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Consumer Finance Litigation Defense

Overview

Without proper guidance, it is easy for consumer finance companies to run afoul of the numerous federal and state consumer lending statutes, rules and regulations — not to mention the stables of attorneys ready to file claims on behalf of consumers against the financial services industry. We represent banks, mortgage lenders, financial institutions, debt buyers, claim purchasers, employers, providers of small loans, collection attorneys and collection agencies that are sued under various state and federal consumer finance statutes and regulations.

We defend consumer finance companies facing litigation related to credit reporting, loan servicing, privacy laws, debt collection, online lending, payment processing and a multitude of other issues that may arise. Our attorneys constantly monitor the industry’s fast-changing regulatory landscape and can offer proactive advice on responding to the compliance and litigation challenges facing the financial services industry. From civil enforcement actions brought by state regulators to class action lawsuits brought in federal court, we have the experience necessary to help our clients.

We regularly offer our clients ongoing advice on compliance with state and federal consumer lending and protection laws and statutes, as well as assistance in addressing compliance expectations of the Consumer Financial Protection Bureau (CFPB), as well as state agencies and regulators. If lawsuits do arise, we have a proven track record of successfully defending national, regional and local agencies,  in both state and federal courts.

Our Consumer Finance Litigation Defense practice includes:

  • Representation of clients for alleged violations of federal and state consumer finance laws such as the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Truth in oryLending Act (TILA), Real Estate Settlement Procedures Act (RESPA), and Equal Credit Opportunity Act (ECOA).
  • Representation of clients in allegations of predatory lending practices.
  • Representation of financial institutions regarding their practices related to filing proofs of claim in consumer bankruptcies.
  • Representation of financial institutions in complying with subpoena and document requests for sensitive financial information.
  • Representation of various members of the collection industry to ensure compliance with new laws and rulemaking.
  • Representation of clients in disputes over financial accounts that result in interpleader actions being filed in both federal and state courts in Virginia.

Representative Experience

  • Defended a consumer finance company in a bankruptcy adversary proceeding alleging failure to comply with proof of claim documentation requirements and Virginia consumer finance statutes
  • Defended a consumer financial services institution in a multi-million-dollar adversary proceeding alleging breach of a post-petition services contract
  • Coleman v. Charlottesville Bureau of Credits,2017 U.S. Dist. LEXIS 58490 (E.D. Va. Apr. 17, 2017). A plaintiff’s standing to file suit against a collection agency for a bare statutory violation of the FDCPA. The Court held that a plaintiff’s mere allegation of a bare statutory violation of the FDCPA is insufficient to confer standing and that the plaintiff was required to plead a concrete harm in order to satisfy the injury-in-fact requirement of Article III.
  • Bradford v. HSBC Mortg. Corp., 799 F. Supp. 2d 625 (E.D. Va. 2011). Represented a national mortgage lender for alleged violations of the Truth in Lending Act and the Fair Debt Collection Practices Act.
  • Landes v. Cavalry Portfolio Servs., LLC, 774 F. Supp. 2d 800 (E.D. Va. 2011). Represented a collection agency in a lawsuit seeking certification of a potential class action comprised of approximately 91,000 putative class members asserting FDCPA violations involving allegedly false or misleading dunning letters. Obtained complete dismissal with prejudice of the class action complaint. This was a case of first impression within the Fourth Circuit.
  • Katz v. Allied Interstate et al., 2010 U.S. Dist. LEXIS 25579 (E.D. Va. 2010). Represented a national collection agency regarding alleged violations of state and federal laws in connection with the client’s attempts to collect a debt. Obtained favorable summary judgment ruling and dismissal of all counts. ACA International’s Mapbulletin newsletter lists this case as one of the top four Big Wins-Call Volume Cases in its 2010 Year in Review Litigation Trends.
  • Schmidt v. Household Finance Corp. II, 276 Va. 108, 661 S.E.2d 834 (2008). Represented a national mortgage lender in a lawsuit alleging violations of the Virginia Consumer Protection Act and the Truth in Lending Act. Obtained complete dismissal of all claims, which was affirmed by the Supreme Court of Virginia.
  • Ruiz v. White, 2009 U.S. Dist. LEXIS 115455 (E.D. Va. 2009). Represented mortgage lender regarding claims alleging violations of the Fair Debt Collection Practices Act and the Equal Credit Opportunity Act. Obtained favorable summary judgment ruling and dismissal of claims against client.
  • Barrigan v. Elite Funding, 2009 U.S. Dist. LEXIS 1105 (E.D. Va. 2009) aff’d 353 F. App’x. 813 (4th Cir. 2009). Represented a national mortgage lender in connection with alleged violations of various state mortgage lending statutes. Obtained complete dismissal for the client in the district court, which was affirmed by the Fourth Circuit.
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