News & Analysis as of

Class Action Borrowers

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Orrick, Herrington & Sutcliffe LLP

District Court denies class certification in lending discrimination suit

On May 30, the U.S. District Court for the Eastern District of Virginia entered an opinion denying class certification in a suit accusing a credit union (defendant) of lending discrimination. Each plaintiff applied to...more

Orrick, Herrington & Sutcliffe LLP

District Court addresses plain meaning of “pattern or practice of noncompliance” under RESPA.

On February 7, the U.S. District Court for the District of Maryland granted in part and denied in part a defendant mortgage company’s motion to dismiss a class action lawsuit alleging RESPA violations related to escrow...more

Shook, Hardy & Bacon L.L.P.

Class Action Decisions Published October 2023: Banking and Financial Services

The banking and financial services industry requires counsel that runs the gamut from Uniform Commercial Code litigation and transactional work to the development of nationwide consumer credit programs and legislative...more

Troutman Pepper

Ohio Federal Court Holds Mortgage Lender’s Assessment of Post-Acceleration Late Fees Was Authorized by Loan Documents

Troutman Pepper on

In Schmitt v. Security National Servicing Corporation, the plaintiff filed a class action complaint alleging violations of the Fair Debt Collection Practices Act (FDCPA) and Ohio Residential Mortgage Lending Act (RMLA)...more

Orrick, Herrington & Sutcliffe LLP

4th Circuit affirms certification of class action in tribal lending case

On January 24, the U.S. Court of Appeals for the Fourth Circuit concluded that a district court did not abuse its discretion when certifying a class action. The lawsuit alleges an individual who orchestrated an online payday...more

Bradley Arant Boult Cummings LLP

Ready for Launch (Finally): Settlement Paves the Way for EB-5 Financing Options

Subsequent to the March 15, 2022, enactment of the EB-5 Reform and Integrity Act of 2022 (the “Integrity Act”), the United States Citizenship and Immigration Services (USCIS), an agency of the Department of Homeland Security...more

Sheppard Mullin Richter & Hampton LLP

4th Circuit: Borrower Must Return Loan Proceeds After Rescission Despite Lender’s Failure to Meet TILA Requirements

Recently, the United States Court of Appeals for the 4th Circuit held that a mortgage servicer’s failure to provide a required disclosure informing borrowers of their three-day right to rescind the loan under the Truth in...more

Sheppard Mullin Richter & Hampton LLP

Fintech Flips Script, Sues California Regulator Over 36% Rate Cap Law

On March 7, a Chicago-based FinTech company  filed a Complaint for Declaratory and Injunctive Relief in Los Angeles County Superior Court against the Commissioner of the California Department of Financial Protection and...more

Goodwin

House Votes to Repeal OCC True Lender Rule

Goodwin on

In This Issue. The House of Representatives voted to pass a Congressional Review Act resolution repealing the Office of the Comptroller of the Currency’s (OCC) “true lender” rule; the Consumer Financial Protection Bureau...more

Balch & Bingham LLP

Cut Them Off at the Past – New COVID Stimulus Package Should Foreclose Any Possibility of Plaintiff Victory in Agent Fee Class...

Balch & Bingham LLP on

Congress passed a new COVID-19 stimulus package containing an important amendment to the CARES Act which should foreclose any possibility the Plaintiffs in the Agent Fee class actions currently pending across the country can...more

Goodwin

SEC Charges Trust Company With Operating Unregistered Investment Companies

Goodwin on

SEC Charges Trust Company with Operating Unregistered Investment Companies and Failing to Register Securities Offerings. On September 30, the Securities and Exchange Commission (SEC) announced it had settled charges with...more

Pierce Atwood LLP

Judicial Panel on Multidistrict Litigation Refuses to Consolidate Class Action Litigation Concerning Paycheck Protection Program

Pierce Atwood LLP on

In four separate decisions issued on August 5, 2020, the U.S. Judicial Panel on Multidistrict Litigation declined to consolidate for pretrial purposes dozens of actions against national banks arising from their roles as...more

Pierce Atwood LLP

Developments in Class Action Litigation Surrounding the Paycheck Protection Program

Pierce Atwood LLP on

As more class actions are filed every day related to the COVID-19 pandemic, a growing number of plaintiffs are asserting claims against banks that acted as participating lenders in the Paycheck Protection Program (PPP). The...more

Goodwin

Financial Services Weekly Roundup: PPP Borrowers And Lenders Under The Microscope

Goodwin on

In This Issue. The U.S. Securities and Exchange Commission (SEC) proposed a new rule that would establish a revised framework for the fair value determination for purposes of the Investment Company Act of 1940 and have...more

Goodwin

Trends in U.S. Paycheck Protection Program Class Actions

Goodwin on

Early uncertainty and the initial lapse in appropriations for the U.S. CARES Act’s Paycheck Protection Program (PPP) set off a wave of litigation by disgruntled small businesses who have been unable to secure PPP loans. PPP...more

Baker Donelson

Class Action Lawsuits Attack Banks' Implementation of CARES Act Lending Program

Baker Donelson on

As a result of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), more than 1.6 million businesses received $349 billion in forgivable loans to pay their employees and certain other operating expenses...more

Carlton Fields

Real Property, Financial Services, & Title Insurance Update: Week Ending February 7, 2020

Carlton Fields on

Real Property Update - Fraudulent Transfer: Real property that was worth less than mortgage encumbering it was not an asset per the plain language of section 726.102(2) and, therefore, could not support fraudulent transfer...more

Manatt, Phelps & Phillips, LLP

Eleventh Circuit Tosses Online Lender’s Forum Selection, Class Waiver Clauses

Siding with six consumers who filed suit asserting violations of state usury laws against online lenders, the U.S. Court of Appeals for the Eleventh Circuit has affirmed a decision by the U.S. District Court for the Southern...more

Faegre Drinker Biddle & Reath LLP

Final Rule on Borrower Defense and Financial Responsibility Published by U.S. Department of Education

On September 23, 2019, the U.S. Department of Education (ED or the Department) published in the Federal Register final regulations on Institutional Accountability, which revise its current regulations on borrower defenses to...more

Burr & Forman

Eleventh Circuit Finds Forum Selection Clause and Class Action Waiver in Payday Loan Agreements Unenforceable as against Georgia...

Burr & Forman on

In Davis v. Oasis Legal Fin. Operating Co., LLC, 18-10526, 2019 WL 4051592 (11th Cir. Aug. 28, 2019), the U.S. Court of Appeals for the Eleventh Circuit (“Eleventh Circuit”) affirmed a decision in the U.S. District Court for...more

Kilpatrick

Texas Supreme Court Victory

Kilpatrick on

On February 23, the Texas Supreme Court unanimously affirmed a split decision from the Fourth Court of Appeals sitting in San Antonio in a case of first impression in Texas state courts related to the application of the...more

Locke Lord LLP

Federal District Court Pumps the Brakes on Borrower’s Post-Acceleration FCRA Class Action Lawsuit

Locke Lord LLP on

On December 11, 2017, Locke Lord obtained a dismissal with prejudice of a punitive class action. In Leones v. Rushmore Loan Management Services, LLC, No. 0:17-CV-61216-WPD (S.D. Fla. Dec. 11, 2017), the United States...more

Manatt, Phelps & Phillips, LLP

Borrower Wins Key Victory in Madden v. Midland

A federal judge has ruled that New York law—not Delaware law as the parties agreed in the initial loan agreement—applies to the defaulted borrower's claims and has certified a class action against the debt collector....more

Carlton Fields

Second Circuit Upholds Refusal To Compel Arbitration Due To Unavailable Forum, Recognizing Split In Federal Circuits

Carlton Fields on

A borrower had previously entered into three payday loan agreements that contained arbitration provisions mandating that all claims be arbitrated in the National Arbitration Forum (NAF), and under the Code of Procedure of the...more

Orrick, Herrington & Sutcliffe LLP

Second Circuit Rules That Judges Can Decertify a Class After a Jury Verdict

The Second Circuit recently held that under Federal Rule of Civil Procedure 23, a district court judge can decertify a class after a jury verdict in favor of the class but before entering judgment, upholding a Southern...more

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