Legal Blog

Compensation and Compliance Matters: Consumer Financial Protection Bureau Sues Sprint Over Charges from a Third-Party

On Dec. 17, 2014, the Consumer Financial Protection Bureau announced that it was suing Sprint Corp., the major wireless provider, for “illegally cramming” consumers’ phone bills with unauthorized third party charges. Specifically, the CFPB is alleging that Sprint acted as a payment processor when a consumer received content on their phones sent to the consumer from third-party vendors, including ringtones and wallpaper. The CFPB alleges that merchants of these premium text messages targeted consumers online, requested the consumers’ cell phone number in exchange for “free” digital content, and then charged for such content or, in some cases, charged the consumer for services that were never provided.

Click here to read the entire article on National Mortgage News.

akaren@offitkurman.com  | 240.507.1740

Bank Manager ReimbursementsAri Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.

Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.