As we previously reported, several legal challenges to the Federal Communications Commission’s July 10, 2015 order (the “FCC Order”) interpreting the Telephone Consumer Protection Act of 1991 (“TCPA”) were consolidated with the District of Columbia Circuit Court of Appeals as ACA International, et al. v. Federal Communications Commission et al. The challengers believe the
Class Actions
CFPB Leaves Charge for Consumer File Disclosure Unchanged at $12
Section 612 of the Fair Credit Reporting Act (“FCRA”) provides consumers with the opportunity for a free disclosure of their file, with certain exceptions, during any 12-month period. For file disclosures for which the FCRA allows consumer reporting agencies to charge, the statute sets the price of these disclosures at $8, subject to a yearly…
The CFPB Issues Warning and Guidance on Obtaining Consumer Authorization for Preauthorized Electronic Funds Transfers that Confirms a Recording of a Consumer’s Oral Authorization Can Satisfy Regulation E’s Requirements
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…
Consumer Litigation Spikes in October, But Debt Collection Complaints to CFPB Plummet
According to the October debt collection litigation and complaint statistics report from WebRecon, consumer litigation in October under the FDCPA, TCPA, and FCRA marked the first time since September 2011 that an increase from both the prior month and year-to-date occurred. “For the first time in several years, overall consumer litigation is up dramatically,”…
Background Check Company’s $4.75 Million Class Action Settlement Obtains Final Approval in SDNY
By David N. Anthony & Meagan Mihalko on
On November 13, a New York federal judge granted final approval to a $4.75 million settlement between background check company Sterling Infosystems, Inc. and a class of Dish Network, LLC satellite television installers.
The installers brought claims against Sterling for violations of the Fair Credit Reporting Act (“FCRA”) including that Sterling provided outdated information to…
CFPB Imposes $13 Million FCRA Consent Order on Large Consumer Reporting Agencies Due to Employment Background Check Practices
On October 29, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced the settlement of an enforcement action against two affiliated consumer reporting agencies under the Fair Credit Reporting Act (“FCRA”) based on these companies’ employment background screening practices. The consent order requires these background screeners to pay a total of $13 million in penalties and …
Standing on Thin Air: Spokeo, Inc. v. Robins
On November 2, 2015, a sharply divided Supreme Court of the United States heard oral arguments in Spokeo, Inc. v. Robins, where it considered whether Congress may confer Article III standing by authorizing a private right of action based on the violation of a federal statute alone, despite a plaintiff having suffered no concrete…
CFPB Obtains Judgment in Excess of $500 Million Against Defunct College Chain for Student Lending Scheme
On October 27, the U.S. District Court for the Northern District of Illinois awarded the Consumer Financial Protection Bureau $531.2 million against for-profit college chain Corinthian Colleges, Inc. for what the Bureau described as a “predatory” student lending program that the company administered. Prior to its liquidation through bankruptcy earlier this year, Corinthian was one …
CFPB Director Provides Additional Commentary on Efforts to Address Arbitration Issues
On October 22, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks to the Consumer Advisory Board. At the meeting, Cordray discussed arbitration and issues relating to non-English or limited English–speaking consumers.
The issue of arbitration, however, was at the forefront of the discussion. As we previously reported, the CFPB intends …
Supreme Court Will Allow U.S. to Participate in Spokeo Oral Argument
On September 8, the United States Solicitor General requested leave from the U.S. Supreme Court to participate in oral argument in Spokeo, Inc. v. Robins, as amicus curiae. The Supreme Court granted the United States’ request and will now allow the U.S. to chime in on a threshold constitutional standing issue at oral argument. …