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
On November 18, the Consumer Financial Protection Bureau filed an administrative action against online lender Integrity Advance, LLC, and its CEO, James R. Carnes, for deceiving consumers about the cost of short-term loans.
According to a press release, the CFPB alleges that Integrity Advance violated the Truth in Lending Act and the
On November 16, the Federal Communications Commission and the Federal Trade Commission released a memorandum of understanding designed to formalize their plans to coordinate consumer protection efforts.
The FCC is charged with regulating all interstate and international communications by radio, television, wire, satellite, and cable, while the FTC is primarily responsible for preventing unfair or
The Consumer Financial Protection Bureau’s latest monthly report revealed that credit card complaints represent approximately 11% of total product complaints from consumers. Late fees and credit report problems due to confusing payment processing schedules are the most frequent complaint topics for consumers. Other problems identified by consumers include:
On November 11, Tennessee Attorney General Herbert H. Slatery III and the Tennessee Division of Consumer Affairs announced that it had settled allegations against credit card payment processor Elavon, Inc. to resolve claims that it violated state consumer protection laws by misrepresenting the cancellation policy of its credit card processing equipment leases, the duration
On November 4, the Office of the Comptroller of the Currency (“OCC”) released its “Credit Card Lending” booklet of the Comptroller’s Handbook, replacing the outdated booklet issued in October 1996. A copy can be found here.
The Comptroller’s Handbook is intended as a summary restatement of existing laws, regulations, and policies. The “Credit
On October 30, the American Bankers Association (“ABA”) filed a letter opposing the Consumer Financial Protection Bureau’s plan, under the Paperwork Reduction Act, to conduct a nationwide web-based survey of 8,000 individuals as part of the Bureau’s study of overdraft protection services. The ABA urged the CFPB to re-submit its proposed plan with a draft
A new putative class action lawsuit has been filed against the hotel chain owned by Donald Trump in the United States District Court for the Southern District of Illinois, after the hotel chain revealed that it had been the subject of a data breach. The suit asserts claims under “state consumer protection laws” and “state
According to remarks made by Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray on October 7, 2015 (and a subsequent press release), the CFPB is planning to issue regulations that would prohibit many financial services companies from requiring consumers to waive their right to bring a class action lawsuit via a pre-dispute arbitration agreement
On September 30, Judge Joan B. Gottschall of the Northern District of Illinois issued a decision stating that the display of a debtor’s account number through an envelope window violated the Fair Debt Collection Practices Act.
In Adkins v. Financial Recovery Services, Inc., the plaintiff filed a class action suit in Illinois on behalf