Freddie Mac is selling three pools of deeply delinquent loans with the combined unpaid principal balance of $410 million. According to Freddie Mac’s spokesman, the loans involved in the sale include “a large share that are more than two years delinquent,” which is consistent with Freddie Mac’s “continued goal of reducing illiquid assets from its
New FCRA Lawsuit Demonstrates Growing Trend of Consumers Challenging Employer Disclosure Forms
A new putative class action lodged in California federal court against Paramount Pictures Corporation made it the latest employer to be accused of violating the Fair Credit Reporting Act by obtaining credit reports from current and prospective employees without adequate disclosure of their rights under the FCRA. The lawsuit alleges that the company has a
FCC Creates Portal for TCPA Complaints and Beyond
On January 5, the Federal Communications Commission announced that it was creating a new complaint portal. As shown on the FCC form for complaints, which can be found here (Word format) and here (.pdf), this portal is very much designed to capture complaints arising from the Telephone Consumer Protection Act (TCPA) and, specifically, automatic telephone
Another Subprime Auto Lender Receives Civil Investigative Subpoena from Justice Department
Law360 is reporting that another subprime auto lender, the Nevada-based Consumer Portfolio Services, Inc., has disclosed in an SEC filing that it received a civil investigative subpoena from the Department of Justice. As we’ve previously reported, both federal and state regulators recently have increased their scrutiny of subprime auto lending.
This is not the first
CFPB Sets Example for Mortgage Servicers in First Loss Mitigation Enforcement Action
The Consumer Financial Protection Bureau recently announced its first enforcement action for alleged violations of the new requirements imposed upon mortgage servicers regarding loss mitigation applications submitted by borrowers. According to the CFPB, Michigan-based Flagstar Bank took too long to process borrowers’ applications for relief from foreclosure, improperly denied loss mitigation applications, and made
Colorado Attorney General’s Office Continues to Focus on In-State Consumer Protection
The Colorado Attorney General’s Office, in a recent press release, warned its in-state consumers of a “debt-collection” scam whereby imposters pose as law enforcement officials or government agencies. This warning was triggered by a sharp increase in the number of reports to the AG’s Office of threatening telephone calls and emails as part of
FTC Creates Graphic Novel to Educate Spanish-Speaking Consumers on Debt Collection
As part of the Federal Trade Commission’s ongoing initiative to promote consumer education and protection in the Latino community through its fotonovelas series, it recently announced the creation of a new Spanish-language graphic novel. As the third and most recent installment of the FTC’s fotonovelas series, the graphic novel titled “Cobradodres de Dueda”,
CFPB Urged to Require Written Communications in Multiple Languages
Last year, on January 10, 2014, extensive amendments by the Consumer Financial Protection Bureau Regulation X, which implements the Real Estate Settlement Procedures Act (“RESPA”) and Regulation Z, which implements the Truth in Lending Act (“TILA”), went into effect. Among the numerous new requirements imposed upon mortgage lenders and servicers were significant changes to written
FTC Issues Follow-Up Study on Credit Reporting Accuracy
The Federal Trade Commission has issued a follow-up study of credit report accuracy (the “Follow-Up Study”) that found most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.
The congressionally-mandated study is the sixth
Supreme Court Hears Disparate Impact Case
On January 21, the U.S. Supreme Court held oral argument in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., a case in which, as we previously reported here and here, the Petitioner has challenged the applicability of a so-called “disparate impact” theory of liability under the Fair Housing