At Smith Debnam, our Consumer Financial Services Litigation and Compliance unit brings a wealth of experience to the consumer financial services sector, both in litigation and compliance matters. With an interdisciplinary approach led by recognized thought leaders from across the consumer financial services spectrum, our attorneys advise on regulatory matters, counsel in the design and documentation of credit products, and defend the collection and credit industries in state and federal litigation, as well as regulatory matters.
At Smith Debnam, we believe the best way to represent you is to know your industry and to understand your business. You can count on us to anticipate how changes in legislation can impact your business and bottom line. In addition, our attorneys are active in a number of trade organizations including:
Our team regularly defends the auto and equipment finance industry in matters involving state law claims, such as wrongful repossession, UDAAP claims, debt collection claims, intentional torts and contract claims, as well as federal claims alleging violations of the Telephone Consumer Protection Act, Fair Credit Reporting Act, Truth in Lending Act, Equal Credit Opportunity Act, and Consumer Leasing Act. We provide contract review, letter audits, and general compliance services to financial institutions, captive finance companies, and subprime finance companies to ensure compliance with the UCC and various consumer protection statutes.
We defend financial institutions on an array of issues, including debt collection, credit reporting and mortgage servicing, Truth in Lending Act, Equal Credit Opportunity Act, and UDAAP. We provide contract review and general compliance services to the industry to ensure compliance with various consumer protection statutes including the Fair Credit Reporting Act, Truth in Lending Act, Telephone Consumer Protection Act, Mortgage Servicing Rules, and state and federal debt collection statutes.
We defend the debt collection industry in both federal and state courts on a host of issues involving state and federal debt collection statutes, the Fair Credit Reporting Act, and the Telephone Consumer Protection Act. We regularly advise collection agencies and debt buyers regarding their compliance with a wide variety of consumer protection statutes. We provide letter audit services and assist our clients in the construction of policies and procedures to meet their growing regulatory burden.
The U.S. Court of Appeals for the Eighth Circuit recently handed down an important opinion addressing the doctrine of equitable mootness in bankruptcy… Read More
The U.S. District Court for the Eastern District of North Carolina recently reversed an order of the U.S. Bankruptcy Court for the Eastern… Read More
Last month, the entire ARM industry was caught by surprise when the Eleventh Circuit held that a debt collector’s transmittal of information to… Read More
This article was published in the March 2021 Issue of Paradigm Magazine by the International Society of Primerus Law Firms. Read More
The FDCPA provides a bona fide error defense for debt collectors who can show by a preponderance of the evidence that their violation… Read More
The U.S. District Court for the Eastern District of New York recently denied cross-motions for summary judgment on a debtor’s claim that a… Read More
While it remains to be seen what, if any, changes a change in leadership in the CFPB will bring to the Debt Collection… Read More
Section 1692a(3) defines a consumer as any natural person obligated or allegedly obligated to pay a consumer debt. The final debt collection rule… Read More
A divided panel of the U.S. Court of Appeals for the Ninth Circuit recently held that a mortgage servicer had a permissible purpose… Read More
On October 30, 2020, the CFPB published its long-awaited Final Debt Collection Rule (the “Rule”) which is intended to interpret the federal Fair… Read More
Filing a reaffirmation agreement in a chapter 7 bankruptcy proceeding is a commonplace occurrence for many attorneys. However, the reaffirmation process is fraught… Read More
A recent opinion issued by the Sixth Circuit should prove helpful to attorneys facing unsettled issues of state law. As drolly described by… Read More
The Third Circuit has recently held in In re Denby-Peterson, 941 F.3d 115 (3rd Cir. 2019) that creditors who refuse to relinquish an… Read More
The CFPB has issued a Statement of Policy that seeks to “convey and foster greater certainty above the meaning of abusiveness” and provide… Read More
A First Circuit Bankruptcy Appellate Panel (the “Panel”) recently held that a mortgage company’s communications did not violate the discharge injunction when viewed… Read More
A debt collection agency did not violate § 1692g(b)’s 30-day validation period by sending two letters demanding payment and offering settlement terms during… Read More
A single missed call from a telemarketer constitutes a concrete injury that gives rise to standing, a federal district court in California has… Read More
Just four days after the U.S. Supreme Court heard oral arguments in Obduskey v. McCarthy & Holthus LLP regarding whether non-judicial foreclosures qualify… Read More
In a case of first impressions, the Fifth Circuit has held that the CFPB’s Mortgage Servicing Rules only apply to servicers and do… Read More
The CFPB and the Department of Justice have partnered together to enter into a proposed consent order with BancorpSouth Bank regarding allegations the… Read More
The Sixth Circuit recently made clear its position that “Congress cannot override the baseline requirement[s] of Article III of the U.S. Constitution by… Read More
In March, the D.C. Circuit issued its long-awaited decision on the FCC’s 2015 TCPA Declaratory Ruling. ACA International v. Federal Communications Commission, No. Read More
In the Spring 2018 Consumer Financial Services Update, Smith Debnam examines recent consumer financial services litigation cases taking place across the U.S., providing banks… Read More
On April 19, 2018, the CFPB’s Successor in Interest Rules take effect. Here’s what you need to know: What do the Successor in… Read More
The Third Circuit refined its position as to whether collection of time-barred debt may violate the FDCPA where the communication involves an offer… Read More
Any opinion that starts out by stating “[t]his case is about $82.00” is not likely to go well for one party and in… Read More
The Tenth Circuit has weighed in on whether a non-judicial foreclosure is debt collection activity. In doing so, the Tenth Circuit has joined… Read More
Bankruptcy is not a sure-fire remedy for credit union members in severe financial distress. While it can provide an avenue for escaping your… Read More
On November 24, 2017, the White House appointed Mick Mulvaney as acting director of the CFPB, effective November 27, 2017. Since then, concerns… Read More
The Eleventh Circuit has held that a voice mail message left for a consumer is a “communication” under the FDCPA. In Hart v. Read More
The FDCPA, through section 1692d(6), prohibits a debt collector from placing telephone calls to a debtor “without meaningful disclosure of the caller’s identity.”… Read More
A New York District Court recently tackled the intersection between bankruptcy and pre-petition FDCPA claims and the application of judicial estoppel to undisclosed… Read More
A consumer who sued a debt collector over an inaccurate statement as to the amount of a settlement offer recently saw his complaint… Read More
The CFPB has issued its 2016 Fair Lending Report which provides a summary of the Bureau’s efforts in fair lending for 2016. The… Read More
Complaint Volume by Product In a startling change from prior months, the three products yielding the highest complaint volume in January 2017 were… Read More
A district court from New York recently ruled that even assuming a creditor’s initial TILA disclosures falls short under the statutory requirements, the… Read More
The Ninth Circuit recently weighed in on the limitations of prior express consent and revocation under the Telephone Consumer Protection Act (the “TCPA”). … Read More
The CFPB continues to flex its muscle and expand its reach, this time punishing a prepaid card provider and its vendor for a… Read More
The CFPB recently entered into consent orders with several Citibank subsidiaries attacking their mortgage servicing practices during the early days of the Mortgage… Read More
The CFPB recently released its findings from its Survey of Consumer Views on Debt. The report is of limited value as it contains… Read More
The CFPB’s concern with incentives and overdrafts continues and has resulted in a lawsuit filed against a Minnesota-based TCF National Bank. In the… Read More
The Department of Justice has entered into a proposed consent order with two Ohio-based banks resolving allegations that the banks engaged in a… Read More
This past November, in the wake of the Wells Fargo debacle, the CFPB issued a Compliance Bulletin which addressed employee incentives and the… Read More
Editor’s Note: On November 3, 2016, Smith Debnam’s Jerry Myers attended a meeting with the CFPB to discuss the proposed rules for third… Read More
A recent series of CFPB consent orders should remind the mortgage industry to carefully monitor its advertising practices. The MAP Rule… Read More
A Missouri district court has refused to grant partial summary judgment in favor of a consumer who asserted violations of 15 U.S.C. 1692e(11). Read More
Joining the proof of claim fray, the Fourth Circuit has held that the filing of a time-barred proof of claim does not violate… Read More
By now, most have read about the consent orders issued by the CFPB and the OCC concerning Wells Fargo. The consent orders ordered… Read More
Earlier this summer, the CFPB issued its proposed payday rule. Hailed as an attempt to end “payday traps”, the 1,334-page missive addresses both… Read More
The CFPB published its Summer Supervisory Highlights last week, highlighting examinations that were conducted between January 2016 and April 2016 across various financial… Read More
By holding that the term “person” may include artificial entities, the Sixth Circuit expanded the notion of statutory standing under the Fair… Read More
As vendor management continues to be a key issue for regulators, the FDIC has issued its Proposed Guidelines for Third-Party Lending. The deadline… Read More
Recent FTC consent orders, as well as the CFPB’s continued focus on credit reporting, serve as good reminders for collection agencies and creditors… Read More
The Eleventh Circuit has made it clear: it will not back down from its decision in Crawford v. LVNV Funding, a decision it… Read More
The Supreme Court unanimously reversed the Sixth Circuit in Sheriff v. Gillie, Docket No. 15-338, holding that letters sent on the Ohio Attorney General’s letterhead… Read More
Collection communications with consumer’s counsel must meet the same standard as those directly with a consumer according to the Eleventh Circuit. In Bishop… Read More
A single page collection letter recently gave the Southern District of Illinois the opportunity to address a range of issues including alleged threats… Read More
The CFPB and four federal financial regulatory agencies have issued Interagency Guidance Regarding Deposit Reconciliation Practices. The Guidance comes as a follow up… Read More
Since opening its doors in 2011, the CFPB has accepted consumer complaints on a variety of consumer products. Beginning with credit cards in… Read More
On April 25, 2016, the Consumer Financial Protection Bureau (CFPB) issued its latest consent order against Pressler & Pressler, a New Jersey… Read More
Ten years after the Southern District of New York entered into its infamous decision in Foti v. NCO Financial Systems, Inc., 424 F. Supp. 2d… Read More
In its first enforcement order of the year, the CFPB took aim at the financing practices of a buy here pay here auto… Read More
Earlier this week, the FTC provided the CFPB with its annual update of FTC enforcement activities related to compliance with the Equal Credit… Read More
The FTC recently entered into a Consent Order last week with Wyndham Hotels and Resorts resolving the FTC’s allegations that Wyndham did not… Read More
The CFPB has issued a fact sheet clarifying that, in most cases, construction loans are subject to the Loan Estimate and Closing Disclosure… Read More
First, a Quick Primer – What is a Foti Message? A Foti message is when a debt collector leaves a message stating the… Read More
Since TRID was introduced, a debate has raged on as to whether the Truth in Lending Act’s (TILA) liability rules or RESPA’s would… Read More
This article is an update to the article titled: “Best Practices for Collection Law Firms in the Face of Increasing Regulatory… Read More
The Truth in Lending RESPA Integrated Disclosure Rule (TRID) took effect October 3, 2015, and placed the mortgage industry in unchartered waters. Our… Read More
Creditors collecting their own debts have often sought solace in the fact that they were not covered by the FDCPA; however, over the… Read More
The CFPB has issued its final rule modifying and significantly expanding the data collection reporting requirements under the Home Mortgage Disclosure Act (“HMDA”). Read More
In cursory fashion, a North Carolina District Court has recognized a good faith defense to TCPA claims where calls were made to a… Read More
The CFPB issued its Monthly Report that provides a high-level snapshot of trends in consumer complaints and summarizes the volume of complaints by… Read More
The Sixth Circuit has clarified what constitutes “prior express consent” in connection with debt collection. In Hill v. Homeward Residential, Inc., File No. Read More
In a move that provides clarification and more consistency with the FDCPA but widens the gap as to the treatment of collection agencies… Read More
The FDIC has entered into a settlement with Comenity Bank and Comenity Capital Bank regarding their servicing and marketing of credit card add-on… Read More
The Federal Communications Commission (the “FCC”) recently released its Declaratory Ruling and Order regarding the requirements of the Telephone Consumer Protection Act of… Read More
The Consumer Financial Protection Bureau (CPFB) monitors debt collectors, banks, credit unions, and credit card companies, among others, to safeguard consumers. The CFPB… Read More
Contracts are just agreements, typically in writing. Contracts keep the business world humming along like a well-oiled machine. Unless one party seeks help,… Read More
The North Carolina Creditors Bar Association (“NCCBA”) is a specialty bar association that provides support to attorneys… Read More
A federal court has denied a lender’s motion to dismiss, holding that a lender may be held vicariously liable for its servicer’s violation… Read More
Someone owes you money. They don’t pay. You take them to court. You win your case! You think, “Great! We’ve reached the end. Victory!”… Read More
In a case of first impression, the Eleventh Circuit has ruled that a consumer’s credit report does not have to be published to… Read More
As a frequent speaker on lender compliance law, I have never failed to startle an audience with the realization that they are exposed… Read More
In recent years, the number of reports of identity theft has increased dramatically in North Carolina. Personal information, including a social security number,… Read More
