Consumer Finance Litigation Bulletin

Latest from Consumer Finance Litigation Bulletin - Page 3

Recent Third Circuit Decision holds consumer debt buyer subject to the FDCPA
In Barbato v. Greystone Alliance, LLC, 2019 WL 847920 (3d Cir. Feb. 22, 2019), the Third Circuit U.S. Court of Appeals considered whether defendant/appellant Crown Asset Management (Crown), a “passive” debt buyer, was subject to the FDCPA. Notwithstanding the fact that Crown hired an independent third party to collect on the subject debt, the Third Circuit found Crown was “debt collector” within the purview of the FDCPA because its “principal purpose” was the collection of debts. Thus, Crown Asset could be held potentially liable for its collector’s
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Illinois Supreme Court Finds No Actual Injury is Required for Violation of Illinois Biometric Information Privacy Act
Two significant decisions on the issue of standing to sue were handed down by the Illinois courts on January 25, 2019. Both of them offer significant assistance to the plaintiff’s class action bar by easing the requirements for alleging standing, thereby encouraging the filing of more cases against consumer financial institutions.
In the first case, Rosenbach v. Six Flags Entertainment Corp., 2019 WL 323902 (Ill.  Jan. 25, 2019), the Illinois Supreme Court held that no actual injury needs to be pleaded or
Continue Reading Illinois Supreme Court Finds No Actual Injury is Required for Violation of Illinois Biometric Information Privacy Act

The CFPB’s proposed amendments to its Payday, Vehicle Title, and Certain High-Costs Installment Loans Rule have changes that are generally disliked by consumer advocacy groups and applauded by them as well. In the “dislike” column, the rule’s requirements that lenders make certain ability-to-repay underwriting determinations before issuing payday, single-payment vehicle title, and longer-term balloon payment loans are to be rescinded. The Bureau contends that those requirements limit consumers access to credit. The Bureau is also proposing to delay the August 19, 2019, compliance date for the mandatory underwriting provisions of the 2017 final rule to November 19, 2020.
However, in
Continue Reading Cheers and Jeers for CFPB's Proposed Amendment to Payday Lending Rule

While courts remain split on the scope and function of an “automatic telephone dialing system” (ATDS) under the Telephone Consumer Protection Act (TCPA), 2019 began with a well-reasoned decision limiting the scope of an ATDS and another dismissing a plaintiff’s TCPA claim based on his failure to adequately plead the defendant’s use of an ATDS in the subject communications. 
I.             Thompson-Harbach v. USAA Federal Savings Bank, 2019 WL 148711 (N.D. Iowa Jan. 1, 2019): 
In Thompson, the plaintiff alleged that the defendant violated the TCPA by placing at least 71 “collection calls to Plaintiff” after he requested that
Continue Reading 2019 Begins With Some Positive Decisions On The Interpretation Of An ATDS

NYDFS Departing Superintendent Gives Parting Gift: Whistleblowing Policy Guidelines
On January 7, 2019, the Superintendent of New York’s Department of Financial Services (NYDFS), Maria Vullo, who has since been replaced by Governor Cuomo, gave a parting gift to all companies that are regulated by the DFS: Guidance on whistleblowing programs that must be part of the “comprehensive compliance program” for all DFS-regulated financial service companies. (See Whistleblower Guidance). 
NYDFS regulates, supervises and if necessary brings enforcement actions against a wide variety of financial services companies that do business in New York, including depository and non- depository lenders, fintech companies,
Continue Reading NYDFS Departing Superintendent Gives Parting Gift: Whistleblowing Policy Guidelines