Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32For more information, please visit or 11 key Trends As in years past, the CFPB continued to focus its 2015 enforcement efforts against credit card providers and banks on the advertisement, provision, and fees charged for add-on products. The CFPB consistently found that the add-on products provided by lenders, such as debt protection or identity theft protection, failed to comport with what lenders promised in advertising those practic- es, and were deceptively charged to consumers with- out consumer consent or knowledge. Lenders should beware of marketing additional services beyond extend- ing credit because both the CFPB and plaintiff’s lawyers have taken issue with what they claim are “misleading” add-ons. In addition, the Eleventh Circuit struck down a Florida law prohibiting merchants from imposing sur- charges on customers using credit cards. State attorneys general aggressively pursued the cred- it reporting agencies for inaccurate credit reporting. Responding to consumer complaints that credit reports were not accurate or were continuing to report deleted and stale information, state attorneys general obtained joint relief against credit reporting agencies. State attor- neys general also pursued credit reporting agencies for improperly reselling data from credit reports to financial service providers. some 2015 Highlights The Eleventh Circuit Finds That Merchants Can Charge Surcharges for Credit Card Use. In Dana’s Railroad Sup- ply v. Attorney General, Florida, No. 14-14426, 2015 WL 6725138 (11th Cir. Nov. 4, 2015), the Eleventh Circuit struck down Florida’s no credit-card surcharge statute as unconstitutional under the First Amendment. Thirty-One States Settle with the Three Major Credit Re- porting Agencies. On May 20, 2015, the state attorneys generals for 31 states reported a $6 million settlement with the three major credit reporting agencies over concerns regarding inaccurate consumer credit reports. The settlement arose from an investigation into con- sumer complaints that the reporting agencies failed to adequately (i) ensure the accuracy of consumer reports or credit reports, (ii) investigate consumer disputes, and (iii) prevent reporting of deleted or suppressed informa- tion. CFPB Enters Consent Order with Fifth Third Bank for UDAAP Violations of Add-On Products. On September 28, 2015, the CFPB entered into a consent order with Fifth Third Bank for alleged UDAAP violations in connection with the bank’s marketing and sales of its “debt pro- tection” credit card add-on product. The CFPB alleged that the bank enrolled consumers in the debt protection program when consumers had only requested informa- tion, and failed to disclose that consumers were being charged a monthly percentage fee of their card balance. The bank agreed to pay $3 million in relief to roughly 24,500 customers and pay a $500,000 civil monetary penalty. Looking Ahead to 2016 In 2016, we anticipate that add-on products and accu- rate credit reporting will continue to remain in federal and state enforcers’ crosshairs. The CFPB and Director Cordray have clearly articulated their stance that add-on products are subject to unfairness and misrepresenta- tion claims given their strong likelihood to mislead con- sumers. We also anticipate that credit card companies and banks will face scrutiny over their role in accurate credit reporting. In addition, given recent trends from the CFPB consum- er complaint database, we expect an uptick in litigation against banks and credit card companies concerning the assessment of late fees and inaccuracies in billing statements. CREDIT CARDS What to Watch Continued focus on add-on products | Increased scrutiny of lenders over accurate credit reporting | Potential increase in borrower litigation over late fees