Seventh Circuit splits from Fifth and Eight Circuits rejecting “benign-language exception” to FDCPA’s prohibition…

In Preston v. Midland Credit Management, Inc., No. 18-3119 (Jan. 21, 2020), the Seventh Circuit reversed a district court’s order of dismissal, holding that the language “TIME SENSITIVE DOCUMENT” on the envelope of a dunning letter violated § 1692f(8) of the FDCPA. In doing so, it refused to recognize the benign‐language…

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CFPB Issues a Policy Statement on Abusive Acts or Practices

On January 24, 2020, the CFPB issued a policy statement (“Policy Statement”) providing a framework on how it intends to apply the “abusive” acts or practices standard in supervision and enforcement matters. The Policy Statement was issued in an attempt to address the financial industry concerns over the uncertainty surrounding…

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Violation of Chicago’s municipal tenant ordinance is a covered claim under insurance policy

The insured in Evergreen Real Estate Servs., LLC v. Hanover Ins. Co., 2019 IL App (1st) 181867 (Jan. 4, 2020) sought a declaration that its insurer had a duty to defend it in a class action brought by the insured’s tenants alleging that the insured committed several violations of the…

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Federal Regulators Issue Joint Statement on the Use of Alternative Data in Credit Underwriting

On December 3, 2019, the FRB, CFPB, FDIC, NCUA and OCC (the “regulators”) issued a joint statement concerning the use of alternative data in credit underwriting (the “Statement”). The statement is directed to both depository and non-depository financial institutions (collectively “institutions”). The alternative data covered by the Statement is the…

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Supreme Court rules that FDCPA claim begins to run when the violation occurs, not…

The US Supreme Court was asked in Rotkiske v. Klemm, No. 18-328 (U.S. Dec. 10, 2019) to weigh in on when the statute of limitations begins to run on an FDCPA claim. It held that absent the application of an equitable doctrine, the statute of limitations begins to run when…

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Creditor not estopped from asserting claim against alleged guarantor by also making claim in…

At issue in CSI Worldwide, LLC v. TRUMPF Inc., No. 19-2189 (7th Cir. Dec. 11, 2019) was the scope of the judicial estoppel theory. A trade show exhibitor contracted with an exhibit installer to provide services for a trade show in Chicago. The installer subcontracted some of the work out.…

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Illinois court holds that where acceleration notice is sent by certified mail proof of…

The borrowers in Deutsche Bank Nat’l Tr. Co., a v. Roongseang, 2019 IL App (1st) 180948 (Dec. 2, 2019) filed an affirmative defense to a foreclosure alleging the plaintiff-mortgagee failed to provide them with an acceleration notice in accordance with the sections 20 and 22 of the mortgage. The mortgage…

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Seventh Circuit reduces 3 million dollar punitive damage against servicer by eighty percent

As you know, last year a jury in Saccameno v. Servicer Loan Servicing, LLC, No. 1:1-15-cv-1164 (June 21, 2018) tagged a mortgage loan servicer for $500,000 in compensatory damages under the FDCPA, RESPA and breach of contract claims and for a UDAP claim, $82,000 in compensatory and $3 million in…

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Illinois Appellate Court affirms sales from Fannie Mae and Freddie Mac not exempt from…

In Trilisky v. City of Chicago, 2019 IL App (1st) 182189 (Sept. 26, 2019), a purchaser who bought real estate from Fannie Mae, and was assessed a transfer tax on the transaction, sued the City of Chicago on behalf of a class claiming that sales to and from Fannie Mae…

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Seventh Circuit applies agency principles to find a creditor can be held in civil…

In In re: Jacqueline M. Sterling, No. 18-2773 (7th Cir. August 13, 2019) the Seventh Circuit held that a creditor could be held in civil contempt, on an agency theory, for violations of the discharge injunction by its attorney; but the attorney could not be held in contempt for violating…

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