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Statutory Violations Financial Services Industry

Ballard Spahr LLP

Regulatory Requirements Related to Adverse Action Notifications

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As part of the Federal Reserve Board’s Outlook Live Webinar series, on July 17, 2025, examiners from the Minneapolis and Chicago Federal Reserve Banks hosted a webinar to discuss the regulatory requirements related to adverse...more

Troutman Pepper Locke

Preemption Win for Federal Credit Union in the Ninth Circuit on Bounced Check Fee Claims

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In a significant ruling, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a consumer’s state law claims against a federal credit union on federal preemption grounds. The putative class action...more

Ballard Spahr LLP

Federal Judge rejects request to release ESSA Bank from redlining settlement

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A federal judge has rejected the Trump Administration’s request to release from court supervision a bank that had been accused of discriminatory lending....more

Ballard Spahr LLP

FTC takes action against Accelerated Debt for running a debt relief scam

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An ex parte temporary restraining order has been issued against the participants in a debt relief services scheme that allegedly targeted seniors, including veterans, using a variety of deceptive practices, including falsely...more

Ballard Spahr LLP

CFPB reaches settlement with FirstCash in connection with alleged MLA Violations

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The CFPB has reached a settlement in its lawsuit against FirstCash, Inc. and its 19 subsidiaries alleging violations of the Military Lending Act (MLA). The parties have jointly filed a stipulated final judgment and proposed...more

Troutman Pepper Locke

Illinois Passes Bill Prohibiting Collection of Coerced Debt

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On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a...more

Troutman Pepper Locke

CFPB Abandons Credit Card Late Fee Rule

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The Consumer Financial Protection Bureau (CFPB or Bureau) agreed to vacate its controversial credit card late fee rule in a joint motion for entry of consent judgment filed in Chamber of Commerce of the United States of...more

Troutman Pepper Locke

Indiana Federal Court Dismisses FDCPA Suit Alleging Violations for being an Unlicensed Debt Collector

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In a recent decision from the U.S. District Court for the Northern District of Indiana, the court granted a motion to dismiss in favor of a debt collection law firm and one of its attorneys who were not licensed as debt...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

U.S. Supreme Court Draws the Line: Misleading Statements Aren’t Always False

Last week a unanimous U.S. Supreme Court issued an opinion in Thompson v. United States, 2025 WL 876266 (2025), holding that a statement that is literally true but allegedly misleading, is not a “false statement” under 18...more

Ballard Spahr LLP

CFPB seeking to reverse Townstone settlement, saying bureau ‘abused its power’

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Saying that the bureau under the Biden Administration abused its power, the CFPB is seeking to reverse its settlement with Townstone Financial....more

Troutman Pepper Locke

California Federal Court Halts Allegedly Deceptive Debt Collection Practices by Blackrock Services, Inc. and Affiliates

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On February 27, the Federal Trade Commission (FTC) successfully obtained a temporary restraining order against Blackrock Services, Inc. and its associated entities and individuals. The court order aims to halt the defendants’...more

Troutman Pepper Locke

Maryland Federal Court Grants Summary Judgment to Debt Collector Who Provided Validation Upon Receipt of Dispute Letter

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In a recent decision, the U.S. District Court for the District of Maryland granted summary judgment in favor of a debt collector who responded to a debtor’s letter disputing and refusing to pay a debt by providing validation...more

Troutman Pepper Locke

Sixth Circuit Affirms Dismissal of FDCPA Claims for Lack of Standing, But for Lack of a Causal Connection

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In a recent decision, the U.S. Court of Appeals for the Sixth Circuit affirmed the dismissal of federal claims brought by a mortgagee against Trinity Financial Services, LLC (Trinity) under the Fair Debt Collection Practices...more

The Volkov Law Group

OFAC Settles with Individual for $45,179 for Violations of the Global Magnitsky Act

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OFAC means what it says — in more ways than one.  In a precedent setting case, OFAC brought its first enforcement action against an individual for violating the Global Magnitsky Sanctions Regulations....more

Ballard Spahr LLP

Federal Judge issues injunction against student loan servicer Superior Servicing

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A federal judge has issued a temporary injunction against Superior Servicing and its operator Dennise Merdjanian, following FTC allegations that the company claimed to be affiliated with the Department of Education, collected...more

Seyfarth Shaw LLP

FTC Posts $20 Million Settlement With Dealer Group For Alleged Deceptive Practices - Seyfarth's Future of Automotive Series

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On Thursday, December 19, 2024, the Federal Trade Commission (FTC) and Illinois Attorney General announced a massive $20 million settlement with Leader Automotive Group, the operator of 10 dealerships in and around...more

Troutman Pepper Locke

Sixth Circuit Confirms No FDCPA Violation for Debt Collection Within the Statute of Limitations

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The U.S. Court of Appeals for the Sixth Circuit recently affirmed that a debt collector did not violate the Fair Debt Collection Practices Act (FDCPA) when it threatened legal action to collect debts that were still within...more

Troutman Pepper Locke

October 2024 Consumer Litigation Filings: Everything Up

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According to a recent report by WebRecon, court filings under the Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), and Fair Debt Collection Practices Act (FDCPA), and complaints filed with the...more

Ballard Spahr LLP

CFPB takes action to ban Student Loan Pro from offering consumer financial products

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The CFPB has taken action to permanently ban Student Loan Pro and its owner, Judith Noh, from offering consumer financial products or services....more

Ballard Spahr LLP

FTC takes action against small business lender Seek Capital

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The FTC filed a complaint in the U.S. District Court for the Central District of California against Seek Capital and its CEO, Roy Ferman, alleging that the company operated a bogus business finance scheme that cost small...more

Ballard Spahr LLP

CFPB takes action against company that provides commissary account services to prisoners

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The CFPB has taken action against Global Tel Link Corporation (GTL) over allegations that the company took millions of dollars from a half-million accounts and blocked money transfers to consumers who are incarcerated. Those...more

Womble Bond Dickinson

Litigation Regarding Refer-a-Friend Programs Under Long-Standing Washington Commercial Texting Prohibition on the Rise

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Washington state’s Consumer Electronic Mail Act (“CEMA”), a statute enacted back in 2003 prohibits companies conducting business in Washington state from sending or providing “substantial assistance or support” in the...more

Troutman Pepper Locke

FTC Halts Debt Collector Over Alleged $7.6 Million Scheme

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Late last month, the Federal Trade Commission (FTC) filed suit against Global Circulation, Inc. (GCI) and its owner for engaging in deceptive and abusive debt collection practices. According to the FTC, the Georgia-based debt...more

Hinshaw & Culbertson - Consumer Crossroads

Tips for Loan Servicers on Defending Consumer Claims in Federal Court and Making Successful Article III Standing Challenges

Loan servicers and their counsel are often sued by consumers during contested mortgage foreclosure proceedings. The United States Supreme Court’s opinions in Spokeo, Inc. v. Robins and TransUnion v. Ramirez continue to be an...more

Troutman Pepper Locke

Troutman Pepper Weekly Consumer Financial Services Newsletter- October 2024 # 5

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

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