Powerful Consumer Right Hiding in Plain Sight
A powerful consumer right is hidden in plain sight in the TILA provision prohibiting arbitration in mortgage loans—the same provision prohibits application of any provision in a mortgage loan agreement that would limit the consumer’s right to seek court relief based on a federal claim. This provision should have wide application.
Sixth Circuit: Debt Buyer Cannot State Prejudgment Interest Owed for Period After Debt Charged Off
Credit card issuers often waive the right to contractual interest after they charge off a debt, which means debt buyers cannot seek interest for that period either. At least one debt buyer has responded by representing that statutory prejudgment instead of contractual interest was owed. The Sixth Circuit has just found it to be a FDCPA violation to state that such prejudgment interest was owed for the period after charge-off.