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Dollar General reported its employee Rebecca Keyes to the police for embezzlement, causing her to be arrested.  Keyes later sued Dollar General under a number of legal theories, including malicious prosecution, false imprisonment, and intentional infliction of emotional distress.  The trial court ordered arbitration for all of her claims, but the Mississippi Supreme Court reversed for all but one claim.  The Court found that disputes over the alleged embezzlement and the fraudulent conversion of property…
After a customer pawned a television that he had leased from Rent-A-Center, the manager swore out a criminal complaint for theft of rental property.  When the State subsequently retired the charges without prosecution, the customer sued Rent-A-Center and its manager for malicious prosecution and false imprisonment.  Relying on language in the arbitration clause that it “shall be interpreted broadly as the law allows” to include “any dispute or controversy . . . based on any legal…
With the Consumer Financial Protection Bureau (“CFPB”) now employing mystery shoppers, financial institutions must ensure that their branches are actually putting non-decimation policies into practice.  As we reported here on July 1, BancorpSouth, a Mississippi-based bank, recently entered into a $10.6M settlement with the CFPB regarding alleged redlining in the Memphis market.  That investigation was the CFPB’s first use of testing, also called “mystery shopping,” as an investigative tool.  This practice, which has long been…
In a case that demonstrates the scope of the Consumer Financial Protection Bureau’s (“CFPB’s”) reach, the CFPB and Department of Justice (“DOJ”) have entered into a settlement with BancorpSouth totaling almost $10,600,000 over alleged redlining.  Redlining is the practice of denying services or raising prices to residents of certain geographic areas based upon their racial or ethnic makeup.  The term was coined from the practice by lenders of marking in red areas on maps of…
The CFPB is showing that its enforcement actions are not limited to larger companies and that it will file actions in federal courts across the country.  On May 11, 2016, it filed an enforcement action against Mississippi payday lender All American Check Cashing in the United States District Court for the Southern District of Mississippi.  In its complaint, the CFPB alleged that all American took steps to hide its fee from customers, going so…