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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

Is CFPB’s UDAAP/Discrimination Announcement at Risk Under SCOTUS Decision in West Virginia v. EPA?

When the Consumer Financial Protection Bureau (CFPB or Bureau) unveiled its UDAAP exam manual at the end of March 2022, announcing that it had decided to interpret the word “unfair” in Dodd-Frank to prohibit discrimination,...more

CFPB Targets Convenience Fees in Latest Advisory Opinion

On June 29, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion focused on consumer debt collectors and the convenience fees they charge for some payments, such as online or by phone....more

DOJ Files Lawsuit Against Meta and Outlines Proposed Settlement Structure Over Allegedly Discriminatory Housing Advertising...

On June 21, the Department of Justice (DOJ) filed a lawsuit and a settlement framework with Meta Platforms, Inc. (previously known as Facebook) to resolve allegations that Meta’s advertising placement algorithms discriminate...more

CFPB Director Chopra Announces New Approach to Regulations

In a June 17 blog post, Consumer Financial Protection Bureau (CFPB or Bureau) Director Rohit Chopra announced that the CFPB intends to “move away from highly complicated rules” in favor of “simpler and clearer rules.” As part...more

CFPB Addresses Credit Reporting in Buy Now Pay, Later Market

In a blog post released June 15, the Consumer Financial Protection Bureau (CFPB) continued to show its interest in credit reporting by Buy Now, Pay Later (BNPL) lenders. Recognizing the importance of credit reporting to...more

More Privacy, Please - June 2022

Editor’s Note: This past month featured increased activity in privacy and data protection. U.S. Legislation and Regulation. Connecticut’s governor signed a comprehensive privacy bill, and President Biden has before him a bill...more

Background Screener Agrees to Resolve Class Action Over Alleged Misreporting of Criminal Convictions

On May 26, preliminary approval was sought to resolve a proposed class action, pending in the U.S. District Court for the District of Minnesota, against background screening company Inflection Risk Solutions LLC (Inflection)....more

CFPB Releases a Warning — But No Helpful Guidance — on Machine Learning Model Adverse Action Notices

On May 26, the Consumer Financial Protection Bureau (CFPB or Bureau) announced that federal anti-discrimination law requires companies to explain to applicants the specific reasons for denying an application for credit or...more

California Supreme Court OKs Unlimited Fee Awards Against Holders of Credit Contracts

On May 26, California Supreme Court ruled that the Federal Trade Commission’s (FTC) “Holder Rule” does not limit the award of attorneys’ fees where a consumer seeks fees from a holder under a state prevailing party statute....more

FTC and CFPB Join Forces on Amicus Brief Arguing That FCRA Does Not Distinguish Between Legal and Factual Inaccuracy

On May 5, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Federal Trade Commission (FTC) together filed an amicus brief in an appeal pending before the Court of Appeals for the Second Circuit, Sessa v. Trans...more

More Privacy, Please - May 2022

Editor’s Note: Connecticut became the fifth state in the nation to successfully pass a comprehensive privacy bill (now awaiting its governor’s signature), following California, Colorado, Utah, and Virginia. Meanwhile,...more

CFPB Argues the FCRA Requires Furnishers to Investigate Legal Issues Raised in Consumer Disputes

On April 7, the Consumer Finance Protection Bureau (CFPB or Bureau) filed an amicus brief in an appeal, pending before the Court of Appeals for the Eleventh Circuit in which the Bureau argued that the Fair Credit Reporting...more

Key Takeaways From the New Onslaught of FCRA Filings

Following an unprecedented year, lawsuits under the Fair Credit Reporting Act continue to be filed with ever-increasing frequency and consequence. Originally published in Law360 on January 28, 2022. ...more

More Privacy, Please - April 2022

Editor’s Note: Utah became the fourth state in the nation to successfully pass a comprehensive privacy bill, following California, Colorado, and Virginia. Meanwhile, seven other states failed at their own attempts, including...more

Another California Court of Appeals Weighs In on Availability of Attorneys' Fees Under the FTC's Holder Rule

On March 22, California’s Fifth Appellate District Court of Appeals issued a decision on the availability of attorneys’ fees under the Federal Trade Commission’s (FTC) Holder Rule. This case follows recent FTC guidance and...more

Court Grants Injunction Against Credit Repair Organization Providing Allegedly Fraudulent Services to Consumers

On March 18, the District Court for the Southern District of Texas entered an injunction against a credit repair organization, Turbo Solutions, Inc. d/b/a Alex Miller Credit Repair, and its owner Alex Miller for alleged...more

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