Regulatory Enforcement + Compliance

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On April 29, the Consumer Financial Protection Bureau and the Maryland Attorney General’s Office jointly filed a Complaint in the U.S. District Court for the District of Maryland accusing a title service company and several mortgage loan officers of participating in an illegal kickback scheme whereby the company would funnel money and marketing services to…

On April 14, the Consumer Financial Protection Bureau (“CFPB”) and the Navajo Nation filed a Complaint in the U.S. District Court for the District of New Mexico seeking monetary penalties against a tax-preparation franchise and its ownership for allegedly running an illegal tax refund scheme. The plaintiffs specifically claim that this franchise violated the Consumer…

On April 13, 2015, a bipartisan group of 34 members of the United States House of Representatives introduced a bill that would repeal a Consumer Financial Protection Bureau (CFPB) bulletin from 2013 challenging a common practice in the indirect auto finance industry where automobile dealers would set interest rates on consumer financings.

The bill, entitled…

Authored by Alexandria J. Reyes and Benjamin R. Carlsen

Two federal district courts have dismissed lawsuits filed against debt collectors, holding that filing proofs of claim in a bankruptcy case on debt subject to a statute of limitations defense is not actionable under the Fair Debt Collection Practices Act.

In Donaldson v. LVNV Funding, LLC…

The CFPB continues to crack down on deceptive conduct by mortgage lenders, as evidenced by a recent action against California-based RMK Financial Corporation.  According to an April 8, 2015 consent order issued by Richard Cordray, Director of the Consumer Financial Protection Bureau, RMK Financial sent print mailers to more than 100,000 consumers, falsely implying that…

On April 23, the Federal Trade Commission and the Office of the New York Attorney General announced they will host a “dialogue” to discuss consumer protection issues with the debt collection industry, including recent enforcement actions, consumer complaints about debt collection practices, and compliance issues.

The first “Debt Collection Dialogue” in Buffalo, New York will…

In Mattiaccio v. DHA Group, Inc., the plaintiff asserted three counts against his employer and its management under the Fair Credit Reporting Act.  The defendants attempted to defeat the plaintiff’s claim by arguing the background check at issue was not a “consumer report” and, therefore, did not trigger the protections of the FCRA.  Instead,…

A New York federal judge on April 17 approved a group of former Gawker Media LLC interns’ proposed revised plan to notify potential class members of their rights to opt out of a proposed collective action alleging unpaid wages through social media.  The same Court had previously rejected a social media campaign as being overbroad…

On April 22, the House of Representatives passed a bill requiring the Consumer Financial Protection Bureau to solicit input from several advisory boards and to cap the CFPB’s future funding.

H.R. 1195, the Bureau of Consumer Financial Protection Advisory Boards Act, was adopted in a 235-183 vote, after a House committee earlier adopted…

Advertising agency Campbell-Ewald Co. began sending text messages through its subcontractor, MindMatic LLC, in 2006 as part of a Navy-approved effort to tap new technologies in recruitment campaigns, the company says.  Among the recipients of the message, which began with “Destined for something big? Do it in the Navy,” was the plaintiff who said he…