By Michael A. Attaway and Charles E. Aster On July 27, 2017, Andrew Bailey, the head of the U.K. Financial Conduct Authority (FCA), surprised the banking industry (and other financial markets) when he announced the London Interbank Offered Rate (LIBOR) may cease to be published as early as the end of 2021. In his speech, […]
Considerations For Banks In Preparing For The End Of LIBOR
New Texas Online Notarization Law Allows Remote Acknowledgment in Domestic and Cross-Border Transactions
The 85th Session of the Texas Legislature passed H.B. 1217 to allow online notarization, making it the third state (after Virginia and Montana) to allow notaries to perform remote notarial acts. Effective on July 1, 2018, the new law enables a signing party to acknowledge documents via audio-visual communication, while retaining the option to physically […]
4 Tips for a Better (Loan) Workout
Business bankruptcy filings have dropped by more than one-third over the last five years. One potential reason for this drop is that lenders have increasingly sought non-bankruptcy solutions for defaulted or distressed loans. Virtually all non-bankruptcy solutions involve some form of “workout.” Below are some practical tips for lenders to consider both before and during […]
Bill That Would Overturn Madden v. Midland Funding, LLC And Codify Valid-When-Made Doctrine Passes In House
The House of Representatives recently passed H.R. 3299, the “Protecting Consumers Access to Credit Act of 2017.” This act codifies the “valid-when-made” doctrine and ensures that bank loans that fall within the maximum rate of interest allowable under federal law when made will remain valid regardless of whether a bank subsequently sells or assigns the […]
Are Your Loan Documents Ready For The Death Of LIBOR?
The London Interbank Offered Rate (“LIBOR”) is a nearly 50-year old global borrowing benchmark which underpins more than $350 trillion of financial products. LIBOR is based on daily submissions from a panel of banks estimating the interest rate on which they estimate they would be able to borrow funds from one another in five different […]
Overdraft Policies Require More Than Compliance With Regulation E
In the past few years, the Consumer Financial Protection Bureau (“CFPB”) has focused on taking action against multiple financial institutions for their overdraft services practices. These practices are regulated by the Federal Reserve Board’s “Regulation E”, as restated by the CFPB in 12 C.F.R. § 1005.17. Regulation E prohibits financial institutions from assessing overdraft fees […]
U.S. Supreme Court Dismisses Writ in Recharacterization of Debt Proceeding
Late last week, the United States Supreme Court said that it erred when it granted certiorari to resolve a bankruptcy dispute over whether state or federal law should apply to the recharacterization of debt. In In re Province Grande Olde Liberty, LLC, the Fourth Circuit affirmed the judgment of the bankruptcy court and district court, both […]
U.S. Supreme Court Grants Certiorari to Decide Circuit Split on Applicable Law for the Recharacterization of Debt
The United States Supreme Court will soon decide whether state or federal law will apply to the recharacterization of debt. On June 27, 2017, the Court granted certiorari in In re Province Grande Olde Liberty, LLC, a decision out of the Fourth Circuit. In Province Grande, the Fourth Circuit affirmed the judgment of the bankruptcy […]
In Judge Gorsuch’s first opinion, the U.S. Supreme Court rules that an entity that purchases debt and then collects that debt is not a “debt collector.”
On June 12, 2017, Judge Gorsuch issued his first written opinion since taking the bench on the Supreme Court. In Henson vs. Santander Consumer USA, the Supreme Court ruled unanimously that a company that purchases defaulted loans and then attempts to collect on those loans is not a “debt collector” under the FDCPA because the company […]
U.S. Supreme Court Refuses To Apply FDCPA To Purchasers Of Debt But Leaves Potential Arguments For Applicability Undecided
The Fair Debt Collection Practices Act (“FDCPA”) authorizes private lawsuits and fines to deter abusive collection efforts by “debt collectors”—a term defined under 15 U.S.C. §1692a(6) to include anyone who “regularly collects or attempts to collect … debts owed or due … another.” In the June 12, 2017 opinion in Henson et al. v. Santander […]