On December 11, 2014, the U.S. District Court for the Northern District of Illinois dismissed a proposed class action over a June 2014 data breach at P.F. Chang’s China Bistro, finding that no actual harm had been alleged. The court tossed a pair of consolidated complaints claiming that the restaurant chain failed to properly safeguard
Ohio Court Holds That Cell Phone Subscriber Who Never Received Unwanted Call Has Standing to Sue Under the TCPA
In the latest of a series of “whodunit” cases, the United States District Court for the Southern District of Ohio held that a subscriber who did not answer a single call that allegedly violated the Telephone Consumer Protection Act still had standing to sue under the statute. In Maraan v. Dish Network LLC (Civil Action
CFPB Requires Major Credit Reporting Agencies to Inform on Furnishers
On December 11, 2014, the Consumer Financial Protection Bureau (CFPB) issued a report and announced that it will be requiring major credit reporting agencies (CRAs) to provide regular reports to the CFPB identifying, by name, potentially problematic furnishers of information. In other words, the CFPB will be co-opting the major CRAs into helping the CFPB
Troutman Sanders Attorneys Publish Law360 Piece on DriveTime Settlement
As we previously reported here, the Consumer Financial Protection Bureau’s settlement with DriveTime provides several warnings to financial services institutions regarding their fair credit reporting and fair debt collection compliance. In a recent piece published in Law360, available here, Troutman Sanders attorneys Alan Wingfield, Paige Fitzgerald, and Nick Klaiber elaborated on their analysis
Debt Consulting Firm Settles with CFPB for $69,075
On December 4, the Consumer Financial Protection Bureau asked a federal district court to approve a settlement with a New Jersey debt settlement firm that would require the firm to pay a fine of $69,075 for allegedly charging consumers illegal upfront fees for debt-settlement services they never received.
The proposed consent order was filed in
West Virginia Attorney General Files Suit Over Alleged Deceptive Credit Card Practices
On December 4, 2014, West Virginia Attorney General Patrick Morrisey filed suit in Ohio County Circuit Court against a local businessman and his Wheeling, West Virginia businesses, alleging that they violated the Consumer Credit and Protection Act, the Safe Mortgage Licensure Act; and the Mortgage Lender, Broker and Servicer Act. A copy of the complaint
First Large Auto Lender to Move to Flat Rate Financing Experiences Sharp Drop in Originations
As we have been reporting since 2013, the Consumer Financial Protection Bureau’s attacks on what it considers discriminatory and subjective dealer pricing of finance rates should be seen as nothing less than an outright attempt to reshape the auto finance industry. These regulatory actions have continued in earnest through the present, as we’ve discussed
New York Announces Sweeping New Regulation of the Debt Collection Industry
On Wednesday, December 3, 2014, New York Governor, Andrew Cuomo, announced new regulations aimed at “protect[ing] consumers against abusive and deceptive debt collection practices.” The press release issued by Governor Cuomo can be found here.
These regulations come from the New York Department of Financial Services and were first proposed in July 2013 and
New York Federal Court Denies Injunction Barring Credit Card Processing Fee Payments
On November 25, the United States District Court for the Eastern District of New York denied a plaintiff’s motion for a preliminary injunction barring U.S. Alliance Group (“USAG”) from paying “residual” credit card fee payments to one of its competitors, CardFlex. In 2008, CardFlex – an independent sales organization that processes credit card transactions –
Massachusetts Enters Consent Judgment with Hospital Over Data Breach
Massachusetts Attorney General Martha Coakley recently entered into a Consent Judgment with Beth Israel Deaconess Medical Center, Inc., related to a data breach that affected nearly 4,000 patients and employees.
“The healthcare industry’s increased reliance on technology makes it more important than ever that providers ensure patients’ personal information and protected health information is secure,”