On August 17, 2015, following objections from several class members, counsel representing a class of customers in a suit alleging Chase Bank USA illegally called customer’s cellphones without their consent cut their request for fees in a proposed $34 million
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 7
2nd Circuit Holds “Informational” Letter Sent in Attempts to Comply with REPSA was an Attempt to Collect Debt that Could Violate FDCPA
On August 12, 2015, the Second Circuit revived a putative class action alleging FCI Lender Services Inc. sent notices to mortgage borrowers appearing to initiate debt collections that did not comply with the Fair Debt Collections Practices Act.
FCI took…
7th Circuit Says Hospital Not Covered By FCRA
On August 10, 2015, the Seventh Circuit upheld a lower court’s dismissal of a proposed class action accusing Advocate Health and Hospitals Corp., of violating the Fair Credit Reporting Act by failing to safe keep health data stolen from its…
California Supreme Court Issues Ruling in Sanchez v. Valencia Holding Company, LLC
By R. Euna Kim & Drew Amoroso
On August 3, 2015, the California Supreme Court issued a long-awaited opinion that provides further clarity on the standard of unconscionability needed to invalidate an arbitration agreement. The court determined that its prior formulations of unconscionability, characterized by the terms…
11th Circuit Says Statute of Limitations not Tolled by Earlier TCPA Suit
On August 3, 2015, the Eleventh Circuit ruled that a class action accusing Bob Wines Nursery Inc., of sending unsolicited faxes didn’t suspend the statute of limitations for a later-filed action, rejecting Plaintiff’s argument that because the first action never…
Adjusting to CFPB’s Auto Finance Examination Authority
On July 31, 2015 the Consumer Financial Protection Bureau rule that enables the CFPB to supervise the biggest nonbank automobile finance companies will take effect, subjecting the auto finance industry to new and unprecedented regulatory scrutiny. Finance companies across the…
FCC Issues Omnibus Ruling on Host of Issues Affecting TCPA Litigation and Compliance
On July 10, 2015, the Federal Communications Commission (FCC) finally released its long awaited TCPA Omnibus Declaratory Ruling and Order, which resolved 21 petitions involving a wide variety of issues regarding the enforcement and interpretation of the Telephone Consumer Protection…
Supreme Court upholds ‘disparate impact’ under the FHA but emphasizes that claims cannot rely on statistics alone
In a much-anticipated decision, the U.S. Supreme Court held in Texas Department of Housing and Community Affairs v. Inclusive Communities Project (“Inclusive Communities”) that claims of disparate impact discrimination are cognizable under the Fair Housing Act (“FHA”). In the case,…