A unanimous United States Supreme Court has held that individuals can sue federal agencies for violations of the Fair Credit Reporting Act, 15 U.S.C.A. §§ 1681n and 1681o (“FCRA”). Finding that federal agencies are “persons” within the meaning of the FCRA, the Court...
Banking Law
U.S. Supreme Court Mandates that Federal District Courts Must Stay All Proceedings While an Interlocutory Appeal on Arbitrability is Pending
Coinbase, Inc. operates an online cryptocurrency exchange platform. To gain access to Coinbase’s platform, individuals must create a Coinbase account, which requires them to sign Coinbase’s user agreement. This agreement contains an arbitration clause that requires...
Standing to Sue Under the FCRA Requires Actual Harm
The United States Court of Appeals for the Sixth Circuit, in a case spanning fourteen years, has held that consumers alleging a violation of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C.A. § 1681e(b), must allege actual harm to sue under the statute. A claim for...
Are you a Borrower under RESPA if you are on the Mortgage but not the Note?
In Pittner v. Castle Peak 2012-1 Loan Trust (Memo & Order April 14, 2021), the United States District Court for the District of Massachusetts awarded summary judgment to Defendants, Castle Peak 2012-1 Loan Trust and Selene Finance LP, on Plaintiff’s claims of...
First Circuit Holds Bank’s Sustained Overdraft Fees Are Not Interest Under the National Bank Act
The First Circuit recently affirmed the dismissal of a case in which the plaintiff alleged that Citizens Bank's "Sustained Overdraft Fees" on overdrawn checking accounts were usurious interest charges in violation of Section 85 of the National Bank Act (the "NBA")....
Massachusetts Superior Court Concludes Lender Properly Foreclosed and Seized Borrower’s Personal Property Following Loan Default
A recent Massachusetts Superior Court case, Germinara v. Bakis, et al. (decided May 13, 2019), involved a plaintiff borrower who obtained a commercial loan in order to fund the purchase and operation of a gas station/convenience store, which was owned by an LLC formed...
Potential Regulation of Overdraft Services on Checking Accounts Still Under Consideration by the Consumer Financial Protection Bureau
By: Nathalie K. Salomon The Consumer Financial Protection Bureau (CFPB) is considering potential regulations related to overdraft services on checking accounts. An overdraft occurs when a consumer withdraws more money than he has in his account. When a bank covers the...
Massachusetts Supreme Judicial Court Rejects Challenge To Attorney’s Authority To Conduct Foreclosure Activities For Client Without Written Authorization
The Massachusetts Supreme Judicial Court (the "SJC) has rejected a challenge to the authority of an attorney to conduct foreclosure activities on behalf of clients without specific written authorization to perform those activities. See Federal National Mortgage...
DFPB Proposes Rule That Would Restore Consumer Right To Sue Banks
In AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011), the United States Supreme Court ruled that the Federal Arbitration Act preempts state laws that prohibit consumer contracts from disallowing class-wide arbitration. On May 5, 2016, however, the Federal...
Appeals Court Dismisses HAMP-Based Negligence Claim
In a post-foreclosure lawsuit, Santos v. U.S. Bank National Association, et al., 2016 WL 3636049 (Mass.App.Ct. 2016), a borrower ("Santos") alleged inter alia that a foreclosing mortgagee ("U.S. Bank") and its loan servicer negligently handled his applications for a...
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