New York Consumer Law Blog

Responding to news of Equifax’s huge data breach, the Federal Trade Commission (FTC) offers guidelines for consumers to protect themselves. The FTC suggests that consumers take proactive measures, such as checking their credit reports (available to consumers at  annualcreditreport.com), and monitoring “existing credit card and bank accounts closely for charges you don’t recognize.
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Equifax, one of the “Big Three” credit reporting companies, suffered a major data breach in late July 2017. The breach (made public today) has compromised the accounts of roughly 143 million Americans. In addition to consumers’ credit scores, “loans, loan payments and credit cards, as well as information on everything from child support payments, credit limits, missed rent and utilities payments, addresses and employer history” were obtained by the cyber-criminals.

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Neighborhoods within a mile and a half of the Crosby, Texas facility that exploded on Thursday have been urged to evacuate as officials warn that more explosions are possible. The chemical plant exploded early Thursday morning. Authorities are concerned about another explosion because chemicals have not been stored at proper temperatures since power went out at the plant because of Hurricane Harvey.  

A major auto lender has decided to change its approval process to look beyond credit scores in an effort to pump up sales.

The move by Ford Motor's financing unit is expected to unfold in coming years, even as concerns mount about rising auto-loan losses in the industry. Ford Motor Credit is expected to announce the plans as soon as Friday.

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Criminal background checks are commonplace Applications for certain employment positions. But what about credit checks? Is a job applicant's credit history relevant for employment? May an employer lawfully check a job applicant's credit?  

State and local laws are becoming more restrictive, adding an extra layer of protection for consumers over and above the federal Fair Credit Reporting Act.  

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Here are five potential scenarios on what might happen to CFPB director Richard Cordray once the new president arrives.

One: Bigger Fish Prevail

Competing priorities may push back any big decisions about the CFPB or its director, even if the new administration ultimately plans an all-out assault on the agency, several sources predict.

Two: Congress Moots Controversy

Congress could moot the removal question entirely by changing the CFPB’s leadership structure.

Three: Trump Dismisses Cordray

Trump could dismiss Cordray ahead of the CFPB’s director’s statutory end-of-term in July 2018, and perhaps even as early as Jan. 20.
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 Tens of thousands of people who took out private loans to pay for college but have not been able to keep up payments may get their debts wiped away because critical paperwork is missing.

The troubled loans, which total at least $5 billion, are at the center of a protracted legal dispute between the student borrowers and a group of creditors who have aggressively pursued them in court after they fell behind on payments.

 Judges have already dismissed dozens of lawsuits against former students, essentially wiping out their debt, because documents proving who owns the loans are missing. A review of court records by The New York Times shows that many other collection cases are deeply flawed, with incomplete ownership records and mass-produced documentation.

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In Graham v. Pyramid Healthcare Solutions, Inc., 2017 WL 2799928 (M.D. Fl.
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The Consumer Financial Protection Bureau issued a new rule Monday that prevents companies from using arbitration clauses to stop consumers from bringing class action lawsuits.

 The clauses force people to "go it alone or give up," said CFPB Director Richard Cordray. "Our new rule will stop companies from sidestepping the courts and ensure that people who are harmed together can take action together," he said. Many people aren't aware that their bank account or credit card contracts came with an arbitration clause buried in the fine print.

 But they're pretty common.
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A federal judge granted preliminary approval over the weekend for Wells Fargo's $142 million national class action settlement. The court ruled that the settlement, which covers fake accounts back to 2002, "fair, reasonable and adequate."

 Victims may still have to wait before they get paid. The bank and lawyers for the plaintiffs plan to reach out to customers in the next three months, but the settlement may not be final until early 2018. Still, Wells Fargo CEO Tim Sloan called the court ruling a "major milestone in our efforts to make things right for our customers.
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Four Seasons Hotels and Resorts was recently informed of a data security incident at Sabre, a third-party hotel reservations provider to thousands of hotel properties, including those managed by Four Seasons. The incident involved unauthorized access to certain guest information associated with a subset of hotel reservations processed through Sabre's SynXis Central Reservations System (CRS) from August 10, 2016 until March 9, 2017. Sabre has confirmed that the issue has been contained and the unauthorized access has been revoked, but some guest information may have been compromised as a result of the incident. 

 The Sabre CRS facilitates the booking of hotel reservations made by consumers through hotels, online travel agencies, and similar booking services. Following an examination of forensic evidence, Sabre confirmed to Four Seasons Hotels and Resorts on June 6, 2017 that an unauthorized party gained access to account credentials that permitted unauthorized access to certain unencrypted payment card information, as well as certain reservation information, for a subset of hotel reservations processed through Sabre's system.
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