The Consumer Financial Protection Bureau (“CFPB”) has published for public comment, a proposed rule amending Regulation C to implement amendments to the Home Mortgage Disclosure Act (HMDA). The HMDA requires certain financial institutions to collect and report information in connection with housing-related loans and loan applications. The amendments made by the Dodd- Frank Act expanded the scope of information relating to mortgage applications and loans that must be compiled, maintained, and reported pursuant to HMDA. The CFPB proposes to amend Regulation C to add several new reporting requirements and seeks to clarify existing requirements. The general categories of the proposed modifications are as follows: Continue reading this entry
“If you give me your number, I can call it, however I want.” For more than twenty years this statement has summarized the Federal Communications Commission view of prior express consent under the Telephone Consumer Protection Act. On September 29, 2014, the United States Court of Appeals for the Eleventh Circuit vindicated that view by overruling an outlier federal district court decision which caused trepidation among businesses using automatic telephone dialing system to reach customers.
Here is a reminder of the facts of Mais v. Gulf Coast Collection Bureau: In 2009, Mark Mais went to the Westside Regional Hospital emergency room in Broward County, Florida for treatment. His wife Laura completed the admission paperwork and provided his cell phone number to the hospital admitting staff. Florida United Radiology provided services for Mais that day. It later sent Mais a bill for $49.03. Mais did not pay. His debt was referred to the Gulf Coast Collection Agency. Gulf Coast uses an automatic telephone system to call debtors. It called Mais somewhere between 15 and 30 times with an automatic telephone dialing system in an effort to collect. Continue reading this entry
Industry now waits as the Eleventh Circuit considers whether to overturn a Florida district court decision rejecting the Federal Communications Commission’s definition of prior express consent under the Telephone Consumer Protection Act. On September 18, 2014, the United States Court of Appeals for the Eleventh Circuit heard argument in the Mais v. Gulf Coast Collection Bureau case. At issue is whether this long standing principle survives: If you give me your number, I can call it, however I want. Continue reading this entry
In separate suits brought by the Consumer Financial Practices Bureau (“CFPB”) and the Federal Trade Commission (“FTC”) federal courts have frozen the assets of two separate groups who allegedly defrauded consumers by creating unauthorized payday loans.
Payday loans are short term loans generally made in small amounts that are intended to be repaid out of the borrower’s next paycheck, together with interest. The interest is generally at a very high annual rate, but due to the short anticipated duration of the loan borrowers do not expect to pay a large amount of interest. Consumers often seek online payday loans through websites operated by “lead generators”. Consumers must provide their social security numbers and checking account numbers in order to apply for these loans. This information is then sold to firms who make the loans, according to the CFPB complaint.
Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims.
In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive. Continue reading this entry