Lawsuit Raises Questions About Investigations of ID Theft Claims
- How much proof is needed when a consumer claims to be the victim of identity theft? That appears to be the crux of a case filed in California federal court, accusing a bank, a collection operation, and two credit reporting agencies of violating a number of statutes, including the Fair Credit Reporting Act and state laws by not believing the plaintiff’s claim that the underlying debts were a result of his former roommate and business partner that were taken out in the plaintiff’s name.
- More details here
Defendant in FDCPA Cases Faces $15k in Attorney’s Fees
- A District Court judge in New York has awarded plaintiffs in separate Fair Debt Collection Practices Act cases more then $15,000 in attorney’s fees and costs against the same defendant, after default judgments were entered nearly a year ago. What makes the rulings more interesting is that the cases were filed back in 2021, and settlements were reached in both cases back in 2022 before things fell apart.
- More details here
FCRA Claims Over Post CARES Act Credit Reporting Allowed to Proceed
- A District Court judge in Delaware has denied a plaintiff’s motion for summary judgment and partially granted a defendant’s motion in a Fair Credit Reporting Act case involving how information should have been furnished to the credit reporting agencies related to payments during the COVID-19 pandemic. The case centers on whether a mortgage servicer properly investigated and corrected credit reporting after receiving consumer disputes tied to a trial payment plan and a permanent loan modification that occurred during the CARES Act accommodation period.
- More details here
CBA White Paper Flags New Risks as Agentic AI Moves Into Consumer Payments
- Agentic artificial intelligence may soon be making payments, booking purchases, and managing bills on behalf of consumers, and the Consumer Bankers Association is urging the industry to think carefully about what that shift means before it becomes mainstream. In a newly released white paper, Agentic AI Payments: Navigating Consumer Protection, Innovation, and Regulatory Frameworks, the CBA examines how autonomous AI tools could reshape the payments ecosystem, while also introducing new risks around authorization, liability, fraud, and consumer understanding.
- More details here
Increased BNPL Use Signals Deeper Financial Stress for Consumers
- For many New Yorkers, Buy Now, Pay Later has quietly shifted from a checkout option to a coping mechanism. New data from the Community Service Society of New York paints a clear picture: a growing share of consumers are relying on short-term debt, including BNPL, not for discretionary purchases, but to cover everyday necessities.
- More details here
WORTH NOTING: Consumers don’t like returning merchandise and would prefer to just hold on to their purchases … A lawsuit is going after a widely used AI hiring platform … A handful of takeaways from this year’s Oscar nominations … What you should be stocking up on in advance of this weekend’s winter storm … Why you should stop relying on self-discipline and do this instead … There is a new deadliest form of cancer for people under the age of 50 … What works and what doesn’t if you are thinking about using AI to be your life coach … Why the color on car headlights changed from yellow to white.
Funny Friday, part I
Funny Friday, part II
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