On January 7, online retailer Zappos.com Inc. reached a long-awaited settlement with nine states over a 2012 data breach that compromised personal and financial information of nearly 24 million of the company’s customers. Pennsylvania Attorney General Kathleen Kane said in a published statement that a hacker was able to access sensitive data pertaining to millions
GAO Releases Annual Report on Dodd-Frank Regulations
Last month, the Government Accountability Office (GAO) released its annual report on financial services regulations entitled “Dodd-Frank Regulations: Regulators’ Analytical and Coordination Efforts.”
According to this report, federal financial regulators— Consumer Financial Protection Bureau, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, National Credit
Ninth Circuit Clarifies “Personal Stake” Necessary for Putative Class Representatives on Appeal
On December 31, the United States Court of Appeals for the Ninth Circuit, in dismissing a class action appeal as moot, ruled that the putative class representative had not retained a personal stake in the class certification motion after voluntarily settling his individual claims.
In Campion v. Old Republic Protection Company, Inc., the plaintiff
FCRA Class Action Filed in Illinois State Court Based on Credit Card Receipts
On December 29, a putative class action was filed against Airgas, Inc. for printing expiration dates on credit and debit card receipts. The putative class action, Aliano et al. v. Airgas USA LLC et al., Case No. 14CH20024 (Cook County), alleges violations of the Fair Credit Reporting Act and identity theft. Airgas is an
CFPB Issues Report On Lending Practices to Service Members
On December 29, the Consumer Financial Protection Bureau issued a report calling for stricter and more extensive regulations to the Military Lending Act. The report, titled The Extension of High-Cost Credit to Servicemembers and Their Families, comes on the heels of a recent action by the CFPB, in which Virginia and North Carolina
Discount Membership Program Settles Claims by Vermont AG
Vermont Attorney General William Sorrell has announced that he has settled claims against Stonebridge Benefit Services, Inc., a company that markets discount membership programs, and J.C. Penney Company, Inc., from which Stonebridge obtained consumer credit card information.
Texas-based Stonebridge sells membership programs that provide discounts for various goods and services. Customers’ credit cards are subject
CFPB Proposes New Rules Regulating Prepaid Financial Products
On December 23, the Consumer Financial Protection Bureau issued a proposed rule amending Regulation E, 12 C.F.R. §§ 205.1 et seq. – which implements the Electronic Fund Transfer Act, 15 U.S.C. §§ 1693 et seq. – and Regulation Z, 12 C.F.R. §§ 226.1 et seq. – which implements the Truth in Lending Act, 15 U.S.C.
Dish Network Gets Served: An Illinois Court Finds Massive Exposure for Violations of Telemarketing and Do-Not-Call Restrictions
On December 12, 2014, an Illinois federal judge found Dish Network LLC liable for participating in millions of unwanted telemarketing sales calls, where Dish Network could be subject to penalties exceeding $1 billion. Specifically, the District Court for the Central District of Illinois issued an opinion in United States of America v. Dish Network LLC
CFPB Sues Texas Company Offering Sham Credit Card
On December 17, 2014, the Consumer Financial Protection Bureau (CFPB) sued Union Workers Credit Services, a Dallas-based company that allegedly deceived consumers into purchasing a sham credit card with a membership fee. The CFPB’s complaint charges the company with falsely advertising a general-use credit card that, in actuality, could only be used to buy products
CFPB’s Report on College Credit Card Agreements Shows 70% Decline from 2009
On December 15, the Consumer Financial Protection Bureau published its annual report on joint credit card agreements between colleges and financial institutions. The report showed a nearly seventy percent (70%) decline in the number of agreements since Congress passed new disclosure requirements in 2009. In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure