On December 12, a federal judge dismissed a challenge to the Office of the Comptroller of the Currency’s proposal to issue special purpose national bank charters to financial technology firms, finding that the plaintiff – the New York State Department of Financial Services – lacks standing and that the claims asserted are not ripe because
Supreme Court to Decide Whether American Pipe Tolling Permits Successive Class Actions
On December 8, the United States Supreme Court agreed to decide whether the tolling rule adopted in American Pipe & Construction Co. v. Utah – i.e., that the filing of a class action tolls the limitations period for a purported class member’s individual claims – permits a previously absent class member to bring a
Ohio Appellate Court Dismisses FCRA Class Claim for Lack of Article III Standing, Citing Spokeo
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
N.C. Attorney General Josh Stein Reorganizes DOJ
Just shy of one year as the N.C. Attorney General, Josh Stein has reorganized NC DOJ – eliminating one prior Division (the Administrative Division), shifting responsibilities within DOJ, and renaming certain Divisions. Additionally, several recent retirements, new hires and promotions have significantly altered the senior attorneys at the helm of the DOJ’s legal services.
Under
GAO Sounds Death Knell for the CFPB’s Key Statement of its “Disparate Impact” Theories in Indirect Auto Finance
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
Consulting New Leadership on Case Against Tribal Lenders, CFPB Obtains Extension
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.
Bad Day for Payday Lender: Jury Convicts Online Lender of $220M
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
Auto Lending—and Delinquencies—Stay on Upward Trend
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
Military Contractor Hit with FCRA Putative Class Action Over Background Checks
L3 Technologies, Inc., a military contractor, was recently hit with a Fair Credit Reporting Act putative class action in California federal court, alleging that it violated the “stand-alone” disclosure requirement in its background reports.
According to the complaint, plaintiff Joseph Estes was hired by L3 and worked as a mechanic for the company in California.
District Court Rejects Argument that Background Check Disclosure is Not “Standalone” Document
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