumer Financial Protection Bureau, the CFPB has filed a motion asking the United States District Court for the District of Kansas to extend briefing deadlines on a motion to dismiss filed in CFPB v. Golden Valley Lending, Inc., et al., No. 2:17-cv-02521. … Continue Reading

Bad Day for Payday Lender: Jury Convicts Online Lender of $220M

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Recently, a Manhattan federal jury convicted Richard Moseley Sr., the head of an online network of payday lenders and loan servicers, on charges of wire fraud, aggravated identity theft, and violating the Racketeer Influenced and Corrupt Organizations Act and Truth in Lending Act, among other counts. Moseley was convicted due to his leadership role over… Continue Reading

Auto Lending—and Delinquencies—Stay on Upward Trend

Posted in ALL CFS Blog Entries, Auto Finance
A recent report released by the Center for Microeconomic Data at the Federal Reserve Bank of New York found that American household debt continues to increase, including debt resulting from automobile loan balances.  The third quarter of 2017 saw a $116 billion increase, continuing a march upward since mid-2013. The report specifically addressed the growth… Continue Reading

District Court Rejects Argument that Background Check Disclosure is Not “Standalone” Document

Posted in ALL CFS Blog Entries, Background Screening
The Fair Credit Reporting Act regulates more than credit.  It includes provisions that govern employers who obtain consumer reports on applicants in connection with the application process.  One such provision deals with the disclosure that an employer must provide to an applicant before obtaining a background check.  According to the FCRA, the employer must provide… Continue Reading

Bank to Pay $2.8 Million in Consumer Restitution to Settle Alleged Deceptive Fee Practices

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Board of Governors of the Federal Reserve System recently issued a Consent Order against Peoples Bank, based in Lawrence, Kansas, to settle claims of deceptive residential mortgage origination practices that arose from the bank’s charging of fees in mortgage originations.  The Federal Reserve alleged that Peoples told mortgage borrowers that certain additional fees that… Continue Reading

Ninth Circuit: ESPN App User Data is Not Personal Information

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
In an opinion issued November 29, the Ninth Circuit Court of Appeals affirmed the dismissal of Chad Eichenberger’s lawsuit against ESPN for allegedly disclosing personal information.  The suit was originally filed in federal court in the District of Columbia in March of 2014, alleging that ESPN gave the personally identifiable information of consumers who watched… Continue Reading

New Mexico AG Supports Tribal Defendants in Civil Action Filed by CFPB

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 27, New Mexico Attorney General Hector Balderas joined the ranks of amici curiae in Consumer Financial Protection Bureau v. Golden Valley Lending, Inc., et al. (No. 2:17-cv-02521, pending in the United States District Court for the District of Kansas) filing a brief supporting the efforts of four tribal entities (“Tribal Defendants”) to dismiss claims… Continue Reading

CFPB Removes Ban on Arbitration Agreements from CFR Following Congressional and Presidential Disapproval of Rule

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
As anticipated, the Consumer Financial Protection Bureau has officially removed from publication a rule that would have prohibited arbitration agreements in certain consumer contracts.  The CFPB published its removal of 12 CFR part 1040, titled “Arbitration Agreements,” from the Code of Federal Regulations.  The CFPB’s removal of part 1040 reflects Congressional disapproval of the underlying Arbitration… Continue Reading

Health Care Debt Collector Pays $600K to Settle TCPA Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On November 21, the United States District Court for the Northern District of Illinois granted preliminary approval of a proposed $600,000 settlement of a class action lawsuit filed by a consumer against M3 Financial Services, Inc., an Illinois-based health care debt collector. The lawsuit, styled Elaine Mason et al. v. M3 Financial Services Inc., alleged… Continue Reading

Join Us on December 5 for an ABA Webinar – State Attorneys General Series: Enforcement Agencies Confront Class Actions

Posted in ALL CFS Blog Entries, CFS Events, Featured Posts, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders attorneys Ashley Taylor and Tim Butler will participate in a webinar panel discussion hosted by the American Bar Association on “State Attorneys General Series: Enforcement Agencies Confront Class Actions .” The event will take place on December 5, 2017 from 1:00 – 2:30 p.m. ET. The still vibrant debate… Continue Reading

State Court Among First to Dismiss FCRA Claim for Lack of Injury-in-Fact

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
In Miles v. The Company Store, consumer Timothy Miles brought a claim in state court against retailer The Company Store for alleged violations of the federal Fair Credit Reporting Act.  Specifically, Miles claimed that The Company Store violated 15 U.S.C. § 1681c for printing too many digits of his credit card number on his receipt. … Continue Reading

Avis Settles FCRA Background Check Lawsuit for $2.7 Million

Posted in ALL CFS Blog Entries, Background Screening
On November 17, car rental company Avis filed its memorandum in support of final approval of a $2.7 million class action settlement to resolve Fair Credit Reporting Act claims related to its background screening practices. The case is Angela Fuller v. Avis Budget Car Rental LLC, et al., No. 2:15-cv-03856, pending in the U.S. District… Continue Reading

Auto Finance Company Unable to Shake TCPA Class Action

Posted in ALL CFS Blog Entries, Auto Finance
The Third Circuit recently clarified in important ways its ascertainability standard for class actions under Rule 23 in a case that arose from the efforts of an auto finance company to generate business by marketing efforts directed at automobile dealers.  The decision reflects two key findings:  (1) that defendants who argue a class is not… Continue Reading

FCC Adopts New Rules on Blocking Robocalls

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy
On November 16, the Federal Communications Commission adopted new rules to allow telephone carriers to block robocalls as potentially fraudulent when they come from certain types of phone numbers. According to the FCC’s press release, robocalls are the top consumer complaint submitted to the FCC, with more than 200,000 annually.  The FCC’s report also highlights… Continue Reading

President Likely Has Authority To Appoint Acting Director To Replace Cordray At CFPB

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s announced yesterday (as covered here) that he will be resigning from his position by the end of this month. The Administration appears poised to announce Office of Management and Budget Director Mick Mulvaney as an interim replacement until a permanent director can be selected by the President and… Continue Reading

CFPB Director’s Resignation Sparks Conjecture About Future Leadership

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 15, as has been widely reported, the Director of the Consumer Financial Protection Bureau, Richard Cordray, announced by email to his staff that he would be resigning at the end of the month.  While he did not state the reason for his departure, it is believed that Cordray, a former Ohio attorney general,… Continue Reading

Supreme Court Declines to Hear Appeal of Ninth Circuit Decision on FCRA Willfulness in Disclosure Forms

Posted in ALL CFS Blog Entries, Background Screening
One of 2017’s more significant Fair Credit Reporting Act court opinions was the Ninth Circuit’s January 20 decision in Syed v. M-I, LLC, a putative FCRA class action.  In its decision, the Ninth Circuit Court of Appeals held that a prospective employer willfully violated the FCRA by including a liability waiver in its background check… Continue Reading

CFPB Solicits Comments on Access to Free Credit Scores

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers
In recent years, many financial institutions and credit card companies have begun offering consumers free access to their credit score. On November 13, the Consumer Financial Protection Bureau published a request for information in the Federal Register regarding consumers’ experiences “with access to free credit scores and the experience of companies, and nonprofits, offering their… Continue Reading

New York AG Proposes Changes to Data Breach Law

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman has introduced a bill that would expand that state’s existing data breach laws. This proposed legislation, called the Stop Hacks and Improve Electronic Data Security Act, or the SHIELD Act, is sponsored by two Democratic members of the state legislature (Senator David Carlucci and Assembly member Brian Kavanagh). Schneiderman stated in… Continue Reading

Illinois General Assembly Overrides Veto of Illinois Student Loan Servicing Rights Act

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
With both houses of the Illinois General Assembly overriding the veto of Governor Bruce Rauner, the Illinois Student Loan Servicing Rights Act will become law.  Surpassing the three-fifths supermajorities needed for an override, the Senate voted by a margin of 37-19 and the House of Representatives by 98-16.  The Act takes effect on December 31,… Continue Reading

Tax Preparation Firm Settles FTC Claims Flowing from Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On November 8, the Federal Trade Commission announced that it had approved a final order settling claims arising out of a data breach at Georgia-based tax preparation firm TaxSlayer, LLC. In late 2015, hackers hit TaxSlayer with a “list validation” or “credential stuffing” attack.  With that type of attack, hackers attempt to use login credentials… Continue Reading

District Court Relies on Spokeo to Dismiss FACTA Suit

Posted in ALL CFS Blog Entries, Payment Processing & Cards
On November 6, a judge in the Southern District of New York dismissed a proposed class action alleging that Wolfgang’s Steakhouse impermissibly printed payment card expiration dates on customers’ receipts, relying on the U.S. Supreme Court’s decision in Spokeo to find that customers were not actually harmed by any information revealed. Relying on the Second… Continue Reading