Another auto lender recently agreed to pay millions of dollars to resolve allegations made by the Massachusetts Office of the Attorney General that it failed to provide compliant deficiency notices following the repossession of automobiles from consumers within the Commonwealth.
Posts published in “Auto Finance”
The U.S. Court of Appeals for the Third Circuit recently reversed a trial court's ruling that the Pennsylvania Department of Banking and Securities violated the Commerce Clause by issuing and attempting to enforce a subpoena to an out-of-state vehicle title lender regarding the out-of-state lender's interactions with Pennsylvania residents.
The Court of Appeals of the State of California, Second Appellate District, recently affirmed a trial court’s judgment holding that the limitation on recovery under the Federal Trade Commission’s “holder rule” does not preclude recovery of attorney fees, costs, nonstatutory costs, or prejudgment interest against the assignee.
The Supreme Court of Wisconsin recently held that (1) in the Wisconsin statute regarding nonjudicial enforcement for consumer transactions (§ 425.206(2)(b)), the term “dwelling used by a customer as a residence” includes a garage attached to the residential building in which the customer lives; and (2) claims of unconscionability under the Wisconsin statute regarding remedies in consumer credit transactions (§ 425.107) are available only in “actions or other proceedings” brought by a creditor to enforce rights arising from consumer credit transactions and that a non-judicial repossession is not such an action or proceeding.
The U.S. Court of Appeals for the First Circuit and federal and state courts in Massachusetts decided several important cases for the consumer financial services industry in 2021. Two related cases concerned the constitutionality of a Massachusetts regulation limiting telephone contact with debtors and a third ruling came from the First Circuit on a federal TCPA action.
In its top consumer credit law decisions of 2021, the U.S. Court of Appeals for the Fifth Circuit determined that settlement of an FDCPA claim does not trigger an attorney fee award, examined third-party contact as a "communication" under the FDCPA, and ruled there was no "partial surrender" of collateral in a Chapter 13 plan.
The Court of Appeal of the State of California, Fourth Appellate District, recently affirmed a trial court’s order denying the defendant’s motion to compel arbitration.
The U.S. Court of Appeals for the Fifth Circuit recently affirmed a trial court’s denial of a consumer’s Chapter 13 bankruptcy plan that proposed a "partial surrender" of a cross-collateralized loan.
The Consumer Financial Protection Bureau recently announced a consent order against a subprime automobile finance company for violations of the Fair Credit Reporting Act resulting from systemic errors in data furnished to credit reporting agencies between January 2016 and August 2019.
The Court of Appeals of the State of California, Fourth Appellate District, recently held that an arbitration provision contained in a credit card agreement was unenforceable because it sought to bar a customer from pursuing “in any forum” his claim for a public injunction.
In a case of first impression on the issue of “whether a lease assumption can survive discharge even though it is not reaffirmed[,]” the U.S. Court of Appeals for the Ninth Circuit recently held that a creditor’s post-discharge attempt to collect the balance owed under an automobile lease assumed by the debtor post-petition but prior to discharge in a Chapter 7 case did not violate the discharge injunction.
The FTC will soon propose changes it says are designed to align several existing rules under the federal Fair Credit Reporting Act with the Dodd-Frank Act. The impacted rules cover only “motor vehicle dealers” being persons “predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.”