Reversing a district court’s dismissal for failure to state a claim under the Fair Debt Collection Practices Act (“FDCPA”), the Second Circuit (“the Court”) ruled in Mizrachi v. Wilson, Elser, Moskowitz, Edelman & Dicker LP that a threat of suit without further notice included in the defendant’s debt collection letter may have overshadowed notice of the consumer’s validation rights also included in the letter. The defendant, law firm Wilson, Elser, Moskowitz, Edelman & Dicker LP,…

We reported in September of this year on a demand from multiple consumer advocacy groups to the Consumer Financial Protection Bureau (“CFPB”) to rescind its April 1, 2020, credit report guidance that relaxed the Fair Credit Reporting Act’s (“FCRA”) deadlines to investigate consumer-initiated direct disputes. In a letter dated November 9, 2020, CFPB Director Kathleen Kraninger told the National Consumer Law Center that the CFPB would not drop the FCRA relief for furnishers and credit…

In Schiano v. HomEq Servicing Corp, the Third Circuit Court of Appeals held that simple allegations of a failure to “fully and properly investigate” a credit reporting dispute were mere conclusory statements that failed to state a claim for relief under the Iqbal pleading standard. In 2004, an arbitration award of $35,000 was entered against Plaintiffs Ralph and Elanor Schiano after they fell behind on credit card payments. To pay this debt, the Schianos…

Following a Consumer Financial Protection Bureau (“CFPB”) investigation into its credit reporting procedures, telecommunications debt collector Afni, Inc. agreed Thursday to implement additional safeguards against inaccurate reporting and pay a $500,000 civil penalty. The CFPB’s investigation found that Afni had violated the Fair Credit Reporting Act (“FCRA”) in several ways. First, Afni had negligently furnished inaccurate and incomplete information to credit reporting companies. Second, Afni failed to conduct reasonable and timely investigations into disputed accounts,…

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 Communications Commission (“FCC”) issued a Notice of Proposed Rulemaking (“NPRM”) regarding the amendment of the exemptions under the Telephone Consumer Protection Act (“TCPA”) allowing some entities to make calls using automated telephone dialing systems or artificial or pre-recorded voices, which could possibly include debt collection calls. The comment period has since closed. In 2019, Congress enacted The Pallone-Thune Telephone Robocall Abuse Criminal Enforcement and Deterrence (“TRACED”) Act. The TRACED Act requires the FCC…

Date: November 17, 2020 Time: 2-3pm ET In this TPPPA webinar, Troutman Pepper attorneys, Ashley Taylor, Ron Raether, Sharon Klein, and Alex Nisenbaum will provide you with some key strategies to comply with the California Consumer Privacy Act (CCPA). They will discuss potential areas of regulatory enforcement, and practical takeaways that can be used to put you in the best position to mitigate future CCPA enforcement risk. They will also discuss the…