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Posts published in “Consumer Financial Services Law”

Calif. App. Court (2nd Dist) Holds Creditor’s Application for Sale Must Include Unrecorded Liens on Property

The Court of Appeals of the State of California, Second Appellate District, recently affirmed a trial court’s denial of a judgment creditor’s application for sale of the debtor’s dwelling to satisfy the creditor’s money judgment, finding the application was deficient.

Calif. App. Court (1st Dist) Holds Bail Bond Premium Finance Agreements Are Consumer Credit

The Court of Appeal of the State of California, First Appellate District, recently affirmed a trial court's order enjoining a bail bonds company from enforcing bail bond premium financing agreements on a classwide basis on the ground that the statutory notice pursuant to California Civil Code section 1799.91 had not been provided.

Wisc. Supreme Court Limits ‘Unconscionability’ Claims Regarding Consumer Credit Transactions

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.

This Year the 1st Circuit and Mass. Courts Tackled Consumer Contacts

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.

SCOTUS Limits FTC’s Ability to Obtain Equitable Monetary Relief

The Supreme Court of the United States recently held that the Federal Trade Commission Act allows permanent injunctions to prevent future violations but does not authorize the Federal Trade Commission to seek, or a court to award, equitable monetary relief such as restitution or disgorgement, except that the FTC may obtain monetary relief by first invoking its administrative procedures and then Section 19’s redress provisions (which includes limitations).

Illinois App. Court (1st Dist) Holds Assignment of Medical Lien to Funding Company Unlawful

The Appellate Court of Illinois First District, Sixth Division, recently reversed in part and affirmed in part a trial court’s dismissal of a putative class action plaintiff’s claim that one of the defendants, a healthcare provider from whom the plaintiff received medical treatment following a personal injury, attempted to unlawfully assign its statutory lien against the plaintiff’s personal injury settlement to the other defendant, a financial services company and non-healthcare provider.