Daily Archives: May 14, 2013

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Second federal suit challenging Colorado foreclosure law emerges Read more: Second federal suit challenging Colorado foreclosure law emerges

Second federal suit challenging Colorado foreclosure law emerges Read more: Second federal suit challenging Colorado foreclosure law emerges

A second federal lawsuit contesting the constitutionality of Colorado’s foreclosure laws has emerged.

Unlike the case of an Aurora woman who obtained an interim federal injunction against the foreclosure auction of her house, the other involves a federal judge who decided a Denver man’s 14th Amendment guarantee of due process was in question.

U.S. District Judge Philip Brimmer last week dismissed the entirety of John Mbaku’s complaint against Bank of America that challenged the bank’s right to foreclose on his condominium. Brimmer determined there was a constitutional issue, though Mbaku didn’t bring it up specifically.

Because Mbaku, a law-school graduate who doesn’t practice law, is representing himself, the judge is given wider latitude to read between the lines of a complaint since plaintiffs might not be as sophisticated or well-versed in the complexities of law.

Read more:Second federal suit challenging Colorado foreclosure law emerges – The Denver Posthttp://www.denverpost.com/breakingnews/ci_23234347/second-federal-suit-challenging-colorado-foreclosure-law-emerges#ixzz2TERY4bXv

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JPMorgan Says It Faces Enforcement Hit on Consumer Products

JPMorgan Says It Faces Enforcement Hit on Consumer Products

PMorgan Chase said it will face enforcement action from federal regulators over its collection practices and add-on products commonly appended to credit cards.

The company the company said in a May 8 regulatory filing that it “expects that its banking supervisors will in the future continue to take more formal enforcement actions against the firm,” instead of “issuing informal supervisory actions or criticisms.”

The U.S. Consumer Financial Protection Bureau is conducting an industrywide review of credit card add-on products, which can include debt cancellation and identity theft services. New York- based JPMorgan cited an identity theft product in its filing.

Banks including JPMorgan and Bank of America Corp. stopped offering such add-on products entirely in the face of regulatory scrutiny. The bureau’s first enforcement action was against Capital One Financial Corp., which paid about $210 million in restitution and penalties over the products.