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Tag Archives: FCRA

Machine Underwriting: The CFPB Issues Blog Post on Use of Artificial Intelligence in Credit Underwriting

Posted in CFPB, Regulatory Developments

On July 7, 2020, the Consumer Financial Protection Bureau (CFPB or Bureau) published a blog post on the use of artificial intelligence (AI), especially machine learning (ML), in credit underwriting. The blog post addresses industry concerns about how AI and ML models interact with the existing regulatory framework, specifically the adverse action notice requirements in the Equal Credit… Read More

Equifax Fallout: NYDFS Acts Again

Posted in Privacy, State Regulators

The massive Equifax breach continues to prompt responses from a wide-range of regulators. While this is not surprising in light of the scale and nature of the incident, a number of regulators are taking more aggressive and more public actions in just a short time following public announcement of the breach. While there is a… Read More

#ThrowbackThursday: FTC Rescinds FCRA Commentary in Handoff to CFPB

Posted in CFPB

In July, 2011, Morrison & Foerster published the client alert “FTC Rescinds FCRA Commentary in Handoff to CFPB.” Summary: Earlier this week, the FTC withdrew its Statements of General Policy or Interpretations under the FCRA, which includes the FTC’s Commentary on the Fair Credit Reporting Act (“Commentary”). See 16 C.F.R. pt. 600. In addition, the… Read More

FTC Releases New Guidance on FCRA Compliance for Employment Background Screening Companies

Posted in Regulatory Developments

The FTC has released new guidance aimed at helping companies that conduct background screenings for employment purposes to determine whether they are “consumer reporting agencies” within the meaning of the federal FCRA. Pointing to the broad statutory definition of “consumer reports,” the guidance helpfully notes that many companies that provide information about people to employers… Read More

The Supreme Court’s Spokeo Decision: Concrete Shoes For Consumer Class Actions?

Posted in Credit Reports

Today the Supreme Court issued its highly anticipated decision in Spokeo, Inc. v. Robins. The decision takes on a hot topic in consumer class action law today—what must a plaintiff plead and prove to have standing to sue for a violation of a federal statute? The Court held that an allegation of a statutory violation,… Read More

Bureau Tells Banks to Offer Overdraft-Free Accounts, Sends Warning on Reporting

Posted in CFPB, Regulatory Developments

On February 3, 2016, the Consumer Financial Protection Bureau announced a series of steps designed to improve consumer access to checking accounts by (a) encouraging banks and credit unions to make available and widely market “lower-risk accounts that help consumers avoid overdrafts”; (b) warning banks and credit unions that failure to meet accuracy obligations when… Read More

Big Data, Big Deal

Posted in Disparate Impact, Enforcement Actions, Privacy

The FTC rang in the New Year with a report, Big Data: A Tool for Inclusion or Exclusion? Understanding the Issues. The report wrestles with the implications of using big data analytics to target and make decisions about customers. Some of the FTC’s observations are common sense, but others require more careful analysis. For example,… Read More

#ThrowbackThursday: Steps for Lenders to Consider in Connection with Mortgage Modification Programs

Posted in Mortgage

Originally published as a Morrison & Foerster client alert in October 2008. Banks are increasingly implementing mortgage modification programs in order both to settle class-action lawsuits and as a way to improve returns on their investments.  With housing prices continuing to decline, some lenders have found it increasingly cost-effective to allow borrowers to modify mortgages,… Read More

CFPB Keeps the Heat on Debt Collection, Consumer Reporting

Posted in CFPB, Enforcement Actions

On December 7, 2015, the CFPB announced another consent order going after a firm for alleged violations the Consumer Financial Protection Act, FCRA, and FDCPA. The CFPB alleges that Massachusetts debt collection firm Collecto, Inc. (dba EOS) paid a cell phone provider over $35 million for a portfolio of more than three million cellphone accounts,… Read More

Congress Close to Approving Limited GLBA Regulatory Relief

Posted in Privacy, Regulatory Developments

On December 1, 2015, House and Senate conferees reached a deal on a long-term highway bill, the “Fixing America’s Surface Transportation Act” (H.R. 22). While the bill’s more than 1,300 pages are largely focused on highway, transportation, and safety issues, the bill includes amendments to two federal financial privacy laws, the Gramm-Leach-Bliley Act (“GLBA”) and… Read More

Supervisory Highlights, Fall 2015: Totally Sanitized Limerick Edition!

Posted in CFPB, Mortgage, Student Lending, Supervisory Highlights

Don’t know about you, but we’ve been dreaming about wrapping ourselves in a big cabled sweater, drinking a pumpkin-spiced beverage and cozying up to the Fall 2015 issue of Supervisory Highlights. Usually haiku is how we roll, but haiku really evokes spring, and in honor of everyone’s favorite season of decay, we’ve decided to give… Read More

CFPB’s Message to Employment Background Screening Providers: A Rose by Any Other Middle Name is Probably the Wrong Person

Posted in CFPB, Enforcement Actions

On October 29, the CFPB took action against two of the country’s largest employment background screening report providers for violations of the FCRA. This is one of the CFPB’s most significant FCRA actions to date, following a relatively small number of FCRA consent orders by the CFPB over the past few years. The providers are… Read More

Supervisory Haiku-lights, Summer 2015

Posted in CFPB, Credit Reports, Fair Lending, Mortgage, Supervisory Highlights

Break out the short shorts everybody: it’s summer! We know you could use a palate cleanser between the 50 Shades novels and Game of Thrones wikis you’re reading on the beach. Supervisory Haiku-lights to the rescue! The Summer 2015 issue of Supervisory Highlights includes supervisory observations on consumer reporting, debt collection, student loan servicing, mortgage… Read More

CFPB Issues Final Rule Regarding Nonbank Auto Finance Companies – Vespa Dealers Breathe Sigh of Relief

Posted in CFPB, Fair Lending, UDAAP

Today the CFPB issued its long-awaited final rule regarding larger participants in the nonbank auto finance market that will allow the Bureau to supervise larger nonbank auto finance companies for the first time. The CFPB also released examination procedures that its examiners will use to ensure that auto finance companies are following the law. Currently,… Read More

FCRA: Litigation, Regulatory and Enforcement Developments in the Financial Services Industry and Beyond

Posted in Events

Tuesday, June 23, 2015 1:00pm-2:30pm EDT Morrison & Foerster partner Angela Kleine is speaking on the Strafford webinar “Fair Credit Reporting Act: Litigation, Regulatory, and Enforcement Developments in the Financial Services Industry and Beyond.” This CLE webinar will provide banking and consumer financial services counsel with a review of the evolving FCRA litigation, regulatory, and… Read More

Déjà Vu: State AG Consumer Reporting Settlement Follows Landmark New York Agreement

Posted in Credit Reports

On May 20, 2015, the attorneys general of 31 states settled with three major credit reporting agencies (CRAs) for six million dollars and commitments to make a number of business practice changes. With the exception of $6 million payment–which can be seen as relatively small, all things considered–the settlement largely mirrors the CRAs’ March 2015… Read More

Second Time’s the Charm? Supreme Court Takes Up Landmark FCRA Case to Address Whether Congress Can Create Standing

Posted in CFPB, Credit Reports

Zombie or no-injury plaintiffs seeking to represent zombie or no-injury classes are on the rise. In these suits, plaintiff was not injured, and there’s no way to prove who, if anyone, in the class was. Thomas Robins is one of those plaintiffs who brought suit on behalf of a class of similarly situated consumers against… Read More

CFPB Urges SCOTUS: Hands Off That FCRA Holding

Posted in CFPB, Credit Reports

Time to dust off those federal jurisdiction hornbooks! The Consumer Financial Protection Bureau (CFPB) and Office of the Solicitor General (collectively, “the government”) submitted an amicus brief to the Supreme Court in response to a petition for a writ of certiorari in the closely-watched case Spokeo, Inc. v. Thomas Robins, No. 13-1339. The issue? Standing,… Read More