Consumer Financial Services Litigation | McGlinchey Stafford PLLC

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 more than 100 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. Our experience includes hundreds of class actions in the past ten years in state, federal, and bankruptcy courts throughout the United States, and we manage multistate litigation portfolios for our clients. We oversee budgets and related bankruptcy cases, and defend clients against actions filed by third parties – e.g., purchasers and homeowner’s associations – who seek to eliminate or impair a client’s interest in real property through a court proceeding.

Lawyers in our Consumer Financial Services Litigation team reduce the amount of research time required to address complex legal issues by drawing on the experience of our firm’s consumer finance regulatory and compliance attorneys, who have detailed knowledge of state and federal agency positions. We have relationships with various agency personnel, and from time to time we request that these agencies assist or intervene on behalf of our clients in connection with litigation matters. In many instances, when it is more efficient, our regulatory compliance attorneys will assist in drafting motions, supporting memoranda, and other pleadings. By minimizing the amount of time we spend on research, we bring greater focus to the vital issue at hand – winning our client’s case.

As leaders in their field, members of our Consumer Financial Services Litigation team speak regularly at conferences related to consumer financial services litigation including American Conference Institute forums on residential mortgage litigation and regulatory enforcement, consumer finance class actions, and fair debt collection practices as well as panels sponsored by the Mortgage Bankers Association and the Consumer Finance Legal Conference.

Heyns v. Select Portfolio Servicing, Inc. 764 Fed.Appx 341 (4th Cir. 2019)
Dismissing appeal for lack of subject matter jurisdiction in connection with challenge to foreclosure of residential property.
Represented Servicer and GSE in Servicing-Related Litigation
Represented national loan servicer and GSE/investor in wrongful servicing federal litigation, successfully defending claims of willful breach of contract, conversion, fraud, breach of duty of good faith and fair dealing, intentional infliction of emotional distress, defamation, and violations of FDCPA, RESPA, and Mississippi S.A.F.E. Mortgage Act. Obtained summary judgment on all claims in favor of bothMore
Representation of National Bank in Mortgage Foreclosure Dispute in Louisiana Fifth Circuit Court of Appeal
Successfully represented a national bank on an issue of first impression before the Louisiana Fifth Circuit Court of Appeal. The bank foreclosed on a mortgage through executory process. The property owner was served with the notice of seizure and sale. Several days before the scheduled sale, the property owner filed for bankruptcy protection. However, afterMore
Obtained favorable jury verdict on breach of contract and breach of good faith and fair dealing claims related to the denial of SBA loan.
The plaintiff claimed that our client, a national bank, had breached the terms of a conditional loan commitment to finance the purchase and renovation of a building for a Subway restaurant by withdrawing the commitment after the plaintiff spent tens of thousands of dollars repairing the property. The case ultimately proceeded to a jury trialMore
Successfully obtained judgment in a foreclosure lawsuit by establishing mortgage servicer’s compliance with HUD/FHA regulations prior to foreclosure
Borrowers asserted numerous counterclaims and defenses in a contested foreclosure claiming that client failed to comply with HUD/FHA regulations prior to foreclosure and as a result, was stopped from foreclosing. After significant discovery, we moved for summary judgment, arguing that non-compliance with HUD/FHA regulations can only form a defense, not an affirmative cause of action,More
Successfully obtained judgment for mortgage servicing client on falsification and fraud claims.
Represented a national bank in which a borrower filed counterclaims against the bank alleging that it fabricated her signature on a promissory note. After extensive discovery, we moved for summary judgment, and the court ultimately granted the bank’s motion, finding that the borrower’s purported handwriting expert did not qualify as one and that the signatureMore
Representation of National Servicer in Cases Brought by Chapter 13 Debtors
Represented national servicer in approximately 35 separate cases brought by Chapter 13 debtors claiming violations of Bankruptcy Code related to computation and allocation of interest on monthly payments.
Representation of National Bank in Consumer Protection and Antitrust Litigation
Representing national bank and subsidiary in consumer protection and antitrust litigation brought by state attorney general for alleged abusive practices resulting in unnecessary fees charged to consumer credit card holders.
Representation of Lenders/Originators in Series of Mass Actions with RICO and Mortgage Fraud Claims
Represented multiple lenders/originators in series of mass actions involving almost 150 plaintiffs with RICO and mortgage fraud claims.
Representation of National Bank in Putative Class Action Involving National Homeowner Forbearance Program
Represented national bank and subsidiaries in a putative nationwide class action involving a national homeowner forbearance program, alleging that the bank enrolled thousands of troubled homeowners in the program without the borrowers’ consent in order to receive incentive fees. The federal district court denied class certification.

Podcast: Repossessions and Bankruptcy Post-COVID, Post-Fulton
COVID-19’s economic impact on borrowers’ ability to repay loans has had major repercussions for auto lenders, and the U.S. Supreme Court recently issued a decision relating to repossessions in bankruptcy. As COVID borrower relief programs wind down, what is the forecast for auto repossessions?
Constitutionality of the TCPA Between 2015 and 2020
Gregg D. Stevens and Stefanie L. Deka co-authored an article regarding whether the TCPA was constitutional between the enactment of the government-debt exception in 2015 and the AAPC decision in 2020.
Podcast: Cryptocurrency – Wall Street or Main Street?
As cryptocurrency becomes more widely accepted as a payment method, it leaves many people wondering whether it will remain a volatile investment or become as common as a debit card. In our second cryptocurrency podcast, we asked the question: is cryptocurrency Wall Street or Main Street?
The Rise of FCRA Litigation: Trends, Updates, and Best Litigation Strategies Explored
On Tuesday, July 13, 2021, Joseph Apatov and Robert Im will join a panel of key thought leaders and practitioners for an in-depth discussion of FCRA litigation trends, crucial considerations, and effective litigation strategies.
Federal Agencies, Enterprises Extend Foreclosure Moratoriums Again
On the eve of the June 30, 2021, the expiration date for all federal pandemic moratoriums, the Federal Government extended its foreclosure and eviction moratoriums, and encouraged delinquent borrowers to seek forbearance and other relief.