On January 16, 2014, Troutman Sanders secured a victory for client Paris Baguette America, Inc. when District Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York dismissed with prejudice a putative class action alleging that Paris Baguette willfully violated the Fair and Accurate Credit Transaction Act by printing
CFPB Agrees to Consent Order with Texas Company that Issued Sham Credit Cards
On February 3, 2015, the Consumer Financial Protection Bureau asked a federal district court to enter a consent order that would permanently ban a Texas company, Union Workers Credit Service, from offering any credit products or services after it duped thousands of consumers into signing up for a sham credit card. The CFPB claims that
FTC Announces Settlements in First Cases Against Auto Title Lenders
The Federal Trade Commission announced on January 30 that it has reached settlements with two auto title lenders operating in Georgia and Alabama. The FTC had alleged that the lenders advertised certain offers without disclosing specific conditions required to receive the advertised rate, and failed to disclose that finance charges may rise after an introductory
Verification of Disputed Debt in Response to Credit Reporting Agency Inquiry Does Not Constitute Communication “In Connection with the Collection of Any Debt”
The Eighth Circuit Court of Appeals recently decided a case involving a debt collector that had verified the existence of a debt in response to a consumer reporting agency’s inquiry, even though the debtor had allegedly disputed the debt to the same reporting agency. The Eighth Circuit affirmed the lower court’s ruling that the debtor
FTC Staff Report Addresses “Internet of Things”
The Federal Trade Commission has released a Staff Report addressing the “Internet of Things” – a phrase referring to everyday items that are able to connect to the internet and transmit data. The Internet of Things includes over 25 billion connected devices worldwide, including fitness trackers, connected appliances, and more. Estimates are that by 2020,
Container Store Shelves Class Action Suit with Settlement
The plaintiffs in a putative class action accusing The Container Store Inc. of retaining the ZIP codes of credit card-paying customers have asked a Massachusetts federal judge to grant final approval to a class action settlement.
Plaintiffs and class representative Judith Monteferrante sued the chain in June 2013, alleging it illegally requested and kept the
Federal Court Rejects Unconscionability Argument in Forcing Debt Collection Arbitration
On January 20, a Missouri federal judge issued an order granting a debt collector’s Motion to Compel Arbitration in an action under the Fair Debt Collection Practices Act. Although such motions are frequently granted, the judge here rejected an argument from the plaintiff that her loan agreement – including its arbitration provision – was entirely
Retailer Hit With Second FCRA Class Action Pertaining to Background Checks
On January 28, Michael’s Stores, Inc. was hit with its second Fair Credit Reporting Act (FCRA) class action lawsuit challenging Michael’s employment background check procedures in as many months. This lawsuit should serve as another reminder to employers to verify their background check procedures comply with both state and federal law.
According to the allegations
Seventh Circuit Hears Class Action Suit Against Neiman Marcus Over Data Breach
On January 23, the Seventh Circuit Court of Appeals heard oral arguments in a class action suit against Neiman Marcus Group LLC over the alleged 2013 hack that compromised the credit card numbers of 350,000 shoppers.
The suit was one of multiple proposed class actions filed after hackers infiltrated Neiman Marcus’ payment security system with
Federal Judge Throws Out Debt Collection Class Action
On January 21, the U.S. District Court for the Eastern District of Pennsylvania struck a class action under the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. (“FDCPA”) and the Telephone Consumer Protection Act of 1991, 47 U.S.C. §§ 227 et seq. (“TCPA”). Although the judge allowed the lead plaintiff to pursue