Regulatory Enforcement + Compliance

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On October 17, the Consumer Financial Protection Bureau finalized an administrative rule, first proposed in May, that allows qualifying financial institutions to post their privacy policies online in lieu of sending the policies to customers personally. The rule, an amendment to a regulation known as “Regulation P,” 12 C.F.R. Part 1016, applies both to…

Earlier this month, the Fourth Circuit issued an unpublished opinion holding a debt collector’s autodialed calls to a residential landline with VoIP service violated the Telephone Consumer Protection Act due to the fact that the consumer was charged for each call.

In Lynn v. Monarch Recovery Management, Inc., No. 13-2358, 2014 U.S. App. LEXIS…

In Alexander v. Coast Professional, Inc., No. 12-cv-1461, (E.D. Pa. Sept. 5, 2014), the United States District Court for the Eastern District of Pennsylvania certified a class of Pennsylvania residents with defaulted student loans serviced by Coast Professional.  The class action under the FDCPA is based on the allegations that Coast Professional failed to…

The Federal Deposit Insurance Corporation has ordered Merrick Bank to pay $16.1 million to settle charges related to the marketing of a credit card add-on product. According to the terms of the settlement agreement, Merrick will pay a $1.1 million penalty and $15 million in restitution costs stemming from violations of the Federal Trade Commission…

On October 16, the Second Circuit in Nigro v. Mercantile Adjustment Bureau, LLC, ruled against a debt collector by holding that the agency violated the Telephone Consumer Protection Act when it repeatedly called the plaintiff about his deceased mother-in-law’s debt.  Despite the plaintiff providing the number called to the creditor, the Court of Appeals…

The United States District Court for the District of Columbia denied a motion to dismiss filed by the District of Columbia in a case filed by a homeowner that lost his home as a result of a tax sale.

The homeowner, Benjamin Coleman, filed the suit on behalf of all city residents who lost their…

On October 15, Minnesota’s attorney general sued a Texas credit card processor, accusing the Apex Merchant Group (“Apex”) of using bait and switch tactics to rip off small businesses.  Apex allegedly promised small businesses it could save them money on credit card processing services, then hit them with higher undisclosed fees.

According to Minnesota Attorney…

The Consumer Financial Protection Bureau will review how credit unions and banks use reporting agencies to screen members when they open a checking account, according to CFPB Director Richard Cordray’s remarks at an October 8 forum in Washington.  The CFPB is concerned about the accuracy of reports from these databases, whether customers can access and…

House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) recently sent a letter to CFPB Director Richard Cordray expressing concern about the Bureau’s proposed regulation of nonbank auto lenders.

According to Hensarling, it would be “inappropriate” for the agency to regulate nonbank auto lenders until it clarifies the “rules of the road.”  The letter echoes…

The United States Supreme Court today issued an order inviting the U.S. Solicitor General to file a brief on the pending cert petition filed in Spokeo, Inc. v. Robins, which is on appeal from the Ninth Circuit.  The issue in Spokeo is whether Congress may confer Article III standing upon a plaintiff who suffers…