On May 15, 2023, the Pennsylvania Attorney General (PA AG) announced that it reached a $11.4 million settlement with a rent-to-own lender and its affiliates. This settlement resolves a lawsuit filed by the PA AG in Pennsylvania state court in which the PA AG alleged that the lender violated state law by misrepresenting the terms of its rental-purchase agreements…
On Thursday March 23, 2023, a three-judge panel of the Second Circuit unanimously ruled that the Consumer Financial Protection Bureau’s (CFPB) funding structure is constitutional, creating a circuit split between the Second Circuit and the Fifth Circuit on the issue. CFPB v. Law Offices of Crystal Moroney, P.C., No. 20-3471 (decided…
Global law firm Goodwin today announced the release of its seventh annual Consumer Finance Year in Review. Produced by the firm’s Consumer Financial Services Litigation and Enforcement + Government Investigations practices, and authored by partners Anthony Alexis, Sabrina Rose-Smith, Kyle Tayman, Levi Swank, Matt Riffee, and Christina Hennecken, the in-depth…
On January 11, 2023 the Consumer Financial Protection Bureau (CFPB) proposed a rule (“Proposed Rule”) that would require “most nonbanks subject to the Bureau’s supervisory authority” to “register annually in [a] system” that is created and operated by the CFPB when their form contracts “use certain terms or conditions that…
On December 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) proposed a rule (“Proposed Rule”) that would require non-bank financial institutions to register with the CFPB when they become subject to certain final public orders by a Federal, State, or local government agency in connection with the offering or provision…
On November 15, 2022, less than one month after the Fifth Circuit panel’s decision in Community Fin. Services Assoc. of Am. Ltd., No. 21-50826 (5th Cir. Oct. 19, 2022) and more than two months before its 90-day deadline, the Consumer Financial Protection Bureau (CFPB) filed a certiorari petition with the…
On November 21, 2022, the Federal Communications Commission (FCC) released an order concerning “ringless voicemails” and the Telephone Consumer Protection Act (TCPA). In this ruling, the FCC confirmed that the delivery of “ringless voicemails” to wireless phones constitute a “call made using an artificial or prerecorded voice” such that it…
On November 2, 2022, the Pennsylvania Office of Attorney General filed a lawsuit in federal court alleging that a group of companies offering lead generation services violated the Telemarketing Sales Rule (“TSR”), 16 C.F.R. Part 310, and Pennsylvania consumer protection law, 73 P.S. §§ 201-3 and 201-4, by engaging in…
On October 19, 2022, the Fifth Circuit Court of Appeals (Fifth Circuit) held that the funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional and violates the Appropriations Clause of the Constitution. Community Fin. Services Assoc. of Am. Ltd., No. 21-50826 (5th Cir. Oct. 19, 2022). In light…
In the past few weeks, the United States Court of Appeals for the Ninth Circuit (Ninth Circuit) has issued significant decisions concerning the Telephone Consumer Protection Act (TCPA) and its application to unwanted text messages sent to cell phones used for both personal and business use, and the constitutionality of…
In September 2022, the Consumer Financial Protection Bureau (CFPB) released a special edition of Supervisory Highlights regarding recent examination findings related to student loan servicing. The Supervisory Highlights focus on three sets of “significant supervisory findings:” (i) blanket policies to withhold transcripts in connection with an extension of credit are abusive…
On October 4, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it has issued a consent order against a nonbank provider of a money transfer service for multiple violations of the Electronic Fund Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., and its implementing Regulation E, 12 C.F.R. Part…
In August 2022, the Consumer Financial Protection Bureau (CFPB) published a circular confirming that, under certain circumstances, entities may “violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security.” The circular sets forth the CFPB’s analysis…
On July 28, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against a large bank (the Bank), claiming that the Bank created sales pressure on its employees that encouraged employees to illegally access customer credit reports and to open checking and savings accounts, credit cards, and lines…
On July 27, 2022, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) filed a complaint and proposed consent order in a federal district court alleging that a mortgage company intentionally discriminated against families living in majority-minority neighborhoods around Philadelphia in violation of the Fair Housing Act…
On June 14, 2022, the Third Circuit Court of Appeals (Third Circuit) issued a significant decision regarding the TCPA’s restrictions in Section 227(b)(1)(A)(iii) on using an automatic telephone dialing system (ATDS) definition to make calls or texts to cellphones without prior express consent. In Panzarella v. Navient Solutions, Inc, No….
On June 21, 2022, the U.S. Department of Justice (DOJ) filed a complaint and settlement agreement in federal court alleging that a social media company is in violation of the Fair Housing Act (FHA), 42 U.S.C. §§ 3601-3619, for employing tools that allow advertisers of housing-related services to exclude certain…
On May 17, 2022, the Federal Deposit Insurance Corporation (FDIC) announced its adoption of a final rule implementing Section 18(a)(4) of the Federal Deposit Insurance Act, which prohibits any person from misusing the FDIC’s name or logo to misrepresent their deposit insurance status. The final rule establishes the process by…
On April 27, 2022, the U.S. District Court for the Western District of Pennsylvania certified a class comprised of individuals alleging the Defendants violated the Fair Debt Collection Practices Act (FDCPA). Plaintiffs allege Defendants violated the FDCPA by sending collections letters encouraging individuals to accept discounted repayment offers before a…
On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in federal court against TransUnion, two of its subsidiaries, and its longtime executive for failing to implement requirements of the CFPB’s 2017 law enforcement order to TransUnion, and for violating Regulation V, which…