On November 24, 2015, the Consumer Financial Protection Bureau (CFPB) issued a Compliance Bulletin (2015-06), warning companies that they must ensure that consumer authorization is obtained before automatically debiting a consumer’s account and that required notifications to consumers must clearly describe the terms of the preauthorized electronic funds transfers (EFTs).
Importantly, for the first
On November 4, 2015, the Federal Trade Commission (FTC), 47 State Attorneys General, and other state and local law enforcement authorities from around the country announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. The initiative, named Operation Collection Protection, aims to crackdown on collectors who use illegal tactics
On October 28, the Consumer Financial Protection Bureau filed an administrative consent order against Security National Automotive Acceptance Company (“SNAAC”), an Ohio auto lender specializing in loans to service members, for engaging in illegal debt collection practices. The order requires the company to refund or credit about $2.28 million to service members and other consumers
In July 2015, several companies that were the targets of non-public Consumer Financial Protection Bureau investigations sued the Bureau after it refused to allow their current counsel to attend the Bureau’s investigative testimony of one of the companies’ former attorneys. The companies wanted one of their current attorneys to attend the testimony and assert the
The Consumer Financial Protection Bureau announced that it will hold a meeting of the Consumer Advisory Board with Director Richard Cordray discussing topics such as arbitration, trends, and themes in the marketplace, and reaching limited English-speaking consumers.
The meeting will take place on Thursday, October 22, from 10:00 a.m. until 3:30 p.m. EDT in the
According to remarks made by Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray on October 7, 2015 (and a subsequent press release), the CFPB is planning to issue regulations that would prohibit many financial services companies from requiring consumers to waive their right to bring a class action lawsuit via a pre-dispute arbitration agreement
On October 1, 2015, the Consumer Financial Protection Bureau entered into a consent order with an indirect finance company, Westlake Services, LLC, and its auto title lending subsidiary, Wilshire Consumer Credit, LLC (collectively, “Respondents”). Westlake specializes in purchasing and servicing subprime and near-subprime auto loans. Wilshire extends auto title loans directly to consumers. Respondents agreed
Lessons Learned and Best Practices in an Era of Heightened Government Scrutiny for the Industry October 29-30, 2015 – The Carlton Hotel – New York City We are pleased to announce that David N. Anthony, Partner at Troutman Sanders, will present “Protection of Consumer Financial Information Including Consumer Financial Privacy (FCRA and GLBA) Plus
The Consumer Financial Protection Bureau has announced that it will be holding a field hearing on arbitration in Denver, Colorado on Wednesday, October 7 at 11:00 a.m. MDT.
The CFPB’s March 10, 2015 Consumer Arbitration Study has come under scrutiny from the financial services industry. Many believe the CFPB has already concluded that there are
On September 11, Virginia Attorney General Mark Herring announced a crackdown on Virginia’s car-title loan industry. Car-title loans are made to borrowers who sign over their car titles as collateral, and are commonly made to individuals with poor credit histories in need of fast cash. Herring claims that such loans “are trapping a lot of