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:
Section 1071 Final Rule: What Changed From the Proposed Rule
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. In September 2021, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a proposed rule with more than 900 pages of supplementary material. The Bureau also issued a summary of the proposed rule and a chart of the data points that the rule would require creditors to collect, and it accepted approximately 2,100 comments on the proposal in January 2022. The Bureau then issued the Final Rule on March 30, 2023, with a host of supplementary materials. In this third in a multi-post blog series (first post available here, second here), we will take a closer look at what changed between the proposed rule and the Final Rule.
Ninth Circuit Holds Phone Owner Suffers Concrete Injury From Unsolicited Telemarketing Texts Even if Not “Actual User” of the Phone or “Actual Recipient” of the Texts
On June 30, the Ninth Circuit Court of Appeals held that the plaintiff’s claims that she received five text messages to a cell number that she had placed on the National Do-Not-Call Registry satisfied the demands of Article III even though the actual user of the phone was her thirteen-year-old son.
May Report Reveals a Big Monthly Jump in Consumer Litigation Filings
According to a recent report by WebRecon, the month of May saw a jump significant from the previous month in filings under the Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and the Telephone Consumer Protection Act (TCPA). Complaints filed with the Consumer Financial Protection Bureau (CFPB), however, remained down.
Seventh Circuit Affirms Dismissal, Finding Entity Entitled to Arm of the Tribe Sovereign Immunity & Adopting Breakthrough Factor Analysis
On June 29, the Seventh Circuit Court of Appeals affirmed the Western District of Wisconsin’s decision that an entity created under tribal law was entitled to immunity as an arm of the tribe and dismissed claims characterized as personal capacity claims against individual employees of the tribal entity as being inherently asserted against the tribe itself (ruling available here). This ruling recognizes the important role that sovereign immunity plays in the structuring of economic ventures for tribal communities and demonstrates how a properly enacted tribal code can safeguard immunity protections.
Nevada Passes Law Creating Licensing Requirements for Earned Wage Access Providers
On June 15, Nevada Governor Joe Lombardo signed SB 290 into law, which imposes licensing, reporting, examination, and other substantive requirements on providers of earned wage access (EWA) products. Specifically, the legislation applies to businesses that deliver money to a person that represents income that the person has earned but has not yet been paid.
Indiana Appellate Court Reverses Summary Judgment in FDCPA Case Involving Bona Fide Error Defense
In a matter involving the bona fide error defense to claims asserted under the Fair Debt Collections Practices Act (FDCPA), an Indiana court of appeals reversed a trial court’s order granting summary judgment in favor of the defendant debt collector holding that the defense did not apply because the mistake at issue was not of
Florida Enacts Commercial Financing Disclosure Law
On June 26, Florida Governor Ron DeSantis signed the Florida Commercial Financing Disclosure Law (FCFDL). As discussed here, the FCFDL mandates that covered commercial financing companies provide consumer-like disclosures for certain commercial financing transactions. The law also defines and prohibits specific acts by brokers of those transactions, including the collection of advance fees.
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Troutman Pepper Weekly Consumer Financial Services Newsletter
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 That Litigation is Automatically Stayed Pending Appeal of Order Denying Motion to Compel Arbitration
Today the U.S. Supreme Court issued a 5-4 decision in Coinbase, Inc. v. Bielski, holding that a district court must stay its proceedings while an interlocutory appeal on the question of arbitrability is pending. The decision resolves a circuit split on the question of whether such a stay is mandatory or discretionary. Justice Kavanaugh