On August 3, to the relief of car dealerships and auto finance companies, the California Supreme Court upheld a standard arbitration clause from an automotive purchase agreement by a 6-1 majority decision in Sanchez v. Valencia Holding Co., LLC, which reversed both the trial court and Court of Appeal’s rulings invalidating the entire arbitration
Over the past two weeks, two separate federal district courts in New York held that having a consumer’s account number visible on the outside of an envelope containing letters from debt collection agencies does not, by itself, violate the FDCPA. In these cases, both Judge Colleen McMahon and Judge John Curtin, of the Southern
On July 14, the U.S. District Court for the Eastern District of Missouri granted United Collection Bureau’s motion for summary judgment in an individual action brought under the Fair Debt Collection Practices Act. Troutman Sanders served as counsel for UCB in this matter. See Martin v. United Collection Bureau, Inc., No. 4:14cv804-JAR, 2015 U.S.
As previously reported, a federal judge in Atlanta denied a law firm’s motion to dismiss a claim against it filed by the Consumer Financial Protection Bureau for violations of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act or the Dodd-Frank Act. On July 27, Frederick J. Hanna & Associates filed
On July 31, Justice Anil Singh, a Manhattan Commercial Division judge, dismissed a $1 billion suit filed against various credit ratings agencies alleging fraud connected to the sale of residential mortgage-backed securities prior to the 2008 financial crisis. According to the court, New York’s six-year statute of limitations barred the lawsuit, which was brought by
District Judge William J. Nealon of the Middle District of Pennsylvania issued two recent decisions holding that both a Quick Response (“QR”) code and a bar code appearing through the glassine window of an envelope containing a collection letter violate section 1692f(8) of the Fair Debt Collection Practices Act, which prohibits “using any language or
On July 30, the Consumer Financial Protection Bureau announced that it reached an agreement with Residential Credit Solutions, Inc., a national mortgage servicing company, whereby the mortgage loan servicer agreed to pay $1.5 million in restitution to borrowers and a $100,000 civil penalty. The CFPB alleged that the Residential Credit Solutions had failed to honor
On July 29, the Consumer Federation of America and the North American Consumer Protection Investigators released their annual survey of consumer complaint data from state and local consumer agencies, which is based on 280,000 claims to thirty-seven agencies from twenty-one states and the District of Columbia.
Just as in 2013, the most common complaints arose
On July 29, the House Financial Services Committee reported House Bill 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act,” to the House for full consideration. If passed, the bill would rescind the CFPB’s March 2013 fair credit guidance to indirect auto lenders (CFPB Bulletin 2013-02), and require the CFPB, when proposing
In a groundbreaking decision on July 24, the D.C. Circuit Court of Appeals held that a Texas bank could pursue its constitutional challenge against the Consumer Financial Protection Bureau and its Director. This decision was notable in allowing a regulated entity to maintain a so-called “pre-enforcement” lawsuit against a federal agency which contested the legality