Payment processor/facilitator Allied Wallet, its CEO, and two other corporate officers, recently agreed to settle Federal Trade Commission (FTC) charges that they assisted or knowingly processed fraudulent transactions for merchant-clients. This action indicates that enforcement actions against payment processors are alive and well, despite the FTC’s previously announced end of “Operation Chokepoint,” which, among other
Graham W. Gerhardt
Graham Gerhardt represents financial institutions in civil litigation throughout the country. He regularly assists clients in both the forward mortgage and reverse mortgage industries. Graham frequently litigates in federal court where he defends lenders and loan servicers accused of violating federal statutes, most commonly TILA, RESPA, the FDCPA, the FCRA, and the TCPA. He also represents clients in state court, defending against claims such as wrongful foreclosure, fraud and deceptive trade practices. Graham oversees these suits through all stages of the legal process, including bench trials, jury trials and frequent depositions and mediations.
Alabama Supreme Court Says Cash Advance Company Not a Debt Collector
The Supreme Court of Alabama has reversed a jury verdict awarding the plaintiff $200,000 in damages, ruling on appeal that the Fair Debt Collection Practices Act (FDCPA) did not apply to the pawn transaction at issue.
The case, Complete Cash Holdings, LLC v. Powell, arose from a forged title-pawn agreement. Ms. Powell’s granddaughter stole…
Consumer Lending Industry Targeted by the Alabama Legislature
Last month, a group of 45 members of Alabama’s House of Representatives introduced a proposed amendment to the Alabama Constitution that would cap the interest rate a lender may charge an individual on a “consumer loan, line of credit, or other financial product.” The proposed amendment, currently known as House Bill 321, is a direct…
Eleventh Circuit Court of Appeals Clarifies Standing Requirements for FDCPA Plaintiffs
The Eleventh Circuit Court of Appeals has clarified the type of injury that must be alleged by a plaintiff suing under the Fair Debt Collection Practices Act (FDCPA). This decision, in Church v. Accretive Health, Inc., is the first from the Eleventh Circuit applying the United States Supreme Court’s recent holding in Spokeo v.
Fifth Circuit Court of Appeals Clarifies Abandonment of Loan Acceleration
The Fifth Circuit Court of Appeals recently clarified how mortgage lenders and servicers can abandon a loan acceleration under Texas law. Although Texas generally requires foreclosure actions to be brought no more than four years after a loan is first accelerated, the holding in Boren v. U.S. National Bank makes clear that in certain situations…
CFPB Turns Focus to Student Loans to Servicemembers
The Consumer Financial Protection Bureau (CFPB) recently published a report highlighting the difficulties military personnel encounter when dealing with servicers of student loans. Driven by the receipt of over 1,300 complaints from servicemembers regarding the collection and servicing of their student loans, the CFPB’s report (Overseas & Underserved: Student Loan Servicing and the Cost…