The U.S. Supreme Court agreed on May 18 to hear an appeal from the U.S. Navy’s advertising partner challenging the Ninth Circuit’s remand of a potential class action over allegedly unsolicited text messages, potentially resolving the issue of whether a putative class claim is mooted by an offer of complete relief under Rule 68 of
Three National Consumer Reporting Agencies and Thirty-One State Attorneys General Strike Deal
On May 20, the three national consumer reporting agencies (CRAs) – Equifax Information Services LLC, Experian Information Solutions Inc., and TransUnion LLC – inked a deal with thirty-one state attorneys general to end an investigation initiated in 2012 by the Ohio Attorney General’s office.
Under the multistate settlement, which is in the form of
Second Circuit Rules That Unaccepted Offer of Judgment Does Not End Case
In the wake of the U.S. Supreme Court’s May 18 announcement that it may decide whether a Rule 68 offer of judgment for complete relief moots potential class claims, the Second Circuit issued an amended ruling on May 21 that partially answered that question in the negative, further compounding a split among the federal circuit
D.C. Circuit Holds that Credit Card Information Obtained by DHS During Investigation Constitutes Consumer Report
In Abdelfattah v. DHS, the D.C. Circuit held that credit information obtained by the Department of Homeland Security on a person of interest can constitute a consumer report under the Fair Credit Reporting Act. Because DHS did not have a permissible purpose to obtain the information, it may be liable for an FCRA violation.
FTC and State Attorneys General Charge Cancer Charities With Bilking Over $187 Million from Consumers
On May 19, the Federal Trade Commission and all fifty state attorneys general and the District of Columbia charged four cancer charities and their operators with bilking more than $187 million from consumers. The alleged fraud, detailed in a complaint filed in the United States District Court for the District of Arizona, is said to
TransUnion Study Finds Student Loan Debt is Not Inhibiting Younger Consumers’ Access to Credit
Despite the rise in student loan balances over the past decade, a new TransUnion study found that student loan obligations have not inhibited younger consumers’ ability to access and repay other consumer credit categories, such as auto loans and mortgages, when compared to their peers without student loans.
According to TransUnion, this is contrary
District Court Denies Defendant’s Bid to Stay Class Action Proceedings Pending Supreme Court’s Spokeo Decision
A district court in Florida quickly denied a motion by Whole Foods Market Group Inc. to stay a proposed class action under the Fair Credit Reporting Act until the Supreme Court rules on the pending matter in Spokeo, Inc. v. Robins, which addresses issues of claimed statutory violations. Whole Foods argued that the proposed
Illinois Court Rejects Notion That System With Capacity to Use Dialer is ATDS
In Modica v. Green Tree Servicing, LLC, the Northern District of Illinois limited the scope of what constitutes an Automatic Telephone Dialing System (ATDS) under the Telephone Consumer Protection Act. Judge Zagel found that a system requiring an agent to manually access a consumer’s telephone number from a computer server and then “click” to
CFPB Director Cordray Addresses “Serious Misunderstanding” About Three-Day Requirement, Reiterates CFPB Will Not Voluntarily Change August 1 Effective Date for TILA-RESPA Integrated Disclosure Rule
In a speech made on May 12 to the National Association of Realtors, Consumer Financial Protection Bureau Director Richard Cordray addressed questions surrounding the three-day requirement of the TILA-RESPA Integrated Disclosure Rule (“TRID”) and said it “should not interfere with a successful closing, as some have claimed. In fact, there has been some serious misunderstanding
CFPB Extends CARD Act Comment Period Regarding Four Areas of Interest
As we discussed in March, the Consumer Financial Protection Bureau is soliciting public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers.
To allow interested persons additional time to consider and submit their responses, the CFPB announced it is extending the comment period on