Eleventh Circuit says attorney violates BAPCA by encouraging debtor to pay attorney fee by…

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, (“Act”) amended federal law to impose new requirements on professionals who assist with the preparation of bankruptcy petitions. The provision at issue in a recent decision from the Eleventh Circuit, Cadwell v. Kaufman, Englett & Lynd, PLLC, 886 F.3d 1153…

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Cash collateral order in bankruptcy constitutes “constructive possession” of property sufficient to allow mortgagee…

Addressed in U.S. Bank Nat’l Ass’n v. Randhurst Crossing LLC, 2018 IL App (1st) 170348 (Mar. 29, 2018) was whether a mortgagee holding an assignment of rents was entitled to collect rents before a receiver was appointed on the basis that a bankruptcy court had previously ordered that the rents…

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Illinois federal court finds collection letter listing interest and other charges as $0 is…

The debtor in Delgado v. Client Servs., Inc., No. 17 C 4364 (N.D. Ill. Mar. 7, 2018) sued the debt collector under the FDCPA by sending a misleading letter regarding a dunning letter that reference the balance due at charge-off “2,619.26”, interest at “0.00”, other charges at “0”, payments made…

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Ninth Circuit says receipt containing credit card’s full expiration date violates FCRA but is…

In Bassett v. ABM Parking Services, Inc., 883 F.3d 776 (Feb. 21, 2018), the United States Court of Appeals for the Ninth Circuit held that a consumer who received a credit card receipt that improperly contained the full expiration date in violation the Fair Credit Reporting Act (“FCRA”) failed to…

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Sixth Circuit holds Article III jurisdiction lacking for claims under the FDCPA where no…

In Hagy v. Demers & Adams, No. 17-3696, 882 F.3d 616 (Feb. 16, 2018), two borrowers took out a loan for a mobile home on which they subsequently defaulted, prompting the lender to foreclose. The parties resolved the case through a deed in lieu and the lender dismissed the foreclosure.…

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Entry of “cash collateral” order in bankruptcy constitutes “constructive possession” of the property sufficient…

The main issue addressed in U.S. Bank Nat’l Ass’n v. Randhurst Crossing LLC, 2018 IL App (1st) 170348 (Mar. 29, 2018) is whether a mortgagee holding an assignment of rents was entitled to collect rents before it a was receiver appointed where a bankruptcy court had previously ordered that the…

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Two unsolicited phone calls are concrete injury for standing purposes, Illinois district court says

The Plaintiff in Abante Rooter & Plumbing, Inc. v. Oh Insurance Agency, No. 15-CV-9025 (N.D. Ill. Feb. 20, 2018) brought a class action under the TCPA alleging they used an autodialer to make two unsolicited and pre-recorded sales calls to Plaintiff’s cellular phone. One call went to voice-mail and the…

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California court confirms that escrow agent’s duty is to the lender not the homeowner

In Ruvalcaba v. Ocwen Loan Servicing, No. 15-cv-00744 (S.D. Ca. July 13, 2017), the District Court for the Southern District of California considered the scope of a title company’s duties when acting as a sub-escrow agent and to whom it owes duties arising out of a lender’s closing instructions and…

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Promise to Borrower to modify loan when servicer knows that Borrower is not eligible…

The Ninth Circuit held that a servicer’s promise to a borrower to modify her loan when it knew knows that the borrower was not eligible for a loan modification was an unfair practice under California’s Unfair Competition Law § 17200. The Borrower in Oskoui v. J.P. Morgan Chase Bank, N.A.,…

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Fifth Circuit holds that a lender’s secondary market policy of not buying loans which…

In Alexander v. AmeriPro Funding, Inc., 848 F.3d 698 (5th Cir. Feb. 16, 2017) the Fifth Circuit held that a lender is not guilty of violating the Equal Credit Opportunity Act (ECOA) because of an alleged policy not to buy loans in the secondary market that rely on a borrower’s…

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