Home Login

The Credit Card Accountability and Disclosure Act of 2009 and Other Recent Legal Developments Affecting Consumer Class Actions in the Financial Services Industry

Author: Barry Goheen.; Letitia Mcdonald.; Darrick Mcduffie.

Source: Volume 25, Number 01, September/October 2011 , pp.5-18(14)

Journal of Taxation and Regulation of Financial Institutions

Abstract:

Banks and other financial institutions have been increasingly targeted in class action efforts by consumers, whether the cases concern overdraft fees, interest rates, or any of the myriad other products and services such institutions offer. The Credit Card Accountability and Disclosure Act of 2009, primarily directed at the fees banks, credit card issuers, and others may charge to consumers, presents a new class-action risk for these institutions, which are already wearying of multiple class-action efforts. However, two Supreme Court opinions from the just-completed 2010-2011 term may provide institutions with tools to minimize these threats and risks.

Keywords: over-the-limit transactions; consumer consent; overdraft fees; penalty fees; gift cards; state usury claims; AT&T Mobility v. Concepcion; Wal-Mart v. Dukes

Affiliations: 1: King & Spalding LLP; 2: King & Spalding LLP; 3: King & Spalding LLP.