Author: Jeremy Schlosser

Jeremy Schlosser

An associate in Dorsey’s Trial Group, Jeremy’s practice focuses on commercial and banking litigation, as well as regulatory compliance involving the Bank Secrecy Act, the Foreign Corrupt Practices Act, and matters involving the Consumer Financial Protection Bureau. Jeremy’s clients have included both Chinese entities and American entities with operations in Mainland China and Taiwan. He is fluent in written Chinese and in spoken Mandarin

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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.

District Court Holds Consumer May Sue U.S. Governmental Entity for Money Damages under FCRA

On February 7, 2018, the U.S. District Court for the Eastern District of Michigan denied a motion by the U.S. Department of Agriculture (“USDA”) to dismiss a lawsuit filed against the USDA seeking money damages for alleged violations of the Fair Credit Reporting Act (“FCRA”). In moving to dismiss, the USDA argued that the FCRA claim was barred by federal sovereign immunity. However, the court rejected that argument, holding that the U.S. Government had waived its sovereign immunity from actions seeking monetary relief for FCRA violations. As a result, the court held, it had subject matter jurisdiction over the FCRA claim. See Jones v. United States Dep’t of Agric., No. 17-11530, 2018 U.S. Dist. LEXIS 19886 (E.D. Mich. Feb. 7, 2018).

Federal Court Orders Loan Servicer to Comply with CFPB’s CID Investigating Potential UDAAP and FCRA Violations

On February 28, 2018, a Pennsylvania federal district court granted a petition by the CFPB to enforce a CID against a student loan servicer to investigate potential Unfair, Deceptive or Abusive Acts or Practices or violations of FCRA in CFPB v. Heartland Campus Solutions, ECSI. The court applied the Supreme Court’s Morton Salt test applicable to investigative demands, and ruled in the CFPB’s favor, marking a court victory for the Mulvaney-led CFPB in investigative efforts to enforce a CID against the loan servicer.

Changes at the CFPB: Dorsey Partner Quoted in American Banker Article, “Mulvaney Looks to Neuter CFPB’s Most Potent Weapon”

American Banker quoted Dorsey & Whitney partner Jenny Lee in an article reporting on the Consumer Financial Protection Bureau’s new strategic plan. The article observes how the CFPB’s February 12, 2018 plan dropped all mention of “unfair, deceptive or abusive acts or practices” from the Bureau’s vision statement, suggesting that Mick Mulvaney will de-emphasize actions against regulated entities for so-called UDAAP violations.

Senate Republicans Sink Controversial CFPB Anti-Arbitration Rule: Lessons Learned for the CFPB

On Tuesday, the Senate voted 51-50 (with Vice President Mike Pence casting the tiebreaking vote) to overturn the Consumer Financial Protection Bureau’s July 2017 rule banning firms from including arbitration clauses blocking class-action lawsuits in consumer financial contracts. The Senate’s action follows a 231-190 vote in the House in July 2017 to overturn the Rule. Under the Congressional Review Act, the resolution will now go to President Trump, whose expected signature will invalidate the Rule and prohibit the CFPB from revisiting it for an extended period of time.

Why the Bank Examination Privilege Doesn’t Work as Intended

In a new article published in the Yale Journal on Regulation, Dorsey & Whitney partner Eric B. Epstein examines the growing rift between how one would expect the bank examination privilege to operate and how the privilege actually works when banks become involved in litigation with nongovernmental parties.

Who is a Mortgage Broker? Just Ask the Fed.

The United States Court of Appeals for the Second Circuit recently affirmed a magistrate judge’s decision in the District Court for the Eastern District of New York to dismiss a complaint brought under TILA and HOEPA. The complaint sought rescission of two loans secured by a lien on a co-operative apartment on the grounds that certain required disclosures were not made by the lender. Adopting the Federal Reserve’s definition of “mortgage broker” the Second Circuit affirmed the district court’s finding that the appellant borrower failed to establish that the subject loans were procured by a mortgage broker.