The U.S. Court of Appeals for the Ninth Circuit recently reversed an award of summary judgment in favor of a mortgage loan servicer, holding that the evidence could support a verdict that the servicer engaged in an unfair business practice by accepting trial modification plan payments when it had previously determined the borrower was not eligible for a loan modification. A copy of the opinion Oskoui v. J.P. Morgan Chase Bank, N.A. is available at: Link to Opinion. A borrower defaulted on her mortgage loan, and later applied for a loan modification. The mortgage loan servicer sent her a letter…
Posts published in “UDAP/UDAAP”
The Appellate Court of Illinois, Second District, recently held that an erroneous advertisement that misstated the price of a vehicle did not constitute an offer that could be accepted to form a contract, and did not constitute a UDAP violation. A copy of the opinion in Burkhart v. Wolf Motors of Naperville, Inc. is available at: Link to Opinion. The plaintiff car buyer saw an advertisement online for a vehicle and contacted the defendant car dealership to purchase the vehicle at the advertised price. The car dealer explained to her that the price of the vehicle was $36,991 and the price…
Title loan lenders are under fire from New York Attorney General Eric Schneiderman who announced this week that he reached “agreements” with 10 repossession agents to stop accepting their repossession assignments. Title loan companies do not establish a physical presence in New York to avoid its 16 percent maximum loan interest rate for unlicensed lenders, according to a press release from Schneiderman’s office. According to the press release, these out-of-state title loan lenders are charging interest rates ranging from 100 percent to more than 700 percent. A title loan, which is a type of payday loan, can often worsen a consumer’s financial problems because many are unable to pay off…