On June 20, the Supreme Court issued an uneventful opinion in the highly anticipated case PDR Network LLC, et al. v. Carlton & Harris Chiropractic, No. 17-1705. The case, which we discussed in depth here, was primed to give TCPA litigants much-needed guidance regarding the impact of Federal Communications Commission rules and regulations on courts. However, rather than issue a decisive opinion as to whether the FCC or the courts will dominate the interpretation…

Consumer Financial Services Law Monitor

Key Differences In Nev. And Calif. Data Privacy Laws

By Sadia Mirza & Yanni Lin on June 21, 2019

At the state level, data privacy laws in the United States have primarily taken a reactive approach. As of 2018, all 50 states (as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands) have implemented data breach laws requiring notification to individuals for unauthorized access to personal information. Only certain states, however, regulate the collection, maintenance, use or disclosure of personal information as related to their own residents. In this respect, California is…

Consumer Financial Services Law Monitor

INSIGHT: Georgia Supreme Court Adds to Patchwork of State Data Privacy Laws

By Timothy Butler, Mark C. Mao, Tiffany Bracewell & Chelsea Lamb on June 21, 2019

Businesses do not have a duty to safeguard the personally identifiable information that they collect and store, under a recent Georgia Supreme Court ruling. Troutman Sanders attorneys say this adds to confusion facing businesses with customers across different state lines and they make the case for careful federal legislation. Weighing in on a conflict that has divided other states, the Georgia Supreme Court recently held that under Georgia law businesses do not have a duty…

Consumer Financial Services Law Monitor

Second Round of Class Settlement Payments Ordered in TCPA Suit

By Keaton Stoneking & David M. Gettings on June 18, 2019

On June 12, a Northern District of Illinois judge ordered loan servicer and debt collector Real Time Resolutions, Inc. to distribute $261,815.82 in unclaimed funds to class members, rather than donating the funds to charity as a cy pres award. In doing so, the Court settled a dispute between the parties as to the proper interpretation of their class settlement agreement. Real Time previously agreed to pay $1.3 million to settle Telephone Consumer Protection Act claims…

Consumer Financial Services Law Monitor

Fourth Circuit Overrules Witt v. United Cos. Lending Corp. (In re Witt)

By D. Kyle Deak & Mary Scruggs on June 18, 2019

In Witt v. United Cos. Lending Corp. (“In re Witt”), 113 F.3d 508 (4th Cir. 1997), the Fourth Circuit held that Chapter 13 debtors are not permitted to bifurcate undersecured home mortgage loans into separate secured and unsecured claims. In re Witt, 113 F.3d at 509. Recently, the Court overruled this twenty-two-year-old decision in an en banc opinion, Hurlburt v. Black, No. 17-2449, 2019 WL 2237966 (4th Cir. 2019). Hurlburt held, over a dissent, that Chapter 13…

Consumer Financial Services Law Monitor

They’re Finally Going After Robocalls – FCC Formalizes Policies to Block Robocalls

By David Asbury, Andrew Buxbaum & David N. Anthony on June 17, 2019

Last fall, Troutman Sanders reported that the Federal Communications Commission released its final report and order creating a reassigned numbers database to block robocalls. The FCC has now issued formalized policies to allow carriers to block calls by default using “reasonable analytics.” The final version of the ruling is largely unchanged from the proposed version. The FCC now turns to carriers to follow through and block unwanted robocalls. Chairman Ajit Pai said in a statement that “now is…

Consumer Financial Services Law Monitor

New York Department of Financial Services Unveils New Cybersecurity and Consumer Protection and Enforcement Divisions

By Monika Scott & Michael E. Lacy on June 15, 2019

New York State’s Department of Financial Services (“DFS”) has unveiled two new divisions focused on consumer protection, enforcement, and cybersecurity. These highly–touted divisions expand the enforcement capabilities of DFS and confirm that the department will continue to serve as a regulatory leader in the consumer protection space. The Cybersecurity Division was launched by DFS on May 22, 2019. The new division will focus on protecting consumers and industries from cyber threats. In a press release,…

Consumer Financial Services Law Monitor

CFPB to Host Symposium on Meaning of Abusive Acts and Practices

By Elizabeth Flowers & Alan D. Wingfield on June 14, 2019

On June 25, the Consumer Financial Protection Bureau will host the first of a series of symposia exploring consumer protections in the financial services industry. This initial symposium will focus on the meaning and scope of “abusiveness” under Section 1031 of the Dodd-Frank Act. Under the Dodd-Frank Act, the CFPB may take enforcement, supervision, and rulemaking actions regarding unfair, deceptive, or abusive acts and practices (commonly referred to as “UDAAP”). While the terms “unfair” and…

Consumer Financial Services Law Monitor

FTC Settles Claims Arising from Data Breach of Software Provider to Auto Dealers

By Paige Fitzgerald, Ronald I. Raether, Jr. & Siran Faulders on June 14, 2019

The Federal Trade Commission has announced a settlement with LightYear Dealer Technologies, LLC, doing business as DealerBuilt, a company that sells software and data services to auto dealers. The FTC alleged that DealerBuilt’s poor data security practices resulted in a breach that exposed the personal information of millions of consumers. A hacker gained unauthorized access to the data of millions of consumers during at least a 10-day period and downloaded the data of 69,283 individuals.…

Consumer Financial Services Law Monitor

FTC Issues Final Rule to Rescind Model Forms and Disclosures to Avoid Overlap with CFPB

By Patrick Dillard & Amy Pritchard Williams on June 12, 2019

The Federal Trade Commission has issued a Final Rule rescinding several Model Forms and Disclosures it had promulgated under the Fair Credit Reporting Act. The FTC determined these Model Forms and Disclosures were no longer necessary following the transfer of rulemaking authority associated with these forms to the Bureau of Consumer Financial Protection (“CFPB”) under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Rule became effective on May 22, 2019. The CFPB recently issued revisions…

Consumer Financial Services Law Monitor

Monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Blog Authors

Supreme Court Withholds Clarity for TCPA Litigants

Key Differences In Nev. And Calif. Data Privacy Laws

INSIGHT: Georgia Supreme Court Adds to Patchwork of State Data Privacy Laws

Second Round of Class Settlement Payments Ordered in TCPA Suit

Fourth Circuit Overrules Witt v. United Cos. Lending Corp. (In re Witt)

They’re Finally Going After Robocalls – FCC Formalizes Policies to Block Robocalls

New York Department of Financial Services Unveils New Cybersecurity and Consumer Protection and Enforcement Divisions

CFPB to Host Symposium on Meaning of Abusive Acts and Practices

FTC Settles Claims Arising from Data Breach of Software Provider to Auto Dealers

FTC Issues Final Rule to Rescind Model Forms and Disclosures to Avoid Overlap with CFPB

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