The definitive treatise on credit regulation: payday loans, auto finance, credit cards, RTO, and more, plus a new chapter on installment loans─the next predatory lending frontier.
Land installment contracts are a leader in the field of rip-off mortgages sold to the most vulnerable. A new chapter now online at NCLC's Mortgage Lending explains how the seller keeping title until all payments are made leads to serious abuses and how consumers can obtain relief from those abuses.
What you need to know about the new CFPB proposal and seven other new limits on forced arbitration, summarized in this article.
To comply with TILA and RESPA. lenders must meet entirely new mortgage disclosure requirements starting October 3. This article summarizes the changes and links to sources for more detail.
Dramatic changes to and new interpretations of federal mortgage servicing requirements continue into 2015. See this summary for recent highlights.
Collector TCPA compliance is a hot litigation area. Fair Debt Collection now not only updates online the FCC's groundbreaking July 10 ruling, but also key 2015 decisions on what is an autodialer (§ 220.127.116.11), what constitutes prior express consent (§ 18.104.22.168.2), and how consent can be revoked (§ 22.214.171.124.4).
New IRS regulations, AG settlements, and CFPB actions offer key new protections relating to delinquent medical debt. For more details, click here.
An FCC ruling this summer tightens the screws on collectors calling or texting cell phones, with TCPA minimum damages of $500 per call or text. Limits on wrong number calls or texts, no autodialed calls without consent, and it is now easy to withdraw that consent, as explained in this article.
July 18, 2015 for new requirements for manufactured home appraisals described in Truth in Lending § 126.96.36.199.2
With increased regulation of payday loans, high-cost installment loans are growing fast, as the latest way to target struggling consumers. Read Consumer Credit Regulation online for NCLC's new analysis of each state's regulation of closed-end (Appx. D-1) and also of open-end (Appx E-1) installment loans.
The U.S. Supreme Court on June 25 affirmed that disparate impact claims are cognizable under the Fair Housing Act. For ways to use that theory under the FHA and ECOA, see NCLC's Credit Discrimination §§ 4.3 (proof issues), 6.4.3 (credit scoring), 7.2.1 (redlining), 8.5 (reverse redlining), and 8.6 (credit mark-ups).
The FTC has just released important changes to its Magnuson-Moss Warranty Act interpretations and rules. The changes will aid consumer warranty litigation, including support for limiting the enforceability of binding arbitration requirements. All the changes are summarized in this article, with links to more detailed analysis in NCLC’s warranty treatise.
As explained here the CFPB has delayed its combined TILA/RESPA rules until October 3. The rules that change disclosure requirements for closed-end mortgage loans are explained in NCLC’s Truth in Lending § 5.11 (9th ed. 2015). See also §§ 188.8.131.52, 184.108.40.206. The rules and CFPB Supplementary Information are found at Appx. B-Addendum (online only).
A June Supreme Court decision siding with the majority of courts that limit lien strip offs in chapter 7 cases does not affect a consumer’s ability in chapter 13 cases to strip off mortgage liens, as explained in this article.
What you need to know about private companies' federal student loan servicing and ways to sue these companies or otherwise get relief if they do not comply with their contracts or regulations. Now available as an all new Chapter 5 in NCLC's Student Loan Law (5th ed. March 2015).
1. CFPB released its 700 page study and now has statutory authority to prohibit forced arbitration clauses in consumer credit.
2. NCLC has just released a model state statute limiting arbitration while not preempted by FAA
3. Consumer Arbitration Agreements (7th ed. March 2015) updates the scores of important recent court decisions.
IRS now requires non-profit hospitals to offer financial assistance and limits debt collection actions that they can take during a hospital bill's first 120 days. A full explanation is provided at a free powerpoint and recording.of a March 4 webinar.
Supreme Court on January 13 rules 9-0 that consumer need only send TIL rescission notice, not file suit, within three-year period, and Court's language has major implications for other TIL rescission issues. See online version of NCLC's Truth in Lending 10.6.3.1.3 and 220.127.116.11 (9th ed. March, 2015) (case only briefly mentioned in print edition that went to press in January).
How to Help Over 100,000 Corinthian Students: learn about the CFPB settlement and student rights set out in NCLC's Student Loan Law (5th ed. March 2015): ch. 10 (discharging loans), ch. 12 (private student loans), § 13.5.2 (tuition recovery funds), and § 13.8 (school-related claims as defense to a loan).
HUD Mortgage Letter 2015-03 (Jan. 29, 2015) provides limited protections for surviving spouses with reverse mortgages. Often couples were encouraged by loan brokers to put a home in the name of only the older spouse to increase the cash benefits from a reverse mortgage. But this is dangerous because if the older spouse passes away first, the younger spouse may not be able to assume the loan or remain in the home. See NCLC’s Foreclosures and Mortgage Servicing § 18.104.22.168 (5th ed. 2014).
Under the new policy, lenders have the option of allowing claim payment following the sale of the property by heirs or estate; foreclosing in accordance with the terms of the mortgage, and filing an insurance claim under the FHA insurance contract as endorsed. They may also elect to assign the HECM to HUD upon the death of the last surviving borrower, where the loan would not otherwise be assignable to FHA, also known as the Mortgage Optional Election Assignment (MOE).