To help you keep abreast of relevant activities, below find a breakdown of some of the biggest events at the federal and state levels to impact the Consumer Finance Services industry this past week:
Supreme Court Holds Bankruptcy Code Abrogates Tribal Immunity
In January, the U.S. Supreme Court agreed to hear Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin after the First Circuit barred the Lac du Flambeau Band from seeking to collect on a $1,600 debt obligation to the tribe’s lending arm, Lendgreen, after the debtor filed for Chapter 13 bankruptcy.
The Supreme
FTC Seeks Public Input on Joint Consumer Protection Efforts with State Attorneys General
On June 12, the Federal Trade Commission (FTC or Commission) published a request for public comment seeking comments and suggestions on effective coordination efforts with state attorneys general nationwide to help educate and protect consumers from potential fraud. This comes at the direction of the FTC Collaboration Act of 2021, which was signed into law last October by President Joe Biden.
The Collaboration Act directs the FTC to “conduct a study on facilitating and refining existing efforts with State Attorneys to prevent, publicize, and penalize frauds and scams being perpetrated on individuals in the United States.”
Sixth Circuit Holds Receipt of One Ringless Voicemail Causes Article III Harm Under the TCPA
On June 1, the Sixth Circuit Court of Appeals issued a ruling in Dickson v. Direct Energy, LP, holding that the plaintiff’s claims that he received a single ringless voicemail (RVM) for commercial purposes satisfy the demands of Article III because his alleged injury under the Telephone Consumer Protection Act (TCPA) constitutes a concrete harm.
In Dickson, the plaintiff alleged that Direct Energy delivered multiple RVMs to his cellular phone advertising its services. RVM technology allows a party to deposit voicemails directly into a recipient’s voicemail box, without having to place a traditional call to the recipient’s wireless phone. During discovery, an expert witness concluded that of the multiple RVMs the plaintiff received, only one originated from Direct Energy. The trial court held that the plaintiff’s receipt of a single RVM did not constitute concrete harm sufficient for Article III standing because: (1) the plaintiff could not recall what he was doing at the time he received the RVM, (2) the plaintiff was not charged for the RVM, (3) the RVM did not tie up the plaintiff’s phone line, and (4) the plaintiff spent a small amount of time reviewing the RVM.
CFPB Moves to Widen Supervisory Scope in Consumer Payments Market
The Consumer Financial Protection Bureau (CFPB or Bureau) has signaled that it intends to propose a rule that would allow it to exercise supervisory authority over a greater number of nonbank financial companies that participate in the consumer payments market.
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the CFPB has authority
Troutman Pepper Weekly Consumer Financial Services Newsletter
- On June 9, the Office of the Comptroller of the Currency (OCC) announced a request
Section 1071 Final Rule: Data Collection and Reporting
As recently discussed on our podcast here, section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) amended the Equal Credit Opportunity Act (ECOA) to require lenders to collect information about small business credit applications they receive, including geographic and demographic data concerning the principal owners, lending decisions, and the price of credit. The Consumer Financial Protection Bureau (CFPB or Bureau) issued its massive, highly technical, and complicated Final Rule on March 30, 2023. In this second in a multi-post blog series (the first post is available here), we will take a closer look at the data collection and reporting requirements of the Final Rule.
Federal Agencies Issue Joint Request for Comment on ROV Guidance
On June 8, the Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) (collectively, the agencies) issued proposed guidance to financial institutions on how to incorporate reconsiderations of value (ROV) for
CFPB Enters Consent Order Against Medical Debt Collector for Alleged FCRA and FDCPA Violations
On June 8, the Consumer Financial Protection Bureau (CFPB) announced that it had entered a consent order against medical debt collector Phoenix Financial Services for alleged violations of the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA).
According to the CFPB, Phoenix sent collection letters to consumers who had disputed the
FTC Comment Request Signals Joint Enforcement With State AGs Will Continue Increasing
On June 7, the Federal Trade Commission (FTC) announced a request for information (RFI) to gain additional insight into how it can optimize joint enforcement with state attorneys general (state AGs) to protect consumers from fraud. The announcement signals a growing trend of cooperation between the FTC and state AGs, which we have also seen between the Consumer Financial Protection Bureau (CFPB) and the state regulators.