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Consumer Financial Services Watch

News and developments related to consumer financial products and services

S.D.N.Y. Judge Denies Class Certification in Fair Housing Act Suit against Morgan Stanley

Posted in Litigation & Enforcement Actions, Mortgage Lending

By: Andrew C. Glass, Roger L. Smerage, Eric W. Lee

The United States District Court for the Southern District of New York recently denied class certification in a Fair Housing Act disparate-impact case in which plaintiffs attempted to hold Morgan Stanley liable for investing in subprime mortgage loans that another entity originated. Adkins v. Morgan Stanley, No. 12-CV-7667, 2013 WL 3835198 (S.D.N.Y. May 14, 2013).
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Kristie Kully to speak at NBI Seminar: What the CFPB and FTC Need You to Know—RESPA/TILA, FDCPA and More

Posted in Bureau of Consumer Financial Protection (CFPB)

Kristie Kully will participate as a speaker in the National Business Institute Seminar: What the CFPB and FTC Need You to Know—RESPA/TILA, FDCPA, and More, May 14–15, 2014. Kristie will be speaking at the following sessions: “Loan Estimates Under the New Rules,” “Closing Disclosures—Changes You Need to Know,” and “Loan Originator Compensation: What You Need to Know—NOW.”
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Webinar: K&L Gates Social Media Series: Social Media Marketing─Advertising Laws and Other Considerations

Posted in Bureau of Consumer Financial Protection (CFPB)

Please join us for the third in a series of webinars focusing on the intersection of social medial, law, and business. This program is targeted to legal counsel or marketing personnel in businesses that want to engage consumers through social media platforms. It will focus on the regulatory considerations surrounding social media, and advertising and marketing laws, with an emphasis on FTC issues.
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Proposed Arbitration Fairness Act Would Ban Pre-Dispute Arbitration Clauses in Consumer Contracts

Posted in Litigation & Enforcement Actions, Privacy & Information Security

By: Andrew C. Glass, Robert W. Sparkes, III, Roger L. Smerage, Eric W. Lee

Two members of Congress are seeking to expand the reach of a federal ban on pre-dispute arbitration agreements to cover nearly all consumer contracts. The proposed legislation would have a widespread effect, barring the use of pre-dispute arbitration provisions in credit card agreements, auto loan agreements, wireless telephone service contracts, and many other types of consumer-facing agreements that often contain such provisions.
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CFPB Releases its 2014 Fair Lending Report

Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination

By: Melanie Brody, Anjali Garg

On April 28, the CFPB issued its third Fair Lending Report, highlighting fair lending developments from calendar year 2014. The CFPB reports that in 2014, its fair lending supervisory and public enforcement actions resulted in $224 million in remediation to approximately 303,000 consumers. The CFPB referred 15 matters to the Department of Justice in the areas of mortgage lending, auto finance, unsecured consumer lending and credit cards, and student lending. DOJ declined to open an independent investigation in five of those matters.
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Spokeo, Inc. v. Robins: U.S. Supreme Court to Consider Whether Plaintiffs Have Standing to Assert a Statutory Violation without Alleging any Actual Harm

Posted in Litigation & Enforcement Actions

By: Andrew C. GlassBrian M. ForbesGregory N. BlaseRobert W. Sparkes, IIIRoger L. SmerageEric W. Lee

The United States Supreme Court has granted certiorari to decide whether a statutory violation alone, unaccompanied by any actual harm to the plaintiff, is sufficient to establish Article III standing. See Spokeo, Inc. v. Robins, No. 13-1339 (U.S. Apr. 27, 2015). Continue Reading

Last Week to File for Retroactive Waiver of FCC Rule Requiring Opt-Out Notice on All Fax Advertisements

Posted in Litigation & Enforcement Actions, Privacy & Information Security

By: Joseph C. Wylie IIMolly K. McGinleyNicole C. Mueller

Companies that communicate by fax have until April 30, 2015 to request a retroactive waiver from a Federal Communications Commission rule requiring that opt-out notice be included on all fax ads, including those sent to consumers who have provided prior express invitation or permission. Continue Reading

K&L Gates to speak at MBA’s Legal Issues and Regulatory Compliance Conference 2015

Posted in Mortgage Servicing

K&L Gates’ Consumer Financial Services team will speak at MBA’s Legal Issues and Regulatory Compliance Conference 2015 in Chicago, Illinois (May 3-6).

Melanie Brody will speak on May 3, 2015 as part of the “Essentials of Fair Housing, ECOA, HMDA” panel. This panel will review the lending-related requirements of the Fair Housing Act, the Equal Credit Opportunity Act (ECOA,) and the Home Mortgage Disclosure Act (HMDA) to provide context for discussions throughout the conference.
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Five Steps To Data Breach Coverage For Card Issuer Liability

Posted in Payment Systems, Privacy & Information Security

By: Roberta D. Anderson

Target’s recent $19 million settlement with MasterCard underscores very significant sources of potential exposure that often follow a data breach incident. In the wake of any significant breach involving payment cards, such as the Target breach, retailers and other organizations that accept those cards are likely to face — in addition to a slew of claims from consumers and investors — claims from financial institutions seeking to recover their losses associated with issuing replacement credit and debit cards, among other losses. Continue Reading

Client of Blast Fax Solutions Provider Hit with $22 Million TCPA Judgment

Posted in Litigation & Enforcement Actions, Privacy & Information Security

By: Joseph C. Wylie II, Molly K. McGinleyNicole C. Mueller

A new decision once again highlights the dangers that companies face if their independent contractors engage in conduct that violates the Telephone Consumer Protection Act, and highlights the need to monitor contractor compliance with the TCPA. In City Select Auto Sales, Inc. v. David/Randall Assocs., Inc., a federal court in New Jersey recently found a roofing company, David/Randall Associates, liable for $22.4 million under the TCPA for the actions of its blast fax solutions provider, Business to Business Solutions (B2B). Continue Reading