Consumer Finance

In Williams v. Pillpack LLC, No. 3:19-cv-05282-DGE, 2023 U.S. Dist. LEXIS 46640, at *5-9 (W.D. Wash. Mar. 20, 2023), Judge Estudillo approved a reverse-lookup class administration plan. PillPack objects to Mr. Williams's proposed notice plan because "(1) the reverse lookup process is an inaccurate and unreliable methodology to identify class members; and (2) Plaintiff's proposed process lacks steps to verify… Read More

Today, the DFPI issued a Notice of Proposed Rulemaking relevant to entities who may have to register with the DFPI under the CCFLP.  Comments are due by May 2, 2023.  In the DFPI's purpose statement, the DFPI explained: In September 2020, Governor Gavin Newsom signed Assembly Bill 1864, which codified the CCFPL in division 24 of the Financial Code and vested… Read More

In Byars v. Hot Topic, Inc., No. EDCV221652JGBKKX, 2023 WL 2026994 C.D. Cal. Feb. 14, 2023), Judge Bernal granted Hot Topic's motion to dismiss.  The Court detailed several reasons for granting the motion.  First, "[t]he FAC does not plausibly allege in good faith that $5 million is in controversy under CAFA."  Id. at *5.  "[T]he FAC does not allege a… Read More

In Williams v. DDR Media, LLC, No. 22-cv-03789-SI, 2023 U.S. Dist. LEXIS 33319, at *1-5 (N.D. Cal. Feb. 28, 2023), Judge Illston denied a Petition to Compel Arbitration in a CIPA class action.  The CIPA class action was based on the following facts. On June 27, 2022, Loretta Williams filed a class action complaint against defendants DDR Media LLC and… Read More

In Ramirez v. Midland Credit Mgmt., No. 22-cv-02772-VC, 2023 U.S. Dist. LEXIS 32517, at *1-5 (N.D. Cal. Feb. 27, 2023), Judge Chhabria allowed claims to proceed against a creditor for the act of calling a Plaintiff one time about a debt—and confirming on that same call that the Plaintiff was not the debtor. Capital One's motion to dismiss is denied.… Read More

The Court 0f Appeals for the 11th Circuit's limited the FTC's enforcement powers in LabMD, Inc. v. Federal Trade Commission, 894 F.3d 1221, 1237 (11th Cir. 2018).  In follow-on litigation by LabMD against the FTC, Judge Brown dismissed on statute of limitations grounds a case against the FTC arising out the FTC's civil enforcement proceeding against LabMD. In Labmd, Inc.… Read More

In Weiner v. Ocwen Fin. Corp., No. 2:14-cv-02597-TLN-DB, 2023 U.S. Dist. LEXIS 33107, at *7 (E.D. Cal. Feb. 27, 2023), Judge Nunley reconsidered Judge Englund's previous decertification order, finding that Judge Englund erred in his evaluation of whether the class representative must establish class-wide Art. III standing. In the Court's order granting Ocwen's motion for class decertification, the Court stated,… Read More

In Bassett v. Credit Bureau Servs., Inc., Nos. 21-2864, 22-1206, 2023 U.S. App. LEXIS 4428, at *7 (8th Cir. Feb. 24, 2023), the Court of Appeals for the 8th Circuit reversed the district court's judgment for the class, finding that the Plaintiff had no Art. III Standing. The procedural background was as follows: The collectors sent Bassett (and her deceased… Read More

In Chase v. Kia Motors Am., Inc., No. 22-cv-09082-JCS, 2023 U.S. Dist. LEXIS 31208, at *1-2 (N.D. Cal. Feb. 24, 2023), Judge Spero concluded that he did not have jurisdiction to hear a federal claim raised for the first time in an arbitration referred by a state court.  Judge Spero summarized the case as follows: Defendant Hyundai Capital America d/b/a… Read More

In Effinger v. Ancient Organics LLC, No. 22-cv-03596-RS, 2023 U.S. Dist. LEXIS 31215, at *17-18 (N.D. Cal. Feb. 24, 2023), Judge Seeborg discussed how the CLRA/UCL apply to claims pleaded as a nationwide class. Plaintiffs may proceed, however, with their claims on behalf of the putative Nationwide Class. As this Court has elsewhere noted, "California courts have concluded that '[the… Read More

In November 2022, the CFPB announced its intention to build an auto lending data set.  In furtherance of that goal, on February 23, 2023, the CFPB issued orders to nine large auto finance lenders.  Amongst others, the CFPB seeks information on lending, servicing, defaults, and market values.  Here is a sample order.  The specified purpose states: The Bureau is issuing… Read More

In Barton v. JMS Assoc. Mktg., LLC, No. 21-35836, 2023 U.S. App. LEXIS 3593, at *3-4 (9th Cir. Feb. 15, 2023), the Court of Appeals for the 9th Circuit remanded a matter to allow exposure for unanswered as well as answered calls. 47 U.S.C. § 227(c)(5) provides a private right of action to any person who receives more than one… Read More

In Michael Nguyen v. Okcoin USA Inc., No. 22-cv-06022-KAW, 2023 U.S. Dist. LEXIS 27449, at *4 (N.D. Cal. Feb. 17, 2023), Judge Westmore found that a Terms of Service amending an arbitration clause was not enforceable.  Defendant is a web-based cryptocurrency exchange, offering retail investors a marketplace to buy and sell cryptocurrencies. (Compl. ¶ 4.) In 2020, Terraform Labs began issuing… Read More

In Marshall v. Mechs. Bank Auto Fin., No. 2:22-cv-06973-MCS-KS, 2023 U.S. Dist. LEXIS 26934, at *4-7 (C.D. Cal. Feb. 15, 2023), Judge Scarsi dismissed what he called a 'redemptionist' claim against a bank. The section of the FAC outlining the basis upon which this [*5] Court may exercise jurisdiction cites provisions of the Uniform Commercial Code; Public Law No. 73-10,… Read More

On February 3, 2023, Judge Sykes of the Central District of California denied Goodyear's motion to transfer venue and its motion to dismiss Plaintiff's CIPA claim.  Byars v. Goodyear Tire & Rubber Co., No. 522CV01358SSSKKX, 2023 WL 1788553 (C.D. Cal. Feb. 3, 2023). On the motion to transfer venue, the Court held: Where the internet contract falls into the browsewrap… Read More

In Felberbaum v. Mandarich Law Grp., LLP, No. 22-431-cv, 2023 U.S. App. LEXIS 3370, at *1-4 (2d Cir. Feb. 13, 2023), the Court of Appeals for the Second Circuit affirmed dismissal of an FDCPA claim based on allegations that the attorney did not have meaningful involvement in reviewing the debt. As relevant here, the FDCPA prohibits debt collectors from making… Read More

In Fierro v. Capital One, N.A., No. 22-cv-00493-BAS-BLM, 2023 U.S. Dist. LEXIS 25253, at *6-9 (S.D. Cal. Feb. 13, 2023), Judge Bashant allowed a UCC claim to proceed for a "totaled" vehicle, despite no "disposition" of it. In dismissing Plaintiff's first attempt to raise a claim under California's Commercial Code, the Court expressed doubt that Plaintiff could plead a violation… Read More

In Barton v. Delfgauw, No. 3:21-cv-05610-JRC, 2023 U.S. Dist. LEXIS 21804, at *11-14 (W.D. Wash. Feb. 7, 2023), Judge Creatura allowed a TCPA claim to proceed for standing purposes despite a defendant's arguments that the claims were manufactured and that the Plaintiff suffered no invasion of privacy. Defendants also argue that plaintiff lacks Article III standing to bring this TCPA… Read More

In Moore v. Mandarich Law Grp., LLP, No. 1:21-cv-20481-KMM, 2023 U.S. Dist. LEXIS 20201, at *4-9 (S.D. Fla. Feb. 7, 2023), Judge Moore dismissed an FDCPA/FCRA class action grounded on a debt collection firm's filing a pleading that included Plaintiff's unredacted credit score.  Judge Moore found no FCRA violation. Courts have routinely held that debt collectors may obtain and use a… Read More

In Pedregon v. Titlemax of N.M., No. A-1-CA-39466, 2023 N.M. App. Unpub. LEXIS 24, at *3-6 (Ct. App. Jan. 23, 2023), the New Mexico Court of Appeal refused to enforce an automobile title lender's arbitration clause. We first review the district court's determination that the arbitration agreement was presumptively unconscionable—on its face—based upon the unfairness of the terms contained therein.… Read More