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MoFo Reenforcement The Enforcement Blog

CFPB Files Proposed Consent Orders Related to Wireless Billing Practices

Posted in CFPB, UDAAP

On May 12, 2015, the Consumer Financial Protection Bureau (CFPB) filed proposed consent orders in federal courts that would settle allegations that two wireless carriers unfairly permitted their customers to be charged by establishing billing and processing systems that enabled third-party merchants to bill consumers for unauthorized purchases. The CFPB initially brought suit in December against one carrier, but in a significant new development, the CFPB filed suit and a proposed related consent order involving a second carrier. In both cases, the CFPB alleged that the billing practices employed by the carriers violated the federal prohibition against unfair, deceptive or abusive acts or practices (UDAAP). The CFPB alleged, among other things, that carriers failed to address warning signs that third-party merchants were submitting unauthorized charges.

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