Consumer Finance

In Garfield v. Ocwen Loan Servicing, LLC, 2016 WL 26631, at *2-3 (C.A.2 (N.Y.),2016), the Court of Appeals for the Second Circuit said that FDCPA claims grounded in post-discharge misconduct are independent of the bankruptcy code. Where, as in this case, the later statute is the Bankruptcy Code, a distinction must be made between claims brought under the earlier statute during the… Read More

In Consumer Financial Protection Bureau v. CashCall, Inc., 2015 WL 9591569, at *1-2 (C.D.Cal., 2015), Judge Walter said that the CFPB was not alleging an ipso facto rule, namely that a state court violation automatically constitutes a UDAAP violation.  Accordingly, Judge Walter allowed the Complaint to survive a pleadings challenge. Defendants' primary argument for dismissal is based on a mischaracterization of the… Read More

The FTC announced that it is seeking comment on the FTC Holder Rule, which preserves against the Holder all claims and defenses that a consumer can assert against the seller.  The FTC identified the following specific areas for comment: The Commission solicits comment on the following specific questions related to the Holder Rule: (1) Is there a continuing need for… Read More

In Davis v Nationstar, 2016 WL 29071 (E.D. Pa. 2016), Judge Baylson stayed a TCPA case pending the outcome of Spokeo, Inc. and the ACA petition in the DC Circuit. Read More

In Unifund CCR LLC v Dear, the California Superior Court -- Appellate Division clarified the standards that a debt collector declarant must meet to prove up a debt as a business record. Read More

In CFPB v Hanna-Stipulated Order, the CFPB reached a settlement with a large debt collection law firm.  According to the CFPB: The CFPB lawsuit had alleged that the defendants rely on deceptive court filings and faulty evidence to churn out lawsuits. The order, if approved by the court, would bar the firm and its principal partners from illegal debt-collection practices,… Read More

In St. Louis Heart Center, Inc. v. Nomax, Inc., 2015 WL 9451046, at *2 (E.D.Mo., 2015), Judge White refused to strike a TCPA blast-fax class action definition as being overlord, but then limited the Plaintiff's discovery solely to the faxes sent -- not to all faxes possibly sent during the 4-year SofL period. Plaintiff served a subpoena on Windstream Communications, LLC (“Windstream”)… Read More

In Black v. Autovest, LLC, 2015 WL 9461484, at *4 (D.Ariz., 2015), Judge Boyle denied a debt collection firm's motion to dismiss an FDCPA claim grounded in collection of post-repossession deficiency -- even though the bank already had a judgment against the FDCPA Plaintiff on the debt owing.  The District Court found the FDCPA action not barred by Rooker-Feldman. Defendants rely… Read More

In Cholly v. Uptain Group, Inc., 2015 WL 9315557, at *3 (N.D.Ill., 2015), Judge Gettlemen found that the bankruptcy laws' automatic stay does not constitute revocation of consent under the TCPA. Despite the fact that Count I of plaintiff's complaint sufficiently states a claim for relief with respect to her non-consent allegations, in light of defendants' motions to strike, the… Read More

In Berry v. ARS National Services, Inc., 2015 WL 9315993, at *3 (E.D.Pa., 2015), Judge Restrepo extended the Douglass decision beyond account numbers to include barcodes being visible on dunning letter envelopes as well. Initially, it is noted that in Douglass, the Third Circuit held that “§ 1692f(8)'s prohibition on language and symbols applies to markings that are visible through a transparent… Read More

In Palmer v. Credit Collection Services, Inc., 2015 WL 9315986, at *2 (E.D.Pa., 2015), Judge Bartle granted summary judgment to an FDCPA plaintiff in a Douglass-type glassine window case, extending Douglass to prohibiting barcodes visible on dunning letters. The plaintiff here maintains that Douglass is directly on point and supports her summary judgment motion. She equates the visibility of the debtor's account… Read More

In Bauman v. Bank of America, N.A., 2015 WL 9310136, at *3-4 (6th Cir. 2015), the Court of Appeals for the Sixth Circuit held that a creditor was not precluded from bringing a debt collection action because it had failed to bring it previously in response to the debtor's FDCPA Action. Although we have not squarely addressed whether a counterclaim to… Read More

In Luster v. Sterling Jewelers, 2015 WL 9255553, at *3 (N.D.Ga., 2015), Judge Duffey stayed a TCPA class action pending the outcome of Spokeo and Campbell-Ewald. Because it appears that the Supreme Court's decisions in Spokeo and Campbell-Ewald may be dispositive of this case, a stay of proceedings is warranted. In granting a stay under similar circumstances, the Middle District… Read More

In Fontes v. Time Warner Cable, Inc., 2015 WL 9272790, at *2-4 (C.D.Cal. 2015), Judge Snyder renewed a previously entered stay in a TCPA class action, this time pending the outcome of the proceedings in the D.C. Circuit Court of Appeals challenging the propriety of the FCC's Omnibus Order.  Judge Snyder described the FCC's Order and the proceedings the D.C. Circuit as… Read More

In Brill v. TransUnion, 2015 WL 9095103, at *1-2 (W.D.Wis. 2015), Judge Crocker dismissed a FCRA claim against TransUnion arising out of a vehicle co-lessee’s claims that the primary lessee forged his signature on a lease extension and then defaulted on it. The facts, apparently, arising out of a failed relationship, are not all that uncommon. On or about May… Read More

In Wynns v. Barclays Bank Delaware, 2015 WL 9016604, at *1 (Cal.App. 1 Dist., 2015) (unpublished), the California Court of Appeal said the Monopoly rules don’t apply – a debtor can’t write an restrictive endorsement on a check and get out of the debt. This case arises from a $900 credit card debt incurred by pro se appellant George S.… Read More

In Ananthapadmanabhan v. BSI Financial Services, Inc., 2015 WL 8780579, at *4 (N.D.Ill. 2015), Judge Leinenweber held that a TCPA Plaintiff must plead more than formulaic recitation of the TCPA in order to prove the “use” of an ATDS. The Court agrees that Plaintiffs' Complaint is insufficient. Use of an ATDS and the pre-recorded nature of the messages are not… Read More

In Norman v. AllianceOne Receivables Management, Inc., 2015 WL 9286778, at *1 (7th Cir. 2015) (unpublished), the Court of Appeals for the Seventh Circuit affirmed summary judgment granted on the basis that calls were placed manually and, therefore, were exempt from the TCPA. The district court granted summary judgment after AllianceOne produced evidence showing that its calls to Norman were dialed… Read More

In Trabert v. Consumer Portfolio Services, Inc., 2015 WL 9271437, at *6-8 (Cal.App. 4 Dist. 2015) (unpublished), the Court of Appeal addressed for the third time whether an arbitration clause in a standard form RISC was unconscionable.  The Court of Appeal addressed the consumer's argument that Sanchez was distinguishable where cheaper cars purchased by poorer consumers was involved.  The Court of Appeal… Read More

In Carr v. Credit One Bank, 2015 WL 9077314, at *3-4 (S.D.N.Y. 2015), Judge Kaplan grudgingly ordered a TCPA case to arbitration. Plaintiff's final argument is that the TCPA claim is outside the scope of the arbitration clause. The parties do not appear to have considered whether this is a question for the Court or for an arbitrator, although plaintiff argues… Read More