The U.S. Court of Appeals for the Eighth Circuit recently held that a reduction of a jury's punitive damages award from $5.8 million to only $500,000 was appropriate where the jury's award was grossly excessive and in violation of the due process clause.
Posts published in “Consumer Financial Services Law”
Agreeing with similar rulings in the First, Ninth, and Tenth Circuits, the U.S. Court of Appeals for the Seventh Circuit recently held that the Fair Credit Reporting Act does not require consumer reporting agencies to determine the legal validity of disputed debts.
On June 27, the City of New York’s new rules aimed at language access in debt collection become effective. I am often asked whether they apply to creditors as well. It appears that particular provisions of the new rules do cover creditors collecting their own debt.
The Court of Appeal for the State of California, Fourth Appellate District, recently held that a trial court improperly denied a consumer’s motion to compel an answer to the consumer's special interrogatory, as the interrogatory was relevant to create a reasonable inference which would have defeated a lender’s motion for summary judgment.
Yesterday ARM industry trade associations ACA, New York State Collectors Association and the Receivables Management Association International (RMAI), along with the National Creditors Bar Association and the New York State Bar Association submitted a joint letter to the New York City Department of Consumer and Worker Protection (formerly the Department of Consumer Affairs) requesting a 60-day extension to the effective date of its new language preference rules.
The New York City Department of Consumer and Worker Protection has adopted new rules requiring debt collectors to provide consumers with language preference disclosures and an affirmative obligation to request and record the consumer’s language preference.
In an action by a lender and its affiliate to recover insurance proceeds for defense costs of a federal qui tam action and indemnification for the resulting settlement, the New York Court of Appeals recently held that an arbitration panel can reconsider an initial determination, or “partial final award,” so long as the determination or award does not resolve all of the issues submitted for arbitration.
The federal Consumer Financial Protection Bureau has extended the deadline for public comments on its Supplemental Notice of Proposed Rulemaking on time-barred debt disclosures to Aug. 4. The Bureau stated its reason for the extension as “the impact of the COVID-19 pandemic.”
Effective June 11, purchasers of consumer debt will face tougher requirements when initiating debt collection lawsuits in Washington state.
On April 1, the CFPB issued a policy statement addressing the responsibility of furnishers under the CARES Act and describing the flexible approach the Bureau intends to take with respect to supervision and enforcement of the FCRA and Regulation V during the COVID-19 pandemic.
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.
A number of states have tolled the statutes of limitations on legal actions in response to COVID-19. The Iowa Supreme Court announced a toll on statutes of limitations in a March 17 order regarding court procedures. According to a March 23 operations summary from the Iowa Judicial Branch: “The March 17th order is intended to toll the statute of limitations or similar deadline for commencing an action in district court by 48 days. Tolling means you add that amount of time to the statute of limitations. So, for example, if the statute would otherwise run on April 8, 2020, it…