In Porter v. Dollar Financial Group, Inc., 2014 U.S. Dist. LEXIS 122865, a Northern District of California court denied the defendant’s motion to compel arbitration based on the plaintiff’s allegation that the debt collection calls at issue were intended for a third party, and thus were not related to the contract containing the arbitration
CFPB Issues Bulletin to Credit Card Issuers on Deceptive Interest-Rate Promotions
On September 3, the Consumer Financial Protection Bureau issued a new bulletin warning credit card issuers against certain interest-rate promotions that, it claimed, posed a risk of deceptive or abusive conduct. The transactions at issue involve solicitations that “offer a promotional annual percentage rate on a particular transaction over a defined period of time” and
Contracting and Text Sending is Sufficient for Exercise of Personal Jurisdiction in TCPA Class Action
In Payton v. Kale Realty, LLC, plaintiff Payton filed an amended complaint, asserting that defendant Kale used newly added defendant Voiceshot’s services to send unsolicited advertisements to potential customers’ cell phones. Voiceshot provides web-based cloud telecommunication services by which users can send mass text messages for a fee. Voiceshot is a Delaware company with
SEC Finalizes Tougher Credit Rating Agency Rules
On August 27, the Securities and Exchange Commission adopted new rules for credit rating agencies to enhance governance, protect against conflicts of interest, and increase transparency to improve the quality of credit ratings and increase credit rating agency accountability. Industry observers hope that the new rules will address problems that have contributed to the failure
Twelve Participants Chosen for CFPB Mortgage Closing Pilot Project
On August 21, the Consumer Financial Protection Bureau (CFPB) has selected seven mortgage companies and five vendors to participate in a three-month pilot program that will aim to determine whether electronic filings could improve mortgage closings. The pilot program is a part of the CFPB’s “Know Before You Owe” mortgage initiative.
Earlier this year in
Potential Expansion of HMDA Reporting Requirements
The Consumer Financial Protection Bureau has published proposed changes to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The HMDA was enacted by Congress in 1975, and on July 21, 2011, the rule-writing authority of Regulation C was transferred to the CFPB. HMDA requires covered depository and nondepository institutions to collect and publicly
Amerisave to Pay $19.3 Million for Bait-and-Switch Mortgage Scheme
On August 12, the Consumer Financial Protection Bureau issued an order related to the advertising of mortgage rates that may provide valuable insight into the CFPB’s broader perspective on what constitutes misleading statements in advertising and publishing of rates.
The CFPB accused Amerisave Mortgage Corporation (“Amerisave”), its affiliate company Novo Appraisal Management Company (“Novo”), and
State Attorneys General File Lawsuits against 5-Hour ENERGY® for Deceptive Marketing
State Attorneys General from Washington, Oregon and Vermont filed suit against Living Essentials, the manufacturer of the popular energy supplement, 5-Hour ENERGY®, for allegedly deceptive marketing. The lawsuits seek injunctive relief as well as civil penalties and restitution to consumers. In a statement late last week, Oregon Attorney General Ellen Rosenblum said, “[p]lainly and simply,
CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice
On August 20, the Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief in Hernandez v. Williams, Zinman & Parham, P.C. The case concerns the interpretation and enforcement of the Fair Debt Collection Practices Act, and is currently on appeal to the U.S. Court of Appeals for the Ninth Circuit.
11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision
On January 2, 2014, the Eleventh Circuit Court of Appeals found that the Fair Debt Collection Practices Act prohibits collection agencies from charging consumers a percentage fee of the balance of their debt unless the consumer has explicitly agreed to such a fee arrangement. In Bradley v. Franklin Collection Services, Inc., a unanimous