Consumer Financial Services Legal Update Blog

FTC’s Data Security Authority Curbed by 11th Circuit

The Federal Trade Commission (“FTC”) has long been considered the agency best suited to regulate data security. The Eleventh Circuit dealt a serious setback to that authority yesterday in LabMD v. FTC, No. 16-16270, striking down its attempt to subject LabMD to proscriptive future data security measures. With the release of this opinion, companies now have a variety of new tools to push back against...

The Ever-Evolving Interpretation of an ATDS: Where Are We Now? (No, Really!)

On May 5, 2018, a broad range of 18 industry groups led by the U.S. Chamber of Commerce, including ACA International and members of the financial services industry, petitioned the FCC to seek clarity on the definition of an automatic telephone dialing system in light of the D.C. Circuit’s March 16, 2018 decision in ACA Int’l. v. FCC, which vacated the FCC’s prior ATDS interpretation as unreasonable, arbitrary, and capricious.

Congress Considers So-Called ROBOCOP Bills

While the D.C. Circuit and the FCC have been in the limelight over the past few years for the regulation of automated calls, Capitol Hill is now abuzz with its own efforts to answer the clarion call of consumer complaints over the issue. Democrats in both the Senate and the House have decided to throw their hats in the ring by introducing legislation seeking to enhance protections for consumers besieged by the purported ongoing epidemic of “robocalls.”

PSA: FCC Seeks Comment on Reassigned Number Databases and the Creation of a TCPA Safe Harbor

As we reported last month, on the heels of the D.C. Circuit’s ruling in ACA Int’l v. FCC, the D.C. Circuit has created a tabula rasa for the FCC’s treatment of reassigned numbers under the Telephone Consumer Protection Act. The FCC now seeks to clarify the interplay between that decision and the Commission’s ongoing efforts to establish one or more reassigned number databases.

FCC Leadership to Change Composition as Clyburn Announces Retirement

Last week, Democrat Mignon L. Clyburn announced that she will be stepping down from her position as a commissioner of the Federal Communications Commission before its next scheduled meeting on May 10. Commissioner Clyburn was first nominated to serve on the FCC by President Barack Obama in August 2009, and she completed her second term with the agency last summer. President Donald Trump and the Senate will be responsible for filling her seat with a Democratic appointee to restore the 3-2 Republican-Democratic split and thereby keep with the custom that three of the FCC’s five commissioners be affiliated with the party of the President.

ACA International v. FCC Aftermath: 28 Days Later

In ACA Int’l v. FCC, No. 15-211, 2018 U.S. App. LEXIS 6535 (D.C. Cir. Mar. 16, 2018) the United States Court of Appeals for the District of Columbia Circuit overturned the FCC’s “expansive” interpretation of what constitutes an automatic telephone dialing system (“ATDS”) under the Telephone Consumer Protection Act, 47 U.S.C. § 227 et seq. For an overview of key takeaways from the ruling, please see...

Back to Basics: What is an “ATDS,” Really?

Following the D.C. Circuit’s opinion in ACA Int’l v. FCC, No. 15-1211, 2018 U.S. App. LEXIS 6535 at *9 (D.C. Cir. Mar. 16, 2018), members of the Bar on all sides have found themselves potentially living in a throwback era. This is particularly true with respect to what may or may not qualify as an automatic telephone dialing system, or “ATDS,” under the Telephone Consumer Protection Act, 47 U.S.C. § 227 et seq.

CFPB Publishes Semiannual Report to Congress: Dorsey Partner Quoted in American Banker Article, “It ‘Would Stab a Knife’ into CFPB: Critics React to Mulvaney Proposal”

American Banker quoted Dorsey & Whitney partner Jenny Lee in an article reporting on the legal community’s response to the Consumer Financial Protection Bureau’s latest semiannual report to Congress. Lee noted that the report’s focus on “credit invisibles” (consumers who have little or no access to credit) and their overlap with users of payday and installment loans suggests that the Bureau will seek to facilitate access to credit going forward.

CFPB Issues FAQs on Mortgage Servicing Rules on the Eve of Compliance Deadline

With less than one month remaining until the April 19, 2018 effective date of bankruptcy-related amendments to Regulation X and Regulation Z, the Consumer Financial Protection Bureau has issued “Mortgage Servicing FAQs” to address several questions it has received regarding the new bankruptcy statement requirements. Specifically, the FAQs provide some clarification regarding periodic statements, coupon books, reaffirmation, successors in interest, and the effective date.

D.C. Circuit Shuts Down Rite Aid’s Challenge to Expand Healthcare Exemptions under the TCPA and HIPAA

On March 16, 2018, the U.S. Circuit Court of Appeals for the District of Columbia issued a groundbreaking decision in ACA Int’l v. FCC, No. 15-1211, 2018 U.S. App. LEXIS 6535 (D.C. Cir. Mar. 16, 2018) that raises a number of questions regarding the future of the Telephone Consumer Protection Act. The ACA Int’l decision, however, left certain healthcare communications intact while establishing the test in which a party is an “aggrieved party” for purposes of challenging orders issued by the Federal Communications Commission (“FCC”). This article provides a brief overview of the TCPA regulatory landscape and examines the implications of the ACA Int’l decision for the healthcare industry.