The Consumer Financial Protection Bureau will review how credit unions and banks use reporting agencies to screen members when they open a checking account, according to CFPB Director Richard Cordray’s remarks at an October 8 forum in Washington. The CFPB is concerned about the accuracy of reports from these databases, whether customers can access and
Seventh Circuit Reverses Class Action “Coupon” Settlement Under the Fair Credit Reporting Act
In Redman v. RadioShack Corporation, 2014 U.S. App. LEXIS 18181 (7th Cir. Sept. 19, 2014), the Seventh Circuit held that the lower court erred when it approved a settlement in a class action that was filed under the Fair and Accurate Credit Transactions Act (FACTA), 15 U.S.C. § 1681c(g), against a company that sold
House Financial Services Head Criticizes Proposed CFPB Auto Finance Regulation
House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) recently sent a letter to CFPB Director Richard Cordray expressing concern about the Bureau’s proposed regulation of nonbank auto lenders.
According to Hensarling, it would be “inappropriate” for the agency to regulate nonbank auto lenders until it clarifies the “rules of the road.” The letter echoes
Flagstar Reaches $37.5M Mortgage Servicing Settlement with CFPB
Flagstar Bank FSB has agreed to pay $37.5 million to settle allegations that it prevented borrowers from accessing foreclosure relief and modifying their mortgage loans, according to the U.S. Consumer Financial Protection Bureau.
The CFPB claims that Flagstar delayed borrowers’ requests for foreclosure relief, denied loan modifications, and failed to tell borrowers when their applications
Supreme Court Agrees to Hear Challenge to Disparate Impact
On October 2, the Supreme Court granted cert in a new Fair Housing Act disparate impact case, Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., No. 13-1371. The case takes aim at the viability of a concept at the heart of recent regulatory efforts in the auto finance space
U.S. Supreme Court Invites Solicitor General to File Comment on Pending Spokeo Appeal
The United States Supreme Court today issued an order inviting the U.S. Solicitor General to file a brief on the pending cert petition filed in Spokeo, Inc. v. Robins, which is on appeal from the Ninth Circuit. The issue in Spokeo is whether Congress may confer Article III standing upon a plaintiff who suffers
Comment Period on CFPB’s Proposal to Include Narratives in Consumer Complaint Database Closes With Strong Protest from the American Bankers Association and Other Industry Groups
On July 23, the Consumer Financial Protection Bureau published in the Federal Register a proposed policy statement that is expected to expand the type of data disclosed in its consumer complaint database to include unstructured consumer complaint narrative data. The CFPB extended the comment period to September 22 to permit additional time for the submission
Game Changers for the Industry Webinar
Troutman Sanders partner, David N. Anthony, participated in a Strafford webinar early this year titled, “Consumer Debt Collection and New CFPB Regs, Enforcement and Litigation: Game Changers for the Industry.” Due to overwhelming popularity, Strafford scheduled an encore presentation with live Q&A for Tuesday, October 14, 1:00pm-2:30pm EDT.
The panel will provide banking and finance
The TCPA Balance Shifts: The Eleventh Circuit Decision in Mais is Extremely Favorable for Collectors
On September 29, the Eleventh Circuit issued its highly anticipated decision in Mais v. Gulf Coast Collection Bureau, Inc., overturning the district court’s prior holding and providing defense-favorable law on prior express consent. The decision was in response to an unprecedented May 2013 ruling by the U.S. District Court for the Southern District of
Financial Services Trade Groups File Brief on Hotly Debated TILA Issue Before Supreme Court
The American Bankers Association, American Financial Services Association, Consumer Bankers Association, Consumer Mortgage Coalition, Independent Community Bankers of America, and Mortgage Bankers Association (the “Trade Groups”) have filed a brief as amici curae in support of the respondents in an appeal before the Supreme Court of the United States that involves a Truth in Lending