New legislation and accompanying regulations have thrust the banking industry into a state of flux. With the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the establishment of the Consumer Financial Protection Bureau, banks and mortgage companies need legal advisors who understand the complex web of existing rules and proposed new ones.
Attorneys at BSCR have extensive knowledge of the regulatory landscape and keep themselves updated about state and federal rules, and the agencies that enforce them. We represent commercial lenders – including having acted as national counsel for a mortgage company – consumer lenders, credit unions, finance companies and credit card issuers in a wide range of matters. Our experienced litigators defend financial institutions against single claims, mass claims and class actions involving both servicing disputes and origination disputes. We have handled litigation needs of our clients in cases at the local, regional and national level, providing counsel in many forums, including before administrative agencies, at arbitration proceedings and at trial.
We handle litigation involving the following representative matters:
- Errors and omissions committed by officers and directors including claims of theft and fraud
- Negligent and fraudulent misrepresentation
- Predatory Lending, TILA violations
- Regulation Z
- Truth-in-Savings Act
- Gramm-Leech-Bliley Act
- Electronic Funds and Transfer Act
- E-sign and Uniform Electronic Transactions Act
- UDAP laws
- Missouri Merchandising Practices Act violations
- Conversion and breaches of the Uniform Commercial Code
- Security interest priority actions involving repossession of secured collateral
- SEC violations
- Artisans’ liens, breach of contract actions
- Check honoring issues
Before the threat of litigation arises, we work closely with our clients to make sure they are in compliance with all relevant statutes and regulations.
We are also able to represent our financial industry clients in a broad range of other legal matters, including commercial litigation; employment and labor; appellate; and professional liability matters.
For more information about the services we provide to the Banking industry contact Scott Kreamer or Tom Rice at 816.471.2121.
| After conducting a study, which spanned several years, on the prevalence of mandatory arbitration clauses in consumer financial products, the CFPB has issues a new rule that will prohibit financial institutions from including mandatory arbitration clauses that prohibit a consumer from joining in class action litigation against the bank.
| Martin Sigillito, the former St. Louis Attorney who was convicted in 2011 for his involvement in a $52 million Ponzi scheme, is 7 years into a 47-year federal sentence, but the Eight Circuit for a second time just decided that many of his investors cannot recoup their losses from a bank where Sigillito kept the accounts he used to defraud them.
| A unanimous Supreme Court upheld the Fourth Circuit’s holding in Henson v. Santander Consumer USA Inc., in which the Circuit Court held that, although Santander was the purchaser of a debt that was in default, it was not a “debt collector” under the FDCPA, and thus, was not subject to its stringent requirements for collection activities.
| The Financial Choice Act was introduced in 2016, and its revamped successor, referred to as “CHOICE Act 2.0,” was reported to the House of Representatives for consideration in early May. Today, the House passed the bill, bringing the United States one step closer to substantial financial regulation reform.
| The United States Supreme Court ruled on May 22, 2017, that the Hague Convention, on the service of judicial documents abroad, permits service by mail if the receiving country has not objected to service by mail and service by mail is authorized under otherwise-applicable law.
| The Missouri Court of Appeals for the Western District promptly affirmed the trial court’s holding that a local bank’s overdraft fee was not “interest,” and, therefore, was not subject to the state’s usury cap.
| Standing in a foreclosure case requires possession of an enforceable note at the time the foreclosure is filed. A mortgage and note may be later reunited and be enforceable.
| Often overlooked by legislators are the detrimental consequences of broad sweeping banking regulations on smaller community banks. At a recent convention, ICBA President Camden R. Fine called for continued efforts by community banks to fight for practical regulation reform.
| Earlier this week, Governor Eric Greitens signed Missouri HB 153 into law. HB 153, which supplants Missouri’s existing expert witness standard with that set forth in Federal Rules of Evidence 702, 703, 704 and 705, effectively submits expert testimony in most civil and criminal case to the analysis set forth in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993).
| Within a two-week period, two federal judges issued strongly worded orders denouncing the common practice of asserting boilerplate objections to written discovery.
| The Missouri Court of Appeals rules that a worker may owe an independent duty of care to a co-worker, which is separate and distinct from her employer’s non-delegable duties.
| The CFPB recently filed its complaint against Navient, the nation’s largest servicer of federal and private student loans for alleged failures in servicing those loans. Filed in the United States District Court for the Middle District of Pennsylvania, the Complaint contains allegations that Navient violated the Consumer Financial Protection Act, the Fair Credit Reporting Act, and the FDPCA and seeks millions in restitution.
| In a ruling favorable to home loan mortgage servicers, the Florida Supreme Court held that the trial court’s dismissal of a previous foreclosure action caused the loan to decelerate, thus recommencing the 5-year statute of limitations period for acceleration of the loan.
| While the very concept of an electronic mortgage is not new, the adoption of e-mortgages as the new “normal” remains a hot topic in the mortgage servicing realm. Despite the technology behind electronic document execution, delays in e-notarization laws prevent e-mortgages from fully replacing traditional home loan transactions.
| On October 25, 2016, FinCEN issued an Advisory outlining recommendations and requirements for financial institutions to report suspicious activity in compliance with the Bank Secrecy Act, clarifying these institutions’ obligation to report cyber-events, even where no financial transaction was completed.
| In a long-awaited opinion, the D.C. Circuit Court held that the structure of the CFPB, as it exists currently, is unconstitutional. The Court also rejected the Director’s argument that the applicable statute of limitations does not apply to a CFPB administrative action.
| The results of the November 8, 2016 election have unmistakably cast doubt on the future of the CFPB, particularly as it exists today. With Donald Trump as President-elect, along with a Republican-held House and Senate, it is likely that some of the preceding years’ regulations and consumer protections will be undone.
| A Missouri plaintiff did not irrevocably waive the protections of the work product doctrine simply by designating an expert witness and then withdrawing the designation without disclosing the expert’s analysis or conclusions.
| On May 23, 2016, the U.S. Supreme Court decided the case of Green v. Brennan in order to resolve a split among the Circuits on whether, in an action for constructive discharge, the 45-day limitation period for the employee to initiate contact with the EEOC begins to run after the employer’s last discriminatory act, or at the time of the employee’s resignation.
| In its first 4-4 decision since the death of Justice Antonin Scalia, the United States Supreme Court issued a ruling that resulted in affirmation of the 8th Circuit Court of Appeals’ opinion in favor of a Missouri bank in a dispute concerning the Equal Credit Opportunity Act.
| The Kansas Court of Appeals recently held that, even where a debt collector delayed its motion to compel arbitration until 2 years after the litigation was commenced, the trial court did not have the authority to decide that the delay was, in effect, a waiver of arbitration.
| In its current state, the MMPA has allowed consumers to collect substantial verdicts in cases that have strayed from the original intent of lawmakers. SB793 hopes to restore a balance that requires not only that businesses act fairly, but also that consumers act reasonably.
| While a Kansas court may grant relief from a final judgment based on excusable neglect, it is an abuse of discretion to grant that relief when the party seeking that relief has failed either to explain what facts constituted excusable neglect or to provide any evidence to support that claim.
| The Eighth Circuit recently analyzed the application of the “outside sales” and “administrative” exemptions under the Fair Labor Standards Act in the context of promotional workers. Also, the Court was asked to decide, for the first time, what constitutes a valid waiver of an employee’s rights under the FLSA.
| An agent may recover attorney’s fees when enforcing a principal’s contract if: the agent is granted the express authority to enforce the contract in the contract itself, the contract contains an attorney’s fees provision, and the agent is the prevailing party.
| A defendant removing a case to federal court under the Class Action Fairness Act need not provide evidence proving the jurisdictional amount in controversy in the notice of removal. A “short and plain statement of the grounds for removal” is sufficient.
| Experts are not required to rule out all possible causes when performing the differential etiology analysis if the experts have properly ruled in the alleged cause.
| A Kansas plaintiff may amend their pleadings to assert punitive damages up until the day of the pretrial conference.
| Based on its adoption of a statutory scheme of comparative negligence, Kansas has abolished common law assumption of the risk as a bar to recovery. Simmons v. Porter, 298 Kan. 299, 312 P3d 345, 355 (Kan. 2013).
| The plaintiff has the burden of proving standing, which is a jurisdictional issue that can be raised at any time.