Daily Archives: July 11, 2013

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Wells Fargo Dodges Class Action Over Pre-Shift OT Work

Wells Fargo Dodges Class Action Over Pre-Shift OT Work

Law360, Philadelphia (July 10, 2013, 5:25 PM ET) — A Pennsylvania federal judge on Tuesday agreed to allow a voluntary dismissal of a putative class action alleging that banking and mortgage giant Wells Fargo NA failed to pay its branch bankers and tellers overtime wages in violation of state and federal labor laws.

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Live Wire: Bank of America mortgage lawsuit not yet class action

Live Wire: Bank of America mortgage lawsuit not yet class action

Q: How can I join the class-action lawsuit against Bank of America for homeowners who had problems with the Making Homes Affordable program? – D.W., Fayetteville

A: The suit has not been certified as a class action – yet.

But a U.S. District Court judge is scheduled to consider a class certification request Aug. 1, according to a recent Bloomberg report.

The suit seeks to define the class as anyone who on or after April 17, 2009, had a Bank of America mortgage on their personal residence that was not delinquent or in default, who were denied a loan modification by the bank under the Making Homes Affordable Program (HAMP), and who did not receive within 30 days of that denial a required written notice explaining the reasons for the denial.

A number of law firms are involved in the suit, including Hagens Berman Sobol Shapiro. For more information or to read the suit, check the firm’s website – hbsslaw.com. Click on “cases,” then on “B,” then on the listing for “Bank of America Home Loans.”

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JPMorgan Review Finds Mistakes In Debt-Collection Lawsuits: WSJ

JPMorgan Review Finds Mistakes In Debt-Collection Lawsuits: WSJ

(Reuters) – JPMorgan Chase & Co made mistakes while suing thousands of its credit card customers over non-payments, the Wall Street Journal reported, citing the bank’s internal review of its debt-collection process.

JPMorgan examined about 1,000 lawsuits and found mistakes in 9 percent of the cases, the Journal said, citing people familiar with the review.

“Any rate above zero is high,” one person familiar with the bank’s conversations with regulators told the newspaper. (http://link.reuters.com/mak59t)

The errors ranged from inaccurate interest and fees applied by outside law firms to a “small number of instances” in which lawsuits listed higher balances than the amounts owed by borrowers.

In certain cases sworn documents were signed without knowledge of their accuracy, according to an internal document reviewed by the Wall Street Journal.

JPMorgan, however, concluded the mistakes it found were “mostly small” and “had a minimal” impact on customers. “We have no reason to doubt” that the principal amounts the bank sought to collect were accurate, the document said.

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Judge hears arguments on 800 RI foreclosures

Judge hears arguments on 800 RI foreclosures

PROVIDENCE, R.I. (AP) — A federal judge is considering how to move forward on nearly 800 mortgage foreclosure cases after an appeals court noted problems with how he set up an order designed to deal with the state’s mortgage crisis.

U.S. District Judge Jack McConnell heard arguments Wednesday in a courtroom filled nearly to capacity with lawyers for financial institutions and borrowers. He said he would issue a ruling later.

The 1st U.S. Circuit Court of Appeals said last month that McConnell did not follow proper procedures when he halted all foreclosure cases before the court and ordered financial institutions to try to settle with homeowners behind on their mortgage payments before allowing them to foreclose.

A special master appointed by the court to oversee mediation in the cases said in a report filed Wednesday that nearly 200 cases had been settled or otherwise dismissed under the program as of June 30.

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CFPB to Debt Collectors: We’re Watching You

CFPB to Debt Collectors: We’re Watching You

WASHINGTON — The Consumer Financial Protection Bureau warned companies collecting debt that it is closely watching how consumers are treated while at the same time expanding ways for consumers to dispute debt.

The CFPB issued bulletins on Wednesday stating that any company within its purview collecting debt will be held accountable for unlawfully dealing with consumers. It also expanded its already massive online consumer complaint database to debt collection and is offering five action letters for consumers to use in corresponding with collectors.

The announcement came just prior to the CFPB holding a field hearing on debt collection practices in Portland, Maine.

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New Jersey Governor continues attempt to dismantle affordable housing agency

New Jersey Governor continues attempt to dismantle affordable housing agency

The New Jersey Supreme Court is deciding whether Governor Chris Christie is allowed to disband an independent government agency tasked with building affordable housing in the state, an article from The Star-Ledger said. 

According to the article, Christie has been trying to dismantle the agency and transfer the duties to his cabinet, in addition to taking nearly $160 million from the agency to balance his budget. 

Robert Lougy, the assistant attorney general arguing Christie’s case, said even independent agencies aren’t immune to reorganization. A state law passed in 1969 allows the governor to rearrange some agency functions in order to run “an efficient, modern executive branch,” he argued.