A national bank can charge an interest rate that exceeds state law maximums, but the bank’s assignee cannot, the U.S. Court of Appeals for the Second Circuit ruled recently, in a decision that could impact the ability of debt purchasers and others to rely on an originating bank’s federal preemption. The…
An Illinois federal district court held on March 20, 2015 that California law protects T-Mobile from having to turn over the names and addresses of thousands of its California customers without their consent in response to a third-party subpoena in a nationwide class action. The case, Birchmeier v. Caribbean Cruise Line,…
On March 10, 2015, the Consumer Financial Protection Bureau (CFPB) released its Arbitration Study, which concludes that arbitration agreements in contracts associated with consumer financial products constrain consumers’ ability to assert their rights if a dispute arises. The study, which the CFPB was directed to carry out under Section 1028(a)…
As we have previously opined, the decision of whether to remove a case can be critically important in state-court-filed class actions. Despite the importance of this decision, the time afforded defendants to weigh their options—thirty days—is minimal. In that short time, defendants must weigh the costs and benefits of both…
On November 10, 2014, the Ninth Circuit reversed a district court’s order dismissing and directing to arbitration a putative nationwide class action alleging Telephone Consumer Protection Act (TCPA) violations, finding that the Customer Agreement containing the arbitration clause was unenforceable for lack of mutual assent. Knutson v. Sirius XM Radio…
In recent months, a number of class actions have been filed across the country against large banks in an attempt to hold those banks accountable for debiting consumers’ deposit accounts for payments to certain companies offering short-term, small dollar loans – often called “payday loans” – online. In all of…
Employers use a number of tools to assess any potential hire, and to evaluate existing employees. When using a credit report for these purposes, employers need to be wary of the Fair Credit Reporting Act’s (“FCRA”) (15 U.S.C. 1681 et seq.) provisions. The FCRA has strict procedures, requiring that employers…
Lenders scored a victory in the Ninth Circuit on June 12, 2014, with the court largely affirming dismissal of claims by plaintiffs in multidistrict litigation challenging the lending industry’s use of Mortgage Electronic Registration Systems, Inc. (MERS). The appeal stemmed from dozens of putative class actions and individual borrower cases…
Move to federal court or stay in state court—an essential strategic question for defendants of state-court-filed class actions. Pace of litigation, applicable discovery rules, court familiarity with class actions—the right forum can make a significant difference in litigating a class action. Although the first choice of forum belongs to the…