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Litigation Byte (November Edition)

December 5, 2024

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.

FCRA Claims Survive Dismissal Over Challenges to Standing and Statute of Limitations

A recent opinion from a federal court in North Carolina emphasizes how difficult it is to succeed on a motion to dismiss a lawsuit arising under the FCRA. Rejecting a challenge to a plaintiff’s standing and the timeliness of the FCRA claims, the court denied the motion to dismiss and reminded the parties about their mediation obligations. Keep reading.

District Court Dismisses FDCPA and TILA Claims Against Mortgage Servicer

On November 14, 2024, the United States Court for the District of Arizona dismissed a pro se litigant’s claims for alleged violations of FDCPA, 15 U.S.C. § 1692, and TILA, 15 U.S.C. § 1640(k). The court ruled that a third party could foreclose on a property after the original lender sold its interest in the promissory note and deed of trust associated with the property. Keep reading.

Delegation Clause + Mass Arbitration Protocol = Unconscionable Arbitration Agreement

Recently, the Ninth Circuit Court of Appeals affirmed a district court’s decision finding a delegation clause in an arbitration agreement to be both procedurally and substantively unconscionable and, moreover, that California’s prohibition on class action waivers contained in adhesion contracts is not preempted by the Federal Arbitration Act (FAA). Keep reading.

Court Rejects Conclusory Allegations of Willful Violations for FCRA Claims

A United States Magistrate Judge for the U.S. District Court for the Northern District of Georgia found that the Plaintiff’s claim arising under the FCRA was not sufficiently alleged but stopped short of recommending a Defendant’s motion to dismiss be granted. Instead, it was recommended that the pro se plaintiff be directed to file an amended complaint describing in greater detail how the defendant acted willfully when accessing the Plaintiff’s consumer report. Keep reading.

McGlinchey’s Consumer Financial Services Litigation Group is a recognized leader among the nation’s most respected financial services institutions. Our litigation practice brings together a skilled team of attorneys who represent every type of consumer financial services company, including national and state-chartered banks, finance companies, mortgage lenders and servicers, credit card issuers, automobile lenders, student lenders, community banks, thrifts, credit unions, and insurance providers. Learn more.