Justia Consumer Law Opinion Summaries

In 2004, the Baumans purchased Ohio property with a loan from Taylor, secured by a mortgage that listed Mortgage Electronic Registration Systems as nominee on behalf of Taylor. In previous litigation involving the parties, the court found the loan was sold to Hudson in 2004. BAC became the loan servicer in 2008. In 2010, BAC brought a foreclosure action in state court. Under Ohio law, a party who seeks to foreclose on a mortgage must prove that “it is the current holder of the note and mortgage.” At the time, Hudson was the note holder, but BAC falsely represented that it had standing. BAC later voluntarily dismissed the case. The Baumans sued BAC’s successor, Bank of America, and Hudson alleging violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692e. The district court rejected the suit, finding that the defendants were not a “debt collector” under FDCPA because they acquired their interests in the debt prior to the Baumans's default. The Baumans filed a new complaint requesting a declaration barring a future foreclosure action and to quiet title. The Sixth Circuit affirmed dismissal, holding that defendants were not required to bring a foreclosure action as a compulsory counterclaim to the FDCPA action. View "Bauman v. Bank of America, N.A." on Justia Law

Brown owed student loan debt, which he alleges Van Ru Credit was retained to collect. A Van Ru employee left a voicemail at Brown’s business that stated the caller’s and Van Ru’s names, a return number, and a reference number. The caller asked that someone from the business’s payroll department return her call. Brown sued Van Ru for violations of the Fair Debt Collection Practices Act, 15 U.S.C. 1692c(b), alleging that the voicemail was a communication “in connection with the collection of any debt” with a third party . The district court granted Van Ru judgment on the pleadings. The Sixth Circuit affirmed. The voicemail left at Brown’s business was not a “communication” as defined in the Act. A communication must “convey[] . . . information regarding a debt directly or indirectly to any person through any medium,” and the voicemail message did not convey such information. View "Brown v. Van Ru Credit Corp." on Justia Law