The Consumer Financial Protection Bureau is seeking comment on a new proposed regulation that would prohibit mandatory arbitration clauses that deny groups of consumers their day in court, putting into motion discussions that started toward the end of last year. Arbitration clauses generally require that if there’s a dispute, parties must first try to resolve the issue through an arbitration …
A proposed class action against LendingClub Corporation is credit negative for asset-backed securities (ABS) backed by consumer loans originated through online platforms using a partner bank origination model, Moody’s Investors Service says in a new report. The lawsuit confirms that the owners of such loans face legal challenges over whether the loans are exempt from …
In a major setback for banks, credit unions, credit card companies and many other financial firms, the Consumer Financial Protection Bureau on Thursday issued a proposal that would ban the use of arbitration clauses that prevent consumers from bringing class-action lawsuits. The 377-page proposal, released to the media a day early, would still allow companies to offer arbitration as a way to …
The state Attorney General’s Office has filed a civil lawsuit against a financial services company and its owner. The allegation: that at least four consumers, three of whom are military veterans, were bilked out of nearly $25,000. The lawsuit filed against James Wallace and Ohio-based Wallace Marketing Group is the result of an investigation by the AG’s Bureau of Consumer Protection.
Wendy’s faces a class-action suit over a breach that occurred last year and resulted in hundreds of thousands of fraudulent credit card transactions. Pennsylvania-based First Choice Credit Union filed a class action lawsuit against Wendy’s over a data breach the retailer experienced last year. The suit alleged that …
Because the American credit reporting system relies on both good and bad reports of creditworthiness, a consumer must have some kind of credit—not just the absence of bad credit. (In some countries, the lack of a credit report can establish good credit). “The American system, on other hand, relies on total surveillance,” writes Chris Jay Hoofnagle in his primer on privacy law and the Federal …
A class action lawsuit against Bose Corp. for alleged violations of a California law designed to protect consumers’ privacy and personal information may be moving toward a resolution as lawyers for both sides have had cooperative discussions about the case, the plaintiffs’ attorney said. “They have not admitted any fault,” attorney E. Elliot Adler of the Adler Law …
A Chicago federal appeals panel has given the P.F. Chang’s restaurant chain a case of legal indigestion, by reversing a district court’s dismissal of a class action suit brought by two diners, who claimed they were vulnerable to identity theft, because the chain’s allegedly poor data security allowed hackers to obtain diners’ debit and credit card information. The decision was delivered April …
Here’s something: You can park for free at Pershing Square in downtown Los Angeles. That’s right, FREE. The underground garage, which charges up to $16 a day, has been free for about a month — but there’s a little trick to it.
Orlando-based KEL law firm routinely allowed its clients to pay bankruptcy legal fees using credit cards, a violation of bankruptcy law, according to a new lawsuit filed against the firm. Credit card purchases are basically new debts, and new debts are prohibited in the days before filing a bankruptcy, and during the bankruptcy process. That’s because bankruptcy courts often erase any credit…