On December 15, 2014, the U.S. Supreme Court rejected the notion that class actions defendants should be forced to proffer affirmative evidence with their removal petition in order to remove their cases from state to federal court. In a 5-4 decision, the Court held in Dart Cherokee Basin Operating Co. LLC v. Owens that a
Seventh Circuit Affirms Dismissal of FDCPA Lawsuit Under The Rooker-Feldman Doctrine
In Harold v. Steel, the United States Court of Appeals for the Seventh Circuit affirmed dismissal of a Fair Debt Collection Practices Act (FDCPA) suit based on the Rooker-Feldman doctrine. In the case, a small claims court in Marion County, Indiana, entered a judgment against Kevin Harold for a little more than $1,000. He
CFPB Requires Major Credit Reporting Agencies to Inform on Furnishers
On December 11, 2014, the Consumer Financial Protection Bureau (CFPB) issued a report and announced that it will be requiring major credit reporting agencies (CRAs) to provide regular reports to the CFPB identifying, by name, potentially problematic furnishers of information. In other words, the CFPB will be co-opting the major CRAs into helping the CFPB
CFPB Issues Warning to Consumers and Springs Into Action Against Student Debt Relief Scams
On December 11, the Consumer Financial Protection Bureau issued an advisory warning to consumers about student loan debt relief companies. While the CFPB warns all student borrowers, in distress or otherwise, to steer clear of companies with aggressive marketing tactics that make promises that they can save student borrowers thousands of dollars on student loan
Debt Consulting Firm Settles with CFPB for $69,075
On December 4, the Consumer Financial Protection Bureau asked a federal district court to approve a settlement with a New Jersey debt settlement firm that would require the firm to pay a fine of $69,075 for allegedly charging consumers illegal upfront fees for debt-settlement services they never received.
The proposed consent order was filed in
New York Announces Sweeping New Regulation of the Debt Collection Industry
On Wednesday, December 3, 2014, New York Governor, Andrew Cuomo, announced new regulations aimed at “protect[ing] consumers against abusive and deceptive debt collection practices.” The press release issued by Governor Cuomo can be found here.
These regulations come from the New York Department of Financial Services and were first proposed in July 2013 and
Massachusetts Enters Consent Judgment with Hospital Over Data Breach
Massachusetts Attorney General Martha Coakley recently entered into a Consent Judgment with Beth Israel Deaconess Medical Center, Inc., related to a data breach that affected nearly 4,000 patients and employees.
“The healthcare industry’s increased reliance on technology makes it more important than ever that providers ensure patients’ personal information and protected health information is secure,”
CFPB Set to Hold Public Hearing on Medical Debt Collection in OKC
The Consumer Financial Protection Bureau has announced that it will hold a field hearing on medical debt collection in Oklahoma City, Oklahoma on December 11 at 11:00 a.m. CST.
According to the CFPB, the hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of
CFPB Charges Yet Another Mortgage Lender With Violations of the Loan Originator Compensation Rule
On November 13, the Consumer Financial Protection Bureau ordered a California mortgage lender to pay $730,000 for allegedly paying its loan originators compensation based on loan terms. The CFPB has asked the United States District Court for the Central District of California to approve a consent order requiring the company to end its allegedly illegal
FHFA to Issue Risk Management Guidance for Nonbank Mortgage Servicers Today
Today is the deadline when the Federal Housing Finance Agency (FHFA) is scheduled to unveil its risk management guidance intended to curb financial and operational risks associated with loan servicing by nonbank entities.
The backdrop for FHFA’s initiative is the fact that the nation’s three largest nonbank mortgage servicers have tripled in size since 2012,