On October 23, the Federal Trade Commission and the New York Attorney General sued multiple New York debt collection companies for using false and deceptive tactics to collect on debts. On October 26, the United States District Court for the Western District of New York granted a temporary restraining order (“TRO”) prohibiting the defendants from
Arbitration clauses are ubiquitous in consumer and employment contracts. Frustrated with that widespread use, on October 30, United States House of Representatives members Jerrold Nadler (D-N.Y.) and Bobby Scott (D-Va.) introduced the “Restoring Justice for Workers Act.” The proposed legislation would outlaw use of class action waiver provisions in employment
On October 26, the Eastern District of Wisconsin issued a ruling dismissing a Fair Credit Reporting Act case. In Garland v. Marine Credit Union, the Court granted summary judgment in favor of the debt collector, holding the dispute was a legal issue such that the consumer could not establish a factual inaccuracy in the
The Court in Patterson v. Peterson Enterprises, Inc., No. 2:18-cv-161-RMP (E.D. Wash. Oct. 23, 2018) recently denied a motion to dismiss seeking dismissal of a Fair Debt Collection Practices Act (“FDCPA”) claim due to the consumer plaintiff’s assertions that counterclaims in a previous collections lawsuit indicated that a debt was being disputed. The Court
On October 29, the Second Circuit Court of Appeals issued a long-awaited ruling in a Fair Debt Collection Practices Act case involving the disclosure of the amount due in a collection letter. In Derosa v. CAC Financial, the Court affirmed summary judgment in favor of the debt collector and held that, if a debt
On October 15, the Colorado Supreme Court affirmed that state’s Court of Appeals’ decision upholding a trial court’s granting dismissal of a plaintiff’s Colorado Fair Debt Collection Practices Act (“CFDCPA”) action. The central issue in the case was whether a default judgment obtained against a tortfeasor by a law firm on behalf of its
How the FCRA Accurate Reporting Requirement Interacts with Temporary Forbearance Plans
This past summer, the United States Court of Appeals for the Eleventh Circuit evaluated a $25-per-month mortgage forbearance plan and concluded that reporting the borrower as delinquent despite her forbearance payments was accurate and not materially misleading.
On September 24, the Court of Appeals for the Eleventh Circuit in Patel v. Specialized Loan Servicing, LLC ruled that a group of plaintiffs from Florida and Pennsylvania could not challenge the forced-placed insurance (“FPI”) rate their mortgage servicers charged. Because the plaintiffs did not purchase homeowner’s insurance, the mortgage servicers purchased FPI for the
In a recent Eighth Circuit case, the appellate court vacated the district court’s orders, holding that the plaintiff lacked Article III standing to bring her Fair Credit Reporting Act claims in federal court.
In Auer v. Trans Union, LLC, plaintiff Colleen Auer had accepted a job as city attorney for the City of
Fair Isaac Corporation, creator of the FICO credit score, plans to roll out a new scoring system in early 2019 that could result in higher credit scores for millions of would-be borrowers.
The new “UltraFICO Score” factors in how consumers manage their cash, savings, and money-market accounts. While borrowers