Debt Collection: What to Say or Not to Say
What a Debt Collector Must, Must Not and Would Be Wise to State in Debt Collection Communications
What a Debt Collector Must, Must Not and Would Be Wise to State in Debt Collection Communications
Understanding the Essentials of Note Enforcement
Federal Courts Divided On Whether Failure to Warn Consumer of Expected Increase in Debt Amount May Violate FDCPA
Recently, the United States Court of Appeals for the Second Circuit vacated the dismissal of a complaint alleging a violation of 15 U.S.C. § 1692e when a debt collector that notified consumers of their account balance failed to disclose that the balance may increase due to interest and costs. Avila v. Riexinger, 2016 WL 1104776 (2d Cir. March 22, 2016). The Second Circuit oversees Connecticut, New York and Vermont.
The Court of Appeals, in In re Lucks, 2016 WL 1321155 (N.C.App. April 5, 2015), affirmed that the evidentiary standards applicable to a secured creditor seeking to establish its right to foreclose a property secured by a deed of trust in a power-of-sale proceeding are less rigorous than they would otherwise be in ordinary civil litigation. While the decision is unremarkable, the Court took the opportunity to address the evidentiary burden the creditor must meet, hence reviewing the decision is a valuable educational exercise.
Recently, the United States Court of Appeals for the Second Circuit vacated the dismissal of a complaint alleging a violation of 15 U.S.C. § 1692e when a debt collector that notified consumers of their account balance failed to disclose that the balance may increase due to interest and costs. Avila v. Riexinger, 2016 WL 1104776 (2d Cir. March 22, 2016). The Second Circuit oversees Connecticut, New York and Vermont.
Servicer’s Attorney’s Failure to Send Compliant Debt Validation Notice May a Make Servicer Vicariously Liable for FDCPA Violation
South Carolina Court of Appeals Confirms Business Records Exception to Hearsay Rule is Available to Servicer Relying on Prior Servicer’s Records, But Warns Proper Procedures Must be Followed to Take Advantage of the Exception.
Congress Enacts Extension to SCRA Protections impacting Foreclosures
South Carolina now becomes the most recent state to have a legal decision weighing in on the validity of MERS documents, but not in the usual fashion as we have seen in most states. In fact, the result of the case does not resolve the issue as to whether MERS documents are valid in South Carolina at all.
On March 31, 2016, President Obama signed into law S. 2393, the “Foreclosure Relief and Extension for Servicemembers Act of 2015,” which amends the Servicemembers Civil Relief Act by extending certain existing protections from foreclosure proceedings.
Third Party Bidder Failing to Complete Purchase Loses Deposit Despite Reduced Resale Bid by Foreclosing Creditor
Purchaser of Defaulted Debt Not Subject to FCPA Liability Because it Acts as Creditor, Not Debt Collector
The United States Circuit Court for the 4th Circuit, which governs Delaware, Maryland, North Carolina, South Carolina, Virginia and West Virginia issued a significant published opinion favorable to creditors in Henson v. Santander Consumer USA, Inc., No. 15-1187 (4th Cir. March 23, 2016).
Law Firm Relying on Factually Incorrect Debt Figures from Servicer May Be Liable Under FDCPA
On 28 December 2015, the Consumer Financial Protection Bureau and a large Atlanta debt collection law firm, Frederick J. Hanna & Associates, P.C. (including several individual attorney defendants), entered into a Stipulated Final Judgment and Order (“Order”) with respect to Hanna’s debt collection lawsuit practices that the CFPB alleged violated the Fair Debt Collection Practices Act.
Lender Preparing & Mailing Loan Modifications Not Engaging in Unauthorized Practice of Law
The increase in foreclosures after the 2008 financial crisis led to an increased response from lenders to assist borrowers. The most common form of aid provided to borrowers since that time has been the use of a loan modification. A large number of loan modifications have been entered into between lenders and borrowers in states across the county and South Carolina is no different.