News & Analysis as of

Loan Servicer Fair Debt Collection Practices Act

Hudson Cook, LLP

Nonbank Student Loan Servicer Agrees to a CFPB-Imposed Ban and to Pay $120 Million

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After more than seven years of litigation, on September 12, 2024, the CFPB filed the Stipulated Order reflecting its settlement with the Company over alleged violations of the CFPA, FCRA, and FDCPA....more

Hudson Cook, LLP

Technical Violations of State Collection Practices Laws Can Lead to Class Action Liability

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If you are reading this article, you are likely aware that a creditor collecting its own debts in its own name is not a "debt collector" under the federal Fair Debt Collection Practices Act ("FDCPA") or its implementing rule,...more

Miles & Stockbridge P.C.

Convenience Fees: Not So Convenient for the Collectors

Why Maryland Collectors of Consumer Debts Need to Be Concerned About Convenience Fees - A recent Fourth Circuit Court of Appeals decision may have sweeping implications across the consumer debt collection industry in...more

Hinshaw & Culbertson - Consumer Crossroads

House Passes Comprehensive Debt Collection Improvement Act That Would Expand Multiple Consumer Finance Laws

Last week, the U.S. House of Representatives passed a bill, H.R. 2547, on a strict party-line vote. Titled "The Comprehensive Debt Collection Improvement Act, the bill would amend several consumer finance statutes for the...more

Troutman Pepper

Timing Is Everything: Student Loan Servicer Avoids FDCPA Liability in Sixth Circuit

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The Sixth Circuit recently confirmed student loan servicers, who begin servicing debts after default and resale, are not liable to borrowers under the Fair Debt Collection Practices Act (FDCPA) because the servicers are not...more

Spilman Thomas & Battle, PLLC

All Consuming - Financial Litigation Insights: Issue 7, October 2020

Is a Cap on Payday Loan Rates About Protecting the Poor or Eliminating a Service? "Industry representatives say the proposed cap would drive most, if not all, payday lenders out of business and leave their customers...more

Holland & Knight LLP

California Legislative Roundup 2020: Financial Services

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Notwithstanding a pandemic-induced winnowing of legislative priorities this year, California has passed a handful of new bills to regulate discrete areas of the financial services industry, including student loan servicing,...more

Alston & Bird

District Courts Split on Convenience Fees Under Debt Collection Laws

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A&B ABstract: In a number of recent decisions, district courts have split on the issue of whether a mortgage servicer violates the Fair Debt Collection Practices Act (“FDCPA”) and related state debt collection statutes by...more

Troutman Pepper

The Eastern District of Wisconsin Reaffirms the Importance of the Least Sophisticated Consumer Standard in Drafting Collection...

Troutman Pepper on

A recent decision out of the Eastern District of Wisconsin provides an important reminder to loan servicers that a statement in a debt collection letter could be considered misleading under the Fair Debt Collection Practices...more

Alston & Bird

These Developments Will Change How Lenders and Servicers Do Business

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Our Financial Services & Products Group explores the effects lenders and servicers could face in the wake of new rules on real-estate-related transactions, a Third Circuit decision that creates uncertainly for FDCPA...more

Locke Lord LLP

Ninth Circuit: Loan Servicer Can Rely on Standard Notice-And-Cure Provision to Defeat Statutory Claims

Locke Lord LLP on

On December 15, 2017, the Ninth Circuit affirmed the dismissal of borrowers’ statutory claims against their loan servicer because the borrowers failed to give the servicer notice and the opportunity to take corrective action...more

Goodwin

CFPB Files Lawsuit Against Largest U.S. Student Loan Servicer Over Deceptive Practices

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On January 18, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court for the Middle District of Pennsylvania against a servicer of private and federal student...more

Goodwin

Recent Eleventh Circuit Reversal Sparks Upward Trend in Estimated-Fee FDCPA Litigation

Goodwin on

On December 3, 2015, the Eleventh Circuit issued an opinion that has carved a path for plaintiffs challenging their communications with loan servicers. The decision, Prescott v. Seterus, Inc., reversed a grant of summary...more

Goodwin

Servicers Beware: RESPA Transfer of Servicing Letter May Trigger FDCPA Initial Debtor Communication Disclosure Requirement

Goodwin on

In Hart v. FCI Lender Services, Inc., the Second Circuit made it clear that servicers should pay close attention to initial communications with borrowers upon commencing loan servicing when it determined in an August 12, 2015...more

Ballard Spahr LLP

CFPB highlights unlawful practices relating to mortgage and student loan servicing, debt collection, electronic fund transfers and...

Ballard Spahr LLP on

While mortgage and student loan servicing violations cited by the CFPB in its Fall 2014 Supervisory Highlights have grabbed the headlines, the report also includes noteworthy observations regarding the violations found by the...more

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