Troutman Pepper attorney Ron Raether will present during the virtual panel, “Private Causes of Action Under CCPA,” at NetDilegence’s Cyber Risk Summit on October 6, 2020. The panel is from 11:15 a.m. – 12:15 a.m. PST and will cover the following trends: Litigants Industries Volume Impact of COVID-19 on current trends Retroactive Requirement to “Cure” For more information on the summit and registration, please click here.…

Consumer Financial Services Law Monitor

CFPB Releases (Finally) Its Small Business Lending Data Collection Rulemaking Proposal

By Troy Jenkins, Rick Eckman & James Stevens

September 17, 2020

On September 15, 2020, after considerable delay and pursuant to a court settlement, the Consumer Financial Protection Bureau (CFPB) released its Outline of Proposals Under Consideration and Alternatives Considered for small business lending data collection rulemaking. When the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was passed, Section 1071 amended the Equal Credit Opportunity Act (ECOA) to require such small business data collection. Dodd-Frank requires the CFPB to comply with The Small Business…

Consumer Financial Services Law Monitor

Complimentary Webinar: 2020 Class Action Litigation Review

By David N. Anthony, Cindy D. Hanson, Bill Mayberry & Angelo A. Stio III

September 15, 2020

September 29, 2020 2pm – 3pm ET Join us on Tuesday, September 29th as a panel of Troutman Pepper class action litigators examine recent developments in class action litigation in 2020 and provide insights on what the future holds. The panel will dive into the major decisions that were rendered this past year, and explore ways for class action practitioners and in-house counsel to effectively and efficiently manage class actions. Please click here to register.…

Consumer Financial Services Law Monitor

Second Circuit Overturns Bona Fide Error Defense to FDCPA Violations Because Debt Collection Agency Lacked Relevant Procedures

By Chris Bascom & Alan D. Wingfield

September 15, 2020

On September 4, 2020, the Second Circuit Court of Appeals overturned summary judgment granted to a debt collector who had sent collection documents to the wrong person, ruling that it was not entitled to the bona fide error defense because it lacked procedures governing the factual mistake. Chiari & Ilecki (“C&I”) attempted to collect a debt from William J. Wagner, Jr. C&I located the appellant, William J. Wagner, and incorrectly concluded he was the debtor. …

Consumer Financial Services Law Monitor

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

By Ethan G. Ostroff, Elizabeth Briones, Ronald I. Raether, Jr., Dan Stillman & Alan D. Wingfield

September 14, 2020

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. To help you keep abreast of relevant activities, below is a breakdown of some of the biggest…

Consumer Financial Services Law Monitor

CDC Orders Nationwide Moratorium on Evictions for Renters Affected by COVID-19

By Alex Teixeira & Ethan G. Ostroff

September 14, 2020

On September 4, 2020, the Centers for Disease Control and Prevention (CDC) issued a new Order, entitled “Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19.” The Order is effective nationwide through December 31, 2020 and creates the most wide-spread COVID-19 eviction moratorium to date. Under the CDC’s Order, “a landlord, owner of a residential property, or other person [including corporations, firms, partnerships, etc.] with a legal right to pursue…

Consumer Financial Services Law Monitor

Second Circuit Affirms Dismissal of FDCPA Suit Over Failure to Use Precise Statutory Validation Language

By Punit Marwaha & Ethan G. Ostroff

September 8, 2020

The Second Circuit Court of Appeals recently issued an opinion affirming the dismissal of a lawsuit because a debt collector’s failure to use the FDCPA’s precise language in its validation notice is not a violation of the FDCPA. In Chaperon v. Sontag & Hyman, P.C., Chaperon alleged violations of 15 U.S.C. § 1692g and § 1692e related to a notice she received regarding past-due rent. Specifically, she alleged that, though the notice stated she could…

Consumer Financial Services Law Monitor

California Creates a New State-Level Financial Protection Bureau

By Allison Melton & Jason E. Manning

September 5, 2020

In late August, the California legislature passed Assembly Bill 1864, creating a Department of Financial Protection and Innovation and bolstering legal protections for consumers. The new Department is intended to be a state-level version of the Consumer Financial Protection Bureau (CFPB). For example, similar to the CFPB, the commissioner of the Department is authorized to bring a civil action or other proceeding to enforce the provisions of the federal Consumer Financial Protection Act of…

Consumer Financial Services Law Monitor

Tenth Circuit Affirms Order Allowing Discharge of Private Student Loans

By Mandi Blackmon & Ethan G. Ostroff

September 4, 2020

On August 31, 2020, the Tenth Circuit affirmed the United States Bankruptcy Court for the District of Colorado’s holding that certain student loans not guaranteed by a governmental unit may be discharged in bankruptcy. Navient Solutions, LLC argued that the debtors’ student loans were excepted from their Chapter 13 discharge under 11 U.S.C. § 523(a)(8)(A)(ii) which excepts “an obligation to repay funds received as an educational benefit, scholarship, or stipend.” The bankruptcy court dissected the…

Consumer Financial Services Law Monitor

The Eastern District of Wisconsin Reaffirms the Importance of the Least Sophisticated Consumer Standard in Drafting Collection Letters

By Mary Scruggs & David M. Gettings

September 3, 2020

A recent decision out of the Eastern District of Wisconsin provides an important reminder to loan servicers that a statement in a debt collection letter could be considered misleading under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq., even if the letter is “literally correct.” The case is Reitz v. Credit Sys. of Fox Valley, Inc., No. 20-C-196, 2020 WL 4753842 (E.D. Wis. Aug. 17, 2020). The Plaintiffs filed suit…

Consumer Financial Services Law Monitor

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

Blog Authors

Webinar: Private Causes of Action Under CCPA

CFPB Releases (Finally) Its Small Business Lending Data Collection Rulemaking Proposal

Complimentary Webinar: 2020 Class Action Litigation Review

Second Circuit Overturns Bona Fide Error Defense to FDCPA Violations Because Debt Collection Agency Lacked Relevant Procedures

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

CDC Orders Nationwide Moratorium on Evictions for Renters Affected by COVID-19

Second Circuit Affirms Dismissal of FDCPA Suit Over Failure to Use Precise Statutory Validation Language

California Creates a New State-Level Financial Protection Bureau

Tenth Circuit Affirms Order Allowing Discharge of Private Student Loans

The Eastern District of Wisconsin Reaffirms the Importance of the Least Sophisticated Consumer Standard in Drafting Collection Letters

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