Consumer Financial Services Archives - Page 4 of 5

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…

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…

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.…

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…

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…

Illinois Appellate Court affirms ruling that loss mitigation affidavit satisfied court rule even though…

In Wells Fargo Bank, N.A. v. Smith, No. 1-17-2963 (March 4, 2019) an Illinois Appellate Court affirmed the trial court’s finding that a mortgagee’s loss mitigation affidavit satisfied Illinois Supreme Court Rule 114 even though it was executed more than a year prior to moving for judgment of foreclosure. The…

Second Circuit finds letter did not have to provide a breakdown of debt or…

At issue in Kolbasyuk v. Capital Mgmt. Servs., LP, 918 F.3d 236 (2d Cir. Mar. 12, 2019) was whether a debt collection letter complied with the FDCPA where it stated the “amount of the debt” but did not provide a breakdown of the debt or inform the debtor of the…

Second Circuit finds letter did not have to provide a breakdown of debt or…

At issue in Kolbasyuk v. Capital Management Services, LP, 918 F.3d 236 (2d Cir. Mar. 12, 2019) was whether a debt collection letter complied with the FDCPA where it stated the “amount of the debt” but did not provide a breakdown of the debt or inform the debtor of the…

CFPB Released a Small Entity Compliance Guide for the Payday Lending Rule

On February 20, 2019, the CFPB released a Small Entity Compliance Guide (“Guide”) summarizing the requirements of the Payday, Vehicle Title, and High-Cost Installment Lending Rule (“Payday Lending Rule”). As previously reported, here, on February 6, 2019, the CFPB had issued a proposed rule seeking, among other things, to rescind…

The CFPB Issued Proposed Rules Seeking to Rescind Parts of the Payday Lending Rule…

On February 6, 2019, the CFPB issued a notice of proposed rule (“NPRM”) seeking, among other things, to rescind the ability to repay and related mandatory underwriting provisions of Payday, Vehicle Title, and Certain High-Cost Installment Loans, which was finalized on October 5, 2017 (“Payday Lending Rule”). The NPRM is…