Consumer Financial Services Litigation

OVERVIEW

EXPERIENCE

NEWS & INSIGHTS

ACCOMPLISHMENTS

We combine vast experience with exemplary service and passion to achieve results.

Financial services institutions face a myriad of litigation issues unique to the industry. Consumer protection laws and regulations have evolved at a record-setting pace, and investigations and enforcement actions have subsequently increased. It is challenging for ﬁnancial institutions to keep up with shifting regulations and increased scrutiny.

HOW WE HELP

Our nearly 40 consumer ﬁnancial services litigation attorneys resolve and litigate disputes for industry clients nationally in virtually every type of consumer lending litigation and enforcement forum.

Practicing in federal, bankruptcy, and state courts throughout the United States, we tap our deep industry knowledge derived from representing a diverse array of ﬁnancial institutions including national and state-chartered banks, credit unions, mortgage lenders and servicers, automobile ﬁnance companies, student lenders, credit card companies, community banks, specialty ﬁnance ﬁrms, retailers and other businesses who deal with their consumer customers on credit. Our cases often involve complex questions of ﬁrst impression, regulatory, and other matters of high importance to our clients and the consumer ﬁnancial services industry.

Encompassing virtually every kind of claim brought against lenders and depository institutions, our experience encompasses litigation and compliance with federal and state laws and regulations, unfair and deceptive acts and practices claims, challenges to fees, interest rates and other contract terms, redlining and other discrimination issues, property preservation, force-placed and other insurance, and privacy and data security matters, among others. We serve as strategic and trusted advisors who handle the alphabet soup of complex regulatory and enforcement issues and claims involving federal and state laws such as:

Electronic Funds Transfer Act (EFTA)
Equal Credit Opportunity Act (ECOA)
Fair Credit Reporting Act (FCRA)
Fair Debt Collection Practices Act (FDCPA)
Home Ownership and Equity Protection Act (HOEPA)
Home Owners’ Loan Act
National Bank Act
Real Estate Settlement Procedures Act (RESPA)
Servicemembers Civil Relief Act (SCRA)
Telephone Consumer Protection Act (TCPA)
Unfair and Deceptive Acts and Practices Claims
Truth in Lending Act (TILA)
Truth in Savings Act (TISA)

Our attorneys regularly speak and publish on developments in consumer ﬁnancial services law and also counsel clients on regulatory compliance and litigation avoidance strategies. We also publish the Seyfarth Consumer Class Defense Blog, which provides perspectives and timely developments on consumer ﬁnancial litigation and regulatory activity.

THE SEYFARTH EXPERIENCE

We are known for delivering exceptional client service and outstanding results in true partnership with our clients through our acclaimed service delivery platform and innovative approach that leverages our legal acumen with our knowledge base. We obtain a clear understanding of our clients’ goals and desired outcomes, and we set out passionately to achieve them.

EXPERIENCE

Achieved a resounding victory in a Connecticut bench trial for a national bank. We prevailed on all of the case’s dozens of heavily litigated claims, defenses, and issues on both the bank’s case to foreclose its borrower’s property and the borrower’s counterclaims attacking the legality, disclosure, and underwriting of the consumer mortgage loan product.
Obtained a defense verdict in a fast-tracked 12-person federal jury trial in a publicized federal case in the District of Massachusetts for one of the nation’s largest national bank mortgage servicers, in which the court ruled that to “a significant extent, our national economy may depend upon promptly sorting out the matters raised here” and that “a prompt trial of this case is thus absolutely crucial.”
Replaced a national bank’s trial counsel shortly before trial, and won a bench trial in Connecticut state court on a matter of first impression nationally; a borrower’s challenge to the propriety and lawfulness of a national bank and federal savings associations’ substitutions of their proprietary interest rate indexes following their mergers, and prevailed on appeal.
Achieved a favorable nationwide federal class action settlement in the District of Missouri for a captive manufacturer automotive finance company in a case of first impression nationally involving alleged violations of the Consumer Leasing Act.
Settled a nationwide putative class action in Connecticut on individual terms for a national bank engaged in automotive lending, which alleged violations of the Truth in Lending Act involving notices of repossession for yacht watercraft.
Following a summary judgment victory, obtained the first ruling from the US Court of Appeals for the Second Circuit that the Fair Credit Reporting Act does not provide a private right of action for enforcement for alleged violations of 15 USC § 1681s-2(a), involving claims that a furnisher of information to a credit reporting agency knowingly disclosed false information, failed to correct false information, or failed to investigate a dispute filed directly with the furnisher.
Obtained the first ruling in Massachusetts and one of the first nationally to hold that the Home Owners Loan Act preempts state law unfair trade practice and other claims that a lender’s loan product is not in the borrower’s best interest.
Defeated all class claims in two putative nationwide and statewide class actions against a federal savings association that had merged into a national bank challenging the lawfulness of a negative amortization option ARM mortgage product and interest rate disclosure, achieving the voluntary dismissal of one of the actions and an individual settlement of the other.
Won for one of the nation’s largest national bank mortgage servicers that had merged with a federal savings association a ruling of first impression that that the Home Owners’ Loan Act preempts the Massachusetts Supreme Judicial Court’s decision in Comm. v. Fremont Investment & Loan, 452 Mass. 733, 739 (2008), that a loan is unlawful when it is doomed to failure and foreclosure.
Won summary judgment in a case of first impression in federal court that no private right of action exists under Massachusetts regulations prohibiting debt collectors from using false, deceptive, or misleading representations or means in connection with collecting debts.
After forcing the withdrawal of two putative class actions, mediated and settled on confidential terms a group of aggregated lawsuits in Connecticut state court with more than 500 individual plaintiffs who alleged that a national captive manufacturer automotive finance company participated in and profited from a fraud ring, in which an independently owned and operated auto dealer and 12 of its employees were convicted in federal court.
Settled for de minimis relief, four putative class actions brought in Connecticut state court against automotive finance companies and a regional bank alleging that they violated consumer protection statutes by charging improper repossession fees.
Devised and implemented a strategy that resulted in the unilateral withdrawal of a putative class action against a publisher for allegedly violating the federal Telephone Consumer Protection Act by transmitting, without consent, facsimiles soliciting advertisements in the legal newspapers, and the unilateral withdrawal of a similar putative class action against a landlord alleging that it solicited potential tenants without their consent, in Connecticut state court.
Successfully resolved two independent Connecticut state court putative class lawsuits alleging improper collection of sales taxes on tax exempt items.
Settled a New Jersey state class action against a large domestic retailer on an individual basis, which alleged violations of gift card and consumer protection statutes.
Defended international consumer reporting agency against numerous class actions complaints alleging violations of the Fair Credit Reporting Act and/or related state laws. The trial courts in various jurisdictions granted dismissal of the complaints.
Defended a nationwide retailer against national class action alleging retailer failed to provide proper disclosures and adverse-action notices to consumers seeking employment. The named plaintiff reluctantly agreed to settle a much narrower class of consumers who had submitted employment applications to a particular business unit.
Defended a large data company against a Telephone Consumer Protection Act class action. The plaintiff voluntarily dismissed the claim without settlement after informal discovery and negotiations.

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We combine vast experience with exemplary service and passion to achieve results.

HOW WE HELP

Electronic Funds Transfer Act (EFTA)
Equal Credit Opportunity Act (ECOA)
Fair Credit Reporting Act (FCRA)
Fair Debt Collection Practices Act (FDCPA)
Home Ownership and Equity Protection Act (HOEPA)
Home Owners’ Loan Act
National Bank Act
Real Estate Settlement Procedures Act (RESPA)
Servicemembers Civil Relief Act (SCRA)
Telephone Consumer Protection Act (TCPA)
Unfair and Deceptive Acts and Practices Claims
Truth in Lending Act (TILA)
Truth in Savings Act (TISA)

THE SEYFARTH EXPERIENCE

EXPERIENCE

Achieved a resounding victory in a Connecticut bench trial for a national bank. We prevailed on all of the case’s dozens of heavily litigated claims, defenses, and issues on both the bank’s case to foreclose its borrower’s property and the borrower’s counterclaims attacking the legality, disclosure, and underwriting of the consumer mortgage loan product.
Obtained a defense verdict in a fast-tracked 12-person federal jury trial in a publicized federal case in the District of Massachusetts for one of the nation’s largest national bank mortgage servicers, in which the court ruled that to “a significant extent, our national economy may depend upon promptly sorting out the matters raised here” and that “a prompt trial of this case is thus absolutely crucial.”
Replaced a national bank’s trial counsel shortly before trial, and won a bench trial in Connecticut state court on a matter of first impression nationally; a borrower’s challenge to the propriety and lawfulness of a national bank and federal savings associations’ substitutions of their proprietary interest rate indexes following their mergers, and prevailed on appeal.
Achieved a favorable nationwide federal class action settlement in the District of Missouri for a captive manufacturer automotive finance company in a case of first impression nationally involving alleged violations of the Consumer Leasing Act.
Settled a nationwide putative class action in Connecticut on individual terms for a national bank engaged in automotive lending, which alleged violations of the Truth in Lending Act involving notices of repossession for yacht watercraft.
Following a summary judgment victory, obtained the first ruling from the US Court of Appeals for the Second Circuit that the Fair Credit Reporting Act does not provide a private right of action for enforcement for alleged violations of 15 USC § 1681s-2(a), involving claims that a furnisher of information to a credit reporting agency knowingly disclosed false information, failed to correct false information, or failed to investigate a dispute filed directly with the furnisher.
Obtained the first ruling in Massachusetts and one of the first nationally to hold that the Home Owners Loan Act preempts state law unfair trade practice and other claims that a lender’s loan product is not in the borrower’s best interest.
Defeated all class claims in two putative nationwide and statewide class actions against a federal savings association that had merged into a national bank challenging the lawfulness of a negative amortization option ARM mortgage product and interest rate disclosure, achieving the voluntary dismissal of one of the actions and an individual settlement of the other.
Won for one of the nation’s largest national bank mortgage servicers that had merged with a federal savings association a ruling of first impression that that the Home Owners’ Loan Act preempts the Massachusetts Supreme Judicial Court’s decision in Comm. v. Fremont Investment & Loan, 452 Mass. 733, 739 (2008), that a loan is unlawful when it is doomed to failure and foreclosure.
Won summary judgment in a case of first impression in federal court that no private right of action exists under Massachusetts regulations prohibiting debt collectors from using false, deceptive, or misleading representations or means in connection with collecting debts.
After forcing the withdrawal of two putative class actions, mediated and settled on confidential terms a group of aggregated lawsuits in Connecticut state court with more than 500 individual plaintiffs who alleged that a national captive manufacturer automotive finance company participated in and profited from a fraud ring, in which an independently owned and operated auto dealer and 12 of its employees were convicted in federal court.
Settled for de minimis relief, four putative class actions brought in Connecticut state court against automotive finance companies and a regional bank alleging that they violated consumer protection statutes by charging improper repossession fees.
Devised and implemented a strategy that resulted in the unilateral withdrawal of a putative class action against a publisher for allegedly violating the federal Telephone Consumer Protection Act by transmitting, without consent, facsimiles soliciting advertisements in the legal newspapers, and the unilateral withdrawal of a similar putative class action against a landlord alleging that it solicited potential tenants without their consent, in Connecticut state court.
Successfully resolved two independent Connecticut state court putative class lawsuits alleging improper collection of sales taxes on tax exempt items.
Settled a New Jersey state class action against a large domestic retailer on an individual basis, which alleged violations of gift card and consumer protection statutes.
Defended international consumer reporting agency against numerous class actions complaints alleging violations of the Fair Credit Reporting Act and/or related state laws. The trial courts in various jurisdictions granted dismissal of the complaints.
Defended a nationwide retailer against national class action alleging retailer failed to provide proper disclosures and adverse-action notices to consumers seeking employment. The named plaintiff reluctantly agreed to settle a much narrower class of consumers who had submitted employment applications to a particular business unit.
Defended a large data company against a Telephone Consumer Protection Act class action. The plaintiff voluntarily dismissed the claim without settlement after informal discovery and negotiations.

Related News & Insights

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Recognition

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