In Brown v. MRS BPO, LLC, the Northern District of Illinois, acting on its own motion, granted summary judgment in favor of the defense on claims asserting violations of the Fair Debt Collections Practices Act (FDCPA).
FTC Issues Report to Congress on the Fraud Threats Faced by Older Consumers
On October 18, the Federal Trade Commission (FTC) issued a report to Congress in which it outlined its ongoing efforts to protect older Americans from fraud related losses.
Georgia Federal Court Holds that Service of a Complaint Triggers the Statute of Limitations for a Subsequent FDCPA Claim
On August 24, the U.S. District Court for the Southern District of Georgia denied the defendant’s motion to dismiss claims asserted under the Fair Debt Collections Practices Act (FDCPA), holding that for claims based on collections suits, the statute of limitations does not begin to run until the consumer is served with a copy of
New Jersey Federal Court Dismisses FDCPA Claim Based on Alleged Failure to Obtain Proper License for Lack of Standing
In Valentine v. Mullooly, Jeffrey, Rooney & Fylnn LLP the U.S. District Court for the District of New Jersey found that the plaintiff had not suffered an injury in fact and therefore lacked standing to assert a claim under the Fair Debt Collections Practices Act (FDCPA).
Michigan Supreme Court Refuses to Enforce Usury Savings Clause in a Commercial Mortgage
In Soaring Pine Capital Real Estate & Debt Fund II, LLC v. Park Street Group Realty Services, LLC, the Michigan Supreme Court considered whether a court may enforce a usury savings clause in a mortgage agreement. A usury savings clause is a contractual term requiring a borrower to pay the maximum legal interest rate if the court determines that the other contractual terms impose an illegal interest rate.
Indiana Appellate Court Reverses Summary Judgment in FDCPA Case Involving Bona Fide Error Defense
In a matter involving the bona fide error defense to claims asserted under the Fair Debt Collections Practices Act (FDCPA), an Indiana court of appeals reversed a trial court’s order granting summary judgment in favor of the defendant debt collector holding that the defense did not apply because the mistake at issue was not of
New CFPB Rule Proposed for Property Assessed Clean Energy (PACE) Loans
On May 1, 2023, the Consumer Financial Protection Bureau (CFPB) proposed a rule to establish consumer protections for residential Property Assessed Clean Energy (PACE) loans.
A PACE loan is a way for consumers to borrow money for home improvements by increasing their property tax payments. Homeowners repay PACE loans through an additional assessment that is
CFPB Bans Lender From Mortgage Lending Industry
In an agency order issued on February 27, the Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation from the mortgage lending industry. In addition to imposing a penalty of $1,000,000, the order prohibits the lender from engaging in any mortgage lending activities or receiving remuneration from mortgage lending.
The CFPB based its decision
Bankruptcy Court Sanctions Collections Firm for Attempting to Collect Discharged Debt
On January 19, the United States Bankruptcy Court for the Western District of Virginia entered an order sanctioning a collections law firm for violating the bankruptcy discharge injunction. The court in Skaggs v. Gooch (In re Skaggs) awarded the debtor $25,000 in attorneys’ fees based on a letter he received concerning a discharged
Court Finds Letter to Debtor is Not a Debt-Collection Communication Under the FDCPA
Recently, in Velez v. Absolute Resolutions Investments., LLC, the district court for the Northern District of Illinois confirmed the long-standing principle that not all communications sent from a debt collector to a debtor are governed by the Fair Debt Collection Practices Act (FDCPA). Instead, the communications must be in connection with the collection of