Payment Processing + Cards

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On December 2, Judge Valerie Caproni of the Southern District of New York ruled that a class action suit alleging violations of the Fair Debt Collection Practices Act must be arbitrated.  The class plaintiff, Alicia Zambrana, applied for and received a Best Buy-branded credit card from Household Bank N.A. (“HSBC”).  While the court could not …

As we previously reported, the named plaintiff in Paci v. Costco Wholesale Corporation filed a Fair Credit Reporting Act putative class action against Costco alleging that the retailer’s receipts contained more digits of the payment card’s account number than is permitted under the Act. 

The parties recently filed cross-motions for summary judgment.  Costco argued …

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 …

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 …

On November 10, the Federal Trade Commission filed a complaint in the Northern District of Georgia against NetSpend Corporation, alleging that the company repeatedly deceived consumers about their ability to access funds deposited on the company’s debit cards.   

NetSpend markets, sells, and services prepaid debit cards, including general purpose reloadable cards.  According …

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 …

We are pleased to announce that Troutman Sanders partners Keith Barnett and Ashley Taylor will be featured speakers at the annual Third Party Payment Processors Association (TPPPA) Executive Summit on November 9-11 at the Phoenician in Scottsdale, Arizona.

Keith and Ashley will provide an update on the legal and regulatory environment in the payment processing…

On October 12, the named plaintiff in a Fair Credit Reporting Act class action asked the Northern District of Illinois to certify her putative class against Costco Wholesale Corporation. 

According to the Complaint, the plaintiff used her credit card to make a purchase at one of Costco’s stores in January 2016.  By the time she …

Government agencies continue to scrutinize third-party payment processors for high-risk transactions and, when appropriate, respond to alleged violations with investigations and enforcement actions.  Industry members are most likely familiar with the numerous enforcement actions brought in recent years by the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Justice.  Recently, however,…

The Security Standards Council of the Payment Card Industry (“PCI”) announced updates to its payment device standard, which will enable stronger protections for cardholder data, including data such as cardholders’ personal identification numbers (PINs) and cardholder data stored on the magnetic stripe of cards or on mobile devices.  The updated standard addresses the increased threats …