On May 29, 2014, in the matter of Karrigan v. DataX Ltd. et al., in the U.S. District Court for the Northern District of California, Civil Action No. 3:13-cv-02995, a federal judge dismissed on summary judgment a putative class action accusing DataX Ltd. of giving credit reports to scammers who manipulated payday loan customers
Trucking Company Settles FCRA Class Action for $870,500
On Thursday, May 29, 2014, defendant New England Motor Freight (“NEMF”) agreed to a $870,500 settlement of a putative class action claim under the Fair Credit Reporting Act pending in New Jersey federal court. The class complaint alleged that NEMF had purchased consumer reports for potential job applicants from various wholesalers without first asking for
FTC Urges Regulation of Data Brokers
On May 27, 2014, the Federal Trade Commission issued a long-awaited report on the data broker industry. The report, titled “Data Brokers: A Call for Transparency and Accountability,” is the result of an eighteen-month study of certain data brokers that represent a cross-section of the industry.
The report encouraged Congress to step in to enact
CFPB Announces Spring 2014 Rulemaking Agenda and More…
CFPB Announces Spring 2014 Rulemaking Agenda, Confirms Development of “Larger Participant” Definition for Auto Finance Market
On May 23, 2014, the Consumer Financial Protection Bureau posted its updated semi-annual rule-making agenda, which covers several important categories of upcoming regulatory action.
Defining Larger Participants in Auto Lending Market for Regulation
Through use of its rulemaking
Seventh Circuit Affirms Dismissal of Challenges to Validation Notices
On January 23, 2014, the Seventh Circuit Court of Appeals affirmed the dismissal of four lawsuits against debt collectors that challenged validation notices under 1692g(a)(4).
The disputed provision of the letters involved the 30-day language notifying consumes of their right to dispute the debt, which letters read in relevant part:
“Unless you notify this office
CFPB Succumbs to Pressure, Opens Advisory Board and Council Meetings to Public
Beginning in June, the Consumer Financial Protection Bureau will provide the public with access to the meetings of the Consumer Advisory Board (CAB)and the CFPB’s three Councils. Anyone may attend or watch the full meetings live online the same way most other agencies allow under the Federal Advisory Committee Act.
As we previously discussed,
CFPB Issues Supervisory Highlights Focusing on Nonbank Compliance Programs
On May 22, 2014, the Consumer Financial Protection Bureau issued its spring 2014 supervisory highlights report. The report zeros in on the debt collection and consumer reporting industries, highlighting numerous violations uncovered at payday lenders, debt collection firms, and consumer reporting agencies. Specifically, it appears that the CFPB’s largest concerns with these groups surrounds
Sixth Circuit Affirms Dismissal of FCRA Permissible Purpose Claim Even Though Plaintiff Did Not Initiate Transaction
In Bickley v. Dish Network, the Sixth Circuit on May 13, 2014 affirmed the dismissal of a claim for violating the Fair Credit Reporting Act for accessing a credit report without a permissible purpose. Dish Network accessed the plaintiff’s credit report to investigate whether the person attempting to order satellite television service using plaintiff’s
CFPB Director Cordray Praises Auto Lender’s Move to Flat Fee Dealer Markup
Last week, Richard Cordray, the Director of the Consumer Financial Protection Bureau, issued a statement praising BMO Harris Bank and its decision to compensate auto dealers for originating indirect auto loans based on a non-negotiable percentage of the loan amount. Director Cordray stated, “It is encouraging to see BMO Harris taking this proactive step to
Mortgage Lead Generator to Pay $225,000 to Settle FTC Lawsuit Alleging Deceptive Advertising of Mortgage Rates
On May 7, 2014, the Federal Trade Commission filed a complaint in the U.S. District Court for the Southern District of Texas, Case No. 4:14cv1262, against GoLoansOnline.com (“GoLoansOnline”), an online company that finds potential borrowers for mortgage companies, alleging violations of the Federal Trade Commission Act, the Mortgage Acts and Practices Advertising Rule, the Truth