UDAAP Council Weekly UDAAP Standards Report - 4/22/2015

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Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive.

Unfair

A plaintiff failed to state a claim against a mortgage lender, where she alleged that the lender violated California’s UDAP statute when it refused to provide her with information regarding a deceased borrower’s debt, and instead declared a default and initiated foreclosure. While the court agreed that the plaintiff should have been given information by the lender, she failed to establish standing to assert a claim for relief because she did not allege she was the executor of the borrower’s estate. Ward v. Wells Fargo Home Mortgage, Inc., United States District Court for the Northern District of California. Continue reading this entry

Legal Issues in Cause-Related Marketing

regulations

Cause-related marketing is frequently used by businesses to bolster sales, improve brand reputation, and improve public relations. Under the laws of a number of states, when a business advertises that it will make a charitable contribution to a charity when a consumer purchases a product, the business becomes a commercial co-venturer with the charity. Successful commercial co-ventures include Bono’s Red campaign, which has generated more than $300 million to fight HIV and AIDS through consumer purchases of (RED) merchandise branded through the campaign and sold by companies such as Apple and Starbucks. Continue reading this entry

Devastating TCPA Fine Levied Against Small Roofing Company

David Randall Associates, Inc. has provided commercial roofing services in eastern Pennsylvania, New Jersey, and mid-state Delaware for the past 25 years. Last Friday, the company was hit with a $22,405,000 TCPA fine in a class action alleging it sent over 44,000 unlawful fax advertisements to roofing prospects without their permission. The award will be divided among those fitting this class description and their lawyers:

All persons or entities with whom David Randall Associates did not have an established business relationship, who were successfully sent one or more unsolicited faxes during the period March 29, 2006 through May 16, 2006, stating, “ROOF LEAKS???  REPAIRS AVAILABLE. Just give us a call and let our professional service technicians make the repairs!” and “Call: David Randall Associates, Inc. TODAY.” Continue reading this entry

UDAAP Council Weekly UDAAP Standards Report - 4/1/2015

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Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive.

Unfair

  • A borrower alleged that a mortgage servicing company (the “servicer”) violated the California Unfair Competition Law (“CUCL”) when it added inspection fees to the borrower’s statement based on inspections it ordered for a defaulting borrower’s property. However, the court dismissed the borrower’s claims because the borrower’s mortgage agreement allowed the servicer to take steps to protect the property and to charge the borrower for the steps taken (even though the borrower alleged that the agreement required the servicer only to take “necessary” steps to preserve the property). The court also dismissed the complaint because there was no wrongdoing in a servicer automatically ordering inspections. The court further rejected the borrower’s claim that the servicer failed to adequately disclose the nature of the charges on her statement, finding that the servicer could charge for inspections, and adequately showed those charges as property inspections on their statements. The court also found that the borrower could not bring a claim under the CUCL, because the servicer’s acts were legal, ethical, and not fraudulent. Vega v. Ocwen Financial Corporation, United States District Court for the Central District of California.

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UDAAP Council Weekly UDAAP Standards Report - 3/25/2015

UDAAPCouncil

Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive.

Unfair or Deceptive

Borrowers’ allegations that a mortgage lender delayed and obstructed borrowers from attempting to modify their loan under the Home Affordable Modification Program (HAMP) through misrepresentations were sufficient to state a claim for unfair and deceptive conduct under Massachusetts’ UDAP statute. Beck v. Bank of New York Mellon Corp., United States District Court for the District of Massachusetts. Continue reading this entry