Consumer Finance

Today, the Court of Appeals for the Fourth Circuit issued the opinion in Davidson v UACC, finding that the financing of ancillary products in a vehicle finance contract did not bring an otherwise excluded contract under the Military Lending Act. The Military Lending Act regulates lenders when they extend “consumer credit” to members of the military. Yet the Act makes… Read More

In Shelton v. Americredit Fin. Servs., Inc., No. 23-10543, 2023 U.S. Dist. LEXIS 58218, at *4-8 (E.D. Mich. Apr. 3, 2023), Judge Michelson dismissed an FCRA claim by an in pro per Plaintiff premised on the basis that an automobile finance company did not credit as a "payment" sums that it received for a repossessed vehicle's sale. Start with the… Read More

In Quillen v. Car City, No. B318046, 2023 Cal. App. Unpub. LEXIS 1759, at *10-13 (Mar. 27, 2023), the Court of Appeal in an unpublished decision reversed the trial court's conclusion that a used vehicle sale violated the CLRA. "The CLRA proscribes particular 'unfair methods of competition and unfair or deceptive acts or practices' in transactions for the sale or… Read More

In Ward v. NPAS, Inc., No. 21-6189, 2023 U.S. App. LEXIS 7100, at *12-16 (6th Cir. Mar. 24, 2023), the Court of Appeals for the 6th Circuit affirmed summary judgment for a servicer on the basis of the FDCPA's servicer exemption. But the statute also expressly excludes "any person collecting or attempting to collect any debt owed or due or… Read More

In Snyder v. Landcar Mgmt. LTD, No. CV-22-00705-PHX-DLR, 2023 U.S. Dist. LEXIS 49695, at *5-7 (D. Ariz. Mar. 23, 2023), Judge Rayes found that Ringless Voicemail Messages were "calls" under the TCPA. The Ninth Circuit defines a call under the TCPA as "to communicate with or try to get into communication with a person by telephone." Satterfield v. Simon &… Read More

In Mattson v. New Penn Fin., LLC, No. 21-35795, 2023 U.S. App. LEXIS 7070, at *1-2 (9th Cir. Mar. 23, 2023), the Court of Appeals reviewed a District Court's denial of class certification in a TCPA case because of factual questions amongst the class as to whether the residential lines were for residential or business use.  But, after the District… Read More

In Williams v. Pillpack LLC, No. 3:19-cv-05282-DGE, 2023 U.S. Dist. LEXIS 46640, at *5-9 (W.D. Wash. Mar. 20, 2023), Judge Estudillo approved a reverse-lookup class administration plan. PillPack objects to Mr. Williams's proposed notice plan because "(1) the reverse lookup process is an inaccurate and unreliable methodology to identify class members; and (2) Plaintiff's proposed process lacks steps to verify… Read More

Today, the DFPI issued a Notice of Proposed Rulemaking relevant to entities who may have to register with the DFPI under the CCFLP.  Comments are due by May 2, 2023.  In the DFPI's purpose statement, the DFPI explained: In September 2020, Governor Gavin Newsom signed Assembly Bill 1864, which codified the CCFPL in division 24 of the Financial Code and vested… Read More

In Byars v. Hot Topic, Inc., No. EDCV221652JGBKKX, 2023 WL 2026994 C.D. Cal. Feb. 14, 2023), Judge Bernal granted Hot Topic's motion to dismiss.  The Court detailed several reasons for granting the motion.  First, "[t]he FAC does not plausibly allege in good faith that $5 million is in controversy under CAFA."  Id. at *5.  "[T]he FAC does not allege a… Read More

In Williams v. DDR Media, LLC, No. 22-cv-03789-SI, 2023 U.S. Dist. LEXIS 33319, at *1-5 (N.D. Cal. Feb. 28, 2023), Judge Illston denied a Petition to Compel Arbitration in a CIPA class action.  The CIPA class action was based on the following facts. On June 27, 2022, Loretta Williams filed a class action complaint against defendants DDR Media LLC and… Read More

In Ramirez v. Midland Credit Mgmt., No. 22-cv-02772-VC, 2023 U.S. Dist. LEXIS 32517, at *1-5 (N.D. Cal. Feb. 27, 2023), Judge Chhabria allowed claims to proceed against a creditor for the act of calling a Plaintiff one time about a debt—and confirming on that same call that the Plaintiff was not the debtor. Capital One's motion to dismiss is denied.… Read More

The Court 0f Appeals for the 11th Circuit's limited the FTC's enforcement powers in LabMD, Inc. v. Federal Trade Commission, 894 F.3d 1221, 1237 (11th Cir. 2018).  In follow-on litigation by LabMD against the FTC, Judge Brown dismissed on statute of limitations grounds a case against the FTC arising out the FTC's civil enforcement proceeding against LabMD. In Labmd, Inc.… Read More

In Weiner v. Ocwen Fin. Corp., No. 2:14-cv-02597-TLN-DB, 2023 U.S. Dist. LEXIS 33107, at *7 (E.D. Cal. Feb. 27, 2023), Judge Nunley reconsidered Judge Englund's previous decertification order, finding that Judge Englund erred in his evaluation of whether the class representative must establish class-wide Art. III standing. In the Court's order granting Ocwen's motion for class decertification, the Court stated,… Read More

In Bassett v. Credit Bureau Servs., Inc., Nos. 21-2864, 22-1206, 2023 U.S. App. LEXIS 4428, at *7 (8th Cir. Feb. 24, 2023), the Court of Appeals for the 8th Circuit reversed the district court's judgment for the class, finding that the Plaintiff had no Art. III Standing. The procedural background was as follows: The collectors sent Bassett (and her deceased… Read More

In Chase v. Kia Motors Am., Inc., No. 22-cv-09082-JCS, 2023 U.S. Dist. LEXIS 31208, at *1-2 (N.D. Cal. Feb. 24, 2023), Judge Spero concluded that he did not have jurisdiction to hear a federal claim raised for the first time in an arbitration referred by a state court.  Judge Spero summarized the case as follows: Defendant Hyundai Capital America d/b/a… Read More

In Effinger v. Ancient Organics LLC, No. 22-cv-03596-RS, 2023 U.S. Dist. LEXIS 31215, at *17-18 (N.D. Cal. Feb. 24, 2023), Judge Seeborg discussed how the CLRA/UCL apply to claims pleaded as a nationwide class. Plaintiffs may proceed, however, with their claims on behalf of the putative Nationwide Class. As this Court has elsewhere noted, "California courts have concluded that '[the… Read More

In November 2022, the CFPB announced its intention to build an auto lending data set.  In furtherance of that goal, on February 23, 2023, the CFPB issued orders to nine large auto finance lenders.  Amongst others, the CFPB seeks information on lending, servicing, defaults, and market values.  Here is a sample order.  The specified purpose states: The Bureau is issuing… Read More

In Barton v. JMS Assoc. Mktg., LLC, No. 21-35836, 2023 U.S. App. LEXIS 3593, at *3-4 (9th Cir. Feb. 15, 2023), the Court of Appeals for the 9th Circuit remanded a matter to allow exposure for unanswered as well as answered calls. 47 U.S.C. § 227(c)(5) provides a private right of action to any person who receives more than one… Read More

In Michael Nguyen v. Okcoin USA Inc., No. 22-cv-06022-KAW, 2023 U.S. Dist. LEXIS 27449, at *4 (N.D. Cal. Feb. 17, 2023), Judge Westmore found that a Terms of Service amending an arbitration clause was not enforceable.  Defendant is a web-based cryptocurrency exchange, offering retail investors a marketplace to buy and sell cryptocurrencies. (Compl. ¶ 4.) In 2020, Terraform Labs began issuing… Read More

In Marshall v. Mechs. Bank Auto Fin., No. 2:22-cv-06973-MCS-KS, 2023 U.S. Dist. LEXIS 26934, at *4-7 (C.D. Cal. Feb. 15, 2023), Judge Scarsi dismissed what he called a 'redemptionist' claim against a bank. The section of the FAC outlining the basis upon which this [*5] Court may exercise jurisdiction cites provisions of the Uniform Commercial Code; Public Law No. 73-10,… Read More