In Schlegel v. Wells Fargo Bank, N.A., 2013 WL 3336727, (9th Cir. July 3, 2013), the Ninth Circuit held that Wells Fargo did not qualify as a "debt collector" under the Fair Debt Collection Practices Act ("FDCPA"), even though the mortgage debt it sought to collect was in default at the time it was assigned to Wells Fargo. The facts of this case are relatively simple. After the plaintiffs' defaulted loan was assigned to Wells Fargo, the plaintiffs entered into a loan modification agreement with Wells Fargo and proceeded to make payments under the agreement. However, Wells Fargo began ...
In Grubb v. Portfolio Recovery Associates, LLC, No. 2:12-cv-301 (E.D. Tenn. July 10, 2013), the U.S. District Court for the Eastern District of Tennessee recently dismissed a Fair Debt Collection Practices Act ("FDCPA") claim against defendants for filing a false affidavit in a state collection lawsuit because the affidavit at issue clearly stated that it was only based on business records of the defendant. Furthermore, the court dismissed an additional FDCPA claim, which alleged that defendants sought an unauthorized rate of interest and attorneys' fees in their state court ...
In Brown v. DIRECTV, LLC, No. CV 12-08382, 2013 WL 3273811 (C.D. Cal. June 26, 2013), the U.S. District Court for the Central District of California held that Telephone Consumer Protection Act ("TCPA") claims based on collection calls were arbitrable since they related to the customer agreement. Plaintiff Joshua Brown filed suit against DIRECTV and others alleging violations of the TCPA based on automated collection calls on his account. DIRECTV moved to compel Brown's claims to arbitration. Brown ordered DIRECTV satellite service online and was presented with "DIRECTV Terms and ...
The Second Circuit Court of Appeal affirmed the dismissal of a Fair Debt Collection Practices Act ("FDCPA") claim brought by a non-debtor under the mootness doctrine after an offer of judgment conveyed orally in open court was rejected. In Doyle v. Midland Credit Management, Inc. ---- F. 3d ---, 2013 WL 3242148 (2d Cir. June 28, 2013), the Second Circuit held that an offer of judgment need not comply with the offer of judgment rule in order to render a case moot. Doyle filed suit against Midland alleging that Midland had harassed him, failed to disclose Midland was a debt collector, and made ...
In Young v. Wells Fargo, Case No. 12-1405 (1st Cir. May 21, 2013), the First Circuit Court of Appeals reversed a district court's dismissal of plaintiff Susan Young's breach of contract claim premised on Wells Fargo's alleged failure to comply with its obligations under the Trial Period Plan ("TPP"), a temporary loan modification period during which Young applied for a permanent loan modification. Young alleged that, after falling behind on her mortgage payments, she entered into a series of discussions with Wells Fargo in an attempt to negotiate a loan modification. Eventually ...
A judge in North Carolina recently dismissed an action brought by Guilford County's Register of Deeds against twenty-nine defendants, including Mortgage Electronic Registration Systems ("MERS"), for a lack of legal standing to bring their claims, in Guilford Cty, ex rel. Jeff L. Thigpen, Guilford Cty. Register of Deeds v. Lender Processing Services, Inc., 12 CVS 4531 (N.C. Gen. Ct. J. Super. Ct. Div. May. 29, 2013). The Register of Deeds of Guilford County filed the civil action on behalf of Guilford County making several state law claims against the defendants, including unfair ...
In You et al. v. JP Morgan Chase Bank, N.A. et al., No.S13Q0040(Ga. May 20, 2013), the Supreme Court of Georgia ruled that the holder of a security deed seeking to exercise a power of sale is not required to also hold the underlying promissory note. Further, the Court held that a party exercising its right to foreclose as a holder of the security deed does not need to identify the holder of the note in the statutorily-mandated notice to debtor. The borrowers in this case primarily argued that JP Morgan Chase Bank, N.A. did not have the right to exercise power of sale because it was not the holder of ...
In matter of first impression, the U.S. Court of Appeals for the Second Circuit recently held that section 1692g(a)(3) does not require a debtor to dispute a debt in writing. The court noted the circuit split on this issue and acknowledged that the Third Circuit has held that a notice requiring the debtor to dispute the debt in writing does not violate the FDCPA. See Graziano v. Harrison, 950 F.2d 107 (3d Cir. 1991). Conversely, the Ninth Circuit has held that it does. See Camacho v. Bridgeport Financial, Inc., 430 F.3d 1078 (9th Cir. 2005). In Hooks v. Forman, Holt, Eliades & Ravin, LLC