Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

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Showing 29 posts in Credit Cards.

CFPB Card Act Report Identifies Five Credit Card Practices That “Warrant Further Scrutiny”

On December 3, the CFPB released its Report required by the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), with its perspective on the current state of the credit card market. The Report asserts that, since the enactment of the CARD ACT, consumers have avoided a combined $16 billion in over-limit and late fees. The report also posits that credit has generally become more available to consumers, and the number of new accounts has grown faster than in almost every other major consumer credit market. Read More ›

CFPB Proposes Effective Ban on Class Waivers in Arbitration Agreements

Just this week, the CFPB announced that it is considering proposing rules that would “ban consumer companies from using ‘free pass’ arbitration clauses to block consumers from suing in groups to obtain relief.” The proposals being considered would not ban arbitration clauses in their entirety. Among the proposals, arbitration clauses would have to explicitly state that they do not apply to cases filed as class
actions unless and until the class certification is denied by the court or the class claims are dismissed in court. The proposals also seek more oversight of the arbitration process by requiring companies that use arbitration clauses for individual disputes to submit information to the CFPB regarding the arbitration claims filed and awards issued. Read More ›

The Status of EMV

The October 1, 2015, deadline for merchants to become EMV compliant or potentially face increased liability has come and gone. Yet, a significant number of both card issuers and merchants have not yet made the switch. Read More ›

CFPB Reports On Credit Card Marketing To College Students

The pitch is familiar to almost everyone who has attended college: “Free pizza! Just sign up for a credit card with Bank!” or “No strings attached! Free T-shirt when you register with Bank!” Unfortunately, for many students these gimmicks lead to out of control spending and an early brush with systematic debt. On December 15, 2014, the Consumer Financial Protection Bureau (CFPB) issued its yearly report analyzing the agreements financial institutions make with colleges to market credit cards to students. Read More ›

CFPB Warns Credit Card Companies About Deceptive Marketing - Again

The Consumer Financial Protection Bureau (CFPB) has issued a new warning to credit card companies in order to curb recent deceptive marketing practices.  This is not the first time that the CFPB has warned credit card companies to be more clear with their offerings to consumers.  Read More ›

CFPB Proposed Arbitration Study Receives Criticism from Industry and Consumer Groups

In June 2013, the CFPB put credit card issuers and servicers on notice that it was planning to investigate consumer experience with mandatory arbitration agreements. With the proposed survey, the CFPB planned to elicit feedback regarding the effect of dispute resolution provisions on consumer choice of credit cards and consumers’ default assumptions regarding their dispute resolution rights, including their awareness, understanding, and valuation of certain resolution options. The information would be gathered through a telephone survey of 1,000 credit card holders. Dodd-Frank Act section 1028 mandates the CFPB conduct an arbitration study and the finding could result in new and far-reaching regulation of consumer financial products. The CFPB is authorized to regulate the use of dispute resolution agreements in the context of consumer financial products and services. Based on public comments, a revised proposed survey was published in May 2014. Read More ›

“Objectively Reasonable” Interpretation of FACTA Averts Liability

In Hammer v. Sam's E., --- F. 3d ---, 2014 U.S. App. LEXIS 10452 (8th Cir. June 5, 2014), the Eight Circuit Court of Appeals affirmed the District Court's grant of summary to Sam's Club on this class action Fair and Accurate Credit Transaction Act, 15 U.S.C. 1681 et seq (FACTA). The District Court found that although Sam's Club violated FACTA by printing more than the last five digits of consumers' credit card numbers on receipts, the violation was not willful, which is a statutory pre-condition to liability, because Sam's Club's interpretation of FACTA was objectively reasonable.  15 U.S.C. § 1681c(g)(1)Read More ›

CFPB Helps Protect Consumers Against Credit Card Data Breaches

The Consumer Financial Protection Bureau (CFPB) issued a consumer advisory last week instructing consumers on how to protect themselves against recent data breaches and where to get help if their information was stolen.  Millions of consumers have been exposed to potential fraud as a result of such breaches involving payment cards, including credit, debit, and prepaid cards.  Personal information, including names and contact information of consumers, appears to have been stolen as well.    Read More ›

The Hobbs Act Prevails Again: “Prior Express Consent” Under The TCPA Does Not Require Explicit Statement That an Autodialer May Be Used

The Administrative Orders Review Act (aka the Hobbs Act) provides exclusive jurisdiction to the federal court of appeals to determine the validity of all final orders of the Federal Communications Commission (FCC) and also specifies that any party aggrieved by a final order of the FCC may file a petition to review the order in the court of appeals with appropriate venue within 60 days after its entry.  On January 28, 2014, the United States District Court for the Central District of California held that “prior express consent” under the Telephone Consumer Protection Act (TCPA) exists when a cell phone number is voluntarily provided to a company.  The Court rejected the standard argument by TCPA plaintiffs’ lawyers that there must be a disclosure that the number will be autodialed in order for the provision of the number to be “prior express consent” under the TCPA.  The Court’s reliance on the Hobbs Act reinforces the need to use all the tools in your “TCPA tool box” when representing defendants in TCPA cases.  Read More ›

CFPB Continues to Ramp Up Oversight and Protection for Students

On December 3, 2013, the CFPB announced that it would begin supervising certain non-bank student loan servicers. Two weeks later, on December 17, 2013, it called on financial institutions to publicly disclose their agreements with colleges and universities to market debit and credit products to students. Read More ›