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5th Cir. Holds Mortgagee Needed to Issue New Acceleration Notice Before Foreclosing

The U.S. Court of Appeals for the Fifth Circuit held that where a mortgagee rescinded a notice of intent to accelerate and then filed a foreclosure action without first issuing a new notice of intent to accelerate, it failed to meet its burden to show clear and unequivocal notice of intent to accelerate prior to
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Jeffrey Karek

Source: Consumerfsblog – 5th Cir. Holds Mortgagee Needed to Issue New Acceleration Notice Before Foreclosing

7th Cir. Remands Putative Class Action to State Court for Lack of Spokeo Standing

The U.S. Court of Appeals for the Seventh Circuit recently held that a putative class action alleging violations of the federal Fair and Accurate Credit Transactions Act (FACTA) could not be removed to federal court because the plaintiffs lacked Article III standing, which deprived the federal trial court of subject matter jurisdiction. Accordingly, the Seventh
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Hector E. Lora

Source: Consumerfsblog – 7th Cir. Remands Putative Class Action to State Court for Lack of Spokeo Standing

11th Cir. Vacates Dismissal of Mortgagee’s Deficiency Claims Following Debtor’s Bankruptcy

The U.S. Court of Appeals for the Eleventh Circuit recently vacated a trial court’s dismissal of a mortgagee’s deficiency claims and remanded to the trial court to determine whether the voluntary dismissal of a bankrupt debtor’s Chapter 11 case without a discharge had any effect on the mortgagee’s right to pursue its pre-petition deficiency claims.
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Hector E. Lora

Source: Consumerfsblog – 11th Cir. Vacates Dismissal of Mortgagee’s Deficiency Claims Following Debtor’s Bankruptcy

Jury Returns Inconsistent Verdict in CFPB Action Against Ohio Debt Collection Law Firm, Verdict Under Advisement

An advisory jury, empaneled pursuant to Federal Rule 39(c)(1), recently returned an inconsistent verdict after trial in an action brought by the Consumer Financial Protection Bureau last year challenging that attorneys of a law firm specializing in the collection of debts were not “meaningfully involved” in collection activities engaged in by the firm in violation
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Shannon P. Miller

Source: Consumerfsblog – Jury Returns Inconsistent Verdict in CFPB Action Against Ohio Debt Collection Law Firm, Verdict Under Advisement

9th Cir. Rejects FDCPA Claim That Collector Did Not ‘Meaningfully Participate’ in Collection

The U.S. Court of Appeals for the Ninth Circuit recently rejected a so-called “flat-rating” claim, holding that a company that sent letters demanding that hospital patients pay their overdue medical bills did not create a false or misleading impression that the company was actually participating in collecting the debts in violation of the federal Fair
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Eric Tsai

Source: Consumerfsblog – 9th Cir. Rejects FDCPA Claim That Collector Did Not ‘Meaningfully Participate’ in Collection

DC App. Court Holds HOA May Not Foreclose Subject to First Deed of Trust

The District of Columbia Court of Appeals recently held that a condominium association acting on its six-month super-priority lien for unpaid condominium assessments pursuant to § 42-1903.13(a)(2) of the District of Columbia Condominium Act (the “D.C. Condo Act”) may not conduct its foreclosure sale subject to a first deed of trust lien, even if the
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Stuart Miles

Source: Consumerfsblog – DC App. Court Holds HOA May Not Foreclose Subject to First Deed of Trust

Illinois App. Court (1st Dist) Rules HOA Lien Extinguished by Payment 1 Year After Foreclosure Sale

The Appellate Court of Illinois, First District recently held that a foreclosing mortgagee’s payment of post-foreclosure sale assessments nearly a year after the sale date confirmed the extinguishment of a condominium association’s lien for pre-sale assessments created under the Illinois Condominium Property Act. In so ruling, the First District found that the plain language of
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Stuart Miles

Source: Consumerfsblog – Illinois App. Court (1st Dist) Rules HOA Lien Extinguished by Payment 1 Year After Foreclosure Sale

SD Calif. Continues Trend of Bringing Clarity to Case Alleging Improper Interest Charges

A decision out of a district court in California continues the trend of holding appropriate interest rate disclosures to be within the bounds of the FDCPA and other consumer protection acts.  In Pavlovich vs. Account Discovery Systems, LLC, the U.S. District Court for the Southern District of California found no violation of the FDCPA, the California Rosenthal
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Keith Wier

Source: Consumerfsblog – SD Calif. Continues Trend of Bringing Clarity to Case Alleging Improper Interest Charges

4th Cir. Holds HPA Does Not Require LPMI Disclosures If LPMI Not Required at Closing

The U.S. Court of Appeals for the Fourth Circuit recently concluded that lender-paid mortgage insurance (“LPMI”) disclosures under the federal Homeowners Protection Act are only required if LPMI is a condition of the borrower obtaining the loan. In affirming the trial court’s dismissal of the borrowers’ claims, the Fourth Circuit dissected the specific language of the
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Mickey J. Lee

Source: Consumerfsblog – 4th Cir. Holds HPA Does Not Require LPMI Disclosures If LPMI Not Required at Closing

8th Cir. Applies ‘Materiality’ Requirement to FDCPA Action, Joining Other Circuits

The U.S. Court of Appeals for the Eighth Circuit recently joined with the Third, Fourth, Sixth, Seventh, and Ninth Circuits in applying a materiality standard to section 1692e of the federal Fair Debt Collection Practices Act (FDCPA). In doing so, the Eighth Circuit affirmed the trial court’s order granting judgment in favor of a debt
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Ernest Wagner

Source: Consumerfsblog – 8th Cir. Applies ‘Materiality’ Requirement to FDCPA Action, Joining Other Circuits