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
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
One of the regulatory pillars of the EMIR is the requirement for parties to collateralize the marked-to-market exposure in over-the-counter derivatives transactions that are not cleared by a central clearing 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.
The Consumer Financial Protection Bureau ("CFPB" or "Bureau") recently announced an effort to better understand how "alternative data" could be used to expand access to credit. Through a formal notice and request for information just published, the CFPB is trying to learn more about the potential to use of what it calls "non-traditional" or "alternative" data points to develop credit scores.
The New York Department of Financial Services ("DFS") adopted final revisions to its new cybersecurity regulations, which apply to a wide range of insurance, banking and financial services companies...
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).