On February 27, 2017, the Federal Trade Commission (FTC) entered into a stipulated order for permanent injunction and monetary judgment with defendants United Debt Counselors, LLC, a debt relief company, and its principals, banning the defendants from making misrepresentations about financial products and services and requiring the defendants to pay a $9…
Privacy and cybersecurity continue to be among the top issues facing companies and in-house counsel. From the rise of artificial intelligence and the internet of things (IoT), to ransomware and the Privacy Shield, the ever-evolving privacy landscape presents unique risks for businesses across industries. Please join Goodwin’s newest Privacy partner,…
Last month, the Ninth Circuit affirmed dismissal of a putative class action that challenged certain fees imposed for property inspections conducted after the named plaintiffs had defaulted on their mortgages. Demonstrating the value of the increased pleading requirements set by Federal Rule of Civil Procedure 9, the Ninth Circuit’s decision in…
On February 28, 2017, the CFPB issued its monthly complaint report spotlighting credit reporting complaints (the Spotlight). Two days later, the Bureau issued a Special Edition of its Supervisory Highlights Report, which also focused on credit reporting (the Report), and Director Cordray delivered prepared remarks on the topic the same day. …
On Thursday, September 8, 2016, the Consumer Financial Protection Bureau (“CFPB”), in connection with the Office of the Comptroller of the Currency (“OCC”) and the City of Los Angeles, announced that the government was levying a combined fine of $185 million on Wells Fargo, N.A. (“Wells Fargo”) for aggressive sales…
On February 21, 2017, the U.S. Supreme Court issued an order remanding a False Claims Act (FCA) case, Bishop v. Wells Fargo & Co., No. 15-2449 (2d Cir. 2016), to the Second Circuit for further consideration of the availability of implied certification claims. The Court’s decision to remand the case is significant…
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 February 21, 2017, the United States District Court for the Central District of California issued a stipulated order as to the final defendant in an alleged mortgage-relief scam. The court had entered judgment against the other co-defendants in the case, Federal Trade Comm’n v. CD Capital Investments, LLC, No….
On February 16, 2017, the United States Court of Appeals for the DC Circuit granted Respondent Consumer Financial Protection Bureau’s (CFPB) petition for rehearing en banc of PHH Corp. v. CFPB, No. 15-1177 (D.C. Cir.). In doing so, the court vacated its October 11, 2016, order, which had held, inter alia, that the CFPB’s single-director structure…
Earlier this month, the Northern District of Illinois struck the class allegations in Cholly v. Uptain Group, Inc., a single-count TCPA case filed against a medical services provider and a debt collector based on allegedly autodialed calls the plaintiff received. The defendants had sought to dismiss the complaint on several…
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….
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…
A recent decision by the Ninth Circuit has created a circuit split regarding the interpretation of the Fair Debt Collection Practices Act (FDCPA). In Vien-Phung Ho v. ReconTrust Co. et al., case no. 10-56884, the court held that the trustee of a California deed of trust is not a “debt collector” under the…
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 January 17, 2017, Maria Vullo, the Superintendent of the New York State Department of Financial Services (NY DFS) sent a letter to the Office of the Comptroller Currency (OCC), opposing the OCC’s proposed special purpose charter for FinTech companies. The NY DFS adds to the existing resistance by state regulators…
On January 24, 2017, 38 members of the Congressional Black Caucus (CBC) sent a letter to President Trump urging him to cease any planned efforts to remove Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. The letter was co-authored by the ranking member of the U.S. House of Representatives Financial Services…
On January 3, 2017, the Consumer Financial Protection Bureau (CFPB) entered into consent orders with credit reporting agencies Equifax and TransUnion, requiring that they pay a total of over $17.6 million in restitution to consumers and pay an additional total money penalty of $5.5 million. The consent orders concern the CFPB’s…
Last week, the Central District of California granted summary judgment in a TCPA case involving a single prerecorded call from the plaintiff’s medical insurance company. In Smith v. Blue Shield of California, the plaintiff alleged that her medical insurance provider violated the TCPA by placing a prerecorded call to her…
On January 3, 2017, the Central District of California issued an order in CFPB v. CashCall, Inc., No. 2:15-cv-07522 (C.D. Cal.) allowing the defendants to request an interlocutory appeal of its August 31, 2016, decision granting partial summary judgment in favor of the Consumer Financial Protection Bureau (CFPB). The court’s decision…
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…