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1 month ago | 
jdsupra.com | David Anthony |Stefanie Jackman |Ethan G. Ostroff
On March 11, the U.S. Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to compel arbitration in two class-action lawsuits. The decision potentially has far-reaching implications for the enforceability of arbitration clauses in consumer contracts, particularly those involving unilateral modification provisions. Case BackgroundThe appellants are companies that market and service credit card accounts on behalf of the credit-card issuing banks.
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1 month ago | 
jdsupra.com | David Anthony |Stefanie Jackman |Ethan G. Ostroff
On February 27, the Federal Trade Commission (FTC) successfully obtained a temporary restraining order against Blackrock Services, Inc. and its associated entities and individuals. The court order aims to halt the defendants’ alleged deceptive and abusive debt collection practices.
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1 month ago | 
lexology.com | David Anthony |Stefanie Jackman |Jonathan Floyd |Chris Willis
Click here to listen to the audio. In this final episode of our Year in Review series, Chris Willis is joined by colleagues David Anthony, Stefanie Jackman, and Jonathan Floyd to discuss the year in review and look ahead for debt collection. They provide crucial updates on significant developments in 2024, including the heightened regulatory focus on medical debt at both federal and state levels, and the implications of the Consumer Financial Protection Bureau’s (CFPB) uncertain future.
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1 month ago | 
jdsupra.com | Matthew Adler |David Anthony |Kalama Lui-Kwan
On February 28, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s denial of a petition to compel individual arbitration against Starz Entertainment, LLC. The court held that the plaintiff, who objected to JAMS’ decision to consolidate arbitration proceedings, was not aggrieved under the Federal Arbitration Act (FAA) because Starz never failed, neglected, or refused to arbitrate.
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1 month ago | 
lexology.com | Matthew Adler |David Anthony |Kalama Lui-Kwan |Justin Weber |Mary C. Zinsner
On February 28, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s denial of a petition to compel individual arbitration against Starz Entertainment, LLC. The court held that the plaintiff, who objected to JAMS’ decision to consolidate arbitration proceedings, was not aggrieved under the Federal Arbitration Act (FAA) because Starz never failed, neglected, or refused to arbitrate.
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2 months ago | 
jdsupra.com | David Anthony |Stefanie Jackman |Ethan G. Ostroff
The Consumer Financial Protection Bureau (CFPB or Bureau) requested and was granted a 90-day stay in the litigation involving trade associations Cornerstone Credit Union League (Cornerstone) and the Consumer Data Industry Association (CDIA). This case, which challenges the CFPB’s Final Rule on the prohibition of medical debt information in consumer reports, has been temporarily halted as the Bureau undergoes significant leadership changes.
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2 months ago | 
jdsupra.com | David Anthony |Mark J. Furletti |Stefanie Jackman
On February 4, Senators Bernie Sanders (I-Vt.) and Josh Hawley (R-Mo.) introduced bipartisan legislation aimed at immediately capping credit card interest rates at 10% for a period of five years. This initiative follows a recent Forbes report indicating that the average credit card interest rate stands at 28.6%. According to Senators Sanders’ press release, American households collectively hold a record-breaking $1.17 trillion in credit card debt.
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2 months ago | 
jdsupra.com | David Anthony |Stefanie Jackman |Ethan G. Ostroff
This week, the U.S. Court of Appeals for the Seventh Circuit issued a decision reversing a summary judgment order in a Fair Debt Collection Practices Act (FDCPA) case. The court found that there were genuine issues of material fact regarding whether the defendant debt collector knew or should have known that the plaintiff disputed the debt, and whether the defendant exercised reasonable care in reporting the debt. The dispute in Wood v.
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Jan 9, 2025 | 
jdsupra.com | David Anthony |Stefanie Jackman |Ethan G. Ostroff
As discussed here, the Consumer Financial Protection Bureau (CFPB or Bureau) finalized a rule aimed at removing an estimated $49 billion in medical bills from the consumer reports of approximately 15 million Americans. This rule amends Regulation V, which implements the Fair Credit Reporting Act (FCRA), to eliminate the exception that previously allowed lenders to use certain medical information in making lending decisions.
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Jan 8, 2025 | 
jdsupra.com | David Anthony |Jacob Kozaczuk |Ethan G. Ostroff
[co-author: Caroline Buggé]*Recently, the Eastern District of Kentucky denied a motion to dismiss under the Fair Credit Reporting Act (FCRA) after finding the plaintiffs alleged sufficient facts to support a reasonable inference that credit reports were pulled without a permissible purpose. In May v.
