Consumer Finance Litigation Bulletin

Latest from Consumer Finance Litigation Bulletin

New York Executive Order and Regulation Requires Banks To Honor Forbearance Requests And Other Regulated Entities To Potentially Restrict Late And Overdraft Fees On March 7, 2020, Governor Cuomo issued Executive Order No. 202.9 (the “Order”) which sought to modify New York Banking Law to deem “an unsafe and unsound business practice” if any bank, subject to the Department of Financial Services (the “Department”), fails to “grant a forbearance to any person or business who…
Court Nixes Hired Investigator’s Telephone Consumer Protection Act Claim for Lack of Standing While the TCPA often feels limitless in its scope, one New Jersey District Court recently dismissed a putative class action brought by an investigator hired by an attorney to prepare potential TCPA claims.1 The plaintiff, Mark Leyse, was paid $60 an hour to place investigative calls to various companies and gather facts for potential TCPA actions. During those calls, Leyse gave…
If your company’s marketing strategy involves communicating with prospective or existing clients via phone calls and text messages, you are probably familiar with the Telephone Consumer Protection Act (“TCPA”).   In part, the TCPA makes it unlawful to make a “call” to a cell phone using an automatic telephone dialing system (“ATDS”) unless you have the prior written consent of the called party. And this includes sending text messages to cell phones. While the TCPA, enacted…
A New York Class Action Relying on the Second Circuit’s Madden Decision Is In Jeopardy After Magistrate Judge’s Recommendation In 2019, two putative class actions were filed in New York by plaintiffs seeking to build off the Second Circuit’s decision in Madden v. Midland Funding, LLC, 786 F. 246 (2d Cir. 2015). The plaintiffs alleged that the defendants, who acquired securitized credit card receivables from national banks, violated New York law by charging interest amounts…
Key Takeaways for Furnishers from the CFPB’s Recent Supervisory Highlights on Credit Reporting In December 2019, the Consumer Financial Protection Bureau (CFPB) issued its Supervisory Highlights covering its findings from examinations in the areas of credit reporting and the furnishing of credit information to consumer reporting agencies (CRAs). The following are a few of the key takeaways from the CFPB’s findings and comments. 1.  The Lack of Procedures Necessary to Fit a Furnisher’s “Nature, Size,…
New Jersey Appellate Division Rejects Consumer’s Attempt to Declare Arbitration Provision Invalid Under New Jersey Plain Language Act In a recent unpublished opinion, Maisano v. LVNV Funding, LLC, No. A-1775-18T2, 2019 WL 6341035 (App. Div. Nov. 27, 2019), the New Jersey Appellate Division upheld the trial court’s order compelling Maisano (the “consumer”) to arbitrate his claims against LVNV Funding, LLC (“defendant”), an entity that acquires outstanding credit card accounts and collects the balances. In…
IF THE SHIELD AGAINST AT-WILL TERMINATION OF THE CFPB’S DIRECTOR IS UNCONSTITUTIONAL, WHAT NEXT? The U.S. Supreme Court has already agreed to consider in the matter of Seila Law v. CFPB whether the for-cause requirement for the President’s dismissal of the Consumer Financial Protection Bureau’s (“CFPB”) director is unconstitutional as a violation of the separation of powers. Now the Court is being asked by All American Check Cashing to review the same issue but with…
The United States Supreme Court has granted certiorari in the matter of Seila Law LLC v. Consumer Financial Protection Bureau to address the question of whether the Consumer Financial Protection Bureau’s (CFPB) single-director structure and the President’s authority to remove the director only “for cause,” as prescribed by 12 U.S.C. § 5491(c)(3), violate the separation of powers. The Supreme Court also directed the parties to brief the question of whether, if the CFPB is found…
Trump Administration Seeking Presidential Authority to Remove CFPB Director, asking Supreme Court to Decide As the CFPB is currently structured, the head of the CFPB may only be ousted by the President for good cause. However, the Trump Administration is asking the Supreme Court to take up a case[1] on certiorari to decide the issue of the CFPB’s constitutionality, ultimately seeking to allow the President the power to fire the head of the CFPB…
11th Circuit Finds Receipt Of A Single Unsolicited Text Message Fails To Confer Article III Standing Under The TCPA In Salcedo v. Hanna, No. 17-14077 (11th Cir. Aug. 28, 2019), the 11th Circuit considered whether receipt of a single unsolicited text message was sufficient to confer Article III standing to sue for a violation of the Telephone Consumer Protection Act (“TCPA”). The court found it was not and in doing so, it rejected decisions…