Consumer Finance

In Perez v. McCreary, Veselka, Bragg & Allen, P.C., No. 21-50958, 2022 U.S. App. LEXIS 22649, at *9 (5th Cir. Aug. 15, 2022), the Court of Appeals dismissed sua sponte an action where class certification had been granted because the representative lacked Article III standing.  The Court of Appeals summarized its holding as follows: On appeal, MVBA does not contest… Read More

In Pizarro v. Quinstreet, Inc., No. 22-cv-02803-MMC, 2022 U.S. Dist. LEXIS 145556, at *1-2 (N.D. Cal. Aug. 15, 2022), Judge Chesney ordered a TCPA Class-action Plaintiff's case to arbitration. In her Complaint, Pizarro alleges QuinStreet is a "marketing company" that "sells consumer contact information to lenders" in exchange for referral fees. (See Compl. ¶ 4.) Specifically, Pizarro alleges, QuinStreet "harvests… Read More

In Brickman v. Meta (9th Cir. No. 21-16785),  the Court of Appeals for the 9th Circuit is poised to rule on efforts to evade the SCOTUS' ruling in Duguid.  According to the Respondent's Brief, the issue is framed as: This appeal involves an effort to evade the consequences of binding Supreme Court precedent that squarely forecloses Plaintiff’s claim. The Telephone Consumer Protection… Read More

The FTC announced an advanced notice of proposed rulemaking on commercial surveillance and security.  “Commercial surveillance” is defined as the business of collecting, analyzing and profiting from consumer data. The FTC seeks public comment on implementation of new rules on how businesses "(1) collect, aggregate, protect, use, analyze, and retain consumer data, as well as (2) transfer, share, sell, or… Read More

On August 11, 2022, the CFPB issued a circular on data security and the question "[c]an entities violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security?"  The short answer is "yes." The CFPB highlights specific security measures to minimize risk. In line with the new… Read More

In In re Portfolio Recovery Assocs., LLC, Consumer Act Litig., 2022 U.S. Dist. LEXIS 141028, at *30-34 (S.D. Cal. Aug. 8, 2022), Judge Houston stayed a TCPA case based on an ATDS issue currently pending before the 9th Circuit in Brinkman. Plaintiffs seek a stay of this action pending the resolution of Brickman v. Facebook, Inc., currently before the Ninth… Read More

In Paredes v. Credit Consulting Servs., No. H048092, 2022 Cal. App. Unpub. LEXIS 4848, at *28-31 (Aug. 8, 2022), the Court of Appeal affirmed denial of an anti-Slapp motion filed against a Rosenthal Act complainant suing over alleged misrepresentations made in a debt collection complaint.  First, the Court found that the Rosenthal Act cross-complaint was not barred by the statute… Read More

D'Happart v. First Commonwealth Bank, 2022 PA Super 132, 2022 Pa. Super. LEXIS 328 (No. 580 WDA 2021 August 5, 2022) , Judge Bender affirmed the Court of Common Pleas finding against a consumer who challenged the application of the UCC's safe harbor to the notice required after his vehicle was repossessed. Appellants' second issue, they claim that FCB's "pre-sale… Read More

In Weister v. Vantage Point AI, LLC, No. 8:21-cv-1250-SDM-AEP, 2022 U.S. Dist. LEXIS 139642, at *2-5 (M.D. Fla. Aug. 3, 2022), Judge Merryday denied summary judgment to a ringless voicemail message provider whose telemarketing messages were challenged under the TCPA. The facts were as follows: The following facts are either undisputed or construed in Weister's favor. VantagePoint sells "financial, technical… Read More

In Moore v. Robinhood Fin. LLC, No. 2:21-cv-01571-BJR, 2022 U.S. Dist. LEXIS 138392, at *2-5 (W.D. Wash. Aug. 3, 2022), Judge Rothstein allowed a CEMA claim to proceed against Robin Hood under its "Refer-a-Friend" program. The facts alleged are as follows: Robinhood is an online investments brokerage service firm that, through its free mobile application (the "Robinhood App") and website,… Read More

In In Valdera v. PHH Mortg. Corp., No. 20-470-JJM-PAS, 2022 U.S. Dist. LEXIS 139869, at *10-12 (D.R.I. Aug. 4, 2022), Judge McConnell denied summary judgment to an FDCPA Defendant who argued that the loan documents designated the loan for investment purposes because the Plaintiffs claimed that they lived at the property. PHH argues that the FDCPA does not protect Plaintiffs'… Read More

Ruling on Defendant's Motion to Dismiss (Aviva Kirsten v. Cal. Pizza Kitchen, Inc., No. 2:21-cv-09578-DOC-KES (C.D. Cal. July 29, 2022), Judge David O. Carter of the Central District of California held: Defendant argues that Plaintiffs’ CCPA claim fails because Plaintiffs provide no facts to maintain that Defendant failed to maintain reasonable security procedure and practices. Mot. at 20. However, Defendant… Read More

On July 27, the CFPB issues an extensive FAQ or "Compliance Aid" on how to comply with the new FDCPA regulations.  A Compliance Aid is This designation will provide the public with greater clarity regarding the legal status and role of these materials, as discussed below. The Bureau does not intend to use Compliance Aids to make decisions that bind… Read More

In Gallo v. Wood Ranch United States, No. B311067, 2022 Cal. App. LEXIS 652, at *3-6 (Ct. App. July 25, 2022), the Court of Appeal addressed the effect of late payment of arbitration fees under the penalties provided for by Civil Procedure Code sections 1281.97 and 1281.99, which obligate a company or business who drafts an arbitration agreement to pay… Read More

In Wynne v. Audi of Am., No. 21-cv-08518-DMR, 2022 U.S. Dist. LEXIS 131625, at *2-4 (N.D. Cal. July 25, 2022), Judge Ryu found that the CCPA, by itself, does not confer Article III standing under the SCOTUS' TransUnion decision.  The facts of the data breach were as follows: Wynne makes the following allegations in the amended complaint: Defendant Audi is a… Read More

In Richmond v. Medicredit, Inc., No. 5:21-CV-00068-KDB-DSC, 2022 U.S. Dist. LEXIS 130092, at *8 (W.D.N.C. July 22, 2022), Judge Bell denied an FDCPA defendant's summary judgment motion. The Court finds that there is a genuine issue of material fact as to whether Medicredit reported Richmond's debts as disputed to the credit reporting agencies ("CRAs"). The FDCPA protects consumers from certain… Read More

In Costa v. Dvinci Energy, Inc., Civil Action No. 21-11501-NMG, 2022 U.S. Dist. LEXIS 130208, at *4-6 (D. Mass. July 22, 2022), Judge Gorton declined to strike a TCPA class action at the pleadings stage despite complaints that it is a "fail-safe" class. Dvinci contends that the proposed class is fail-safe—and thus must be struck—because it defines its membership in… Read More

In Tukin v. Halsted Financial Services, LLC, Judge Wood found no Article III standing for a Hunstein claim (of sharing a consumer's data with a vendor) where the sharing was done by way of encrypted data transfer. First, of note, Judge Wood found no "glassine window" violation for use of an "Intelligent Mail Code" on the dunning letter's envelope. Count III alleges that… Read More

In El v. Ally Bank, No. 2:22-cv-00874-APG-DJA, 2022 U.S. Dist. LEXIS 130239, at *1-5 (D. Nev. July 22, 2022), Magistrate Albregts dismissed a claim that the Court described as being based on sovereign citizen theories against a Bank. Not only do El's motions fail to state the grounds for the relief she seeks or even what relief she seeks, El's motions… Read More

In Riser v. Cent. Portfolio Control, Inc., 2022 U.S. Dist. LEXIS 109545, Case No. 3:21-cv-05238-LK (W.D. Wash. June 21, 2022), Judge King dismissed an FCRA claim against a consumer reporting agency over the propriety of reporting a medical debt which the Plaintiff claimed that she did not owe because she was covered by Washington's Medicaid plan. Relying on the Ninth… Read More