In this multidistrict litigation, plaintiffs sought certification of two classes of Arizona property owners challenging the operation of the Mortgage Electronic Registration Systems (MERS) in transferring the beneficial interest under their deeds of trust. Plaintiffs alleged that these mortgage transactions misrepresented MERS’s authority as a beneficiary, contained false statements, and were robosigned. The court granted defendants’ motion to dismiss and plaintiffs ... Keep Reading »
Consumer Finance & Banking Class Action Articles
The latest class action developments and trends in the consumer finance and banking industry, including news, key cases, and strategies.
Michigan District Court Holds TCPA “Junk Fax” Class Ascertainable, Certifies Class
The Eastern District of Michigan recently certified a class of plaintiffs suing under the Telephone Consumer Protection Act (TCPA), rejecting the defendants’ arguments that: (1) there would be “significant issues” identifying class members because the faxes at issue were sent nearly a decade ago; and (2) some putative class members may have had prior business relationships with the defendants and thus may have consented to receipt of the faxes. The defendants had hired a ... Keep Reading »
Data Breach Class Actions: 2015 Year in Review and 2016 Preview
As 2015 draws to a close, questions over standing in data breach class actions remain. Earlier this year, the Seventh Circuit denied retailer Neiman Marcus’s petition for rehearing en banc of a panel opinion holding that plaintiffs whose credit card information was stolen in a data breach had standing to sue under Article III of the United States Constitution based on alleged fear of future identity theft; in so doing, the Seventh Circuit confirmed that the circuit split ... Keep Reading »
CFPB Proposes Banning Use of Pre-Dispute Arbitration Agreements in Consumer Class Actions
The Consumer Financial Protection Bureau (CFPB or Bureau) announced today that it is considering rules prohibiting application of pre-dispute arbitration agreements to class litigation involving certain consumer financial products. Citing concerns that such agreements "effectively prohibit" class litigation and prevent consumers from obtaining remedies for harm caused by providers of consumer financial products or services, the proposal would apply to most products ... Keep Reading »
Still a Target: Court Certifies Bank Class Claims Against Retailer Following Data Breach
Although Target has tentatively settled consumer data breach class action claims, the retailer remains in the crosshairs of the plaintiffs’ class action bar. On September 15, a Minnesota federal district court certified a class of: “[a]ll entities in the United States and its Territories that issued payment cards compromised in the payment card data breach that was publicly disclosed by Target on December 19, 2013.” Rejecting the Minnesota-based retailer’s argument that ... Keep Reading »
Third Circuit Reverses Denial of Class Certification in Complete Sham Telemarketing RICO Case
The United States Court of Appeals for the Third Circuit reversed the denial of class certification in a case brought against a bank and its payment processors that allegedly engaged in a fraudulent scheme to cause unauthorized debits from consumer bank accounts. Reynaldo Reyes, as class representative, filed suit in the Eastern District of Pennsylvania under the Racketeer Influenced and Corrupt Organizations Act (RICO) against Zions First National Bank (“Zions Bank”) ... Keep Reading »
Fifth Circuit Holds Unaccepted Rule 68 Offer of Judgment Cannot Moot a Named Plaintiff’s Claim in a Putative Class Action
The defendant in a putative class action brought pursuant to the Electronic Funds Transfer Act (EFTA), 15 U.S.C. § 1693, et seq., tendered a Rule 68 offer of judgment to the named plaintiff before class certification briefing occurred. The defendant proposed to settle with the named plaintiff for the maximum allowable statutory damages for his individual claim, and to pay costs accrued and reasonable and necessary attorney fees, through the date of acceptance of the ... Keep Reading »
Seventh Circuit Petitioned for Rehearing En Banc to Determine Whether Data Breach Class Claims Survive Clapper, Satisfy Article III Standing Requirements
In January 2014, luxury retailer Neiman Marcus disclosed that it had suffered a cyberattack in which hackers may have gained access to 350,000 credit and debit cards used at its stores in late 2013. Plaintiffs, all of whom made credit or debit card purchases from the retailer during the relevant time period, filed a putative class action lawsuit on behalf of themselves and all other customers whose card information may have been compromised. Neiman Marcus moved to ... Keep Reading »
Ninth Circuit Finds Local Controversy Exception to CAFA
The Ninth Circuit reversed the dismissal of a class action and instructed the district court to remand the case to state court, based on the local controversy exception to the Class Action Fairness Act (CAFA). In doing so, it held that a post-removal amended complaint may be considered to determine whether remand is appropriate. A group of Nevada citizens sued six separate entities in Nevada state court for illegal debt collection practices. After removal, the ... Keep Reading »
Eighth Circuit Affirms Denial of “Predominance” Class: The Long Arm of the Missouri Merchandising Practices Act Does Not Reach Wholly Out-of-State Conduct
In 2012, California resident Ronald Perras brought suit in federal district court against H&R Block and its affiliates (H&R), which are headquartered in Kansas City, Missouri. Perras alleged that H&R violated the Missouri Merchandising Practices Act (MMPA) by charging its customers compliance fees in excess of H&R’s actual cost of complying with new federal regulations. Perras sought to define a class of all persons in all states except Missouri who had ... Keep Reading »