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On October 29, the CFPB took action against two of the country’s largest employment background screening report providers for violations of the FCRA. This is one of the CFPB’s most significant FCRA actions to date, following a relatively small number of FCRA consent orders by the CFPB over the past few years. The providers are consumer reporting agencies that annually generate and sell over 10 million consumer reports about job applicants to potential employers. The…
It’s been a rough couple of weeks for debt-relief services firm Morgan Drexen.  You may recall our previous post about the CFPB’s action against Morgan Drexen in the Central District of California and the alleged antics that ensued.  By way of quick recap, the case involves alleged violations of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act. While it looked like the action was trial-bound, the court disposed of the case on…
Time to dust off those federal jurisdiction hornbooks! The Consumer Financial Protection Bureau (CFPB) and Office of the Solicitor General (collectively, “the government”) submitted an amicus brief to the Supreme Court in response to a petition for a writ of certiorari in the closely-watched case Spokeo, Inc. v. Thomas Robins, No. 13-1339. The issue? Standing, with some Fair Credit Reporting Act (FCRA) flavor. What Happened (Or Didn’t Happen) To Robins: The petitioner operates a website…
We don’t know about you, but we’ve been following the contentious litigation between the Consumer Financial Protection Bureau (CFPB) and debt-relief services company Morgan Drexen pretty closely. The CFPB filed its lawsuit in August 2013, alleging, among other things, that the company deceived consumers into paying unlawful up-front fees for debt relief services by disguising them as fees related to “sham” bankruptcy services. The CFPB claimed that the defendant’s practices violated the Telemarketing Sales…
New Yorkers filed over 20,000 complaints concerning debt collectors this year, according to New York Governor Andrew Cuomo, who earlier this month announced new measures to crack down on abusive and deceptive debt collection practices.  The substance of these complaints ranged from harassment over the phone, to attempts to collect an incorrect amount of money, to contacting the wrong debtor entirely.  In response, the New York Department of Financial Services (DFS) is the latest regulator…
It’s no secret that many recent graduates have collected their diplomas only to face the one-two punch of a lean job market and mounting student loan debt. Graduation once meant independence, but for more students these days, it means crashing with their parents to make ends meet. According to the CFPB Student Loan Ombudsman’s Annual Report released last week, private student loan borrowers in particular are struggling to meet repayment obligations. Between October 1, 2013,…