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CFPB Highlights Purported “Problems With Tenant Background Checks”

On November 15, the Consumer Financial Protection Bureau (CFPB) issued two reports, highlighting what the CFPB perceives to be forms of errors that frequently occur in tenant background checks and the impacts the CFPB...more

CFPB Focuses on Junk Fees, Credit Reporting, and COVID-19 Relief Funds in Latest Supervisory Highlights

On November 16, the Consumer Financial Protection Bureau (CFPB) released a new Supervisory Highlights report, focusing on the auto servicing industry, consumer reporting, mortgage servicing, and COVID-19 relief funds. The...more

CFPB Files Cert Petition Requesting Expedited Review of Fifth Circuit Decision Finding Funding Structure Unconstitutional

As discussed here, on October 19, a three-judge panel of the Fifth Circuit Court of Appeals held that the Consumer Financial Protection Bureau’s (CFPB) funding mechanism violates the appropriations clause because the CFPB...more

CFPB Warns CRAs and Furnishers of FCRA Liability for Failing to Conduct Proper Investigations

On November 10, the Consumer Financial Protection Bureau (CFPB) published a circular, stating that both consumer reporting agencies (CRAs) and furnishers may be held liable under the Fair Credit Reporting Act (FCRA) for...more

Class Counsel Asks Supreme Court to Address Propriety of Incentive Awards

More than two years ago, the Eleventh Circuit Court of Appeals ruled in Johnson v. NPAS Solutions, LLC, 975 F.3d 1244 (11th Cir. 2020) that incentive payments for lead plaintiffs in class-action lawsuits are improper. After...more

CFPB Calls Fifth Circuit Decision “Neither Controlling Nor Correct”

Unsurprisingly, defendants in two separate enforcements actions filed by the Consumer Financial Protection Agency (CFPB) have cited the Fifth Circuit’s recent decision in Community Financial Services Association of America,...more

Fifth Circuit Finds CFPB Funding Structure Unconstitutional

In a major decision released October 19, a three-judge panel of the Fifth Circuit Court of Appeals found the funding mechanism for the Consumer Financial Protection Bureau (CFPB or Bureau) to be unconstitutional....more

CPFB Issues Final Rule for Credit Reporting for Survivors of Human Trafficking

On June 23, the Consumer Financial Protection Bureau (CFPB) issued a final rule, prohibiting consumer reporting agencies (CRAs) from reporting adverse information resulting from human trafficking on survivors’ credit reports....more

Eleventh Circuit En Banc Panel Reverses Controversial Hunstein Decision

In a much anticipated decision released September 8, an en banc panel of the Eleventh Circuit Court of Appeals reversed the district court’s decision that a debt collector’s outsourcing of its letter process to a third-party...more

Keeping Up With the Bureau Episode 2: FCRA Preemption Issues, Infringing State Laws, and the CFPB's Position [Audio]

Please join Consumer Financial Services Partner Kim Phan and her guests and colleagues Alan Wingfield and David Anthony in the second episode of a special four-part series on recent developments with the Consumer Financial...more

Banking Groups Challenge CFPB’s RFI on Customer Service

Banking trade groups are challenging a request for information (RFI) issued by the Consumer Financial Protection Bureau (CFPB) regarding customer service at large financial institutions. In a joint letter dated August 22, the...more

Ninth and Eleventh Circuit Agree: Class Members With No Injury = No Class Settlement Approval

Recently, the Ninth Circuit joined its sister circuit, the Eleventh, in vacating class settlements on standing grounds. In Harvey v. Morgan Stanley Smith Barney LLC, the court vacated the district court’s approval of the...more

CFPB Rules Digital Marketers Must Comply with Consumer Financial Protection Laws

On August 10, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an interpretive rule, detailing when digital marketing providers for financial firms must comply with federal consumer financial protection laws....more

Third Circuit Adopts “Reasonable Reader” Standard for Evaluating Whether a Credit Report Is Inaccurate or Misleading

What standard should courts use to determine whether information contained in a consumer’s credit report is inaccurate or misleading? According to the Third Circuit in a recent precedential decision, the standard should be...more

Eleventh Circuit Requires Standing for All Class-Action Members, Decertifying TCPA Class Settlement

Class-action plaintiffs do not get a free pass on constitutional standing requirements, as the Eleventh Circuit Court of Appeals reminded litigants sua sponte in Drazen and Godaddy.com, LLC v. Pinto last week when it vacated...more

Consumer Reporting Trade Association Defeats Antitrust Claim: Court Held Plaintiff Lacked Standing and Failed to Allege...

On February 28, the U.S. District Court for the Southern District of New York dismissed a case brought against the Consumer Data Industry Association (CDIA) under federal antitrust law. The case alleged that the CDIA — a...more

Hyundai Ordered to Pay $19 Million in Penalties in CFPB’s Largest Fair Credit Reporting Case Against an Auto Servicer

The Bureau of Consumer Financial Protection (CFPB) ordered Hyundai Capital America (Hyundai) to pay $19.2 million for allegedly providing inaccurate information to consumer reporting agencies, including, the CFPB alleged,...more

TCPA: Text Messages Still Hot-Button Issue After Furniture Companies Resolve Class for Millions

On July 6, the U.S. District Court for the Middle District of Florida granted final approval of a multimillion-dollar, class-action settlement in Parker v. Stoneledge Furniture, LLC, et al., No. 21-740 (M.D. Fla.) to resolve...more

Citing Uptick in Complaints, CFPB Will Push Banks to Refund More Victims of Money Transfer Scams

As peer-to-peer money transfer services (or cash apps) become more popular, there has been an increase in the number of scams enticing consumers to transfer funds to fraudsters. The law currently provides that the banks that...more

FHFA Establishes Office of Financial Technology and Issues RFI on Fintech in Housing Finance

On July 19, the Federal Housing Finance Agency (FHFA or the Agency) announced the establishment of the Office of Financial Technology to serve as a source of information, Agency support in addressing emerging risks, and...more

7/20/2022  /  Banking Sector , FHFA , FinTech , Mortgages

FTC Issues Redress Checks in Case That Largely Extinguished Its Ability to Seek Monetary Judgments

The Federal Trade Commission (FTC) recently announced it sent out a second round of redress checks in a long-lasting legal battle against an alleged payday lending scheme. While this round of redress checks brings the total...more

Eastern District of Pennsylvania Analyzes CRA Definition Under the FCRA

On February 25, the U.S. District Court for the Eastern District of Pennsylvania held that a purported public records vendor (Credit Lenders Service Agency or CLSA) is a consumer reporting agency (CRA) under the Fair Credit...more

Recent CFPB Advisory Opinion Puts Pay-to-Pay Fees in Crosshairs

“Convenience” fees charged to consumers for the use of certain debt payment options have come under increased scrutiny, as regulators have sought to limit charges and other back-end fees that may come as a surprise to...more

CFPB Urges States to Regulate Consumer Reporting, Weighing in on Limited FCRA Preemption of State Law

On June 28, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule, encouraging states to enact more laws regulating consumer reporting, arguing that states’ powers are only constrained in limited ways by...more

California Dealership Resolves Telemarketing Prerecorded Message TCPA Class for $2.5M

In late June 2022, the U.S. District Court for the Central District of California gave final approval for a $2.5 million class-action settlement in Johnson v. Moss Brothers Auto Group to resolve claims brought against a motor...more

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