Consumer Law & Policy Blog

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Friday, July 17, 2015

Rising rents

"For many households, the monthly rent check is so big that it eats up the majority of their paycheck — and the burden is growing," observed the Washington Post this week, in a story discussing a recent Harvard report on the subject and explaining that 11 million Americans, or about a quarter of all renters, spent more than half their income on rent, even outside of notorious high-rent cities like San Francisco and New York. "Financial advisers typically recommend that people spend less than a third of their pay on housing costs," notes the Post. But that's not how it's working out for many people.

"Middle class families are among those struggling the most," the Post reports. "The number of people making between $45,000 and $75,000 who spent more than 50 percent of their income on housing increased by 72 percent between 2013 and 2003. For people making between $30,000 and $45,000, the number of renters in that position increased by 69 percent." 

Read the full story, and find out which cities are the most expensive places to rent, here. The Harvard report is here.

Posted by Scott Michelman on Friday, July 17, 2015 at 12:24 PM | Permalink | Comments (0)

Thursday, July 16, 2015

CFPB fends off motion to dismiss in case against debt collector

The blog Credit Slips reports today:

Yesterday, Judge Amy Totenberg of the Northern District of Georgia issued a very cogent 70-page opinion in the case of the CFPB v. Frederick Hanna & Associates, a large collection law firm with offices in Georgia, Florida, and South Carolina. The opinion denies Hanna's motion to dismiss in its entirety, and almost completely agrees with the CFPB's legal theory. In doing so, the opinion deals a serious blow to the collection law firm business model.

....

Specifically, Judge Totenberg ... found that the Bureau could regulate collection attorneys under the [Consumer Financial Protection Act] (the first time any court considered this issue), that the "meaningful involvement doctrine" extends to activities in litigation, and that the Hanna firm might be liable for filing affidavits given to it by its clients if the CFPB can prove its allegations.

The full blog post is here.

Posted by Allison Zieve on Thursday, July 16, 2015 at 04:39 PM | Permalink | Comments (0)

"Rare Coalition Urges Limits on Mortgage-Related Bank Lawsuits Bankers"

The Wall Street Journal reports today that bankers and housing advocates are teaming up in effort to ease mortgage access for borrowers with weaker credit.

A rare coalition of mortgage lenders and left-leaning consumer advocates are calling on the Obama administration to ease up on lawsuits they say are driving banks away from making loans to borrowers with weak credit histories.

In three nearly identical proposals, the Mortgage Bankers Association, 15 left-leaning advocacy groups, and researchers from the Urban Institute and Moody's Analytics are asking the administration to restrict one of the most powerful tools the U.S. government has used to punish banks for mortgage mistakes.

The full story is here.

Posted by Allison Zieve on Thursday, July 16, 2015 at 12:20 PM | Permalink | Comments (0)

CFPB director defends agency before Congress

The Hill reports:

The Consumer Financial Protection Bureau (CFPB) has returned more than $10 billion to consumers who were scammed since the watchdog agency opened its doors four years ago.

CFPB Director Richard Cordray revealed the results of the relief the agency has provided to more than 17 million consumers on Wednesday in his semi-annual report to Congress.

“Congress created this agency in response to the financial crisis with the purpose and sole focus of protecting consumers in the financial marketplace,” Cordray told lawmakers.

The full story is here.

 

Posted by Allison Zieve on Thursday, July 16, 2015 at 11:08 AM | Permalink | Comments (1)

FDA and Google discuss collaborating to identify drug side effects

Bloomberg reports:

Millions of people search online for information about symptoms and prescription drugs. Patterns in their searches might reveal previously unknown side effects of medications.

The Food and Drug Administration is talking to Google about how the search engine could help the agency identify previously unknown side effects of medications. Agency officials held a conference call on June 9 with a senior Google researcher who co-wrote a 2013 paper about using search query data to identify adverse drug reactions, according to a record of the meeting posted to the FDA website that hasn't been previously reported. Microsoft researchers also say they have been working informally with the agency for several years on detecting drug side effects.

The full story is here.

Posted by Allison Zieve on Thursday, July 16, 2015 at 11:04 AM | Permalink | Comments (0)

Supreme Court briefs filed in Spokeo v. Robins

In October, the Supreme Court will hear a case called Spokeo v. Robins, which poses the question, as formulated by the defendant company, "whether Congress may confer Article III standing upon a plaintiff who suffers no concrete harm, and who therefore could not otherwise invoke the jurisdiction of a federal court, by authorizing a private right of action based on a bare violation of a federal statute."

As explained in this April blog post, Spokeo, Inc. publishes reports on consumers, including information such as their financial health, occupation, and wealth. When Spokeo published inaccurate information about him, Robins sued, alleging that Spokeo violated five different Fair Credit Reporting Act requirements by not making required disclosures and not following procedures that are designed to ensure the accuracy of its information. The suit seeks statutory damages under the Act.

Spokeo filed its opening brief on July 2. Reflecting the importance of the case -- because of its potential to wipe out a swath of litigation under consumer protection statutes -- amici supporting Spokeo filed last week 17 (!) different briefs in support of the company. SCOTUSblog has the list of briefs.

Writing for Reuters, Alison Frankel has this overview of the case and the amicus briefs.

Posted by Allison Zieve on Thursday, July 16, 2015 at 09:45 AM | Permalink | Comments (0)

Nestlé/Gerber again caught conning parents

By Stephen Gardner

Nestlé has been sued in California state court for shenanigans involving products of its Gerber division.

Nestlé sells a line of products called Gerber Graduates, aimed at parents whose small children have just started eating solid foods. Because parents understandably want to give healthy snacks to their kids, Nestlé wants to grab the same parents who fed Gerber infant foods to their kids.

However, because it’s cheaper and easier to use fake fruits instead of actually making products that have bananas, sweet potatoes, peaches, and the like, Nestlé tarts up flour and sugar with flavors that may taste like the fruit claimed on the box, but which provides none of the nutritional benefits of the actual fruit.

The press release gives more detail, here. And the complaint gives lots more detail: Gerber Graduates Complaint (filed 071515).

Side note and fun fact: Natural flavors may not be derived from the named thing. That is, FDA allows companies to call something “natural vanilla flavor” if it is derived from beaver butt glands.

I’m not saying Nestlé did that in this case, but I wouldn’t put it past them.

(Full disclosure: My firm, the Stanley Law Group, brought the case with our co-counsel, Bailey & Glasser and the Sugerman Law Firm.)

Posted by Steve Gardner on Thursday, July 16, 2015 at 09:45 AM | Permalink | Comments (0)

Watch this short NHTSA video on vehicle recalls

The National Highway Traffic Safety Administration has produced this short video on vehicle recalls.

 

 

Posted by Brian Wolfman on Thursday, July 16, 2015 at 12:25 AM | Permalink | Comments (0)

Wednesday, July 15, 2015

Percentage of Americans without health insurance drops

The percentage of adults in the U.S. without health insurance -- 11.4 -- is at its lowest point since Gallup began tracking the issue in 2008. The uninsured rate has dropped six percentage points since the end of 2013 -- right before most Affordable Care Act requirements kicked in. Read about it here.

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Posted by Brian Wolfman on Wednesday, July 15, 2015 at 10:08 PM | Permalink | Comments (0)

Erwin Chemerinsky on judicial tone

Law professor and dean Erwin Chemerinsky has written this op-ed about the tone of Justice Scalia's opinions.

Here's the beginning:

Justice Antonin Scalia is setting a terrible example for young lawyers. Ignore, for now, his jurisprudence, his famously strict originalism; it's his tone that's the problem.

I have taught argumentation for many years, first as an instructor to high school and college debaters, currently as a law professor. Throughout my career I have always cautioned students away from nastiness as a crutch for those who cannot win using reason or legal precedent. I have told them to stick to persuasion and to dissecting the opposition's logical fallacies.

But lately my students have been turning in legal briefs laced with derision and ad hominem barbs. For this trend, I largely blame Scalia. My students read his work, find it amusing and imitate his truculent style.

Posted by Brian Wolfman on Wednesday, July 15, 2015 at 02:14 PM | Permalink | Comments (0)

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