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Charge-Off

Ballard Spahr LLP

Third Circuit Rules Pennsylvania Consumer Discount Company Act Does Not Regulate Collection of Charged-Off Debts

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On February 7, 2024, the U.S. Court of Appeals for the Third Circuit affirmed the district court’s Order granting a motion for judgment on the pleadings and holding that a charged-off loan made by a lender licensed under the...more

Miller Canfield

SBA's Guidance on Requests to Honor SBA's Guaranty of PPP Loan

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The SBA recently issued its Procedural Notice on when a lender may request the SBA to honor its guaranty of a PPP loan. The PPP loan program has been in place for over a year and has provided billions of dollars of assistance...more

Fox Rothschild LLP

What Lenders Need To Know To Obtain SBA Guaranty Payment On Defaulted PPP Loans

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The Payroll Protection Program (“PPP”) was created by Congress through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to loan money to certain businesses for the primary purpose of providing money to...more

Benesch

Reporting a Charged Off Debt As Past Due Is Not Inaccurate Under the FCRA

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Failing to pay your credit card bills doesn’t pay. And it shouldn’t. But that doesn’t stop some debtors from at least trying to make a personal pay day out of it under the Fair Credit Reporting Act (“FCRA”), as evidenced by...more

McGlinchey Stafford

FinTech In The Time Of COVID: What Financial Services Companies Need To Know

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Since the beginning of the COVID pandemic in early 2020, consumers and the business community have had to navigate new realities. The pandemic has dramatically changed the ways in which we interact, presenting challenges that...more

Ballard Spahr LLP

OCC adopts final rule to resolve uncertainty created by Madden

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On Brian Brooks’ first day as Acting Comptroller of the Currency, the OCC issued a final rule intended to resolve the legal uncertainty created by the Second Circuit’s decision in Madden v. Midland Funding. In that decision,...more

Ballard Spahr LLP

Parties seek preliminary approval of class action settlement in Madden case

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The parties in Madden v. Midland Funding, LLC. have filed a joint motion with the New York federal district court seeking preliminary approval of a class settlement....more

Ballard Spahr LLP

Plaintiff Can Sue as "Consumer" Under FDCPA Despite Claiming Debt Not His, Court Rules

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In Loja v. Main Street Acquisition Corporation, the plaintiff filed a lawsuit in federal district court for alleged FDCPA violations against Main Street Acquisition Corporation and the law firm it retained to file a state...more

Ballard Spahr LLP

Washington State AG Sues Debt Buyers for Operating Without a License

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On September 21, 2018, the Attorney General for the State of Washington filed a lawsuit (see complaint) against several companies engaged in purchasing charged-off consumer debts, for operating as “collection agencies”...more

Ballard Spahr LLP

Second Circuit, on Truncated Record, Holds Dispute Implicating Core Bankruptcy Proceeding Non-Arbitrable

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In a recent decision pitting the Bankruptcy Code against the Federal Arbitration Act (FAA), the U.S. Court of Appeals for the Second Circuit held that a creditor could not compel arbitration of a debtor's class action claims...more

Smith Debnam Narron Drake Saintsing & Myers,...

District Court Takes Expansive View of "Deceptive or Misleading" Practices under FDCPA

The FDCPA prohibits a debt collector from using “any false, deceptive, or misleading representation” in connection with the collection of a debt. See 15 U.S.C. § 1692e. Recently, the Eastern District of New York took an...more

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