Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

State Attorneys General, CFPB, & FTC

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Eleventh Circuit Imposes Joint and Several Liability on Payment Processor for Fraud by Client

Posted in ALL CFS Blog Entries, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On November 13, the U.S. Court of Appeals for the Eleventh Circuit affirmed the imposition of joint and several liability on a payment processor that had provided “substantial assistance” to another entity that violated a federal ban on improper telemarketing practices. The decision leaves the payment processor responsible for paying the $1.7 million judgment with… Continue Reading

Supreme Court to Decide Whether American Pipe Tolling Permits Successive Class Actions

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, CFS Events, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On December 8, the United States Supreme Court agreed to decide whether the tolling rule adopted in American Pipe & Construction Co. v. Utah – i.e., that the filing of a class action tolls the limitations period for a purported class member’s individual claims – permits a previously absent class member to bring a subsequent… Continue Reading

N.C. Attorney General Josh Stein Reorganizes DOJ

Posted in State Attorneys General, CFPB, & FTC
Just shy of one year as the N.C. Attorney General, Josh Stein has reorganized NC DOJ – eliminating one prior Division (the Administrative Division), shifting responsibilities within DOJ, and renaming certain Divisions. Additionally, several recent retirements, new hires and promotions have significantly altered the senior attorneys at the helm of the DOJ’s legal services. Under… Continue Reading

Consulting New Leadership on Case Against Tribal Lenders, CFPB Obtains Extension

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
With President Trump’s pick, Mick Mulvaney, remaining as the Acting Director of the Consumer Financial Protection Bureau, the CFPB has filed a motion asking the United States District Court for the District of Kansas to extend briefing deadlines on a motion to dismiss filed in CFPB v. Golden Valley Lending, Inc., et al., No. 2:17-cv-02521. … Continue Reading

Bad Day for Payday Lender: Jury Convicts Online Lender of $220M

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
Recently, a Manhattan federal jury convicted Richard Moseley Sr., the head of an online network of payday lenders and loan servicers, on charges of wire fraud, aggravated identity theft, and violating the Racketeer Influenced and Corrupt Organizations Act and Truth in Lending Act, among other counts. Moseley was convicted due to his leadership role over… Continue Reading

Bank to Pay $2.8 Million in Consumer Restitution to Settle Alleged Deceptive Fee Practices

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
The Board of Governors of the Federal Reserve System recently issued a Consent Order against Peoples Bank, based in Lawrence, Kansas, to settle claims of deceptive residential mortgage origination practices that arose from the bank’s charging of fees in mortgage originations.  The Federal Reserve alleged that Peoples told mortgage borrowers that certain additional fees that… Continue Reading

Join Us for a Complimentary Webinar: Preserving and Protecting Confidentiality when Sharing Information with Regulators

Posted in CFS Events, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On Tuesday, December 12, from 3-4 p.m. ET, Join Troutman Sanders for a webinar focused on a practical issue of great importance to mortgage loan originators and servicers: how to ensure confidential information is protected, when faced with an investigation by state or federal regulators. The webinar will (1) outline the common law principles and… Continue Reading

Federal Judge Denies Injunction, Leaving Trump Appointee Mick Mulvaney Head of CFPB

Posted in Featured Posts, State Attorneys General, CFPB, & FTC
Mick Mulvaney, President Donald J. Trump’s choice to head the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) until a permanent director can be appointed, will remain in place as Acting Director of the Bureau, following a ruling by Judge Timothy J. Kelly of the U.S. District Court for the District of Columbia on Tuesday denying… Continue Reading

New Mexico AG Supports Tribal Defendants in Civil Action Filed by CFPB

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 27, New Mexico Attorney General Hector Balderas joined the ranks of amici curiae in Consumer Financial Protection Bureau v. Golden Valley Lending, Inc., et al. (No. 2:17-cv-02521, pending in the United States District Court for the District of Kansas) filing a brief supporting the efforts of four tribal entities (“Tribal Defendants”) to dismiss claims… Continue Reading

CFPB Removes Ban on Arbitration Agreements from CFR Following Congressional and Presidential Disapproval of Rule

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
As anticipated, the Consumer Financial Protection Bureau has officially removed from publication a rule that would have prohibited arbitration agreements in certain consumer contracts.  The CFPB published its removal of 12 CFR part 1040, titled “Arbitration Agreements,” from the Code of Federal Regulations.  The CFPB’s removal of part 1040 reflects Congressional disapproval of the underlying Arbitration… Continue Reading

Join Us on December 5 for an ABA Webinar – State Attorneys General Series: Enforcement Agencies Confront Class Actions

Posted in ALL CFS Blog Entries, CFS Events, Featured Posts, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders attorneys Ashley Taylor and Tim Butler will participate in a webinar panel discussion hosted by the American Bar Association on “State Attorneys General Series: Enforcement Agencies Confront Class Actions .” The event will take place on December 5, 2017 from 1:00 – 2:30 p.m. ET. The still vibrant debate… Continue Reading

President Likely Has Authority To Appoint Acting Director To Replace Cordray At CFPB

Posted in ALL CFS Blog Entries, Featured Posts, State Attorneys General, CFPB, & FTC
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray’s announced yesterday (as covered here) that he will be resigning from his position by the end of this month. The Administration appears poised to announce Office of Management and Budget Director Mick Mulvaney as an interim replacement until a permanent director can be selected by the President and… Continue Reading

CFPB Director’s Resignation Sparks Conjecture About Future Leadership

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 15, as has been widely reported, the Director of the Consumer Financial Protection Bureau, Richard Cordray, announced by email to his staff that he would be resigning at the end of the month.  While he did not state the reason for his departure, it is believed that Cordray, a former Ohio attorney general,… Continue Reading

CFPB Director Richard Cordray to Step Down

Posted in Featured Posts, State Attorneys General, CFPB, & FTC
Richard Cordray, the Director of the Consumer Financial Protection Bureau (“CFPB”), announced today that he plans to step down from that post by the end of the month. Cordray’s term was otherwise set to expire in July of 2018. Cordray, who was appointed by the Obama Administration after the CFPB was created in 2011, issued… Continue Reading

Oklahoma AG Sides with Tribal Defendants, Assails CFPB’s Expansive Interpretation of Enforcement Powers

Posted in State Attorneys General, CFPB, & FTC
In an amicus brief filed last week in the U.S. District Court for the District of Kansas, Oklahoma Attorney General Mike Hunter assailed the expansive interpretation of enforcement powers against state and tribal sovereigns adopted by the Consumer Financial Protection Bureau. The case is CFPB v. Golden Valley Lending, Inc., et al., No. 2:17-cv-02521 (D. Kan.). The… Continue Reading

New York AG Proposes Changes to Data Breach Law

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
New York Attorney General Eric Schneiderman has introduced a bill that would expand that state’s existing data breach laws. This proposed legislation, called the Stop Hacks and Improve Electronic Data Security Act, or the SHIELD Act, is sponsored by two Democratic members of the state legislature (Senator David Carlucci and Assembly member Brian Kavanagh). Schneiderman stated in… Continue Reading

Illinois General Assembly Overrides Veto of Illinois Student Loan Servicing Rights Act

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
With both houses of the Illinois General Assembly overriding the veto of Governor Bruce Rauner, the Illinois Student Loan Servicing Rights Act will become law.  Surpassing the three-fifths supermajorities needed for an override, the Senate voted by a margin of 37-19 and the House of Representatives by 98-16.  The Act takes effect on December 31,… Continue Reading

Tax Preparation Firm Settles FTC Claims Flowing from Data Breach

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, State Attorneys General, CFPB, & FTC
On November 8, the Federal Trade Commission announced that it had approved a final order settling claims arising out of a data breach at Georgia-based tax preparation firm TaxSlayer, LLC. In late 2015, hackers hit TaxSlayer with a “list validation” or “credential stuffing” attack.  With that type of attack, hackers attempt to use login credentials… Continue Reading

Cordray Discusses CFPB’s Priorities During November Consumer Advisory Board Meeting

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 2, Consumer Financial Protection Bureau Director Richard Cordray delivered remarks during the Consumer Advisory Board meeting in Tampa.  Cordray’s public pronouncements reflect and foreshadow the CFPB’s regulatory priorities, and his recent comments indicate the CFPB’s focus on reverse mortgages, consumers with limited English proficiency, and short-term loans. Cordray mentioned the CFPB’s recently-released report… Continue Reading

President Trump Officially Kills Arbitration Rule

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
On November 1, President Donald J. Trump signed a resolution passed by Congress to nullify the Consumer Financial Protection Bureau’s Arbitration Rule.  As we reported here, the Senate narrowly passed a resolution to repeal the Rule in late October, ensuring that the controversy would make its way to the President’s desk.  Trump’s signature ensures that… Continue Reading

FTC Settles Lawsuit with Company that Promotes Post-Secondary Schools to Military Families

Posted in ALL CFS Blog Entries, State Attorneys General, CFPB, & FTC
The FTC has reached a proposed consent agreement with Victory Media, Inc., resolving allegations that Victory violated Section 5 of the FTC Act.  The allegations stem from Victory’s promotion of post-secondary schools to members of the armed forces. Victory advertises to members of the armed forces in a variety of ways, including through its publications… Continue Reading

Join Us on November 27 for an ABA Webinar – Defending Consumer Protection Actions on Multiple Fronts: Coordinating Joint CFPB and State AG Investigations and Settlements

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partner Ashley Taylor will moderate a webinar panel discussion hosted by the American Bar Association on “Defending Consumer Protection Actions on Multiple Fronts: Coordinating Joint CFPB and State AG Investigations and Settlements.” The event will take place on November 27, 2017 from 1:00 – 2:30 p.m. ET.… Continue Reading

Join Us November 8-9 for the Third Party Payment Processors Association Executive Summit

Posted in ALL CFS Blog Entries, CFS Events, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders attorneys David Anthony, Keith Barnett, Ashley Taylor and Melanie Witte will be featured speakers at the upcoming Third Party Payment Processors Association (TPPPA) Executive Summit in Scottsdale, Arizona on November 8-9, 2017. Troutman Sanders attorneys will participate in panels on topics including: The Supposed End to Operation… Continue Reading

Join Us on November 9 for the VBA Administrative Law Conference

Posted in ALL CFS Blog Entries, CFS Events, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partner Ashley L. Taylor, Jr. will be moderate a panel at the Virginia Bar Association’s 23rd Annual Administrative Law Conference at the Troutman Sanders Richmond Office on November 9, 2017. Ashley will moderate a panel entitled, “The New Look of Financial Regulation,” where the panelists will discuss… Continue Reading