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Posts tagged as “credit”

Illinois App. Court (5th Dist) Rejects Borrower’s Challenges to Creditor’s Evidence at Trial

The Appellate Court of Illinois, Fifth District, recently affirmed a trial court’s judgment against a borrower on a credit card debt because it ruled that there were no errors in the admission of evidence, there was no evidence of judicial bias, and the judgment was not against the manifest weight of the evidence.

6th Cir. Agrees No Article III Standing in FACTA ‘Truncation’ Putative Class Action

The U.S. Court of Appeals for the Sixth Circuit recently affirmed dismissal of a consumer’s claims that a retail food store violated the federal Fair and Accurate Credit Transactions Act of 2003’s “truncation requirement” by printing more digits of the consumer’s credit card than permissible by statute.

Calif. App. Court (4th Dist) Allows CCRAA Plaintiff to Inquire Into Acceptance Rates of ‘Firm Offer of Credit’ Campaigns

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.

6th Cir. Holds Lender May Recover Against Property Held by Trust When Trust Is Guarantor

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…

Three New California Laws Will Impact Consumer Credit

Three new laws signed by California Gov. Gavin Newsom in recent days will impact consumer credit in the state by capping interest rates on payday and other consumer installment loans, giving automatic exemptions for bank account levies and removing exemptions for attorneys and mortgage loans from the Rosenthal Act. California Financing Law Expanded AB 539 amends the California Financing Law, which licenses and regulates finance lenders and brokers, by imposing new restrictions on loans of $2,500 or more but less than $10,000. It also adds a rate cap on those loans so that the annual simple interest rate may not…

11th Cir. Holds Lender’s Forum Selection and Class Action Waiver Clauses Unenforceable

The U.S. Court of Appeals for the Eleventh Circuit recently affirmed the denial of a lender’s motions to dismiss and to strike a complaint filed on behalf of a class of borrowers who entered into loan agreements with the lender and its affiliates. In so ruling, the Eleventh Circuit held that the loan agreements’ forum selection clause and class action waivers were unenforceable under Georgia’s Payday Lending Act and Industrial Loan Act, as enforcement would undermine the purpose and spirit of Georgia’s statutory scheme including to preserve class actions as a remedy. A copy of the opinion in Davis v.…

9th Cir. Holds No FCRA Violation by CRA When Dispute Did Not Come ‘Directly’ From Consumer

The U.S. Court of Appeals for the Ninth Circuit held that where a company sent dispute letters to a credit reporting agency on behalf of a consumer, but the consumer did not identify the items to be disputed, review the letters, or otherwise play any role in preparing the letters, the letters did not come “directly” from the consumer, and the CRA was not required to conduct a reinvestigation under section 1681i of the federal Fair Credit Reporting Act (FCRA). As a result, the Ninth Circuit held that the CRA did not violate section 1681i, and also did not act…

DC Cir. Holds FACTA ‘Faulty Credit Card Receipt’ Claim Enough for Spokeo Standing

The U.S. Court of Appeals for the District of Columbia Circuit held that where a company provided a consumer with a receipt that displayed her entire 16-digit credit card number and credit card expiration date in violation of the federal Fair and Accurate Credit Transactions Act of 2003 (FACTA), the consumer alleged a concrete injury in fact sufficient for standing under Spokeo, notwithstanding the fact that the consumer noticed the violation immediately and kept the receipt in a safe location. Accordingly, the D.C. Circuit reversed the judgment of the trial court granting the defendant company’s motion to dismiss, and remanded…