On Thursday, October 29, 2015, the Ninth Circuit affirmed summary judgment of a proposed class action accusing PayPal of violating the Telephone Consumer Protection Act by sending users unsolicited text messages, following a hearing in which a judge said the claims were
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 6
Georgia Court Sheds Light on CFPB’s Power to Sue Companies that ‘Recklessly Provide Substantial Assistance
On September 1, 2015, the Consumer Financial Protection Bureau (“CFPB”) won an important decision in which a federal court, for the first time, interpreted the meaning of “recklessly provid[ing] substantial assistance” under the Consumer Financial Protection Act (“CFPA”). Perhaps since…
CFPB Moves to Ban Class Action Waivers in Consumer Financial Services Contracts
In a move long anticipated by the industry, the Consumer Financial Protection Bureau (CFPB) on October 7, 2015 proposed to ban class action waivers in consumer financial contracts. Although the proposed ban would not take effect for a few years,…
Court Finds Employer Did Not Violate FCRA Through Use of Background Report in Hiring Decision
By Andrew Soven
On October 1, 2015, the U.S. District Court for the Eastern District of Pennsylvania issued a decision in Ramos v. Genesis Healthcare, LLC, upholding an employer’s use of a credit report in connection with a decision to not hire…
CFPB and DOJ Issue Consent Order for Mortgage Lender to Pay $27 Million to Mitigate Illegal Redlining Activities
By Tyler Layton
On September 24, 2015, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) announced a joint action against New Jersey-based Hudson City Savings Bank for discriminatory redlining practices that denied residents of majority-Black-and-Hispanic neighborhoods fair access to…
U.S. Supreme Court Poised to Rule on Mooting Effect of Rule 68 Offers of Judgment
One of the hottest topics in class action litigation is whether a defendant’s offer of judgment providing complete relief to a plaintiff under Rule 68 of the Federal Rules of Civil Procedure moots the plaintiff’s individual and uncertified class action…
Bank Examination Privilege Presents a Moving Target for Counsel
In the current banking environment, where private civil litigation is frequently brought simultaneously with, or very closely following, regulatory investigations and enforcement actions, it is crucial for banks to know whether and how communications with federal and state regulators may…
Class of Financial Institution Plaintiffs Certified in Target Data Breach Litigation
On September 15, 2015, U.S. District Judge Paul A. Magnuson certified a class of financial institution plaintiffs in the multi-district litigation pending in the District of Minnesota arising out of the 2013 Target data breach. The data breach affected approximately…
Four Banks Agree On Messaging Platform Requirements
In October 2014, 15 financial institutions created a cloud-based financial messaging platform, known as Symphony Communications Services LLC, to allow for secure communications between them. Regulators, including the New York Department of Financial Services, became concerned that Symphony’s encryption and…
10th Circuit Affirms Dismissal of Allegedly Fraudulent HAMP Modification Communications
On August 18, 2015, the Tenth Circuit upheld a Colorado district court’s dismissal of a South Carolina couple’s suit who accused Bank of America NA and others of systematically working to sabotage the Home Affordable Modification Program.
Specifically, the suit…