After observing the physical deterioration of a home, a lender sent inspectors to the property to determine whether the property was abandoned, posted notices on the property and sent letters to the borrower asking about the status of the property.…
Second Circuit Rules that Failure to Advise Borrower of Balance Increase Due to Fees and Interest Violates FDCPA
The Second Circuit Court of Appeals recently held that Section 1692e of the Fair Debt Collection Protection Act (“FDCPA”) requires debt collectors to disclose any potential increase in the account balance due to fees and interest when notifying consumers of…
Creditors Risk Equitable Adjustment of Claims if Overly Involved in Debtor’s Business Affairs
The court in In re Aida’s Paradise, LLC, 485 B.R. 806 (2013) has warned lenders not to become overly involved in a debtor’s business affairs, even if all of its actions are legally permissible. The court cited the Eastern District…