A group of 16 state attorneys general recently wrote Richard Cordray, head of the Consumer Financial Protection Bureau, a letter encouraging the CFPB to take immediate action to crack down on pre-dispute mandatory arbitration clauses in consumer agreements for financial products or services. Specifically, while acknowledging that additional actions may be necessary to “fully address
State AGs Call on FTC to Update Telemarketing Sales Rules
Thirty-eight state and territorial attorneys general recently sent a letter to the Federal Trade Commission requesting that it update its Telemarketing Sales Rules to help further protect against telemarketing fraud and abuse.
While the state attorneys general support existing Telemarketing Sales Rules, the group listed a number of concerns, including:
- An increase in the number
Pennsylvania A.G. Files Suit Against Payday Lender
Pennsylvania Attorney General Kathleen G. Kane recently filed a consumer protection lawsuit against Think Finance, a Texas-based company, for allegedly engineering an illegal payday loan scheme over the Internet. The lawsuit, filed in the Court of Common Pleas of Philadelphia County, alleges that the company targets Philadelphia consumers in violation of state law.
The suit
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
An $8 million settlement announced November 19, 2014, between the Consumer Financial Protection Bureau (CFPB) and the nation’s largest “buy here pay here” auto dealer represents yet another warning coming out of Washington, D.C. that:
1. Compliance with the requirements of the Fair Credit Reporting Act (FCRA) when businesses furnish credit information to consumer reporting
CFPB Issues New Proposed Rules for Prepaid Debit Cards
On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product. The proposed rules (found here) are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100
NBPCA Issues Statement Regarding CFPB’s Proposed Rules for Prepaid Cards
On November 13, Doug Bower, President and Director of the Network Branded Prepaid Card Association (NBPCA), issued the following statement regarding the CFPB’s comprehensive slate of consumer-protection rules for prepaid debit cards:
We appreciate the CFPB’s earnest efforts to gather information, analyze data, and draft a proposed rule that acknowledges that prepaid cards are a
Law Firm Files Class Action Lawsuit Against Jimmy John’s for Credit Card Data Breach
On November 7, the Rosen Law Firm, P.A. announced that it had filed a class action lawsuit against national chain Jimmy John’s Gourmet Sandwiches relating to a security breach involving customers’ credit and debit cards earlier this year. The lawsuit alleges that the company’s grossly inadequate information systems and network security oversight led to an
Basel Committee Issues NSFR Standard for International Banks
On November 3, the Basel Committee on Banking Supervision issued its final version of the Net Stable Funding Ration (NSFR) standard, which can be found here. The NSFR is a long-term liquidity standard that measures the structural funding designed to ensure that internationally active banks maintain a stable funding profile. It is included in
U.S. Inspector General Warns of CFPB Data Security Weaknesses
For the second time in recent weeks, a federal official has issued a warning regarding potential security weaknesses with the Consumer Financial Protection Bureau’s consumer data-mining program. In an October 30 report, United States Inspector General Mark Bialek warned CFPB Director Richard Cordray that the IG office had “identified information security as a major management
CA Appeals Court Approves Revised Visa and MasterCard Class Action Settlement
On October 30, a California appellate court approved a settlement in two class actions challenging Visa and MasterCard’s allegedly anti-competitive debit and credit policies. According to the court, the revised version of the $31 million settlement fixed an improper release of claims. The court said the revised deal properly takes into account the value of