The Litigation Byte is the new name and format for McGlinchey’s Commercial Law Bulletin. Our new format reflects McGlinchey’s national coverage and our expanded footprint while still serving up the digestible, insightful bites readers have come to expect, with timely coverage of financial services decisions and cases that impact you and your business. At the end of each month, our team will compile and send a round-up digest with all of our case summaries delivered to your inbox in one easy-to-reference place.

Alabama Supreme Court Clarifies Hold-Over Tenant Foreclosure Payment Rules

On May 31, 2024, the Alabama Supreme Court held that a servicer and/or high bidder from a foreclosure sale can compel a hold-over tenant to make payments into court during the pendency of litigation over the propriety of foreclosure and/or ejectment. Keep reading.

TILA Disclosure Requirements Limited by New York District Court

On June 5, 2024, the United States District Court for the Southern District of New York held that under TILA, a creditor in an open-end consumer credit plan has no obligation to notify or disclose to consumers information that the creditor has or intends to verify with the Internal Revenue Service (IRS). Keep reading.

Court Excludes Class Members with Binding Arbitration Agreements

In an important decision regarding the size and potential scope of a putative class, the United States District Court for the Southern District of Ohio recently granted a defendant’s motion to exclude from a class action all individuals with binding arbitration agreements. Keep reading.

Court Rules Eviction Proceedings are Not Debt Collection under FDCPA

The United States Court for the Western District of Virginia recently granted a foreclosure firm’s motion to dismiss on the grounds that the firm’s representation of a lender did not violate the Fair Debt Collection Practices Act (FDCPA). Keep reading.

FCRA Claims Against Credit Reporting Agencies: NY Court Emphasizes Minimal Pleading Requirements

On June 6, 2024, the United States District Court for the Eastern District of New York dismissed claims for violations of the Fair Credit Reporting Act (FCRA)—15 U.S.C. §§ 1681e(b) and 1681i in particular—against a credit reporting agency. Keep reading.

New York’s Interest-On-Escrow Law May Not Be Preempted by the National Bank Act

On May 30, 2024, the Supreme Court reversed the Second Circuit’s holding that New York General Obligation Law § 5–601, which mandates banks to pay borrowers the interest accumulated on a balance held in an escrow account for residential mortgages on certain types of properties, was preempted by the National Bank Act (NBA). Keep reading.

New York Northern District Court Reminds That Only a “Called Party” May Bring a TCPA Claim

On June 10, 2024, the court reiterated that a claim for violation of the Telephone Consumer Protection Act cannot be maintained by a consumer who is neither a subscriber of the called telephone number that is billed for the call nor a non-subscriber customary user of the called telephone number which is included in a family or business cellular plan. Keep reading.