Archive for August 2015

11th Circ. Applies Narrow Definition to ‘Debt Collector’ Under FDCPA

The U.S. Court of Appeals for the Eleventh Circuit recently confirmed that an entity is not a “debt collector” under the federal Fair Debt Collection Practices Act, where it does not regularly collect on debts owed to a third party, and debt collection is not the principal purpose of the entity’s business, even when the

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1st Circ. Limits Ability to Use Bank Secrecy Act to Shield Sensitive Documents

The U.S. Court of Appeals for the First Circuit recently denied a bank’s request pursuant to the Bank Secrecy Act to shield certain business records from being produced and used in a putative class action, holding that none of the subject documents constitute a draft SAR, or reflect the decision-making process as to whether a

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Illinois Collection Agency Act Amended to Exclude Non-Bank Mortgage Servicers

As you may recall, an Illinois appellate court held in 2012 unreported opinion that mortgage servicers may be subject to Illinois Collection Agency Act, 225 ILCS 425/1, et seq. (ICAA), including the licensing and other requirements of the ICAA. The Court held that, “[d]epending on what a mortgage servicer does other than elicit and receive

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DC Circuit Holds Bank Has Standing to Challenge CFPB Constitutionality But Not FSOC’s

The U.S. Court of Appeals for the District of Columbia Circuit recently held that a bank has standing to challenge the constitutionality of the federal Consumer Financial Protection Bureau and the recess appointment of its director, reversing the district court and remanding. However, the Court also held that the plaintiff bank lacked standing to challenge the

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Eighth Circuit Holds Time Limit for MSMLA Claims is Three Years

The U.S. Court of Appeals for the Eighth Circuit recently affirmed the dismissal of a class action by Missouri borrowers alleging that various assignees and purchasers of second mortgages charged or collected illegal fees in violation of the Missouri Second Mortgage Loan Act (MSMLA), holding that plaintiff borrowers lacked standing to sue the defendants who

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Webinar to Discuss California’s One Form of Action Rule

As you may recall, the Supreme Court of California is currently reviewing two significant appellate court rulings involving the “one form of action” rule: 1. Coker v. JP Morgan Chase Bank, N.A., 218 Cal. App. 4th 1 (4th Dist. 2013); and, 2. First California Bank v. McDonald, 231 Cal. App. 4th 550 (5th Dist. 2014).

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Second Circuit Holds Servicing Transfer Notice Not Exempt from FDCPA

The U.S. Court of Appeals for the Second Circuit recently reversed the dismissal of a consumer’s claim alleging that a mortgage loan servicer violated the federal Fair Debt Collection Practices Act by sending a servicing transfer notice that did not contain the disclosures required under the FDCPA, 15 U.S.C. 1692g. A copy of the opinion

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Florida Court: ‘Substantial Compliance’ is Sufficient for Mortgage Notice of Default

The Florida Second District Court of Appeal recently upheld a mortgagee’s notice of default that substantially complied with the applicable provision of the mortgage, ruling that strict compliance is not required. A copy of the opinion is available at:  Link to Opinion. The borrowers obtained a mortgage in May 2007 and defaulted in November 2008.

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Mortgage Lender Wins Two Significant FHA ‘Disparate Impact’ Victories

A large mortgage lender recently prevailed against both the City of Los Angeles and the County of Cook, Illinois, in lawsuits alleging “disparate impact” discrimination in violation of Title VIII of the Civil Rights Act of 1968, 42 U.S.C. § 3601 et seq., more commonly known as the federal Fair Housing Act (FHA). As you

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Webinar to Review Credit Reporting Risks in Bankruptcy

Furnishing information during and after a consumer bankruptcy is a complex task, and implicates the Bankruptcy Code, Fair Credit Reporting Act and Fair Debt Collection Practices Act. Recent litigation suggests that both the content and the timing of the furnished information poses unique risk to the credit and collections industry. And a recent string of

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Maurice Wutscher Opens Austin Office, Adds Attorney Eric Rosenkoetter

National financial services law firm Maurice Wutscher LLP has opened its 11th office, hiring financial services attorney Eric Rosenkoetter to lead the firm’s Texas litigation matters in its new Austin office. Rosenkoetter will practice in the firm’s Commercial Litigation, Consumer Credit Litigation and Regulatory Compliance groups, joining Maurice Wutscher’s skilled team of 25 attorneys focused

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