On July 9, just weeks after initiating its first enforcement actions against payment processors, the Consumer Financial Protection Bureau issued an outline of nine “guiding principles” for faster payment networks which will provide greater consumer protections. The CFPB indicated that new technology supporting payment systems must be secure, transparent, accessible, affordable to consumers, and have
Las Vegas Auto Dealers Settle FTC Deceptive Advertising Claims
On June 29, the Federal Trade Commission announced that it had reached settlements with two Las Vegas auto dealerships, Planet Hyundai and Planet Nissan, over claims that they violated the Federal Trade Commission Act of 1914 by advertising large discounts not available to the general public.
The allegations against Planet Hyundai and Planet Nissan involved
New York Auto Dealers Pay $14 Million to Settle “Jamming” Claims
On June 17, New York’s state attorney general announced a $14 million settlement to resolve claims of illegal “jamming” sales practices from 2010 to 2014 with Paragon Honda, Paragon Acura, and White Plains Honda, three New York City-area dealerships owned by the same individuals. The state’s press release defines jamming as “unlawfully charging consumers for
Supreme Court Upholds Disparate Impact Liability Under the Fair Housing Act, but Also Stresses the Theory’s Limitations
On June 25, 2015, a 5-4 majority of the U.S. Supreme Court ruled that the Fair Housing Act (“FHA”) permits discrimination claims brought under a disparate impact theory of liability. Justice Kennedy authored the majority opinion in the much-anticipated decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. – a
FCC Passes New Declaratory Rule Clarifying and Interpreting Multiple, Key Provisions of the TCPA in a Manner That is Generally Unfavorable to Defendants
On June 18, 2015, the Federal Communications Commission (“FCC”) voted 3-2 to approve an order that promises to have major and negative impacts on companies who use modern telephone technology to text and call consumers.
The stark increase in the number of lawsuits that were filed under the Telephone Consumer Protection Act (“TCPA”) has been
CFPB Files Suit Against Auto Lender that Targeted Servicemembers for UDAAP Violations
On June 17, the Consumer Financial Protection Bureau filed a lawsuit against Security National Automotive Acceptance Company, LLC, an Ohio-based auto-finance company specializing in lending to members of the United States military to purchase used vehicles. Security National operates in approximately 30 states.
The CFPB’s lawsuit alleges that Security National engaged in unfair, deceptive, or
CFPB’s Regulation of the Auto Finance Industry Accelerates
On June 10, the Consumer Financial Protection Bureau issued a final rule defining larger participants of the automobile financing market. The new rule will become effective 60 days after being published in the Federal Register. The final rule follows up the CFPB’s proposed rule, issued on September 17, 2014, on which we previously reported here
New Jersey Court Finds Ascertainability Not Required to Certify Class
In a matter of first impression, a New Jersey appellate court found that whether a class is ascertainable – a factor that is commonly analyzed in federal court – played no role in its consideration of a “low-value” consumer class action. In Daniels v. Hollister Co., the court determined that ascertainability is not
Illinois Court Rejects Notion That System With Capacity to Use Dialer is ATDS
In Modica v. Green Tree Servicing, LLC, the Northern District of Illinois limited the scope of what constitutes an Automatic Telephone Dialing System (ATDS) under the Telephone Consumer Protection Act. Judge Zagel found that a system requiring an agent to manually access a consumer’s telephone number from a computer server and then “click” to
CFPB Consumer Complaint Database May Become A One-Sided Gripe Fest
The Consumer Financial Protection Bureau (CFPB) is modifying its complaint database so that consumers can post narratives about their experiences with financial service providers. According to the CFPB’s release, available at http://www.consumerfinance.gov/newsroom/cfpb-finalizes-policy-to-give-consumers-the-opportunity-to-voice-publicly-complaints-about-financial-companies/, the purpose of the database enhancement is to help consumers make informed choices and identify market trends. But the implementation could result