Consumer Litigation Trends
NCHELP EFC Student Loan Legal Meeting
Consumer Litigation Trends
Statistics
• Fair Debt Collection Practices Act (FDCPA)
• Fair Credit Reporting Act (FCRA)
• Telephone Consumer Protection Act
(TCPA)
• Strategies
• Regulatory Enforcement
• Outlook
•
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Consumer Litigation Trends:
Statistics
FDCPA
TCPA
FCRA
2009
9,135
28
1,114
2010
10,914
234
1,070
2011
12, 018
813
1,883
2012
(through June 30)
5,721
532
1,194
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Consumer Litigation Trends:
Statistics
• Most
claims filed
• New York
• California
• Pennsylvania
• Florida
• Illinois
• Colorado
• Minnesota
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Consumer Litigation Trends:
Statistics
• AllianceOne
TCPA class settlement
• Up to $9M (max. $40/class member)
• $10,000 per named Plaintiff
• Costs and attorney’s fees
• Excessive overdraft fees litigation
• JP Morgan Chase ($110M)
• PNC Bank ($90M)
• US Bank ($55M)
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Consumer Litigation Trends:
Strategies
Pre-litigation demands vs. filing suit
• Federal vs. State court: artful pleading
• FOIA requests
• Bootstrapping claims
• Frequent filers
• Fishing
•
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Consumer Litigation Trends: Types
of FDCPA Claims
Voicemail messages
• Overshadowing and Confusion
• Letters returned as undeliverable
• Harassment/Abuse
• Call frequency
• Vicarious liability
• Company owner
• Service provider
•
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Consumer Litigation Trends: Types
of FCRA Claims
Accurate and complete information
• Flagging tradeline as disputed
• Conducting a “reasonable” investigation
• Permissible Purpose
• Reporting a bankruptcy
•
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Consumer Litigation Trends: Types
of TCPA Claims
Autodialed calls to cell phones
• Prior express consent
• Wrong party calls
• Prerecorded messages
• State v. Federal court
• Statute of limitations
• Insurance coverage debacle
•
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Consumer Litigation Trends:
Regulatory Enforcement
CO Attorney General $14 million settlement
• NY, WV, MN shut downs and fines
• FTC Consent Decrees
• Consumer Financial Protection Bureau
• Supervision and Examination authority
• Enforcement authority
•
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Consumer Litigation Trends:
Regulatory Enforcement
• Settlement
with 20 AGs and QuinStreet
• $2.5M civil penalty
• Website disclosure requirements
•
http://www.cfpbmonitor.com/files/2012/07/quinstreetavc.pdf
• MD
Collection Agency Licensing Board
• $1M civil penalty
• Dismissal of 3,500+ lawsuits
• CFPB $140M enforcement against CapOne
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Consumer Litigation Trends: Outlook
•
Consumer Financial Protection Bureau
• Approach to complaints
• Student Loans
– Ombudsman
– Complaints
• Confidential
Treatment of Privileged
Information
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Consumer Litigation Trends: Outlook
•
•
•
•
State and Federal tag teams
Baiting, fishing and trapping
Electronic Funds Transfers
“Local” caller ID
• FDCPA
• Truth in Caller ID Act [47 USC § 227e]
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Consumer Litigation Trends:
Questions?
Wendy Badger
Director, Corporate Compliance
ECMC Group, Inc.
(651) 325-3652
wbadger@ecmc.org
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