Like most industries today, Consumer Finance Services businesses are being significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a dedicated COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading health organizations, and tools that businesses can use free of charge. Our bank and loan servicing clients also face novel challenges affecting their industry due to COVID-19,…

The Federal Trade Commission (FTC) announced the three national consumer reporting agencies will extend weekly access to consumers to monitor their credit report for free until April 20, 2022. Under federal law, consumers are normally permitted one free credit report every 12 months from each consumer reporting agency. The novel coronavirus (COVID-19) has had an impact on the financial lives of many Americans, and free weekly access to credit reports is intended to aid in…

The Consumer Financial Protection Bureau (CFPB) and SettleIt, Inc., an online debt-settlement company, have agreed to settle “abusiveness” claims for $1.4 million. In an April 13 complaint filed in a California federal court, the CFPB detailed SettleIt’s business practices and alleged SettleIt concealed information from its customers. SettleIt negotiates with creditors to reduce and settle consumers’ debts. Customers seeking debt help sign an agreement with SettleIt, and SettleIt promises to advocate for the customers and…

In Hearn v. Comcast Cable Communications, LLC, the Eleventh Circuit Court of Appeals reversed a district court holding denying the defendant’s motion to compel arbitration regarding the plaintiff’s Fair Credit Reporting Act claim and remanded the matter for further proceedings. In that case, the plaintiff obtained services from the defendant in 2016, and signed a subscriber agreement with an arbitration provision stating that “[a]ny dispute involving [the customer] and Comcast shall be resolved through individual…

The U.S. Department of Education (Department) recently forgave nearly $1 billion in student loan debt for those who were defrauded by their schools into taking out loans. The relief was granted under the Borrower Defense to Repayment program and will impact roughly 72,000 individuals. The loan forgiveness only applies to those student loan borrowers who attended for-profit schools and who were previously approved by the Department for relief under the Borrower Defense to Repayment program.…