The CFPB is About to Enact New Requirements for Mortgage Servicers – Is Your Organization Prepared?

April 11, 2018      |      Jason K. Wright, Esq.   

On April 19th, changes made by the Consumer Financial Protection Bureau (CFPB) via the Mortgage Servicing Final Rule to Regulation Z will take effect, and mortgage servicers will be required to make changes to the periodic statements or coupon books that they send to borrowers who have filed bankruptcy. Whereas the previous version of Regulation Z contained a blanket exemption to the periodic statement rule for borrowers who have filed bankruptcy, the new rule requires servicers to send periodic statements containing certain bankruptcy-specific modifications....

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Upcoming Changes to National Bankruptcy Plan and Bankruptcy Rules

November 30, 2017      |      Scott D. Fink, Esq.   

Historically, each Bankruptcy Court in the United States has been free to utilize its own version of a Chapter 13 Plan, which has led to a confusing patchwork of different plan forms all around the country. Effective December 1, 2017, however, the use of a new Model Chapter 13 Plan will be required across the U.S.; although each individual district will have the ability to “opt out” and use its own form, so long as it substantially conforms to the Model Plan’s format. Also taking effect on December 1st are certain amendments to the Bankruptcy Rules, which will impact the Chapter 7, 12, and 13 practice and procedures for both consumers and creditors. The following is a summary of the upcoming changes....

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Are You Prepared for Upcoming Changes to the Federal Rules of Bankruptcy Procedure?

August 31, 2017      |      Scott D. Fink, Esq.   

Beginning on December 1, 2017, creditors and their counsel will be operating under many new rules governing the practice of consumer bankruptcy law....

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Pattern of Inaccurate Filings in Bankruptcy Cases Results in $15 Million OCC Civil Penalty for Financial Institution

August 29, 2017      |      Jason K. Wright, Esq.   

On April 25, 2017, in a proceeding before the Office of the Comptroller of the Currency (OCC), one of the largest financial institutions in the U.S. entered into a Consent Order for a Civil Money Penalty, which included a payment of $15 million to the Department of the Treasury, due to:...

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U.S. Supreme Court Rules on Santander; Definition of "Debt Collector" under FDCPA Still Unclear for Debt Buyers

June 15, 2017      |      David Mullen, Esq.   

On June 12, 2017, the Supreme Court of the United States (the Court) released a unanimous decision in Henson, et al v. Santander Consumer USA Inc. The case focused on the interpretation of a section of the Fair Debt Collection Practices Act (FDCPA) definition of "debt collector" and its application to debt buyers....

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U.S. Supreme Court Rules that Fair Debt Practices Act Does Not Apply to Time-Barred Proofs of Claims Filed in Bankruptcy Cases, Midland Funding LLC v. Johnson

May 16, 2017      |      Jason K. Wright, Esq.   

On May 15, 2017, the Supreme Court of the United States (SCOTUS) issued a decision in Midland Funding, LLC v. Johnson, ruling that filing an obviously time-barred proof of claim in a Chapter 13 case does not violate the Fair Debt Collection Practices Act (FDCPA). In doing so, SCOTUS overturned an Eleventh Circuit decision which would have allowed debtors to file suit for damages ? and potentially for sanctions and attorneys' fees ? against creditors who filed time-barred proofs of claim. SCOTUS also resolved a conflict of authority within the circuits on this issue, as three other circuits (the Fourth, Seventh and Eighth) had ruled that the FDCPA does not apply to claims filed in a bankruptcy case....

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