Earlier this week, New Jersey Governor Phil Murphy announced that the New Jersey Bureau of Securities would start rulemaking to “impose a fiduciary duty on all New Jersey investment professionals, requiring them to place their clients’ interests above their own
Consumer Finance Spotlight
Salient insights on key enforcement and legal trends pertaining to the consumer financial services sector
Consumer Finance Spotlight, published by Reed Smith LLP, focuses on legal developments and regulatory issues in consumer finance. The blog covers topics such as the constitutional challenges and regulatory authority of the Consumer Financial Protection Bureau (CFPB), commercial lending regulations including small business lending and state disclosure laws, enforcement trends, and the impact of federal and state regulatory actions on financial services providers. It also addresses emerging issues in financial regulation, including responses to crises in sectors like cryptocurrency, and provides analysis of litigation and policy developments affecting consumer and commercial finance markets.
Latest from Consumer Finance Spotlight - Page 4
Client Alert – TCPA compliance and litigation impacted by ACA
On Friday, March 16, 2018, the United States Court of Appeals for the District of Columbia issued its long-awaited ruling in ACA International et al. v. FCC (see attached). The petition before the court challenged aspects of the Telephone Consumer Protection Act…
Debt Collector Not Liable Under the TCPA for Post-Revocation Calls Made On Behalf of a Different Creditor
In an important decision for the collection industry, the court in Michel v. Credit Protection Ass’n L.P., No. 14-cv-8452, 2017 WL 3620809 (N.D. Ill. Aug. 23, 2017), refused to find a debt collection company liable under the TCPA for cell…
CFPB Issues Final Rule Banning Class Action Waivers In Financial Services Contracts
The Consumer Financial Protection Bureau (CFPB) finally moved forward today to ban class action waivers in mandatory arbitration clauses found in certain consumer financial services contracts.
In October 2015, the CFPB published its multiyear study on arbitration provisions in consumer…
Businesses Receive Relief in TCPA Revocation Claims
In a watershed ruling for businesses facing the recent onslaught of Telephone Consumer Protection Act (TCPA) claims, the Second Circuit Court of Appeals held that consumers cannot revoke their consent to receive automated or prerecorded cell phone calls if they…
D.C. Circuit Court Strikes Opt-Out Notice Requirement For Certain Faxes
On Friday, in a decision certain to please the business community as well as the Chair and new majority of the Federal Communications Committee, the D.C. Circuit struck down parts of the FCC’s October 30, 2014 Order, 29 F.C.C. Rcd.…
Ohio Federal Court Rules That Bank Is Not Liable Under Ohio Securities Act For Providing Ordinary Banking Services To Customers Who Operated Ponzi Scheme
By Seth Kean
In a January 10, 2017 decision, United States District Judge Thomas M. Rose in the Southern District of Ohio ruled that plaintiffs, who claimed to be investors in a Ponzi scheme operated by customers of PNC Bank, failed to state…
California Amends Identity Theft Requirements for Debt Collectors
The California legislature has amended the existing requirements for debt collectors who receive consumer claims of identity theft with the Identity Theft Resolution Act (“Act”). See AB 1723; Cal. Civ. Code § 1785.16.2.[1] The Act does not take effect…
FCC Adds New Wrinkle to Collection of Federally Backed Debts
Federal Communications Commission announced new rules on Thursday that imposes limitations on private collection agencies and servicers seeking to collect on behalf of federal debts. While the TCPA places limitations around many autodialed calls, it provides an exception to liability…
Illinois Supreme Court Expands Who Can Seek TILA Rescission
A recent Illinois Supreme Court opinion may expose banks to a flood of TILA rescission claims by anyone who claims an ownership interest in mortgaged property. The state supreme court ruled that the right to rescind includes “each consumer whose…