In Mack v. Equable Ascent Financial, L.L.C., the Fifth Circuit ruled the consumer’s suit was barred under the Fair Credit Reporting Act’s two-year statute of limitations. Rejecting the plaintiff’s claim that the statute does not begin to run when the consumer discovers the facts that constitute the legal violation, the Court of Appeals held
Look Out Foreclosure Relief “Scammers”!
Lenders and servicers are not the only targets in the crosshairs of the Consumer Financial Protection Bureau when it comes to foreclosures. The CFPB, the Federal Trade Commission, and fifteen states announced a sweep against foreclosure relief companies that allegedly used deceptive marketing tactics to rip off distressed homeowners. The CFPB and the FTC have
ACA International’s 75th Annual Convention & Expo
Celebrate the industry’s past, present and future while enjoying dazzling Chicago. Featuring a dynamic line-up of engaging speakers including Karl Rove and Ken Schmidt, exciting musical guests KC and The Sunshine Band, 40+ innovative educational sessions and a jam-packed Expo Hall, this is a must-attend event. There’s still time to register, so make plans to
Heirs Acquiring Property Receive Assistance from CFPB
The Consumer Financial Protection Bureau has announced an interpretive rule to assist heirs who, due to the death of a mortgagor, acquire title to a property and take over the mortgage. Specifically, the interpretative rule clarifies that heirs may be added to a mortgage without prompting the Ability-to-Repay rule, which took effect in January 2014.
Michigan Supreme Court Expands Definition of “Collection Agencies” to Include Forwarders
In Badeen v. PAR, Inc., et al., the Michigan Supreme Court expanded the definition of “collection agency” under Michigan’s Occupation Code to include forwarders and forwarding companies.
The plaintiff collection agency brought an action against a number of automobile lenders and forwarding companies alleging that the forwarders were operating as “collection agencies” under
Cordray Testifies before Senate Committee Regarding CFPB’s Semi-Annual Report
On June 10, 2014, CFPB Director Richard Cordray appeared before the Senate Committee on Banking, Housing and Urban Affairs in conjunction with the May 2014 release of the Bureau’s fifth Semi-Annual Report. Cordray highlighted a variety of topics, including mortgages, student loans, complaint numbers, and proposed data collection efforts.
Senator Mike Crapo (R-Idaho) questioned
Rulemaking on Prepaid Debit Cards Delayed by CFPB
Contrary to industry expectations, the CFPB announced on Wednesday, June 11, 2014 that it would be delaying its prepaid card regulations until the end of the summer. The announcement came during a presentation by CFPB Director Richard Cordray to the Senate Banking Committee. The rule had been expected this month.
This follows a pattern of
CFPB Seeking Information on Mobile Financial Services
The Consumer Financial Protection Bureau issued a Request for Information (“RFI”) this week regarding “the opportunities and challenges associated with the use of mobile financial services,” focusing particularly on unbanked and underserved consumers. The RFI comes amid growing concerns that the proliferation of mobile financial services poses an increased privacy risk to consumers.
The Bureau
CFPB Announces Spring 2014 Rulemaking Agenda and More…
CFPB Announces Spring 2014 Rulemaking Agenda, Confirms Development of “Larger Participant” Definition for Auto Finance Market
On May 23, 2014, the Consumer Financial Protection Bureau posted its updated semi-annual rule-making agenda, which covers several important categories of upcoming regulatory action.
Defining Larger Participants in Auto Lending Market for Regulation
Through use of its rulemaking
Seventh Circuit Affirms Dismissal of Challenges to Validation Notices
On January 23, 2014, the Seventh Circuit Court of Appeals affirmed the dismissal of four lawsuits against debt collectors that challenged validation notices under 1692g(a)(4).
The disputed provision of the letters involved the 30-day language notifying consumes of their right to dispute the debt, which letters read in relevant part:
“Unless you notify this office