Failure to register as a collection agency under state law may also violate FDCPA
In LeBlanc v. Unifund CCR Partners, 08-16031, 2010 WL 1200691 (11th Cir. Mar. 2010) the Court of Appeals for the 11th Circuit held as matter of first impression that a debt collector may violate the FCCPA by failing to register as an out-of-state consumer collection agency and returned the case…
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Servicer’s error in foreclosing on a previously satisfied mortgage justifies vacating default and foreclosure…
Described by the Indiana Court of Appeals as Kafkaesque the facts in Elliott v. JPMorgan Chase Bank, 920 N.E.2d 793, 794 (Ind. Ct. App. Feb. 3, 2010) involved a uniquely bizarre situation where a mortgage had been paid and released by the mortgagee but, unbeknownst to the mortgagee, its servicer…
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HOLA did not apply to preempt state law claims against a mortgage-assignee who was…
In Vang v. Home Loan Funding, Inc., CV F 07-1454 AWI GSA, (E.D. Cal. Feb. 22, 2010) the mortgage-assignee, a federally chartered thrift, moved to dismiss a class claim for fraudulent omission brought under California common law and under California’s Business and Professional Code § 17200 on the ground that…
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FHA does not apply to a mortgagee’s decision to demand payment or commence foreclosure
In Davis v. Wells Fargo Bank, 07 C 2881, (N.D. Ill. Feb. 5, 2010) the Plaintiff plead that the Defendants discriminated against her by continuing to demand payment on the mortgage despite their knowledge that the initial mortgagee defrauded her. This conduct, she asserted, violated Sections 3604 and 3605 of…
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A consumer’s allegation that the value in the residence declined, rather than the value…
A recent decision from the Northern District of Illinois, Hickman v. Wells Fargo Bank, 09-cv-5090 (N.D. Ill., Jan. 26, 2010) followed the holding in _Levin v. Citibank, N.A._, 2009 WL 3008378 (N.D.Cal., 2009) that a complaint contending that a creditor violated TILA and Regulation Z by impermissibly reducing the consumer’s…
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The inclusion of a Spanish sentence in an English language notice of a debt…
The U.S. District Court for the Eastern District of New York held in Erich v. I.C. System, Inc., No. CV-09-726 (E.D.N.Y., January 2010) that a Spanish sentence inserted into the English language notice of a debt collector’s dunning letter violated FDCPA by overshadowing the rest of the notice. The subject…
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California Bankruptcy Court’s local form mandating enhanced reporting requirements for creditors approved by Bankruptcy…
In Re Herrera, BAP No. CC-09-1155 (Bankr., 9th Cir., January 5, 2010) involved three separate Chapter 13 cases whereby the mortgagees holding mortgages on the debtors’ primary residences objected to confirmation of proposed plans that incorporated a local form containing optional plan provisions approved by the district’s bankruptcy judges. The…
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Service of process during the FDCPA’s validation period must be preceded by notice to…
The FDCPA provides that after receiving a validation notice required under 12 U.S.C. § 1692g(a), the consumer has thirty days to dispute the debt or request the name of the original creditor. If the consumer does so, the debt collector must cease collection of the debt, or any disputed portion…
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FDIC is not liable for TILA damages as it is not a voluntary assignee…
In King v. Long Beach Mortg. Co. No. 06-11931-WGY (D. Mass., Dec.09, 2009) a debtor filed an action under TILA seeking damages and rescission against the FDIC, which was appointed the receiver of a failed lender, and against the lender’s successor, which purchased debtor’s mortgage from the FDIC. The District…
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TILA requires there be a proximate cause between the violation and the consumer’s injury…
A recent Third Circuit decision held that a consumer must establish that there is a proximate cause between the violation and the consumer’s injury to sustain a claim of actual damages for a TILA violation. In Vallies v. Sky Bank, No. 08-4160 (3rd Cir., Dec. 31, 2009) the court observed…
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