Archive for January 2017

7th Cir. Opens Door to Possible CAMELS Rating Litigation Challenges

The U.S. Court of Appeals for the Seventh Circuit recently held that the presence of capital as one of six components in the FDIC’s CAMELS rating does not mean that the rating as a whole is committed to agency discretion for the purpose of 5 U.S.C. §701(a)(2) and therefore unreviewable. A copy of the opinion

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3rd Cir. Rules Violation of Statute Without Concrete Harm Enough for Standing, At Least in Data Breach Cases

The U.S. Court of Appeals for the Third Circuit recently reversed the dismissal of a putative class action under the federal Fair Credit Reporting Act (FCRA) based on the theft of laptops from a health insurer containing sensitive personal information, holding that the plaintiffs had standing to sue because Congress created a statutory remedy for

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Fla. Court Holds Payment Statement Sent After Consent Foreclosure Violated FCCPA, Rejects ‘Competent Attorney’ Standard

The Appellate Division of the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida recently reversed summary judgment in favor of a mortgage loan servicer in a case filed by a borrower under the Florida Consumer Collections Practices Act (FCCPA), holding that: (a) the account statement at issue improperly attempted

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SCOTUS Rules Fannie Mae’s ‘Sue or Be Sued’ Clause Does Not Confer Automatic Federal Court Jurisdiction

The Supreme Court of the United States recently held that the “sue-and-be-sued” clause in the Federal National Mortgage Association’s (“Fannie Mae”) charter does not confer subject matter jurisdiction on federal district courts over all cases involving Fannie Mae, and that an independent basis for subject matter jurisdiction must exist such as federal question or diversity.

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SCOTUS to Decide Whether Entity is FDCPA ‘Debt Collector’ Merely Because It Purchases Defaulted Debt

The Supreme Court of the United States recently decided that it will review the decision of the U.S. Court of Appeals for the Fourth Circuit in Henson v. Santander Consumer USA, Inc. As you may recall from our prior update, the U.S. Court of Appeals for the Fourth Circuit held that the fact that a

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Supreme Court Hears Oral Argument in Midland Funding v. Johnson

The U.S. Supreme Court heard oral argument Tuesday in Midland Funding v. Johnson. A primary issue before the Court is whether the federal Fair Debt Collection Practices Act is violated by the filing in a Chapter 13 bankruptcy case of a proof of claim representing a debt subject to an expired limitations period. The case

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MD Fla. Holds Non-Foreclosure Collection on Time-Barred Debt Does Not Provide Basis for FDCPA or FCCPA Claim

The U.S. District Court for the Middle District of Florida recently granted in part a mortgage loan servicer’s motion to dismiss a consumer borrower’s claims under the federal Fair Debt Collection Practices Act (FDCPA), the Florida Consumer Collection Practices Act (FCCPA), the Real Estate Settlement Procedures Act (RESPA), the federal Fair Credit Reporting Act (FCRA),

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9th Cir. Rejects ‘Administrative Feasibility’ or ‘Ascertainability’ Class Cert. Requirement

The U.S. Court of Appeals for the Ninth Circuit recently held that class action plaintiffs are not required to demonstrate that there is an administratively feasible way to determine who is in a class in order for the class to be certified. In so ruling, the Ninth Circuit noted that the Sixth, Seventh, and Eighth

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7th Cir. Rejects Alleged RESPA ‘Pattern and Practice’ Due to No Evidence of ‘Coordination’

The U.S. Court of Appeals for the Seventh Circuit recently held that a mortgage servicer’s response to a borrower’s written request for information complied with requirements of the federal Real Estate Settlement Procedures Act (RESPA) and, to the extent any information was missing, the borrower suffered no actual damages as a result. In so ruling,

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Fla. App. Court (3rd DCA) Holds Mortgagee Failed to Prove Repairs to Property Not ‘Economically Feasible’

The Court of Appeal of the State of Florida, Third District, recently reversed summary judgment in favor of a mortgagee-loss payee under a homeowner’s insurance policy, holding that the mortgagee failed to provide evidence of the value of the property after repairs, and therefore failed to show that repairing the property was not economically feasible.

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FDCPA Claim Fails for Lack of Standing Under Spokeo Holds NJ Federal Court

A New Jersey federal District Court recently granted a debt collector’s motion for summary judgment in a claim arising from service fees where the collection account at issue did not belong to the debtor. A copy of the opinion in Benali v. AFNI is available at:  Link to Opinion. The plaintiff received a dunning letter

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1st Cir. Holds IRS 1099-A Forms Did Not Violate Discharge Injunction

The U.S. Court of Appeals for the First Circuit recently affirmed a bankruptcy court’s ruling that a mortgagee did not violate the discharge injunction in 11 U.S.C. § 524(a) by sending IRS 1099-A forms to borrowers after their discharge, agreeing that the IRS forms were not objectively coercive attempts to collect a debt. A copy

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