Has your bank or other business been sued for violating the Truth In Lending Act’s (“TILA”) requirement for a notice of mortgage transfer based on a mortgage you acquired before May 20, 2009? If so, then a recent Ninth Circuit decision may be helpful. 15 U.S.C § 1641(g), an amendment to the Truth In Lending Act effective May 20, 2009, requires a creditor buying a mortgage loan to provide written notice to the borrower of…
Ninth Circuit holds TILA’s notice of mortgage transfer requirement is not retroactive
Fifth Circuit addresses implicit waiver of acceleration and related new Texas statute
A recent Fifth Circuit decision is helpful for lenders seeking to foreclose against a borrower asserting a Texas statute of limitations defense. In Boren et al. v. U.S. National Bank Association, the Borens failed to pay on a home equity note in 2008. 2015 WL 6445721, at *1 (5th Cir. Oct. 26, 2015). In 2009, U.S. Bank accelerated the loan, but then sent a notice of default informing the Borens they could bring their loan…
Texas’ open carry handgun law is effective Jan. 1, 2016 – what does this mean for banks?
On January 1, 2016, the Texas open carry law, House Bill 910 (“HB 910”), goes into effect. The law allows qualified individuals to carry openly displayed, but properly holstered, handguns into public businesses—including banks. This blog post provides an overview of HB 910; addresses banks’ options for preventing openly carried handguns on their premises; and provides links to additional information on HB 910. Overview HB 910 only applies to handguns: The law applies to handguns,…
Debt Collectors’ Net Worth is Discoverable Prior to Class Certification
Debt collectors should be aware that they may need to quickly turn over their financial information in class actions brought under the Federal Debt Collection Practices Act (the “FDCPA”). According to a federal district court in Indiana, a motion for class certification is all that is required to make a debt collector’s net worth discoverable, even before class certification. In class actions under the FDCPA, debt collectors are liable to debtors for actual damages and…
The Dallas Court of Appeals provides important guidance for banks in assessing liability to those injured in on-premises crimes Part III
This post concludes our summary of the recent Fifth Court of Appeals decision, JP Morgan Chase Bank, N.A. v. Borquez et al., 2015 WL 6690027 at *19 (Tex. App.—Dallas Nov. 3, 2015, no pet. h.), reversing a $4.3 million verdict against Chase Bank arising from the robbery and murder of an armored car driver at a Chase branch, as discussed in more detail in my previous posts. This post finishes our discussion of the Fifth…
The Dallas Court of Appeals provides important guidance for banks in assessing liability to those injured in on-premises crimes Part II
This post continues our summary of the recent Fifth Court of Appeals decision, JP Morgan Chase Bank, N.A. v. Borquez et al., 2015 WL 6690027 at *19 (Tex. App.—Dallas Nov. 3, 2015, no pet. h.), reversing a $4.3 million verdict against Chase Bank arising from the robbery and murder of an armored car driver at a Chase branch, as discussed in more detail in my previous post. This post focuses on the Fifth Court’s application…
The Dallas Court of Appeals provides important guidance for banks in assessing liability to those injured in on-premises crimes – Part I
This three-part series of blog posts focuses on a recent Fifth Court of Appeals decision overturning a $4.3 million verdict against JP Morgan Chase Bank arising from the robbery and murder of an armored car driver at a Chase branch in Dallas. This first post summarizes the decision and the relevant factors applied by the court. The second post will discuss the court’s analysis in more detail and the third post will provide key take…
The House Votes to Reopen the Ex-Im Bank
Earlier this year, the charter for the Export Import Bank of the United States expired. American companies—including most notably Boeing, but also small businesses with export sales—use Ex-Im guarantees to reduce the cost of selling their goods internationally. Since July 1, Ex-Im has been winding down: administering existing guarantees but unable to provide new guarantees. Support for Ex-Im typically splits along party lines: Democrats argue that the agency supports small and medium-sized businesses, creating job…
Mortgage Lenders Beware–Although the Feds Will Credit “Good Faith Effort” on TRID Disclosure Requirements, Private Actors May Not
The new TILA-RESPA Integrated Disclosures (“TRID”) went into effect on Saturday, October 3, 2015. Since June, the Consumer Financial Protection Bureau (“CFPB”) assured lenders that it would show leniency to those that make a “good faith” effort to comply with TRID, and the FDIC and OCC recently joined in this approach.[1] Notably, this is consistent with the approach that the CFPB took leading up to the effective date of the Dodd Frank Act Title XIV…
FTC Asks Federal Court to Consider Banks as “Debt Collectors” Under the FDCPA
Late last week, the Federal Trade Commission filed an amicus brief in Davidson v. Capital One Bank (USA), N.A.,[1] a case brought by a consumer complaining of Capital One’s efforts to collect on a defaulted credit card. If adopted, FTC’s reading of the statute would apply Fair Debt Collection Practices prohibitions to banks that acquire consumer debt asset portfolios. In Davidson, Capital One had acquired the consumer’s defaulted account in 2012 as part of its…