The story is becoming all too common. A merchant (or consumer) is convinced to wire money to a fraudulent account because of an incorrect belief that they are wiring the money to the real party. A common example is a
Latest from Balch & Bingham LLP - Page 8
Class Action Alleging Multiple NSF fees for the Same ACH “Item”
As we have noted in other postings, plaintiffs continue to bring actions regarding bank fees charged for Overdraft or Not Sufficient Funds (“NSF”) fees. While these claims originally challenged posting order, they are now more creative. For instance, the “Authorize
“Authorize Positive, Settle Negative” Overdraft Fee Action Allowed to Move Forward
Over the last decade, financial institutions have seen an avalanche of claims regarding overdraft fees, especially in connection with debit card transactions. These claims are almost always brought as class actions. The early cases concerned the practice of posting “high
First Alabama lawsuits filed over COVID-19 insurance denial
Earlier this week, two Alabama businesses sued their insurers for refusing to pay losses related to COVID-19. The first lawsuit, Wagner Shoes v. Auto-Owners Insurance Co., No. 7:20-cv-465 (N.D. Ala. Apr. 6, 2020), was brought by a shoe store in Tuscaloosa.
Credit Reporting and COVID-19: CFPB Provides Flexibility to Financial Institutions
On April 1st, the Consumer Financial Protection Bureau (“CFPB”) released a policy statement setting forth financial institutions’ obligations during the COVID-19 pandemic. In addition to providing clarity regarding the recently-enacted Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”),
FERC and NERC Provide Industry Guidance to Ensure Grid Reliability Amid Potential Coronavirus Impacts
On March 18, 2020, the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) announced steps to ensure that operators of the bulk electric system can focus resources on safety and reliability during the COVID-19 emergency.
Ensuring Data Security and Privacy During Coronavirus
As more and more businesses send their employees home to self-quarantine and work remotely as part of their COVID-19 mitigation measures, it is important to remember that working remotely carries with it unique data privacy and security concerns of which
HHS Suffers Cyber Attack Meant to Slow Coronavirus Response, No Damage Done
According to a Bloomberg article posted earlier this morning, the U.S. Health and Human Services Department (“HHS”) suffered a cyber attack on its computer systems Sunday night. The attack appears to have been intended to slow the agency’s systems, but
FTC Issues Opinion and Final Order Against Cambridge Analytica
On December 6, 2019, the FTC issued an opinion finding that Cambridge Analytica, they had engaged in deceptive practices to collect personal information from several users of Facebook for purposes of voter profiling and targeting. In addition, the Commission found
Senate Democrats Introduce the Consumer Online Privacy Rights Act (COPRA)
Yesterday (November 26, 2019), a comprehensive federal privacy bill was introduced that would grant individuals broad rights with respect to their data, impose new obligations on data processors, and expand the Federal Trade Commission’s enforcement authority with respect to privacy,