Consumer Financial Services Law Monitor

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

Latest from Consumer Financial Services Law Monitor - Page 2

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

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

January 19, 2021

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,…

Consumer Financial Services Law Monitor

Summary Judgment & Shifting the Burden of Proof: Court Grants Summary Judgment for Plaintiff and Denies Summary Judgment for Defendant in FDCPA and TCPA Case

By Jonathan Turner & David M. Gettings

January 18, 2021

In Russell v. Law, Judge Van Bokkelen, of the United States District Court for the Northern District of Indiana, granted summary judgment, in part, to Russell Friend (“Plaintiff”)– alleging Taylor Law, PLLC (“Defendant”) contacted Plaintiff continually in attempts to collect debt after Plaintiff’s request that Defendant cease contact, in violation of the Fair Debt Collection Practices Act. Moreover, the Court denied summary judgment for Defendant on Plaintiff’s count that Defendant violated the Telephone Consumer Protection…

Consumer Financial Services Law Monitor

Ambiguity in Debt Collection Letters: The United States District Court for the Middle District of North Carolina Denies Motion to Dismiss FDCPA Class Action Claim

By Jonathan Turner & David M. Gettings

January 18, 2021

In Golden v. Benjamin, Judge Schroeder, of the United States District Court for the Middle District of North Carolina, denied Higgins Benjamin, PLCC’s (“Higgins”) motion to dismiss a class action claim brought by Mark and Geneva Golden under the Fair Debt Collection Practices Act. In the Complaint, Plaintiffs alleged an FDCPA claim for failure to “inform Plaintiff[s] that the Debt will be assumed to be valid by Defendant” in the debt collection letter Higgins sent…

Consumer Financial Services Law Monitor

State Attorneys General File Suit Against OCC, Alleging History May Repeat Itself

By Hannah Couch & Cindy D. Hanson

January 17, 2021

A group of state attorneys general, led by New York A.G. Letitia James, are attempting to stop the Office of the Comptroller of the Currency (“OCC”) from implementing its new True Lender Rule that is now in effect. The state attorneys general allege that by implementing the Rule, the OCC is once again fostering abusive lending practices like it did before the 2008 financial crisis, as recognized by Congress. On January 5, 2021,…

Consumer Financial Services Law Monitor

OCC Finalizes Rule Requiring Large Banks to Provide Fair Access to Services, Capital, and Credit

By Rick Eckman, Cody Mathis, Shannon Patterson, Gregory Parisi, Matthew White & James Stevens

January 14, 2021

In a final act of his tenure, Brian Brooks, the acting Comptroller of the Currency (OCC) on January 14 finalized a rule to ensure “fair access to banking services provided by large national banks, federal savings associations, and federal branches and agencies of foreign bank organizations.” Brooks announced that he would be stepping down from his role on the same day the rule was finalized. OCC Chief Operating Officer Blake Paulson will assume the role…

Consumer Financial Services Law Monitor

U.S. District Court Invalidates Two Provisions of the CFPB’s Prepaid Rule: The Disclosure Clauses and the Thirty-Day Credit Linking Restriction

By Vincent Shin, Elizabeth Andrews & Ethan G. Ostroff

January 14, 2021

On December 30, 2020, Judge Richard J. Leon on the United States District Court for the District of Columbia entered an Order in PayPal, Inc. v. Consumer Financial Protection Bureau, et al., No. 19-3700-RJL, 2020 WL 7773392 (D.D.C. Dec. 30, 2020) invalidating two provisions of the Consumer Financial Protection Bureau (“the CFPB” or “Bureau”)’s “Prepaid Rule” (“the Rule”): (i) the mandatory short-form fee disclosure requirement, and (ii) the requirement for a thirty-day waiting period before…

Consumer Financial Services Law Monitor

Northern District of California Refuses to Examine Declaratory FCC Ruling for Validity in TCPA Class Case

By A. Eli Kaplan & Ethan G. Ostroff

January 13, 2021

In True Health Chiropractic Inc., et al. v. McKesson Corp., et al., the Northern District of California held that it was divested of jurisdiction by the Hobbs Act, 28 U.S.C. § 2342, and thus could not reconsider the validity of a declaratory ruling rendered by the Consumer and Government Affairs Bureau of the Federal Communications Commission (“FCC”), reaching a contrary result to the Fourth Circuit’s holding on a similar question in Carlton & Harris Chiropractic …

Consumer Financial Services Law Monitor

Storytelling & Professional Plaintiffs: The District Court for the Northern District of Texas Denies Class Certification in TCPA Case

By Jonathan Turner & David M. Gettings

January 13, 2021

In Hirsch v. USHealth Advisors, LLC, Judge Pittman, of the United States District Court for the Northern District of Texas, denied Aaron Hirsch’s (“Plaintiff”) Motion for Class Certification, which was based on allegations that USHealth Advisors, LLC (“USHA”) and USHealth Group, Inc. (“USGA”) (collectively “Defendants”) violated the Telephone Consumer Protection Act and Maryland equivalent of the Telephone Consumer Protection Act. In doing so, the Court put a dent in claims where professional plaintiffs seek to…

Consumer Financial Services Law Monitor

District Court Finds Calls to Cell Phones Do not Violate the TCPA’s Prohibition Against Telephone Solicitations to Residential Telephone Subscribers

By Mark Kundmueller & David M. Gettings

January 12, 2021

In an Order issued December 16, 2020, the Eastern District of Texas adopted the Report and Recommendation of United States Magistrate Judge Kimberly C. Priest Johnson finding that calls placed to a cellular telephone do not qualify as calls to a residential telephone subscriber for purposes of § 227(c) of the Telephone Consumer Protection Act (“TCPA”). See Cunningham v. Britereal Mgmt., No. 4:20-cv-144-SDJ-KPJ, (E.D. Tex. Nov. 20, 2020). The plaintiff in this case, alleged…

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, Jed Komisin & Alan D. Wingfield

January 11, 2021

Consumer Financial Services Law Monitor

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

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

Summary Judgment & Shifting the Burden of Proof: Court Grants Summary Judgment for Plaintiff and Denies Summary Judgment for Defendant in FDCPA and TCPA Case

Ambiguity in Debt Collection Letters: The United States District Court for the Middle District of North Carolina Denies Motion to Dismiss FDCPA Class Action Claim

State Attorneys General File Suit Against OCC, Alleging History May Repeat Itself

OCC Finalizes Rule Requiring Large Banks to Provide Fair Access to Services, Capital, and Credit

U.S. District Court Invalidates Two Provisions of the CFPB’s Prepaid Rule: The Disclosure Clauses and the Thirty-Day Credit Linking Restriction

Northern District of California Refuses to Examine Declaratory FCC Ruling for Validity in TCPA Class Case

Storytelling & Professional Plaintiffs: The District Court for the Northern District of Texas Denies Class Certification in TCPA Case

District Court Finds Calls to Cell Phones Do not Violate the TCPA’s Prohibition Against Telephone Solicitations to Residential Telephone Subscribers

Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter

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