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District Court (Cal.) Says “Pay-to-Pay” Fees Were Subject to the Rosenthal Act as “Due and Owing” Under the AG’s Opinion, But Did Not Violate the Act Because the Fees Were Permitted By Law and the Deed of Trust

by Scott J. Hyman |

In Mariscal v. Flagstar Bank, FSB, No. ED CV 19-2023-DMG (SHKx), 2021 U.S. Dist. LEXIS 171374, at *4-8 (C.D. Cal. Sep. 9, 2021), Judge Gee dismissed, a second time, the Plaintiff's Rosenthal Act Class Action challenging a mortgage company's "pay-to-pay" fees. The fee itself need not be a debt, as long as it is connected to the collection of a… Read More

Court of Appeals for the Ninth Circuit Holds Plaintiff Need Not Prove Debt Collector Knew Debt Was Time-Barred When Collection Suit Filed, But Debt Collector Can Invoke Bona Fide Error Defense as to the Statute of Limitations

by Laszlo Ladi, Jr. |

In Kaiser v. Cascade Capital, LLC, 2021 U.S. App. LEXIS 6754, the Ninth Circuit Court of Appeals reversed the ruling of the District Court for the District of Oregon that granted a motion to dismiss where the District Court reasoned the debt collector did not violate the FDCPA prohibitions on attempting to collect on a time barred debt because the… Read More

District Court (Cal.) Allows Rosenthal Act Claim Based on “Pay-by-Phone” Charges to Proceed Against Debt Servicer

by Scott J. Hyman |

In Elbert v. RoundPoint Mortg. Servicing Corp., No. 20-cv-00250-MMC, 2020 U.S. Dist. LEXIS 221611 (N.D. Cal. Nov. 25, 2020), Judge Chesney allowed a Rosenthal Act claim to proceed against a mortgage servicer based on charges assessed when the consumer made payments by telephone. As noted, a violation of the FDCPA constitutes a violation of the Rosenthal Act as well. See… Read More

District Court (Cal.) Says Mortgage Company’s $5 IVR Fee to Make Mortgage Payments Violates the Rosenthal Act

by Scott J. Hyman |

In Lembeck v. Arvest Cent. Mortg. Co., No. 20-cv-03277-VC, 2020 U.S. Dist. LEXIS 205511, at *1-5 (N.D. Cal. Nov. 3, 2020), Judge Chhabria denied a mortgage servicer's FRCP 12(b)(6) motion regarding the propriety of the servicer's charging the Plaintiffs an IVR fee to make their mortgage payments. Valerie Lembeck alleges that her mortgage servicer, Arvest Central Mortgage Company, violates California… Read More

Court of Appeal (Cal.) Says FDCPA Plaintiff Need Not Dispute Debt to Challenge Amount of Debt in Collection Letters; Stated No TCPA Claim

by Scott J. Hyman |

In Ruiz v. Hunt & Henriques, No. D075286, 2020 Cal. App. Unpub. LEXIS 4847 (July 29, 2020), in the context of an anti-SLAPP motion brought by the debt collection law firm, the Court of Appeal found that a debtor need not dispute the debt to challenge the amount of the debt stated. Hunt alternatively argues that Ruiz cannot recover under… Read More

Court of Appeal (Cal.) Addresses Evidence Required to Prove Credit Card Debt; Rejects Rosenthal Act Claim; Says Contractual Attorneys’ Fee Clause Does Not Permit Recovery of Fees to Oppose Rosenthal Act

by Scott J. Hyman |

In Cavalry SPV I, LLC v. Watkins, No. D072299, 2019 Cal. App. LEXIS 603, at *12-15 (Ct. App. July 1, 2019), the California Court of Appeal addressed the evidence necessary to prove up a credit card debt in a debt collection action. Assuming without  deciding that California law applies, a party may accept a contract by conduct, as well as… Read More

District Court (Ill.) Denies Debt Collector’s MSJ Based on Call Pattern and Specifics of Conversations

by Scott J. Hyman |

In Brown v. I.C. Sys., No. 16 C 9784, 2019 U.S. Dist. LEXIS 45384 (N.D. Ill. Mar. 20, 2019), Judge Alonso denied a debt collector’s summary judgment motion, first finding that the call pattern created a question of fact. Defendant argues that its recordings of connected calls show that plaintiff never told defendant to stop calling; on the few occasions… Read More

District Court (Cal.) Addresses When “Delinquent” Debts Trigger the Rosenthal Act

by Scott J. Hyman |

In Sanders v. LoanCare LLC, No. 18-CV-09376, 2019 U.S. Dist. LEXIS 20900, at *2-3 (C.D. Cal. Feb. 1, 2019), Judge Otero addressed, albeit in a mortgage situation, whether the collection of an online payment fee during a 10-day grace period triggered the Rosenthal Act.  The facts were as follows: In February 2018, Plaintiff received a Notice of Service Transfer ("Notice")… Read More

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