New Developments
New Developments
Starting Oct. 3, New Consumer Rights for 3 Million Servicemembers & Dependents
Effective October 3, Department of Defense rules limit interest rates to 36%, prohibit arbitration, and provide strong private remedies for all non-purchase money, closed end credit offered to the country’s 3 million servicemembers and their dependents, as described in this article.
Prepaid Card Rule Latest Regulation of Fast-Changing and Novel Payment Devices
Not just the UCC anymore. As described in this article, CFPB, FTC, Treasury, NACHA, other rules are catching up to today’s novel ways payments are made to and from consumers: payroll, prepaid, gift, college, debit, Direct Express, and EBT cards, mobile wallets, P2P transfers, remittances, EFT, and much more.
Continually Updated Analysis and Briefs Responding to Supreme Court’s <em>Spokeo</em> Ruling
One of today’s hottest litigation issues is standing in federal cases seeking statutory damages, in light of this term's Supreme Court’s Spokeo decision. As explained in this continually updated article, NCLC provides ongoing Spokeo analysis, briefs, and over 40 new case citations, for subscribers and even non-subscribers.
Over 500 New FDCPA Case Summaries Added to Fair Debt Treatise
NCLC has just published online over 500 new FDCPA case summaries at Fair Debt Collection Appx. J. This appendix is one of NCLC’s most popular litigation tools—over 10,000 FDCPA case summaries broken down by over 100 categories and then often by state or by court. An essential tool for any FDCPA litigator.
Recent Cases Interpret New CFPB Mortgage Servicing Rules
How to win RESPA claims under the CFPB’s new mortgage servicing rules, including avoiding the “one-bite” rule for loss mitigation applications and responding to the "exclusive address" trap for RESPA inquiries. For more new tips, see the online version of Foreclosures and Mortgage Servicing ch. 3.
New Developments Limit Arbitration of FDCPA Claims Against Debt Buyers
This article highlights two key new developments limiting arbitration of FDCPA and other claims against debt buyers and collectors: a AAA letter about Midland Funding and an important Eleventh Circuit ruling.
FTC Bans Telechecks, Other Abusive Payments in Telephone Sales
As described in this article, effective June 13, the FTC has banned the use of telechecks, other remotely created orders, “cash-to-cash money transfers,” and “cash reload mechanisms” when goods or services are sold to consumers using the telephone.
Exciting New Features Added to NCLC’s Digital Library
New features have just been added to our online treatises—the option to view search results ordered by section number (instead of by relevance) and flags to help you pinpoint just updated sections and significant law changes. This article contains tips on using these new features.
Four Very Recent FDCPA Decisions from the Circuit Courts
Fair Debt Collection Practice Act litigation is one of the most active types of consumer litigation in the federal courts. This article summarizes four FDCPA circuit court decisions, from this May and June.
New Rules Limit Fees and Use of Campus Prepaid Cards, Effective July 1
A new Department of Education rule, effective July 1, limits fees for campus prepaid cards used to dispense financial aid credit, preventing schools from profiting from students’ access to their financial aid benefits, as described in this article.
New CFPB Rule on Payday, Auto Title, and Installment Loans
This article details not only the CFPB’s June 2 proposed rule covering payday lending, auto title, and installment loans, but also links to practice tips on representing clients with these predatory loans and links to state-by-state analyses of applicable law.
NCLC’s New Consumer Bankruptcy Treatise in Print and Online
Eleventh edition of Consumer Bankruptcy Law and Practice (2 vol.) (1568 pp.) now released in print and online. Click here for highlights, including detailed guidance completing the new official forms and 170 sample pleadings in Word.
Class Waivers Under Attack on Another Front
The Seventh Circuit on May 26 ruled that the National Labor Relations Act prohibits enforcement of class waivers against employees. This article explains the case and its implications for challenges to arbitration of both employment and consumer disputes.
CFPB Proposed Rule: No Mandatory Arbitration for Class Actions
The Consumer Financial Protection Bureau on May 5 released its proposed rule that would largely eliminate mandatory arbitration of financial services class actions. A summary of the proposal and a listing of other limits on mandatory arbitration is found here.
Supreme Court: No FDCPA Violation for Special Counsel’s Use of AG Letterhead
On May 16, the Supreme Court held it was not deceptive under the FDCPA for a special counsel to use, with authorization, the state attorney general’s letterhead when collecting debts for the state. For more, see this article.
NY Times Highlights Exploding New Type of Mortgage Abuse
A lead NY Times editorial and report highlight hedge funds’ abusive sales of foreclosed homes through land installment contracts, also known as contracts for deed. For remedies to fight this new (old) scam, see Mortgage Lending ch. 12 (online only) and Foreclosures and Mortgage Servicing ch. 14.
Supreme Court Affirms Class Cert. Using Statistical and Representative Evidence
On March 22, the Supreme Court ruled, despite differences among class members, that representative and statistical evidence could be the basis for a class certification ruling. The case is described more fully in this article.
New Principal Reduction Option for Fannie and Freddie Loans
The FHFA announced on April 14 a new and very limited principal reduction option for certain Fannie Mae and Freddie Mac loans. The program is described in this article.
Key Precedent that FDCPA Defendants Have Burden of Proof
Third Cir. decision provides key precedent that FDCPA defendants have burden of proof when claiming exemption from liability. As described in this article, the precedent has wide-ranging utility in FDCPA and other consumer litigation.
Supreme Court ECOA Case Ends in a 4-4 Tie
Hawkins v. Community Bank of Raymore, 2016 WL 1092416 (March 22, 2016) limiting guarantors’ rights to enforce the ECOA was affirmed by an equally divided Court, leaving the split in the circuits unchanged. See NCLC’s Credit Discrimination §§ 2.2.4.2, 5.5.1.2, 5.6.