Search Results: Litigation

Fourth Circuit Again Rejects Arbitration Request Under Payday Loan Agreement

On May 10, 2017, the Fourth Circuit affirmed the Middle District of North Carolina’s refusal to compel arbitration under the terms of a payday loan agreement.  In Dillon v. BMO Harris Bank, N.A., BMO Harris attempted to compel arbitration pursuant to an agreement that would have required the arbitrator to…

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CFPB Proposes Clarification to Home Mortgage Disclosure Act

On April 13, 2017, the Consumer Financial Protection Bureau (CFPB) issued proposed amendments to clarify certain requirements of the Home Mortgage Disclosure Act (HMDA).  HMDA requires that financial institutions collect and report certain information regarding their mortgage lending activities.  The information that financial institutions are required to collect and report includes…

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Federal Judge Dismisses Claims In Nationwide Default Servicing Class Action

On March 30, 2017, Judge Karas of the Southern District of New York dismissed multiple claims in a putative nationwide class action challenging default servicing activities.  In the case, Tardibuono-Quigley v. HSBC Mortgage Corp., the plaintiff sued her lender (HSBC) and mortgage servicer (PHH) to contest charges she claimed were wrongly…

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CFPB's Monthly Complaint Report Spotlights Debt Collection Issues, Trends in Credit Card Complaints

On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released Volume 21 of its Monthly Complaint Report (the “Report”).  The purpose of the Report is, in part, to educate consumers and financial institutions on major consumer issues—which it does by providing a high-level analysis of trends in consumer complaints, focusing on one or two…

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FTC Issues Order Against Debt Relief Company for Alleged Misrepresentations

On February 27, 2017, the Federal Trade Commission (FTC) entered into a stipulated order for permanent injunction and monetary judgment with defendants United Debt Counselors, LLC, a debt relief company, and its principals, banning the defendants from making misrepresentations about financial products and services and requiring the defendants to pay a $9…

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Ninth Circuit Affirms Dismissal of Default Servicing Class Action

Last month, the Ninth Circuit affirmed dismissal of a putative class action that challenged certain fees imposed for property inspections conducted after the named plaintiffs had defaulted on their mortgages. Demonstrating the value of the increased pleading requirements set by Federal Rule of Civil Procedure 9, the Ninth Circuit’s decision in…

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CFPB May Focus on Credit Reporting as an Enforcement Priority

On February 28, 2017, the CFPB issued its monthly complaint report spotlighting credit reporting complaints (the Spotlight).  Two days later, the Bureau issued a Special Edition of its Supervisory Highlights Report, which also focused on credit reporting (the Report), and Director Cordray delivered prepared remarks on the topic the same day. …

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