Tag Archives: Consumer Financial Services Litigation

FTC Releases 2012 Annual Report of Consumer Complaints

Consumer complaints are playing a big role in the federal government’s identification of and investigations into violations of consumer protection laws. The Federal Trade Commission (“FTC”) recently released its 2012 annual report of consumer complaints, which revealed that consumer fraud complaints make up over half of all the 2012 complaints received by the FTC. The … Continue reading this entry

CFPB Proposes Amendments to New Final Ability-to-Repay Rule, Solicits Comment on Calculating Loan Originator Compensation

On January 10, 2013, the CFPB issued its final ability-to-repay rule (Rule), which implements Dodd-Frank mortgage reforms requiring creditors to make a reasonable and good faith determination that a consumer will have a reasonable ability to repay the loan according to its terms. Failure to comply with these requirements may give rise to various damages … Continue reading this entry

Bank Sued Over "Unfair" and "Deceptive" Overdraft Fees

A large bank was sued in federal court in New York last week by a putative nationwide class alleging that the bank engaged in “unfair, deceptive, and unconscionable assessment and collection of excessive overdraft fees.” The complaint accuses HSBC Bank and other companies of manipulating the order of customers’ debit card transactions to maximize overdraft … Continue reading this entry

An Assessment of Security Procedures – Eleventh Circuit Reversal of Safe Harbor Application Finding

For banks operating in Florida (or other jurisdictions with similar provisions regarding security procedures for payment orders), the Eleventh Circuit has recently issued an opinion that may call into question the validity of existing security procedures and the corresponding applicability of the safe-harbor risk shifting provision of Fla. Stat. §670.202. In Chavez v. Mercantil CommerceBank, … Continue reading this entry

Seventh Circuit Affirms Summary Judgment in FDCPA Action, Criticizes Survey Evidence, and Suggests District Courts Appoint Neutral Survey Experts

The Seventh Circuit Court of Appeals recently issued an opinion in two related class action suits involving the Fair Debt Collection Practices Act (FDCPA) (15 U.S.C. §§ 1692-1692p) – DeKoven v. Plaza Assoc. and Kubert v. Aid Assoc. Plaintiffs complain about “dunning letters” sent to them by debt collectors. The letters state in relevant part: (1) that … Continue reading this entry

Class Action Lawsuit Over freecreditreport.com

A Wisconsin college student has filed a seven count class action complaint against Experian for its freecreditreport.com ads. The Plaintiff alleges that she was in the midst of purchasing a new car and wanted to check her credit. She claims that in March 2008, she went to freecreditreport.com for a single (but free) credit report … Continue reading this entry

Second Circuit: Lawsuit During FDCPA Validation Period Overshadows Notice

A recent case out of Connecticut waves a yellow flag at debt collectors who file lawsuits within 30 days of sending a consumer a validation notice under the Fair Debt Collections Practices Act (“FDCPA”). On January 13, 2010, the Second Circuit Court of Appeals held that a law firm and two of its lawyers violated … Continue reading this entry

United States Supreme Court Recognizes Rise In Consumer Credit Litigation

Each year, Chief Justice John Roberts. Jr. issues a report about the state of the federal judiciary. For 2009, Justice Roberts reported a 6% year-to-year decline in filings in the Supreme Court and federal courts of appeals. The federal district courts saw a 3% increase in filings over 2008 filings, up to 276,397 filings in … Continue reading this entry

Breaking News

Law360 is reporting this morning that JPMorgan Chase & Co. has settled out of a class action suit brought against it and other credit card companies in the Southern District of New York. The plaintiffs allege, among other things, that credit card companies conspired to mandate arbitration to settle disputes against credit cardholders.… Continue reading this entry

Third Circuit Holds Overcharges Not Required in RESPA Actions

The Third Circuit just issued an opinion, Alston v. Countrywide Financial Corp., holding that plaintiffs are not required to have suffered an overcharge to bring a cause of action under the Real Estate Settlement Procedures Act (“RESPA”).… Continue reading this entry

Senator Chris Dodd Introduces New Bill to Immediately Freeze Credit Card Interest Rates

Senate Banking Committee Chairman Chris Dodd introduced a bill today that seeks to freeze interest rates on existing credit card balances. The Credit Card Accountability, Responsibility, and Disclosure Act (the “Credit CARD Act”), passed by Congress in May, currently allows interest rate increases on existing balances under limited circumstances. The new bill, if passed by … Continue reading this entry