Litigation

DACA-Protected Plaintiff Files Class Action Alleging Lending Discrimination Based on Citizenship Status

On January 31, 2017, Mitzie Perez—a former undocumented immigrant who is authorized to work in the United States under the Deferred Action for Childhood Arrivals (“DACA”) policy—filed a class action in the Northern District of California, Perez et al. v. Wells Fargo & Co. et al., No. 17-454 (N.D. Cal….

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Ninth Circuit Adopts Broad Interpretation of Spokeo and Article III Standing Requirement

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…

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Goodwin Releases Review of Major Developments Impacting the Consumer Financial Services Industry

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…

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Court Applies Heightened Pleading Standard to CFPB Complaint Alleging Deceptive Practices

On November 15, 2016, the Central District of California issued a ruling (subscription required) in CFPB v. Prime Marketing Holdings, LLC dismissing without prejudice four out of five claims on grounds that plaintiff CFPB had not satisfied the heightened pleading standard of Federal Rule of Civil Procedure 9(b).  The court held that…

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FCC Issues Enforcement Advisory Clarifying Permissible Use of Robotexts Under the TCPA

On November 18, 2016, the FCC issued an enforcement advisory clarifying its position that autodialed text messages, known as “robotexts,” are subject to the TCPA.  As we reported last year, the FCC issued a package of declaratory rulings expanding the TCPA’s scope in July 2015, and this enforcement advisory is…

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SCOTUS Holding Could Exacerbate Already-Backlogged Federal Dockets

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…

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DC Court of Appeals Rules CFPB Director's "For-Cause Only" Removal Unconstitutional; Reinforces Long-Standing RESPA Interpretation

Today the United States Court of Appeals for the DC Circuit issued its long-awaited ruling in the PHH v. CFPB appeal (opinion here).  LLW has written about the PHH case here and here before, and below are some quick takeaways from the court’s 110-page ruling for industry watchers: The court determined that…

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Eleventh Circuit Invalidates Another Western Sky Arbitration Clause

On August 29, 2016, the Eleventh Circuit upheld a Northern District of Georgia decision invalidating an arbitration clause in Jessica Parm v. National Bank of California, N.A. (Docket No. 15-12509).  Defendant National Bank of California (National Bank) argued that plaintiff Jessica Parm’s (Parm) payday loan contract compelled her to arbitrate…

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CFPB Passes One Constitutional Test but Another Looms

Last week, the United States District Court for the District of Columbia rejected a constitutional challenge to rules promulgated by the CFPB. In State National Bank of Big Spring v. Geithner, the plaintiffs (a small Texas bank and other interested parties) challenged the Bureau’s regulatory authority on separation-of-power and recess-appointment…

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Hefferon to Co-Chair ACI's 26th National Consumer Finance: Class Actions & Litigation Forum in Chicago

Goodwin Procter partner Thomas Hefferon will serve as co-chair of the July 28-29, 2016 conference, and will speak on a panel titled “Fair Lending: Managing and Defending Against Claims of Discriminatory, Predatory, and Abusive Lending and Assessing the Status of ‘Disparate Impact’ in Lending Litigation and Enforcement” on July 29, 2015.

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Yenouskas To Give Strafford CLE Webinar On Defending Consumer Finance Class Actions

Joe Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group, will speak on a June 2, 2016 webinar about consumer finance class actions. His presentation will examine recent developments and trends in class action claims alleging violations of federal consumer protection laws governing the financial services industry, including…

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Consumer Financial Protection Bureau Proposes Rules Prohibiting Class-Action Waivers in Arbitration Agreements

On May 5, 2016, the Consumer Financial Protection Bureau issued long-expected proposed rules that will drastically limit the use of pre-dispute arbitration clauses in contracts for consumer financial products and services. First, the proposed rules would prohibit pre-dispute arbitration agreements that bar consumers from filing or participating in a class…

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