CFPB Issues Bulletin to Warn Student Loan Servicers Who Ignore Bankruptcy Court Orders
On March 16, 2023, the Consumer Financial Protection Bureau (CFPB) issued a bulletin cautioning loan servicers about their responsibility to stop any illegal activity related to private student loans that have been discharged by bankruptcy courts. CFPB examiners have apparently uncovered that certain loan servicers have been unlawfully sending discharged loans back to collections after […]
CFPB Announces Inquiry into Data Brokers: Seeking Public Input on Business Practices
On March 15, 2023, the Consumer Financial Protection Bureau (CFPB) announced an inquiry into companies that gather and track information about people’s personal lives. The apparent purpose of this inquiry is to gain a better understanding of the full scope and business practices of data brokers, the impact of their activities on consumers’ daily lives, […]
California’s DFPI Cracks Down on Student Debt Relief Companies
Recent Consent Order Issued by the DFPI Against Student Loan Relief Company On February 28, 2023, the California Department of Financial Protection and Innovation (DFPI) announced that it has entered into a Consent Order with an unlicensed student debt relief company based in Orange County and its owner. This action is apparently part of the DFPI’s continuing effort to […]
FTC Sues Stratics and Debt Relief Companies That Hired Robocallers
The Federal Trade Commission (FTC) is taking action against Stratics Networks, a company that allegedly provided the technology for telemarketers to make tens of millions of illegal robocalls. The company’s services were used to promote offers for credit card and student debt relief, home buying, health insurance, cable TV discounts, and for telemarketers playing on […]
FCC Amends TCPA Rules Effective July 20, 2023
On January 23, 2023, the Federal Communications Commission (FCC) announced an important change to its rules regarding calls to residential numbers that are currently exempt from the Telephone Consumer Protection Act (TCPA). Effective July 20, 2023, these rule amendments will impact certain calls placed to residential numbers and aim to enforce the restrictions imposed by […]
New York State Senators Introduce Assembly Bill A3525
On January 20, 2023, New York State Assembly Members Jeffrey Dinowitz and Michael Benedetto introduced Assembly Bill (AB) A1730, which seeks to establish the Uniform Debt-management Services Act. AB A1730 was referred to the Committee on Assembly Consumer Affairs and Protection, where it will be evaluated by Committee members, who will then decide whether or […]
CFPB Proposes New Rule to Curb Excessive Credit Card Late Fees
On Wednesday, February 1, 2023, the Consumer Financial Protection Bureau (CFPB) has proposed a new rule to curb excessive credit card late fees, which cost American families approximately $12 billion every year. The proposed rule seeks to ensure that over-the-top late fees are illegal and could reduce late fees by as much as $9 billion […]
Massachusetts State Legislator introduces an Act relative to the licensing and supervision of debt management services in the Commonwealth.
On January 18, 2023, Massachusetts Representative Daniel Cahill (D) introduced Bill HD.1676 (“Bill”), which seeks to establish an Act relative to the licensing and supervision of debt management services in the Commonwealth (“Act”). HD.1676 has been filed in the Massachusetts House Docket, where it will be referred to the appropriate Standing House or Joint Committee. […]
FTC Proposes Ban on Employee Non-compete Clauses
On Thursday, January 5, 2023, the Federal Trade Commission (FTC) proposed a ban on non-compete clauses for workers in the United States. Non-compete clauses, which are commonly included in employment contracts, prohibit workers from competing with their current or former employer for a certain period of time, and typically in a certain geographical area, after […]
CFPB Issues Report on TransUnion, Experian, and Equifax
On January 3, 2022, the Consumer Financial Protection Bureau (CFPB) published an annual report on the big three consumer reporting companies TransUnion, Equifax, and Experian. Specifically, the CFPB’s report focuses on these big three bureaus’ responses to consumer complaints. Here are some highlights of the report, which is based on the whopping 488,000 complaints received […]
CFPB Issues Proposed Rule Imposing Reporting Requirements on Certain Non-Bank Entities
On December 12, 2022, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule pursuant to its authority under the Consumer Financial Protection Act of 2010 (CFPA). This rule would require certain non-bank entities to register with the CFPB upon obtaining final orders and judgments issued by local, state, or federal consumer financial protection agencies […]
New York Legis 660 Additional Requirements for Telemarketers: What You Should Know
Summary of NY Legis 660 NY Legis 660 (proposed as AB 8319) is a recently approved amendment to Section 399-z of New York’s General Business Law that will impose additional disclosure requirements that telemarketers must make to New York consumers. Upon becoming effective March 6, 2023, NY Legis 660 will require telemarketers making calls to […]
U.S. District Court for the Middle District of Tennessee Grants FTC’s Motion to Temporarily Shut Down Alleged Credit Card Debt Relief Scheme
On November 21, 2022, the U.S. District Court for the Middle District Of Tennessee granted the Federal Trade Commission’s (FTC’s) ex parte motion for, among other relief, a temporary restraining order (“TRO”) to shut down an alleged credit card debt relief scheme. The order follows a November 7, 2022 complaint filed by the FTC against […]
FCC Rules Ringless Voicemails Fall Under TCPA and Require Consumer Consent
On November 21, 2022, the Federal Communications Commission (FCC) released a Declaratory Ruling and Order (“Order”) holding that ringless voicemails to wireless phones require consumer consent. The FCC further held that ringless voicemails are covered by the TCPA because they are calls made using an artificial or prerecorded voice. The FCC’s ruling follows a March […]
California’s Northern District Court Holds Text Messages are Not Pre-Recorded or Artificial Voices Under the Federal TCPA
On November 18, 2022, the United States District Court for the Northern District of California ruled that text messages sent by a “chatbot” do not constitute an artificial or prerecorded voice, per the federal Telephone Consumer Protection Act (TCPA). In the case, Risher v. Adecco, Inc., the plaintiff alleged that the defendants violated Section 227(b)(1)(A)(iii) of the […]
CFPB Circular Clarifies Consumer Reporting Agencies and Furnishers of Information can be Liable under Fair Credit Reporting Act for Failing to Investigate Disputes and Attempting to Deter Consumers from Submitting Disputes
On November 10, 2022, the Consumer Financial Protection Bureau (CFPB) released Consumer Financial Protection Circular 2022-07 (hereinafter, “the Circular”). The Circular resolves two issues for credit reporting agencies (CRA’s) and entities that furnish information to CRA’s (“furnishers”): 1. Whether the Fair Credit Reporting Act (FCRA) permits CRA’s and furnishers to impose obstacles in order to […]
Florida Middle District Court Finds Receiving Pre-Recorded Voice Messages Insufficient Basis for Standing to Bring Class Action Suit Alleging TCPA Violation
On November 2, 2022, the U.S. District Court for the Middle District of Florida held, sua sponte, that a plaintiff did not have standing to bring a class action suit alleging a TCPA violation. The February 9, 2022 complaint alleges that the plaintiff received two pre-recorded voice messages on his cell phone from the defendant, […]
Fifth Circuit Court of Appeals Finds CFPB Funding Mechanism Unconstitutional Violation of Appropriations Clause
On October 19, 2022, three judges in the Fifth Circuit Court of Appeals ruled that the funding mechanism of the Consumer Financial Protection Bureau (CFPB) is unconstitutional. Specifically, the court found CFPB’s receivings funds upon the CFPB Director’s request to the Federal Reserve instead of through Congressional appropriations to violate the Appropriations Clause of the […]