The FTC has announced the settlement of a lawsuit filed jointly with the Illinois Attorney General against a group of auto dealerships that alleged the dealerships violated federal and state law by engaging in deceptive practices in connection with add-on charges and by discriminating against Black consumers in connection with the financing of vehicle purchases. … Continue Reading
Executive order on digital assets includes roles for CFPB, FTC, federal banking agencies
By Ronald K. Vaske on
President Biden has signed an Executive Order intended to respond to the explosive growth in digital assets, including cryptocurrencies. Titled “Executive Order on Ensuring Responsible Development of Digital Assets,” the Order is described by the White House as “outlining the first ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”… Continue Reading
FTC issues annual ECOA report to CFPB
By John L. Culhane, Jr. on
On February 4, 2022, the FTC sent its annual letter to the CFPB reporting on the FTC’s activities related to the Equal Credit Opportunity Act (ECOA) and Regulation B. The Bureau includes the FTC’s annual letter in its own annual report to Congress on the ECOA.
The FTC has authority to enforce the ECOA and Regulation B with respect to nonbank financial service providers within its jurisdiction. … Continue Reading
FTC issues advisory opinion on impact of Holder Rule on recovery of attorneys’ fees and costs
By John L. Culhane, Jr. on
Posted in FTC, Regulatory and Enforcement
The FTC has issued an advisory opinion that addresses the impact of its Holder Rule on the ability of consumers to recover attorney’s fees and costs.
Officially titled the “Trade Regulation Rule Concerning Preservation of Consumers’ Claims and Defenses,” the Holder Rule requires sellers that arrange for or offer credit to finance the purchase of consumer goods or services to include (or require the lender to include) a specified “holder notice” in the credit contract. … Continue Reading
FTC announces settlement with lead generation company; Ballard Spahr to hold February 2 webinar on lead generation
By Kim Phan on
The FTC announced last week that it has entered into a settlement with ITMedia Solutions LLC, a lead generation company, and a group of affiliated companies (collectively, ITMedia), and several individuals who served as officers of ITMedia, to resolve a complaint filed by the FTC in a California federal district court alleging that the defendants’ conduct violated the FTC Act and FCRA. … Continue Reading
FTC enters into settlement with two defendants in lawsuit alleging merchant cash advance providers engaged in unfair and deceptive practices
By John Sadler & Ballard CFS Group on
The FTC’s recent announcement that it has entered into a settlement with two of the defendants (RAM Capital Funding LLC and Tzvi Reich) in a lawsuit filed by the FTC against two merchant cash advance providers and three of their officers for alleged violations of the FTC Act serves as a reminder of the FTC’s continuing focus on small business financing as well as the FTC Act’s application to business-to-business activity.… Continue Reading
FTC bans phantom debt collectors from industry
By Rene T. McNulty on
On December 13, 2021, the Federal Trade Commission (FTC) announced that, under the terms of a settlement, a group of phantom debt collectors were permanently banned from the debt collection industry. The term “phantom debt” is generally used to refer to debt that doesn’t exist or has already been paid.… Continue Reading
CFPB/ FTC/DOJ/Federal Reserve Board file joint amicus brief arguing consumers not applying for credit are “applicants” under ECOA
By John L. Culhane, Jr. on
The CFPB, FTC, DOJ, and Federal Reserve Board have filed a joint amicus brief in the U.S. Court of Appeals for the Seventh Circuit urging the court to reverse a district court ruling that an individual who had already received credit from the defendant and who was not currently applying to the defendant for credit was not an “applicant” for purposes of the ECOA’s adverse action notice requirement.… Continue Reading
FTC announces ambitious rulemaking agenda that includes UDAP rules
By Ballard CFS Group on
The FTC has announced that it plans to move forward on an ambitious rulemaking agenda. In contrast to the CFPB’s Fall 2021 rulemaking agenda which offered no meaningful insights into the Bureau’s rulemaking plans in many key areas, the FTC has provided a clear indication of the direction it intends to take in 2022.… Continue Reading
This week’s podcast: The Federal Trade Commission’s updated Gramm-Leach-Bliley Act Safeguards Rule – What you need to know
By Barbara S. Mishkin on
The FTC’s recently updated rule implementing GLB standards for safeguarding customer information replaces the flexibility previously given to financial institutions in developing an information security program with new prescriptive requirements. Our discussion topics include what these new requirements mean for specific aspects of such programs, assigning employee responsibility, conducting risk assessments, installing access controls, using encryption, and who is covered by the rule. … Continue Reading