On September 29, 2017, the United States Chamber of Commerce and various business and financial services groups (collectively, Plaintiffs) filed a complaint for declaratory and injunctive relief in the United States District Court for the Northern District of Texas, alleging that—for four independent reasons—the Consumer Financial Protection Bureau’s (CFPB) recently-issued…
On August 23, 2017, the Office of the Comptroller of the Currency (OCC) published guidance on filings required by national banks and federal savings associations (collectively referred to here as “banks”) pertaining to “substantial asset changes.” The guidance lists various events that are considered substantial asset changes for which banks must…
On August 4, 2017, the Consumer Financial Protection Bureau (CFPB) published four prototypes of model overdraft disclosure forms the Bureau is testing as part of its broader “Know Before You Owe” efforts. The prototypes are an important indicator that the CFPB is still actively paying attention to issues concerning overdraft…
On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) issued a Consent Order against mortgage servicer Fay Servicing, LLC (Fay), requiring Fay Servicing to pay $1.15 million to borrowers and to cease activities that the CFPB contended violated the Real Estate Settlement Procedures Act (RESPA), its implementing regulation, Regulation X,…
On May 15, 2017, petitioners in E.I. du Pont de Nemours & Co. v. Bobbi-Jo Smiley filed a reply brief with the U.S. Supreme Court defending their petition for certiorari and arguing that the Court should take up review of the Third Circuit’s revival of their employees’ claims for overtime…
On April 12, 2017, the Federal Trade Commission (FTC) announced that it had secured a $2 million civil penalty against the president of a debt collection company for violating the Fair Debt Collection Practices Act (FDCPA) in United States v. Commercial Recovery Systems, Inc.—one of over a hundred cases brought…
On March 30, 2017, Judge Karas of the Southern District of New York dismissed multiple claims in a putative nationwide class action challenging default servicing activities. In the case, Tardibuono-Quigley v. HSBC Mortgage Corp., the plaintiff sued her lender (HSBC) and mortgage servicer (PHH) to contest charges she claimed were wrongly…
On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released Volume 21 of its Monthly Complaint Report (the “Report”). The purpose of the Report is, in part, to educate consumers and financial institutions on major consumer issues—which it does by providing a high-level analysis of trends in consumer complaints, focusing on one or two…
On Friday, February 24, 2017, more than half of the U.S. states’ attorneys general (the Amici States) filed an amicus brief in support of the petitioners in Henson v. Santander Consumer USA, Inc., a case that is currently before the U.S. Supreme Court. The Amici States, along with the petitioners, urge…
On Monday, January 30, 2017, the Court of Appeals for the Ninth Circuit held in Van Patten v. Vertical Fitness Group, LLC, No. 14-55980, that the plaintiff’s allegation that he received unsolicited text messages in violation of the Telephone Consumer Protection Act (TCPA) satisfied the “concrete injury” standing requirement as articulated…
Goodwin, a leading Global 50 law firm, announced today the release of the 2016 Consumer Finance Year in Review, a detailed report that highlights the major litigation, enforcement and regulations that impacted the consumer finance industry in 2016. The second annual report, produced by the firm’s Financial Industry and Consumer…
On December 21, 2016, the Financial Industry Regulatory Authority (FINRA) announced that it was fining 12 firms a total of $14.4 million for failing to comply with FINRA cybersecurity regulations, having identified “significant deficiencies relating to the preservation of broker-dealer and customer records in a format that prevents alteration.” FINRA…
On December 2, 2016, the Consumer Financial Protection Bureau (CFPB) released a status update regarding various initiatives that were proposed in its fall 2016 rulemaking agenda. The update provides readers with an overview of the CFPB’s proposals and observes that comments submitted in connection with a number of the proposals…
The Consumer Financial Protection Bureau’s (CFPB) recently-released Request for Information Regarding Consumer Access to Financial Records (RFI) suggests that the agency is considering making a new rule to set requirements and protections for the use of consumers’ financial information. In publishing the RFI, the CFPB notes that the Dodd-Frank Act “provides…
On November 8, 2016, the U.S. Supreme Court heard oral arguments in Lightfoot v. Cendant Mortg. Corp., a case that will decide an important jurisdictional issue for Federal National Mortgage Association (FNMA). See 769 F.3d 681 (9th Cir. 2014), cert. granted, 136 S. Ct. 2536 (2016). The question before the Court…
At the end of October, the Office of the Comptroller of the Currency (“OCC”) released its Recommendations and Decisions for Implementing a Responsible Innovation Framework (the “Recommendations”). The Recommendations are the latest step in a long process the OCC has undertaken to try to revamp its approach to new financial…
On October 13, 2016, the United States District Court for the Southern District of Florida denied class certification in a Telephone Consumer Protection Act (“TCPA”) suit. In Newhart v. Quicken Loans Inc., Case No. 9:15-cv-81250, the plaintiff alleged that he received a number of calls on his cell phone from…
On September 22, 2016, the Consumer Financial Protection Bureau (CFPB) filed a complaint in the U.S. District Court for the Central District of California against a credit repair company for allegedly making misleading representations and charging illegal fees. The case, CFPB v. Prime Marketing Holdings, LLC, No. 2:16-cv-7111 (C.D. Cal.),…
On August 31, 2016, the Consumer Financial Protection Bureau (CFPB) released its Monthly Complaint Report for August 2016, this month focusing on complaints concerning bank accounts and related services. The report, which compiles data from the CFPB’s complaint database to compare consumer complaints by subject, geography, and company on a…
On July 28, 2016, the Consumer Financial Protection Bureau (CFPB) released an outline of proposals it is considering as potential elements of a new, comprehensive regulatory scheme to implement the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 (FDCPA). The proposed regulations, if implemented, would represent a major change…