The U.S. Court of Appeals for the Eighth Circuit recently affirmed a trial court judgment holding a bank and its principal in contempt and sanctioning them for violating a bankruptcy discharge injunction, based on the findings in a parallel state court proceeding. In so ruling,…
The Court of Appeal for the Second District of California held that California’s fee shifting statue in California Civil Code § 1717 permitted a former loan servicer and foreclosure trustee to recover their attorneys’ fees authorized by the contract, even though the deed of trust…
Newly introduced legislation in Texas, House Bill 996, addresses when a debt buyer can initiate legal action or arbitration to collect a consumer debt and requires specific notices with respect to out-of-statute debt. “Debt buyer” is defined as “a person who purchases or otherwise acquires a…
The Circuit Court of the First Judicial Circuit in and for Santa Rosa County, Florida recently rejected a company’s argument that a purchase and sale agreement for the company’s future receivables constituted a “loan” that was unenforceable under New York usury law, because payment to…
An online lender that extends payday and unsecured installment loans reached a settlement with the Consumer Financial Protection Bureau regarding “unfair, deceptive, or abusive acts or practices” allegations that the lender unlawfully debited consumers’ bank accounts without authorization and failed to honor loan extensions to…
The Rhode Island Department of Business Regulation has adopted a record retention rule for debt collectors requiring that virtually all records be retained for a minimum of five years “following the transaction.” Records that must be retained include the following: all audio recordings of contact…
Reversing a ruling by the Fourth District Court of Appeal, the Supreme Court of Florida recently held that a mortgagee’s voluntary dismissal of an appeal made the borrower the prevailing party entitled to recover appellate attorney’s fees because the mortgagee maintained its right to enforce…
The U.S. Court of Appeals for the Eighth Circuit recently vacated a trial court’s order approving a class action settlement agreement because the trial court did not first determine whether the FCRA class representative had standing. In so ruling, the Eighth Circuit held that a…
The U.S. Court of Appeals for the Second Circuit recently affirmed entry of summary judgment in favor of the Federal Trade Commission and against 13 corporations and their two co-owners for violations of the Federal Trade Commission Act and the federal Fair Debt Collection Practices…
In a case of first impression, the U.S. Court of Appeals for the Fifth Circuit recently held that a lender was not vicariously liable for a loan servicer’s alleged violation of the federal Real Estate Settlement Procedures Act holding that (a) the borrower failed to plead…
Legislation has been introduced in Illinois and New York that would require debt collectors to provide consumers with specific notices. In New York, Assembly Bill 876 would require the initial written communication to a debtor to include the following: “Debtor’s Rights As a debtor who…
The U.S. Court of Appeals for the Fifth Circuit held that ambiguity in the deed of trust regarding the lender’s right to pay real estate taxes and establish an escrow account precluded entry of summary judgment in favor of the loan servicer on the borrower’s…