Consumer Finance Litigation Bulletin

Latest from Consumer Finance Litigation Bulletin

The Supreme Court issued its much-anticipated decision in Facebook v. Duguid , unanimously adopting a narrow definition of what constitutes an automatic telephone dialing system (ATDS) under the Telephone Consumer Protection Act (TCPA). The Court’s decision resolves the oft-contested issue of…
Continue Reading The Supreme Court Unanimously Adopts Narrow Definition of an Automatic Telephone Dialing System in Facebook v. Duguid, Significantly Changing the Landscape of TCPA Litigation

Since the Illinois Supreme Court held in Rosenbach v. Six Flags Entertainment Corp. in 2019 that a plaintiff need not show actual injury to bring an Illinois Biometric Information Privacy Act (“BIPA”) claim in state court, courts have seen a barrage of BIPA lawsuits alleging violations of the…
Continue Reading <a href="/blogs/70813"><h3>Recent Illinois State and Federal Court Decisions Governing the Illinois Biometric Information Privacy Act</h3></a>

The Consumer Financial Protection Bureau (CFPB) released its final Advisory Opinions Policy (AOP) on Monday, November 30, setting forth procedures to facilitate the submission of requests for advisory opinions from it by interested parties. Simultaneously, the CFPB issued two advisory opinions…
Continue Reading <a href="/blogs/70561"><h3>The Consumer Financial Protection Bureau to Issue Advisory Opinions to Answer Interpretive Questions</h3></a>

On September 11, 2018, an interagency statement was issued by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Consumer Financial Protection Bureau that sought…
Continue Reading <a href="/blogs/69746"><h3>When Is Supervisory Guidance By Banking Regulators Not A Rule To Live By? When There Is A Rule That Says So.</h3></a>

A national lender, USAA Federal Savings Bank, entered into a consent order with the Office of the Controller of the Currency (“OCC”), which included an $85 million civil money penalty for alleged “unsafe or unsound” banking risk management, compliance processes, and information technology (“IT”)…
Continue Reading Alleged SCRA and MLA Violations Lead To Lender Being Assessed A $85 Million Penalty Under OCC Consent Order

The U.S. Supreme Court ruled on June 29 that the Director of the Consumer Financial Protection Bureau (CFPB) cannot constitutionally be subject to removal only for cause, as provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), but must instead be…
Continue Reading Supreme Court Rules That the CFPB Director Must Be Removable at Will

Since the outbreak of COVID-19, we have seen numerous class action lawsuits filed against companies for changing their refund policies to ones that have a negative impact on consumers or for not giving full monetary refunds for cancelled events or closed venues. Airlines, Ticketmaster, StubHub,…
Continue Reading Do Not Make Promises to Consumers that Cannot Be Kept: Look Out For Consumer Litigation For Failing to Honor Refund Policies

Saul Ewing Arnstein & Lehr’s Consumer Finance attorneys Trip Riley, Ryan DiClemente and Colleen Fox delivered a presentation about the CARES Act to the Women in Housing and Finance Professional Organization. The presentation covered the CARES Act’s mortgage payment forbearance on existing and…
Continue Reading The CARES ACT: Forbearance to Deferment, RESPA Compliance, and Credit Reporting

On May 5, the Seventh Circuit decided in Bryant v. Compass Group USA, Inc. , 2020 WL 2121463 (7th Cir. May 5, 2020), that a plaintiff who alleges a procedural violation of the Illinois Biometric Information Privacy Act (“BIPA”) without a showing of actual injury has standing to maintain suit in…
Continue Reading Seventh Circuit Recognizes Validity of “Informational Injuries” to Provide Article III Standing for Illinois Biometric Information Privacy Act Claims

New York Executive Order and Regulation Requires Banks To Honor Forbearance Requests And Other Regulated Entities To Potentially Restrict Late And Overdraft Fees
On March 7, 2020, Governor Cuomo issued Executive Order No. 202.9 (the “Order”) which sought to modify New York Banking Law to deem “an unsafe and unsound business practice” if any bank, subject to the Department of Financial Services (the “Department”), fails to “grant a forbearance to any person or business who has a financial hardship as a result of the COVID-19 pandemic for a period of ninety days.” See here. The Order also directed the Superintendent
Continue Reading New York Executive Order and Regulation Requires Banks To Honor Forbearance Requests And Other Regulated Entities To Potentially Restrict Late And Overdraft Fees

If your company’s marketing strategy involves communicating with prospective or existing clients via phone calls and text messages, you are probably familiar with the Telephone Consumer Protection Act (“TCPA”).  
In part, the TCPA makes it unlawful to make a “call” to a cell phone using an automatic telephone dialing system (“ATDS”) unless you have the prior written consent of the called party. And this includes sending text messages to cell phones. While the TCPA, enacted in 1991, makes no mention of text messages, a majority of federal courts that have considered the issue have ignored the plain language of the
Continue Reading How Recent TCPA “Autodialer” Decisions Impact Your Business

A New York Class Action Relying on the Second Circuit’s Madden Decision Is In Jeopardy After Magistrate Judge’s Recommendation
In 2019, two putative class actions were filed in New York by plaintiffs seeking to build off the Second Circuit’s decision in Madden v. Midland Funding, LLC, 786 F. 246 (2d Cir. 2015). The plaintiffs alleged that the defendants, who acquired securitized credit card receivables from national banks, violated New York law by charging interest amounts that were in excess of New York’s usury cap of 16%. One of these cases, Petersen v. Chase Chard Funding LLC, 19-cv-0741 (W.D.N.Y.) is now
Continue Reading A New York Class Action Relying on the Second Circuit’s Madden Decision Is In Jeopardy After Magistrate Judge’s Recommendation

Key Takeaways for Furnishers from the CFPB’s Recent Supervisory Highlights on Credit Reporting
In December 2019, the Consumer Financial Protection Bureau (CFPB) issued its Supervisory Highlights covering its findings from examinations in the areas of credit reporting and the furnishing of credit information to consumer reporting agencies (CRAs). The following are a few of the key takeaways from the CFPB’s findings and comments.
1.  The Lack of Procedures Necessary to Fit a Furnisher’s “Nature, Size, Complexity and Scope of Activities”
The CFPB highlighted that a furnisher’s policies and procedures must be appropriate to fit the nature, size, complexity, and scope
Continue Reading Key Takeaways for Furnishers from the CFPB’s Recent Supervisory Highlights on Credit Reporting

New Jersey Appellate Division Rejects Consumer’s Attempt to Declare Arbitration Provision Invalid Under New Jersey Plain Language Act
In a recent unpublished opinion, Maisano v. LVNV Funding, LLC, No. A-1775-18T2, 2019 WL 6341035 (App. Div. Nov. 27, 2019), the New Jersey Appellate Division upheld the trial court’s order compelling Maisano (the “consumer”) to arbitrate his claims against LVNV Funding, LLC (“defendant”), an entity that acquires outstanding credit card accounts and collects the balances. In this case, the consumer entered into a credit card agreement with Credit One (“Agreement”) and as a result of the consumer’s failure to make payments
Continue Reading New Jersey Appellate Division Rejects Consumer’s Attempt to Declare Arbitration Provision Invalid Under New Jersey Plain Language Act