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Litigation Byte (December Edition)

January 2, 2025

Delivered in digestible, insightful bites, McGlinchey’s Litigation Byte is a monthly roundup of financial services decisions and cases nationwide that impact your business. Subscribe here.

Judgment on the Pleadings Granted Due to Insufficient Pleading of FCRA Violations

The United States District Court for the District of Maryland granted a defendant’s motion for judgment on the pleadings in a case arising under the FCRA due to an alleged error regarding the misspelling of the plaintiff’s middle name in her credit report received from the defendant. Keep Reading.

New York District Court Rejects Arguments That TCPA Claims Are Non-Removable

On December 4, 2024, the United States District Court for the Western District of New York, as a matter of first impression, denied pro se plaintiff’s motion to remand claims against a national bank for violations of the TCPA, which arose from calls allegedly received by plaintiff after he registered his cellular phone with the national “Do Not Call Registry.” Keep Reading.

The CFPB’s Credit Card Late Fee Rule Appears Doomed

On December 6, 2024, the United States District Court for the Northern District of Texas denied a motion by the CFPB to dissolve a preliminary injunction that had enjoined its Credit Card Late Fee Final Rule, finding that the various challengers to the rule were likely to succeed on the merits of their challenges. Keep Reading.

Standing Requirements Under FCRA Clarified by Second Circuit

On December 6, 2024, federal courts in the United States Second Circuit issued a pair of decisions clarifying that borrowers must identify a concrete injury caused by the dissemination of inaccurate information to establish standing to assert claims for violations of the FCRA. Keep Reading.

Court Affirms Dismissal Under FAPA of Timely Restarted Foreclosure

On December 12, 2024, the Appellate Division, Third Department affirmed the trial court’s retroactive application of the FAPA to dismiss a foreclosure action as time-barred even though it was timely recommenced under the pre-FAPA “savings statute,” CPLR § 205(a). The court also declined plaintiff’s constitutional challenge, which was not preserved for appellate review. Keep Reading.

District Court Dismisses FDCPA and FCRA Action Against Community College

On December 11, 2024, the United States Court for the Eastern District of Pennsylvania Arizona dismissed a pro se litigant’s claims against Montgomery Community College for, inter alia, alleged violations of the FCRA and the FDCPA. The court ruled that the pro se plaintiff had failed to state plausible claims for relief under both the FCRA and FDCPA and dismissed the FDCPA claim with prejudice and the FCRA claim without prejudice. Keep Reading. 

EDNY: Failure to State a Claim Under the FCRA Dooms a Related Claim under the NYFCRA

On December 16, 2024, the United States District Court for the Eastern District of New York dismissed claims against a credit reporting agency for violations of the FCRA and joined the United States District Court for the Southern District of New York in holding that the insufficiency of a claim under the FCRA requires dismissal of a related claim under the NYFCRA, whose prohibition on reporting of inaccurate information is “substantially similar” to the FCRA. Keep Reading.

The Second Department Rejects Constitutional Challenge to FAPA

On December 4, 2024, the Appellate Division, Second Department affirmed the trial court’s retroactive application of the Foreclosure Abuse Prevention Act (FAPA) to dismiss the re-commenced foreclosure action as time-barred and rejected the mortgagee’s constitutional challenge thereto. Keep Reading.

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