The Court of Appeals of California, Fourth District, recently held as a matter of law that banks owe no duty to depositors to monitor other depositors’ accounts for fraud.
Posts published in “Banking”
The Office of the Comptroller of the Currency (OCC) recently issued its final rule clarifying the “Permissible Interest on Loans that are Sold, Assigned, or Otherwise Transferred”.
The U.S. Bankruptcy Appellate Panel for the Eighth Circuit recently affirmed a bankruptcy court’s holding that the contemporaneous exchange for new value defense to a preference action under § 547(c) applied to a creditor bank that released its liens for less than full payment.
The Massachusetts attorney general has adopted a regulation deeming it illegal for a debt collector to telephone a Massachusetts resident to request payment of a debt or for a debt collector or a creditor to file a lawsuit to collect a debt.
The U.S. Court of Appeals for the Ninth Circuit recently affirmed the dismissal of a consumer’s Truth in Lending Act (TILA) claim for lack of subject matter jurisdiction, holding that the claim was barred by the jurisdiction-stripping provision of the federal Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
In a case of first impression, the U.S. Court of Appeals for the Fifth Circuit recently held that the protections against default judgment under the Servicemembers Civil Relief Act (SCRA) do not apply to the seizure and sale of real property in in rem proceedings under Louisiana law where the debtors have agreed to a confession of judgment in the mortgage or security agreement.
It has been an extraordinary 365 days for consumer financial services law. I cannot recall a year where so many states introduced legislation or proposed regulations or rules impacting the credit industry. At the federal level, proposed rules for the Fair Debt Collection Practices Act were (finally) released and California also proposed regulations under the California Consumer Privacy Act.
The U.S. Court of Appeals for the Second Circuit recently held that the federal False Claims Act (FCA) applies to persons who present false or fraudulent loan applications to Federal Reserve Banks (FRBs) because the latter are “agents of the United States” within the meaning of the FCA and the loan money is provided by the United States to advance a government program or interest within the meaning of the FCA.
The U.S. Court of Appeals for the Eleventh Circuit recently reversed the dismissal of a pro se consumer’s claims under the federal Fair Credit Reporting Act (FCRA), holding that he stated a plausible claim for relief with his allegations that the defendant creditor obtained his credit report without his consent, and failed to reasonably investigate his credit reporting disputes. However, the Court affirmed the trial court’s dismissal of the consumer’s claim under the federal Fair Debt Collection Practices Act (FDCPA) that the creditor defendant used a “false name” in attempting to collect the debt owed to it.
The federal banking regulators and the CFPB recently issued an “Interagency Statement on the Use of Alternative Data in Credit Underwriting,” stating in sum that the agencies “encourage responsible use” of alternative data, especially in the context of credit underwriting.
The U.S. Court of Appeals for the Eighth Circuit held that the purchaser of residential mortgage loans could not require the seller of the loans to repurchase purportedly defective loans under their agreement after the loans had gone through foreclosure. However, the seller was required to repurchase the defective loans that had not gone through foreclosure. Accordingly, the Eighth Circuit affirmed the ruling of the trial court granting summary judgment in part to the seller and in part to the purchaser. A copy of the opinion in CitiMortgage, Inc. v. Equity Bank, N.A. is available at: Link to Opinion. Over the course…
The U.S. Court of Appeals for the Sixth Circuit recently affirmed a trial court’s ruling that, at least under Michigan law, a lender could recover against a living trust that guaranteed a loan from the property held by the trust. A copy of the opinion in JPMorgan Chase Bank, N.A. v. Winget, et al is available at: Link to Opinion. A closely-held company obtained a loan of almost a half-billion dollars from a group of banks. The company’s principal agreed to guarantee the loan, both individually and on behalf of his living trust. The borrower defaulted and the lender sued the…