The Federal Deposit Insurance Corporation [FDIC] issued a cease and desist order requiring an employer investment and loan company to replace its senior management and take other measures to improve its lending practices. The next month, plaintiff and the parent company of the employer entered into a written employment contract stating plaintiff would be employed […]
The Law Is For Thee, But Not For Me.
The Fair Credit Reporting Act [15 U.S.C. §1681] is supposed to protect the privacy of consumers. Among other provisions, it says that “no person that accepts credit cards or debit cards for the transaction of business shall print more than the last 5 digits of the card number or the expiration date upon any receipt,” […]
First In Time, First In Right…uh oh, the preliminary title report didn’t catch something…Equitable Subrogation To The Rescue.
A husband and wife borrowed $3.2 million from Chase Bank to refinance their home and pay off two existing deeds of trust. The escrow instructions expressly stated the loan was to pay off the existing first and second deeds of trust, that the loan was not to close unless secured by a new first deed […]
Summary Judgment Reversed In Foreclosure Case.
Plaintiff alleges she realized something was wrong with the loan on her home when she saw her signature was forged on a few of the loan documents. She hired a handwriting expert who confirmed some of the documents were not signed by her. She immediately brought the issue to the attention of the lender savings […]
Dispute Against Credit Card Company Promising To Help Rebuild Credit Has To Be Arbitrated.
Credit card was marketed to be used to “rebuild poor credit.” The company was sued in a class action for misrepresentation. Credit card users signed arbitration agreement in the application. But the Credit Repair Organizations Act [CROA; 15 U.S.C. §1679c(a)] states: “You have a right to sue a credit repair organization that violates the [Act].” […]
Guarantors Left Holding The Bag.
Borrowers agreed to pay only interest on a loan until its maturity date. The loan contained a provision that barring an uncured default outstanding at the time of the maturity date, and in the bank’s sole and absolute opinion and judgment, the maturity date would be extended. Indeed, it was extended five times. After the […]
National Bank Act Preempts Civil Code § 1748.9.
Civil Code §1748.9 requires certain disclosures on preprinted convenience checks issued by banks to credit card users. The National Bank Act of 1864 [13 Stat. 99] (“NBA”) contains no such requirement. The California Supreme Court concluded “the NBA preempts Civil Code section 1748.9 because the state law stands as an obstacle to the broad grant […]