On May 26, California Supreme Court ruled that the Federal Trade Commission’s (FTC) “Holder Rule” does not limit the award of attorneys’ fees where a consumer seeks fees from a holder under a state prevailing party statute.
The Holder Rule and Previous California Precedent
The FTC’s Holder Rule permits consumers to bring any legal claims
On May 26, the Consumer Financial Protection Bureau (CFPB or Bureau) announced that federal anti-discrimination law requires companies to explain to applicants the specific reasons for denying an application for credit or taking other adverse actions, even if the creditor is relying on credit models using complex algorithms.
In a corresponding Consumer Financial Protection Circular
On May 5, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Federal Trade Commission (FTC) together filed an amicus brief in an appeal pending before the Court of Appeals for the Second Circuit, Sessa v. Trans Union, LLC, No. 22-87 (2d Cir. 2022). The agencies argue that the Fair Credit Reporting Act
On April 7, the Consumer Finance Protection Bureau (CFPB or Bureau) filed an amicus brief in an appeal, pending before the Court of Appeals for the Eleventh Circuit in which the Bureau argued that the Fair Credit Reporting Act (FCRA) does not exempt furnishers from investigating disputes based on legal questions as opposed to factual
On May 2, the Consumer Financial Protection Bureau (CFPB or Bureau) released its Supervisory Highlights report on legal violations discovered during examinations in the second half of 2021.
The Supervisory Highlights detail issues identified by CFPB examination teams across a wide number of segments of the consumer financial services industry. Summarized below are those issues
In Ramones v. AR Res., Inc., No. 19-62949-CIV-SCOLA/SEITZ (S.D. Fla. Apr. 8, 2022), the court refused to set aside an award of punitive damages based on violations of the Fair Credit Reporting Act, but it reduced the jury’s award from $700,000 to $450,000.
The case arose out of a dispute concerning medical debts
Joining the Ninth Circuit on one side of a post-Spokeo circuit split, the Eighth Circuit recently held a plaintiff lacked standing to pursue her Fair Credit Reporting Act (FCRA) claims when she conceded her consumer report was accurate and alleged no concrete harm from three technical FCRA violations.
On April 4, in Schumacher v.
The Ninth Circuit recently affirmed a Central District of California decision, denying a motion to remand and granting a motion to dismiss in Tailford, No. 20-56344, 2022 U.S. App. LEXIS 5357, at *11-12 (9th Cir. Mar. 1, 2022). Plaintiffs Theresa Tailford, Sanford Buckles, and Jeffrey Ruderman sued a national credit bureau for FCRA violations,
On March 18, the District Court for the Southern District of Texas entered an injunction against a credit repair organization, Turbo Solutions, Inc. d/b/a Alex Miller Credit Repair, and its owner Alex Miller for alleged violations of the FTC Act, Credit Repair Organizations Act (CROA), and the FTC’s Telemarketing Sales Rule (TSR). The complaint against
On March 18, the three nationwide consumer reporting agencies — Equifax, Experian, and TransUnion (NCRAs) — announced plans to change how medical debt will be reported on credit reports. The joint measures will result in the removal of nearly 70% of medical collection debt records from credit reports.
The announcement included the following three major