Often overlooked by lenders and servicers, sometimes striking a deal with the Chapter 7 Trustee in bankruptcy court, is the more prudent and cost effective approach to resolving frivolous lawsuits filed by defaulting borrowers in state court. In Brumfiel v. Lewis, Chapter 7 Trustee, et al. (In re Lisa Kay…
Thomas Hefferon, chair of Goodwin Procter’s Consumer Financial Services Litigation Practice, will serve as a conference co-chair and speak on a panel regarding the CFPB’s increasing regulation of the consumer finance industry titled “Evaluating the Lessons Learned from Recent CFPB Enforcement Actions, Regulation of Arbitration Agreements in Consumer Credit Contracts,…
On January 11, the Florida Attorney General announced the filing of a consent order against two credit counseling and debt management companies and their controlling officer, resolving allegations that the defendants violated Florida’s Deceptive and Unfair Trade Practices Act by marketing and selling putative debt management and/or credit counseling services, which claim…
On January 8, 2016, the Federal Trade Commission (“FTC”) and the Attorney General for the State of Florida (“Florida AG”) announced charges against a payment processing business relating to an alleged nationwide debt relief telemarketing scam. The amended complaint was filed on December 21, 2015 in the United States District Court for the Middle District…
On January 7, 2016, the Federal Trade Commission (“FTC”) and its law enforcement partners announced four separate actions against various debt collectors. The FTC stated that the actions were part of a continuing nationwide crackdown referred to as “Operation Collection Protection,” which is designed to target debt collectors using illegal tactics. The FTC claims the debt…
On December 9, 2015, the House Financial Services Committee reported a Bill to Congress that would impact the cybersecurity compliance of financial services companies. The Bill, H.R. 2205, would set standards for development and implementation of cybersecurity protocols; require investigation and notification of breaches; and allow administrative enforcement. One of…
On January 5, 2016, the Federal Trade Commission (“FTC”) announced that two online payday lenders reached a settlement with the FTC to resolve charges that payday lenders illegally charged consumers undisclosed and inflated fees. As part of the settlement, each company agreed to a penalty of $2.2 million and combined waived $68 million in uncollected consumer…
On January 5, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it had terminated consent orders against two national banks. In doing so, the OCC assessed civil money penalties against the banks relating to previous violations of the existing consent orders. The OCC announced that it was terminating…
David Permut, a partner in Goodwin Procter’s Consumer Financial Services Litigation Practice will speak on the panel ” Focus on Class Actions: New Trends in Certification Motions; the Latest on Early Resolution and Settlement Strategy; Recent CAFA and Removal Developments; and Reviewing Campbell-Ewald v. Gomez on Rule 68, Offering Relief…
Don’t miss the Goodwin Procter team (Margaret Crockett and David Permut) at the Welcome Reception on January 9, 2016 at 6:30. Other highlights of the Winter Meeting, include: a panel presentation called “RESPA Update: Lighthouse, and PHH, and MSAs, oh my!” and a CLE Program presented by the Housing Finance Subcommittee,…
On December 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Georgia-based law firm over allegations that the law firm used improper and abusive debt collection tactics in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA). The…
On December 23, the Federal Deposit Insurance Corporation (FDIC) announced that it settled claims against a Delaware bank alleging unfair, deceptive, unsafe, and unsound acts and practices in violation of the Federal Trade Commission Act (Section 5). According to the FDIC, the bank violated Section 5 by “failing to provide promised protections to…
On December 23, the FDIC and Federal Reserve each announced settlements in closely related enforcement actions against a bank and a company that distributed financial aid refunds. The FDIC settled its claims for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act with each defendant. The Federal Reserve brought its Section 5…
On December 22, 2015, the Federal Trade Commission (“FTC”) announced that it settled claims under the FTC Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act against participants in a purported credit card money laundering scheme wherein the defendants allegedly helped enable third-party telemarketing scammers to charge consumers’ credit cards. According to…
On December 16, 2015, the CFPB announced the sixth annual report to Congress on college credit card agreements, pursuant to the Credit Card Accountability, Responsibility, and Disclosure Act (“CARD Act”). In the press release, the CFPB expressed concern that while credit card agreements between financial institutions and colleges may “offer…
On December 17, 2015, the CFPB announced a consent order and settlement with a Minnesota-based auto dealer and its affiliated financing company regarding their credit reporting practices in 15 states. The consent order asserts that the companies violated the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act…
Facing yet another issue involving the arbitration of consumer disputes, the United States Supreme Court on December 14, 2015 held that a class action waiver clause was valid even when the contract incorporated state law standards that would have voided the waiver. The decision continued the Court’s trend toward enforcement…
On December 18, 2015, the Virginia Attorney General announced a $4 million settlement with a Delaware-based online payday lender. The Attorney General had alleged that the lender violated the state’s consumer finance statutes by imposing illegal charges on consumers who received open-ended loans, and violated the Virginia Consumer Protection Act (VCPA) by misrepresenting…
On November 25, 2015, the West Virginia Attorney General announced a $13 million settlement with a non-bank payday lender to finally resolve alleged abusive debt collections and usury rates violating the West Virginia Consumer Credit and Protection Act and other state law. According to a May 2014 West Virginia Supreme Court of…
On December 18, 2015, the Office of the Comptroller of the Currency (OCC) announced that it had entered into a consent order with a Rhode Island bank over allegations the bank engaged in unfair, deceptive, unsafe, and unsound acts and practices in violation of the Federal Trade Commission Act (Section 5). The alleged…