On November 13, the U.S. District Court for the Eastern District of New York ruled that a debt collector’s voicemail message did not violate the Fair Debt Collection Practices Act when it never mentioned that plaintiff owed a debt or conveyed any information about the debt, despite being overheard by the plaintiff’s son. In Zweigenhaft
NBPCA Issues Statement Regarding CFPB’s Proposed Rules for Prepaid Cards
On November 13, Doug Bower, President and Director of the Network Branded Prepaid Card Association (NBPCA), issued the following statement regarding the CFPB’s comprehensive slate of consumer-protection rules for prepaid debit cards:
We appreciate the CFPB’s earnest efforts to gather information, analyze data, and draft a proposed rule that acknowledges that prepaid cards are a
Supreme Court Skeptical of Lender’s Interpretation of TILA Rescission Statute
Last week, the U.S. Supreme Court heard argument in an appeal from the U.S. Court of Appeals for the Eighth Circuit that involves an interpretation of a provision under the Truth-in-Lending Act that has caused a split among the lower courts. The Supreme Court has to determine whether a borrower exercises his right to rescind
Law Firm Files Class Action Lawsuit Against Jimmy John’s for Credit Card Data Breach
On November 7, the Rosen Law Firm, P.A. announced that it had filed a class action lawsuit against national chain Jimmy John’s Gourmet Sandwiches relating to a security breach involving customers’ credit and debit cards earlier this year. The lawsuit alleges that the company’s grossly inadequate information systems and network security oversight led to an
CFPB and Federal Reserve Board to Host Webinar on TILA-RESPA Integrated Disclosures Rule
By this time next year, the CFPB’s new TILA-RESPA Integrated Disclosures rule will be in effect. Is your company prepared to comply with the new rule?
On Tuesday, November 18, the CFPB and the Federal Reserve will host an hour-long webinar beginning at 2:00PM EST to address frequently asked questions on how to complete the
CFPB Publishes Compliance Bulletin and Policy Guidance for Mortgage Servicing Transfers
On October 22, the CFPB published in the Federal Register the compliance bulletin and policy guidance regarding mortgage servicing transfers that it issued on August 19, 2014 (link to full text can be found here). It states that “[t]his bulletin is effective October 23, 2014 and applicable beginning August 19, 2014.” The bulletin
CFPB Supervision Report Targets Illegal Debt Collection Practices
On October 28, the Consumer Financial Protection Bureau issued the latest edition of its “Supervisory Highlights” report, covering illegalities it discovered in the debt collection, student loan servicing, and mortgage collection markets between March and June 2014. Although the Bureau acknowledged increased efforts by covered entities to ensure regulatory compliance, the report nevertheless
Basel Committee Issues NSFR Standard for International Banks
On November 3, the Basel Committee on Banking Supervision issued its final version of the Net Stable Funding Ration (NSFR) standard, which can be found here. The NSFR is a long-term liquidity standard that measures the structural funding designed to ensure that internationally active banks maintain a stable funding profile. It is included in
FTC Stops Debt Collection Scheme that Targeted Spanish-Speaking Consumers
At the request of the Federal Trade Commission, a U.S. district court judge in Miami has temporarily shut down a fraudulent phantom debt collection operation that allegedly deceived Spanish-speaking consumers across the country.
On October 20, the FTC filed a complaint against Centro Natural Corp., Sumore LLC, and several individual defendants alleging that defendants illegally
CFPB Report: One-Third of Older Consumers’ Complaints Are About Debt Collection
On November 5, the Consumer Financial Protection Bureau issued a report detailing debt collection complaint statics received from older consumers between July 2013 and September 2014.
From a broader perspective, the CFPB reports that since September 2013, consumers of all ages have filed more complaints with the CFPB about debt collection than about any other