Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Mortgage Lenders & Servicers

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New WVCCPA Amendments are Enacted by Governor Justice

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Senate Bill No. 563 amends several provisions of the West Virginia Consumer Credit Protection Act (WVCCPA). The Bill passed the West Virginia Senate and the House of Delegates with high approval margins, and was signed into law by Governor Jim Justice on April 21, 2017. These amendments to the WVCCPA will have an impact on… Continue Reading

Troutman Sanders Welcomes Amy Pritchard Williams

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Amy WilliamsTroutman Sanders LLP announced today that Amy Pritchard Williams has joined the firm’s Financial Services Litigation practice in the Charlotte office. She previously practiced at K&L Gates LLP. Williams’ practice focuses on financial services litigation and bankruptcy. She represents financial institutions in connection with False Claims Act actions, internal investigations and government investigations. She also… Continue Reading

DOJ Brief Opposing CFPB Brings More Uncertainty

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On March 17, the U.S. Department of Justice submitted a brief to the D.C. Circuit asserting that the Consumer Financial Protection Bureau’s single-director structure violates the Constitution’s separation of powers in the CFPB v. PHH Corporation case. CFPB’s Single Director Structure The Democratic-controlled 111th Congress created the CFPB as part of the Dodd-Frank Act in… Continue Reading

DOJ Issues New Guidance on Corporate Compliance Programs

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
On February 8, 2017, the Criminal Division of the U.S. Department of Justice quietly issued new guidance on corporate compliance programs for companies implicated in misconduct. Specifically, the Criminal Division posted a set of “important topics and sample questions that the Fraud Section has frequently found relevant in evaluating a corporate compliance program” to the… Continue Reading

Join Us on February 9 for a Complimentary Webinar on Redlining and Fair Lending

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Mortgage Lenders & Servicers
Microphone at Seminar HallJoin Troutman Sanders Partners James W. Stevens and Alan D. Wingfield on Thursday, February 9 at 12 p.m. ET for a complimentary webinar to discuss current trends and outlook for the key fair lending issues of redlining and disparate impact. Specific topics of discussion include the basics of federal regulators’ theories and methodologies in assessing redlining… Continue Reading

Attorney and Mortgage Relief Scam Operator Banned from Debt Relief Business

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
An operator of a mortgage relief scam and an attorney agreed to court orders banning them from the debt relief business in order to resolve allegations brought by the FTC that they swindled millions of dollars from financially distressed homeowners. According to the FTC’s Complaint, in the scheme, Damian Kutzner and four attorneys operating as… Continue Reading

California Supreme Court Finds Two Payday Lenders Not Immune From State Lending Laws

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, Payment Processing & Cards, State Attorneys General, CFPB, & FTC
On December 22, the California Supreme Court in Owen v. Miami Nation Enterprises, held that payday lending companies failed to prove by a preponderance of the evidence that they were “arms of” Indian tribes. Therefore, the lenders were not immune from complying with a California state lending law.  In its decision, the Court reaffirmed well-settled law… Continue Reading

Join Us for the ACI Consumer Finance Class Actions & Litigation Conference in Miami

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners John Lynch and Chad Fuller will be featured moderators and speakers, respectively, at the American Conference Institute’s 27th National Conference on Consumer Finance Class Actions and Litigation on January 24, 2017 at the W Miami Hotel. John will moderate the  second portion of the panel discussion,… Continue Reading

CFPB Files Four Lawsuits Against Lenders for Violation of Truth In Lending Act

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On December 19, the Consumer Financial Protection Bureau filed four nearly identical lawsuits against lenders based in the Commonwealth of Virginia.  Copies of the complaints can be found here, here, here, and here.  The complaints allege that the defendants violated the Truth in Lending Act and Consumer Financial Protection Act by charging borrowers for interest,… Continue Reading

Troutman Sanders Partner John Lynch Awarded Law 360 MVP Award

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers
Troutman Sanders is pleased to announce that partner John Lynch has been recognized as an MVP in Consumer Protection by Law 360. The series recognizes MVPs in a variety of categories, including Consumer Protection. According to Law360, MVPs have distinguished themselves from their peers by securing hard-earned successes in high-stakes litigation, complex global matters and record-breaking… Continue Reading

Ninth Circuit Holds Trustees Performing Non-Judicial Foreclosures Are Not Debt Collectors Pursuant to FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
The Ninth Circuit recently broke from other circuit courts across the country and held that a trustee to a security agreement is not a debt collector pursuant to the Fair Debt Collection Practices Act.  The case is Vien-Phuong Thi Ho v. Recontrust Co., N.A., No. 10-56884, 2016 U.S. App. LEXIS 18836 (9th Cir. Oct. 19,… Continue Reading

California Court Grants Final Approval of $1.5 Million TCPA Robocall Settlement

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Mortgage Lenders & Servicers
On November 7, the United States District Court for the Southern District of California granted final approval of the class settlement in Stemple v. QC Holdings, Inc., No. 3:12-cv-01997 (S.D. Cal.).  The plaintiff in the case alleged that QC Holdings, a check-cashing and short-term loan company, negligently and willfully violated the Telephone Consumer Protection Act… Continue Reading

Blue Shield and SQM Defeat TCPA Putative Class Action Following Spokeo

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers
GavelU.S. District Judge Cathy A. Bencivengo recently dismissed a plaintiff’s TCPA putative class claim due to lack of standing required under Article III.  In Anton Ewing v. SQM US, Inc. et al., No. 3:16-cv-1609-CAB-JLB (S.D. Cal., Sept. 29, 2016), the plaintiff alleged that he received a single survey call made by SQM on Blue Shield’s… Continue Reading

Join Us on November 3 for a Webinar on “The Ten Commandments to Avoid Lender Liability”

Posted in ALL CFS Blog Entries, Auto Finance, CFS Events, Featured Posts, Mortgage Lenders & Servicers
Conference RoomIn good times and bad, one of the single largest legal risks for lenders is liability claims brought by borrowers.  Either asserted defensively when the borrower is unable to repay, offensively when the borrower has suffered a loss in a transaction financed by the loan, or as in an entrepreneurial effort to recover money based… Continue Reading

Troutman Sanders Expands Financial Services Litigation Practice

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers
TS-SkylineAd_RichmondWe are pleased to announce that Andrew B. Buxbaum has joined the firm’s Financial Services Litigation practice as Of Counsel in the Richmond Office. He joins the firm from SunTrust Banks, Inc., where he was First Vice President & Senior Counsel of Substantial Litigation. At SunTrust, Andrew managed major litigation, class actions, government investigations and… Continue Reading

FTC Seeks Comment on Disposal Rule

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Mortgage Lenders & Servicers
On September 12, the Federal Trade Commission announced that it is seeking comment on its rule regarding the Disposal of Consumer Report Information and Records.  Under the Disposal Rule, a person is required to properly dispose of consumer information by taking reasonable measures to protect against unauthorized access or use of the information in connection… Continue Reading

Join Us at the ACI’s 6th Bank & Non-Bank Forum on Mortgage Servicing Compliance in Washington

Posted in ALL CFS Blog Entries, CFS Events, Mortgage Lenders & Servicers
We are pleased to announce that Jon S. Hubbard will be a featured speaker at the Sixth Annual Bank & Non-Bank Forum on Mortgage Servicing Compliance, offered by the American Conference Institute in Washington, D.C., on November 30 and December 1. Jon will speak on a panel entitled “Taking a Mortgage Servicing Case to Trial,”… Continue Reading

FTC Seeks Comment on its Safeguarding Rule

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Mortgage Lenders & Servicers
The Federal Trade Commission announced on August 29 that it is seeking public comment on its Standards for Safeguarding Customer Information, commonly known as the Safeguards Rule, as part of the FTC’s periodic retrospective review of the rules.  The Safeguards Rule, effective May 23, 2003, was issued under the Gramm-Leach-Bliley Act and places certain requirements… Continue Reading

CFPB Introduces New Protections for Borrowers

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
House Calculator SizedOn August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule… Continue Reading

Join Us at the Institute of Continuing Legal Education in Georgia’s Class Actions Seminar

Posted in ALL CFS Blog Entries, Auto Finance, Background Screening, CFS Events, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
We are pleased to announce that Troutman Sanders partner Cindy Hanson will be a featured speaker at the Class Actions seminar, offered by the Institute of Continuing Legal Education in Georgia, on Friday, September 2. Cindy will speak on a panel entitled “Offers of Judgment and Mootness after Campell-Ewald,” where she will discuss the effects… Continue Reading

CFPB Uses “Mystery Shoppers” to Combat Home Loan Lending Discriminations

Posted in ALL CFS Blog Entries, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
On July 25, the United States District Court for the Northern District of Mississippi signed a consent order among BancorpSouth, the United States Department of Justice, and the Consumer Financial Protection Bureau, whereby BancorpSouth agreed to pay an aggregate of $10.6 million and to adhere to non-monetary penalties arising out of the DOJ’s and CFPB’s… Continue Reading

FCC Sets Tight Boundaries for TCPA Government-Backed Loan Exception

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
As we previously reported, section 301(b) of the Bipartisan Budget Act of 2015 permits an exception to the Telephone Consumer Protection Act of 1991 for calls and text messages “made solely to collect a debt owed to or guaranteed by the United States.”  Although the TCPA generally prohibits calls and text messages using automatic telephone dialing… Continue Reading

FDIC Proposes Examination Guidance for Third-Party Lending Arrangements

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
The Federal Deposit Insurance Corporation (“FDIC”) is seeking comment on proposed examination guidance for Third-Party Lending. [1] The proposed guidance, issued July 29, provides banks with safety, soundness and consumer compliance measures to be followed when lending through a business relationship with a third party. The proposed guidance will apply to all banks that engage… Continue Reading

CFPB Outlines Overhaul of Acceptable Debt Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
Past Due SizedOn July 28, at a public hearing in Sacramento, California, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations.  The new rules seek to curb “excessive or disruptive” communication by restricting collectors from calling debtors numerous times a day, require debt collection companies to have “more and better information” about the… Continue Reading