Search Results: Litigation

Class Action Scrutiny Of New York Loan Satisfactions Increases

**EDITOR’S NOTE:  This post was guest-authored by Goodwin Procter partner Joe Yenouskas and associate Alyssa Sussman.  Both are members of Goodwin Procter’s Consumer Financial Services Litigation Group.** A series of putative class actions have been filed recently in New York federal courts by borrowers alleging that their mortgage satisfactions were not timely…

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N.D. Illinois: Bank's HAMP Procedures Weren't Unfair or Deceptive

A U.S. District Judge in the Northern District of Illinois recently granted summary judgment in favor of defendant PNC Bank on a borrower’s promissory estoppel and Illinois Consumer Fraud Act (ICFA) claims in connection with PNC’s HAMP procedures.  In its August 25, 2015 decision the court found that PNC’s actions…

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In Well-Reasoned Decision, Sixth Circuit Joins Eleventh Circuit On TCPA Prior Express Consent

On August 21, 2015, the Sixth Circuit issued its widely anticipated decision in Hill v. Homeward Residential, Inc., No. 14-4168 (6th Cir. August 21, 2015), which affirmed a jury verdict that found Homeward Residential, Inc. had plaintiff Hill’s prior express consent to call him using an auto-dialer.  The case is significant because plaintiff Hill…

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

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 ruling that FCI Lender Services, Inc.’s (FCI) initial communication with a borrower was not merely…

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Add-On Products Continue To Present Litigation Risks For Lenders

The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…

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New York’s Highest Court Clarifies Judicial Foreclosure Standing Requirements

Editor’s Note:  This post was guest-authored by Joseph Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group who focuses on general civil litigation in federal and state trial and appellate courts, with a particular emphasis on defending financial institutions and mortgage lenders in complex consumer class action lawsuits. The…

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Supreme Court Will Address Use Of Statistical Sampling and Whether A Class Can Be Certified If It Contains Members Who Are Not Injured

Last week, the United States Supreme Court granted cert in Bouaphakeo v. Tyson Foods, Inc., a Fair Labor Standards Act (“FLSA”) case with potentially wide reaching implications in federal class actions.  In Bouaphakeo, plaintiffs alleged that they were entitled to overtime for time spent putting on (“donning”) and taking off…

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Second Circuit Declines To Allow National Bank Preemption by Assignee of National Bank

A national bank can charge an interest rate that exceeds state law maximums, but the bank’s assignee cannot, the U.S. Court of Appeals for the Second Circuit ruled recently, in a decision that could impact the ability of debt purchasers and others to rely on an originating bank’s federal preemption. The…

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Banks Beat Pennsylvania Payday Lender Class Action

In November 2014, we reported that class action lawsuits were being filed across the country by consumers against large banks regarding their involvement with short term loans.  These actions allege that lenders were engaging in unlawful practices relating to online short-term, small dollar – or “payday” – loans, and were…

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Concepcion Exception? Iskanian Threatens Supreme Court Rule on Arbitration Agreements

**UPDATE:  On January 20, 2015, the U.S. Supreme Court DENIED the Petition for Writ of Certiorari in the Iskanian matter, leaving the CA Supreme Court’s controversial decision in place.** U.S. Supreme Court precedent protecting the enforceability of arbitration agreements under the Federal Arbitration Act, 9 U.S.C. § 1 et seq….

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For Removal, Less is More: Supreme Court Clarifies Requirements for CAFA Removal Notices

As we have previously opined, the decision of whether to remove a case can be critically important in state-court-filed class actions. Despite the importance of this decision, the time afforded defendants to weigh their options—thirty days—is minimal.  In that short time, defendants must weigh the costs and benefits of both…

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Ninth Circuit Ruling on Customer Agreements Affects Ability to Arbitrate TCPA and FDCPA Claims

On November 10, 2014, the Ninth Circuit reversed a district court’s order dismissing and directing to arbitration a putative nationwide class action alleging Telephone Consumer Protection Act (TCPA) violations, finding that the Customer Agreement containing the arbitration clause was unenforceable for lack of mutual assent.  Knutson v. Sirius XM Radio…

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Plaintiffs Find Little Traction In Suits Against Banks Over "Payday" Loans

In recent months, a number of class actions have been filed across the country against large banks in an attempt to hold those banks accountable for debiting consumers’ deposit accounts for payments to certain companies offering short-term, small dollar loans – often called “payday loans” – online.  In all of…

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Supreme Court Will Not Review Third Circuit FDCPA Decision

The U.S. Supreme Court recently declined to review a debt collector’s appeal of the Third Circuit’s decision this summer that debtors were not required to dispute their debt under the Fair Debt Collection Practices Act (FDCPA) before filing suit.  The Third Circuit decision reversed a district court’s dismissal of a class…

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You Have No Standing to Challenge the Assignment or Transfer of Your Mortgage and Note in ...

On August 27, 2014, the California Supreme Court granted a petition for review in which the Second Appellate District of the California Court of Appeals dismissed a mortgagor’s challenge to foreclosure proceedings, ruling that she had no standing to challenge assignment of her promissory note and the deed of trust…

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