On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration agreements in credit card contracts under the Federal Arbitration Act (FAA).

The Court of Appeals for the Fourth District of Florida affirmed a trial court’s holding that claims under the Florida Consumer Collection Practices Act (FCCPA) cannot not be assigned. In KAC 2021-1, LLC v. Mary T. Matuskah Irrevocable Trust, the plaintiff was an assignee of a tenant who leased property from the defendant trust. The tenant failed to make her monthly payments for four months and the defendant posted an “8-Day Notice” on her front door, which stated the amount due and demanded payment of the rent or possession of the property. The tenant alleged the notice faced outward so it could be seen by anyone and was specifically seen by the FedEx driver who dropped off a package, embarrassing her.

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) proposed a new rule aimed at banning certain contractual provisions in agreements for consumer financial products or services. The CFPB’s proposal targets certain terms and conditions sometimes found in so-called contracts of adhesion or standard-form contracts, including waivers of legal rights and protections, contract terms that limit free expression, and other terms that the CFPB believes undermine consumers’ rights and protections. The proposed rule also seeks to codify certain prohibitions under the Federal Trade Commission’s (FTC) Credit Practices Rule.

The U.S. Court of Appeals for the Sixth Circuit recently affirmed that a debt collector did not violate the Fair Debt Collection Practices Act (FDCPA) when it threatened legal action to collect debts that were still within the applicable statute of limitations.

Yesterday, the Board of Governors of the Federal Reserve System (FRB), Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Financial Crimes Enforcement Network (FinCEN), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), and state financial regulators issued a joint statement to provide covered financial institutions with strategies and examples of effective risk management and other practices to identify, prevent, and respond to elder financial exploitation. The agencies emphasized that the joint statement does not establish new supervisory expectations or impose new regulatory requirements.

The New Mexico Supreme Court recently confirmed consumer standing to pursue state law claims against a credit union after it pursued debt collection lawsuits against its members in the New Mexico magistrate courts. Several members filed a class action lawsuit against the credit union for the unauthorized practice of law and under the Unfair Practices Act (UPA), but the trial court dismissed the case, finding the plaintiffs lacked standing. The court of appeals reversed and the Supreme Court affirmed, finding the plaintiffs had standing to bring claims under both the statute prohibiting the unlicensed practice of law and the UPA.

Recently, a U.S. District Court in the District of New Mexico denied a defendant’s motion for summary judgment on Telephone Consumer Protection Act (TCPA) claims for telemarketing calls, finding genuine questions of fact about the defendant’s direct liability, actual authority over agents making the calls, whether the system used to make the calls is an Automatic Telephone Dialing System (ATDS), and whether there is a private right of action under 47 C.F.R. § 64.1200(d)(4). The court granted summary judgment only on claims regarding apparent authority for the agents who called and ratification of the agents’ actions.

On October 18, the U.S. Court of Appeals for the Fifth Circuit affirmed a district court’s vacatur of a maritime attachment order, providing a detailed analysis of the requirements for personal and in rem jurisdiction over attached property under the Federal Rules of Civil Procedure.

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) issued its final rule on personal financial data rights, purportedly aimed at enhancing consumer control over their financial data and promoting competition in the financial services industry. According to the Bureau’s press release, “[t]he rule requires financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free… help[ing] lower prices on loans and improve customer service across payments, credit, and banking markets.” Later that same day, a complaint was filed challenging the Bureau’s authority.

Yesterday, we discussed the constitutional legal challenge against New York City’s recently amended debt collection rules, which were scheduled to go into effect on December 1, 2024. These rules would stringently regulate various debt collection activities by debt collectors operating in the city. Today, the New York City Department of Consumer and Worker Protection (DCWP) announced a delay in the enforcement of these new rules until April 1, 2025.