On December 20, the Consumer Financial Protection Bureau executed a consent order with Military Credit Services, LLC, whereby the lender was required to pay a $200,000 civil monetary penalty, implement certain compliance measures, and hire an independent consultant to review the company’s compliance with federal laws. The order arose out of Military Credit Services’ alleged
More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA
The United States District Court for the District of New Jersey recently held in Samuel Chisholm v. AFNI, Inc. that a debt collector “could not reasonably be found to violate” the Fair Debt Collection Practices Act by calling a consumer 18 times on his cell phone over the course of 13 days. All calls were
CFPB Files Four Lawsuits Against Lenders for Violation of Truth In Lending Act
On December 19, the Consumer Financial Protection Bureau filed four nearly identical lawsuits against lenders based in the Commonwealth of Virginia. Copies of the complaints can be found here, here, here, and here. The complaints allege that the defendants violated the Truth in Lending Act and Consumer Financial Protection Act by
CFPB Signals Intent to Move Forward With System Allowing Consumers to Rate Companies’ Responses to Complaints
According to a Federal Register notice published on November 29, the Consumer Financial Protection Bureau is soliciting further comments on its proposal to provide consumers with the option to fill out a short survey on their satisfaction with companies’ resolution of consumer complaints. In the notice, the CFPB described the proposal:
The purpose of this
CFPB Publishes Prepaid Card Fact Sheet
On November 15, the Consumer Financial Protection Bureau issued a fact sheet to highlight the new requirements and deadlines imposed by the Bureau’s latest Prepaid Rule, which was finalized last month. The fact sheet notes the effective dates of new requirements under the Rule and lists any related exceptions or accommodations.
The Bureau issued the
CFPB Sues Company and Outside Counsel for Alleged Violations of State Law Concerning Structured Settlement Factoring
On November 21, the Consumer Financial Protection Bureau filed a lawsuit in a Maryland federal court against Access Funding, a company that purchases structured settlement payments in exchange for a discounted lump sum. The Bureau also sued the company’s Chief Executive Officer, Chief Operating Officer, and an outside attorney who provided “independent professional advice” to
Join Us on December 14 for a Webinar on Impact of Trump Administration for Banking & Financial Services Industry
Join Troutman Sanders Partners Ashley L. Taylor, Jr., Alan D. Wingfield and Mary C. Zinsner for a complimentary webinar to discuss likely impact points for the banking and financial services industry when President-Elect Donald Trump begins his administration in January 2017.
Specific topics of discussion include the potential repeal in whole or part of the
CFPB to Publish Public List of Companies Offering Free Credit Scores
The CFPB has announced plans to produce a list of companies offering existing customers free access to their credit score. According to the CFPB, “educating and empowering consumers to take more control over their financial lives” constitutes a core part of the Bureau’s mission. Credit scores are vitally important to the Bureau in this regard
D.C. Circuit Rules CFPB “For Cause” Removal of the Director Unconstitutional, but Declines to Shut it Down
Until October 10, none of the constitutional or scope of enforcement authority challenges to the Consumer Financial Protection Bureau’s (“CFPB” or Bureau”) power have been successful. That changed on October 11 when the U.S. Court of Appeals for the District of Columbia held the Director of the Bureau has too much unilateral, unchecked power and
Navy Federal Credit Union Ordered to Pay $28.5M for Debt Collection Violations
The nation’s largest credit union, Navy Federal Credit Union, has been ordered to pay $28.5 million for alleged violations of the Consumer Financial Protection Act of 2010.
Navy Federal Credit Union limits its membership to military personnel and their immediate family members. According to the Consumer Financial Protection Bureau, during January 2013 and July 2015,