Archive for February 2014

NY Appellate Court Has Harsh Words for Activist Judge

A jurist praised by the New York Times for his administration of credit card collection cases was recently the subject of a harsh rebuke from a New York appellate court for the same judicial practices.

Mortgage Lender Self-Reports Violation to CFPB – Small Penalty Follows

The Consumer Financial Protection Bureau today announced that 1st Alliance Lending, LLC, a mortgage lender, was assessed a civil monetary penalty of $83,000, arising from illegally splitting real estate settlement fees. In Yes, the CFPB is Serious About Self-Reporting!, I commented last August that the bureau is encouraging regulated entities to self-report, even if unsure whether their

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Lawyer and Non-Lawyer Supervision — A Lesson in Avoiding an Ethical Transgression

For several years my attorney ethics presentations and papers have emphasized that lawyer supervision and particularly non-lawyer supervision, in my experience, is an area of concern for attorneys who practice debt collection law. A recent opinion from New York’s Appellate Division, Second Department, concerning the conduct of a debt collection law firm provides an example of

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CFPB Deputy Director Tells Mortgage Servicers He is ‘Deeply Disappointed’ With Their Practices

Speaking as an invited guest to a conference of the Mortgage Bankers Association yesterday in Orlando, Steven Antonakes, deputy director of the Consumer Financial Services Bureau, told the industry group he was “deeply disappointed” by their lack of progress in improving the mortgage servicing industry. Noting that “too many [mortgage] customers continue to receive erratic and

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Fourth Circuit Holds Consumers May Dispute Debts Orally

The Fourth Circuit has joined the Second and Ninth circuits to hold that the Fair Debt Collection Practices Act does not require consumers to dispute debts in writing.  (Clark v. Absolute Collection Serv., 2014 U.S. App. LEXIS 1939 (4th Cir. Jan. 31, 2014)). In a short per curiam opinion on Jan. 31, the Fourth Circuit

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