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Posts published by “Thomas Dominczyk”

Tom Dominczyk is based in Maurice Wutscher's New Jersey office and supports the firm's matters in its New York and Pennsylvania offices, practicing in the firm's Commercial Litigation, Consumer Credit Litigation and Bankruptcy groups. Tom has successfully represented financial institutions and law firms throughout the country for claims filed under the Fair Debt Collection Practices Act, Fair Credit Reporting Act and various state consumer protection statutes. In addition to his litigation practice, Tom represents national, regional and local creditors in a variety of bankruptcy matters ranging from the defense of adversary actions to complex non-dischargeability litigation and preference defenses. He served as a Judicial Clerk to the Honorable Graham T. Ross, P.J.F.P., Superior Court of New Jersey, Somerset County. For more information, see https://mauricewutscher.com/attorneys/thomas-r-dominczyk/

EDNY Dismisses Multiple Hunstein Cases for Lack of Standing, Issues Warning to Plaintiff’s Attorneys on Questionable Claims

Scolding plaintiff’s attorneys who “manipulate” the FDCPA for their own personal gain, U.S. District Judge Gary R. Brown on July 23 issued an opinion in a consolidated matter dismissing multiple complaints alleging debt collectors violated the FDCPA by transmitting consumer information to lender vendors engaged to print or send dunning letters.

District Court Judge Rules CFPB is Unconstitutionally Structured

In the final few pages of a 108 page opinion of a motion to dismiss a complaint jointly filed by the Consumer Financial Protection Bureau (CFPB) and the Attorney General of the State of New York (NYAG), a Federal Judge sitting in the Southern District of New York declined to follow an earlier ruling from the Court of Appeals for the District of Columbia Circuit but instead adopted the dissent which held that “the CFPB is unconstitutionally structured because it is an independent agency that exercises substantial executive power and is headed by a single Director.” A copy of the…

2nd Cir. Cleans Up Interest Disclosure Mess, Upholds Taylor

Just over two years to the day after it issued its opinion in Avila v. Riexinger & Associates, LLC, the Second Circuit Court of Appeals has issued a critical blow to a recent spate of FDCPA lawsuits attempting to create liability out of thin air. A copy of the opinion in Taylor v. Financial Recovery Services is available at:  Link to Opinion. In Avila, the Second Circuit held that a debt collector violates the FDCPA by stating the “current balance” of a consumer’s debt without disclosing that the balance is increasing due to the accrual of interest or fees.  In Avila, the debt…

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 from a collector allowing him to make payments by phone or online subject to a $4.95 processing fee.  Similar payments made by mail would not be subject to the processing fee.  Although the account at issue did not belong to him, the plaintiff filed suit…

Mass. SJC Holds Recorded Attorney’s Affidavit May Cure Defect in Certificate of Acknowledgment for Mortgage

In response to a request from the U.S. Court of Appeals for the First Circuit, the Supreme Judicial Court of Massachusetts recently held that a recorded attorney’s affidavit attesting to the proper acknowledgment of a recorded mortgage with a Certificate of Acknowledgment that omits the mortgagors’ names, in certain circumstances, may cure the defect in the Acknowledgment. The Court also held that a recorded attorney’s affidavit attesting to the proper acknowledgment of a recorded mortgage with a Certificate of Acknowledgment that omits the mortgagors’ names, in certain circumstances, may provide constructive notice of the existence of the mortgage to a…

ED NY Denies Class Cert on ‘Ascertainability’ Grounds, Holds ‘Probing’ Questions in Dispute Call Did Not Violate FDCPA

The U.S. District Court for the Eastern District of New York recently granted summary judgment in favor of a debt collector, holding that the debt collector did not violate the federal Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692, et seq., by reporting a debt as “deleted” rather than “disputed,” and by asking probing questions in response to a call from the consumer disputing the debt. In addition, the Court denied the plaintiff’s motion for class certification on ascertainability grounds, holding that trying to decipher the debt collector’s summaries of its calls with the putative class members would not be…

1st Cir. Rejects Borrower’s Attempt to Permanently Enjoin Foreclosure Due to Cancellation of Prior Foreclosure Proceedings

The U.S. Court of Appeals for the First Circuit recently held that the cancellation of a foreclosure sale prohibits a borrower from obtaining a permanent injunction to bar a foreclosure, as they would not suffer irreparable harm. A copy of the opinion in Frangos v. Bank of America, N.A. is available at:  Link to Opinion. In 2005, the plaintiff borrowers obtained a refinance mortgage loan on their home. The borrowers defaulted on their mortgage in 2007 and again in 2009. The loan was modified but the borrowers still had not made a mortgage payment since 2009.  Between 2011 and 2013,…

MD Pa. Holds Notice Explaining Tax Consequences of Debt Cancellation Could Be Misleading

The U.S. District Court for the Middle District of Pennsylvania recently denied a debt collector’s motion to dismiss, holding that a collection notice describing the potential tax consequences of settlements involving cancellation of indebtedness of $600 or more may be misleading or deceptive to the least sophisticated consumer. A copy of the opinion in Balon v. Enhanced Recovery Company, Inc. is available at:  Link to Opinion. A consumer filed a complaint against a debt collector alleging the defendant supposedly violated the federal Fair Debt Collection Practices Act (FDCPA) by sending a letter that stated that “any indebtedness of $600.00 or more,…

Pennsylvania Supreme Court Holds Any Entity May Be Liable for Charging Excessive Attorney’s Fees

In an appeal that garnered significant attention from consumer groups who filed briefs as amici curiae, the Supreme Court of Pennsylvania recently held that any entity that charges excessive attorney’s fees in connection with a foreclosure may be liable for treble damages, fines, and attorney’s fees under the Pennsylvania Loan Interest Protection Law. A copy of the opinion in Glover v. Udren Law Offices, PC is available at:  Link to Opinion. The borrower entered into a residential mortgage in 2002, and later defaulted.  In the foreclosure proceedings that followed, the mortgagee’s counsel took several actions on the mortgagee’s behalf. The parties…