Consumer Financial Services Legal Update Blog

Bad News and Good News – The CFPB’s Arbitration Rule

Just when you thought that the practical operational restraints imposed by the new Administration had limited (i.e., handcuffed) the Consumer Financial Protection Bureau’s ability to engage in new mischief-making (i.e., new rule-making), today the CFPB issued its arbitration rule.

Supreme Court Holds Debt Buyer Not Subject to FDCPA

In his first written opinion, Justice Neil Gorsuch wrote in Henson v. Santander Consumer USA, Inc. that the Fair Debt Collection Practices Act does not apply to debt buyers like Santander under one of the definitions for “debt collector.” This decision has potentially broad ramifications for financial institutions that purchase debts for collection as part of their business. At the same time, the decision leaves the door open to potential future disputes under the remaining definitions under the FDCPA.

$283MM in Telemarketing Penalties: The Top 10 Things You Need to Know About the Big Dish Ruling This Week

On the heels of a crushing $60MM civil judgment in North Carolina two weeks ago, Dish was hit with a staggering $283MM in penalties in an epic ruling by Judge Sue E. Myserscough of the Central District of Illinois this week. The opinion offers a rare inside look at the thought process of Dish’s executives and compliance counsel—including the machinations of its executive working groups—as they struggle to comply with the FTC and FCC’s evolving telemarketing regulations.

Supreme Court Issues Midland Funding Decision

On May 15, 2017, the Supreme Court issued a 5-3 decision holding that it is not a violation of the Fair Debt Collection Practices Act to file a proof of claim in bankruptcy related to a debt for which the statute of limitations has expired, resolving a previous circuit court split regarding the issue.

Browsewrap Disclosure Held Insufficient to Constitute “Prior Express Written Consent” Even for a Healthcare-Related Call

Folks involved with selling health insurance, or anything else for that matter, relying upon browsewrap website terms might want to give Sullivan v. All Web Leads, Inc. a careful read. Although the ruling took place at the pleadings stage, the Court’s approach to a complaint alleging calls made to individuals requesting health care quotes after submitting personal information on a website is important for industry participants to consider.

What You Need to Know About the CFPB and the PHH Argument Yesterday

Which is the better policy? Having banking agency heads be removed for only malfeasance and wrongdoing, or be removed for any reason? This question is the critical issue that the judge asked in yesterday’s oral argument in PHH Corporation v. Consumer Financial Protection Bureau that no one is talking about.