This year is sure to be a transformative one for the consumer
financial services world. As we navigate an unprecedented volume of
industry regulation and forthcoming changes from a new
administration, Troutman Sanders is uniquely positioned to help its
clients find successful resolutions and stay ahead of the
The Consumer Financial Services practice added over 15 attorneys
in 2016, including lateral partner Cindy Hanson.
By remaining up-to-date on the latest industry trends and
regulatory developments, Troutman Sanders is a trusted resource,
relied on by our clients to help tackle issues today while
preparing for what lies ahead.
Background Screening: One of the biggest events
in consumer financial services litigation in 2016 was the Supreme
Court's long-awaited decision inSpokeo, Inc. v.
Robins, No. 13-1339 (May 16, 2016). Spokeo, a Fair
Credit Reporting Act ("FCRA") case, tested the
requirements for Article III standing to bring a case in federal
court. Read More (p. 4)
Credit Reporting: The number of lawsuits filed
under the Fair Credit Reporting Act grew at an aggressive rate in
2016. Compared to 2015, FCRA lawsuits were up approximately 8.4%,
with almost 3,700 lawsuits filed throughout the course of the year.
While filings under other consumer protection statutes, such as the
Fair Debt Collection Practices Act ("FDCPA") remained
relatively steady or fell, the FCRA continued to gain steam. Read More (p. 6)
Debt Collection: In 2016, the CFPB reported
that it has handled approximately 285,800 debt collection
complaints since July 21, 2011, making debt collection the
most-complained-about industry. Within the debt collection context,
consumers' most common complaint concerned attempts to collect
on a debt that the consumer says is not owed, which was the focus
of approximately 39% of all the debt collection complaints. Read More (p. 9)
Payment Processing and Cards: We tracked rules,
lawsuits and enforcement actions against payment processors and
companies in the payments industry. The CFPB, FTC, and state
attorneys general brought nearly all of the enforcement actions,
but private litigants also filed lawsuits against companies in the
payments industry. Read More (p.
The Evolving Regulatory Landscape: A number of
high profile decisions and settlements changed the landscape for
regulators, including the CFPB, FTC, and state attorneys general.
In October, the D.C. Circuit issued its highly-anticipated decision
in PHH Corporation v. Consumer Financial Protection
Bureau. Judge Kavanaugh, writing for the panel, found that the
Bureau has too much unilateral, unchecked power and held
unconstitutional the provision that the CFPB's Director can
only be removed by the President "for cause."
Read More (p. 14)
The Troutman Sanders' Consumer Financial Services
Law Monitor blog offers timely updates regarding the financial
services industry to inform you of recent changes in the law,
upcoming regulatory deadlines and significant judicial opinions
that may impact your business. To view the blog, click
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The new Administration and Congress are pursuing a multi-pronged approach to regulatory relief for financial services firms, with stated goals of reducing administrative burdens and complexity as a means to spur economic growth.
Following his campaign promise to dismantle the Dodd–Frank Wall Street Reform and Consumer Protection Act, Donald Trump issued an Executive Order on February 3, 2017 that set out "Core Principles" for regulating the financial system.
Overseas Shipping Group ("Overseas") recently sued its former attorneys, a prominent New York-based law firm, for legal malpractice in drafting credit agreements that resulted in the company incurring an estimated $463 million in tax liability.
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