A recent decision by the Massachusetts Court of Appeals highlights some of the challenges lenders may face when seeking the dismissal of allegations of unfair and deceptive lending practices in connection with a loan that requires a balloon payment at the end of the loan’s term.
Consumer Financial Services Legal Update Blog
On December 11, 2015, the U.S. Supreme Court granted certiorari to hear a dispute concerning allegations of deceptive debt collection by lawyers.
Online Services Companies Await Supreme Court Ruling on Standing to Bring Class Actions under Fair Credit Reporting Act
On November 2, 2015, the U.S. Supreme Court heard a contentious round of oral arguments in a case that may significantly change the landscape of consumer class actions.
Does This Year’s Nobel Prize in Economics Suggest Any Lessons Regarding the Regulation of the Consumer Finance Industry?
On Monday October 12, 2015, Professor Angus Deaton won the Nobel Memorial Prize in Economic Science. What lessons does Professor Deaton’s work hold with respect to the regulation of the consumer finance industry?
The U.S. Department of Education is continuing to move forward with issuing new regulations regarding the “Borrower Defense to Repayment Rule,” which concerns the ability of a Direct Loan borrower to seek a discharge of a Direct Loan repayment obligations if the educational services provided by a college were in some way deficient. These amendments are potentially important not only to borrowers, but also to colleges and the loan servicing industry.
“Is This The Party To Whom I Am Speaking?”: Third Circuit Okays TCPA Suit Against Bank Over Call Meant For Roommate
Does the roommate of a telephone subscriber have standing to sue for an alleged violation of the Telephone Consumer Protection Act? Surprisingly, according to the U.S. Court of Appeals for the Third Circuit, the answer is “yes.”
This new article co-authored by Dorsey partner Melissa Krasnow discusses the Canadian and U.S. compliance regimes regarding spam emails, text messages, and other spam communications. Consumer finance entities should be familiar with these rules, given the potential implications of these rules for communications with potential and current borrowers.
On October 2, 2015, the City of New York moved to dismiss a lawsuit accusing the City of unlawfully perpetuating racial segregation in the housing industry. The arguments made by the City offer an important insight into the City Law Department’s view on the Fair Housing Act and disparate impact claims.
Dorsey partner Eric Epstein and Dorsey associate Augustine Lo wrote this recent article for The Real Estate Finance Journal regarding the new amendments to the HMDA regulation, Regulation C.
If a federal agency conducts a CRA audit and finds that a lender’s conduct is compliant with federal law, is the CFPB barred from subsequently alleging that the same conduct violates federal law?
Are contractual arbitration clauses harmful to consumers of financial products and services? The CFPB appears to think so. But is the CFPB’s view empirically or legally well-founded?
The CFPB recently added a new feature to its Consumer Complaint Database: namely, consumers now have the option to publish “narratives” detailing their allegations against a company. The problem lies in the possibility that these hearsay “narratives” will be used against companies in connection with enforcement actions or lawsuits.
Damned If You Do: Second Circuit Rules That Language Included In RESPA-Required Notice Begets FDCPA Violation
The Fair Debt Collection Practices Act (“FDCPA”) provides that, if a “debt collector” makes an “initial communication with a consumer in connection with the collection of any debt,” the debt collector must provide the consumer with certain information, such as the amount of the debt, the name of the creditor, and the consumer’s right to dispute the debt. See 15 U.S.C. § 1692g(a). However, the statute does not elaborate on the meaning of the phrase “in connection with the collection of any debt.” The U.S. Court of Appeals for the Second Circuit recently flagged a Section 1692g(a) tripwire.