The U.S. Court of Appeals for the Ninth Circuit recently ruled in Gilliam v. Levine that a loan made to an individual trustee to finance repairs on residential property owned by the trust was a “consumer credit transaction” for purposes of the Truth in Lending Act, the Real Estate Settlement Procedures Act, and California’s Rosenthal Act.… Continue Reading

While the leadership and priorities of the Federal Trade Commission have changed under the Trump Administration, the FTC continues to take an active role in the enforcement of consumer financial laws.  On May 7, 2020, from 12:00 p.m. to 1:00 p.m. ET, Ballard Spahr will hold a webinar, “What’s Happening at the FTC.” … Continue Reading

Massachusetts, New Jersey, Connecticut, Illinois, Colorado, California, Washington, and Vermont have announced that they are participating in a multi-state initiative to provide relief to borrowers whose student loans are not covered by the CARES Act through agreements with certain student loan servicers.  The announcements indicated that Virginia is also participating in the initiative.… Continue Reading

Our discussion examines a range of issues, including how the wording of the model forms could create consumer confusion, challenges in determining whether a debt is time-barred, and questions arising from use of a “know or reason to know” that a debt is time-barred standard to trigger disclosures.  We also look at industry’s reaction and how the proposal’s finalization is likely to fit with the CFPB’s issuance of a final larger debt collection rule.… Continue Reading

The Montana Supreme Court, in Bratton v. Sisters of Charity of Leavenworth Health System, Inc., has ruled that a health care provider’s use of prepaid cards to make refunds to patients did not violate Montana law.

In the lawsuit, the plaintiff alleged that SCL Health (SCL), her healthcare provider, violated Montana law by directing its bank to issue two prepaid cards to the plaintiff to refund credit balances on her account with SCL. … Continue Reading

ACA International, the Association of Credit and Collection Professionals, has filed a lawsuit in Massachusetts seeking to have the federal district court declare the emergency debt collection regulation promulgated on March 26 by the MA Attorney General invalid and enjoining the AG from enforcing the regulation against debt collectors and creditors. … Continue Reading

The CFPB will hold a joint meeting of its advisory groups by conference call on May 1, 2020.  The groups consist of the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council.

The meeting agenda indicates that there will be two programs.  … Continue Reading

The CFPB and the Federal Housing Finance Agency (FHFA) have announced a new joint initiative, the “Borrower Protection Program.”  The initiative is intended to enable the agencies to share mortgage servicing information during the COVID-19 pandemic.

According to the CFPB’s press release, the CFPB will make complaint information and analytical tools available to the FHFA via a secure electronic interface and the FHFA will make available to the Bureau information about forbearances, modifications and other loss mitigation initiatives undertaken by Fannie Mae and Freddie Mac.… Continue Reading

A group of attorneys general (AGs) from twenty-one states, the District of Columbia, and Puerto Rico has sent a letter to CFPB Director Kraninger requesting that the CFPB immediately withdraw its guidance regarding credit reporting during the COVID-19 pandemic and “resum[e] vigorous oversight of consumer reporting agencies and enforcement of the FCRA.”… Continue Reading

The CFPB recently issued a final Home Mortgage Disclosure Act (HMDA) rule to increase the threshold to report closed-end mortgage loans from 25 to 100 originated loans in each of the prior two years, and to increase the permanent threshold to report dwelling-secured open-end lines of credit from 100 to 200 originated lines in each of the prior two years.… Continue Reading