The Private Right of Action
Against Mortgage Servicers and Debt Collectors
Should Survive Trump and Republican
Attacks on Dodd Frank
By Marc Dann Esq.
The Dann Law Firms
Cleveland, Ohio
B
efore we all write off the CFPB
and Regulations X and Z ( The
Mortgage Servicing Regulations)
we all need to remember that the
Wells Fargo scandal is still smoldering,
that the individuals most likely to be
harmed by mortgage loan servicers
and debt collectors are exactly the
voters who put Donald Trump over the
top in the recent election and that Dodd
Frank is a sprawling and complicated
hodgepodge of regulation and related
legislation, so discussions of simply
“repealing” Dodd Frank oversimplify
the legislative reality.
Take for example the the parts of the
law that impact the clients of our firm
and the clients of other consumer
lawyers, the private right of action
under Regs X and Z and the proposed
Fair Debt Collection Regulations.
These provisions these both govern
a consumer business relationships
that consumers did not choose. While
the consumer may choose to borrow
money for a house or incur debt with a
creditor they have no freedom of choice
about who their mortgage loan servicer
or debt collector ends up being. There
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CONSUMER BANKRUPTCY JOURNAL
is a strong public
policy and practical
argument to be
made that these
types relationships
that
must
be
regulated.
Another argument
for
leaving
our
clients alone is that
these types of cases
we bring really don’t
lend
themselves
to Class Actions,
another hot point
on the republican
agenda.
Allowing a private
right of action in
“forced consumer
relationships”
is a compelling
argument
that
should appeal to
legislators on both
sides of the political
spectrum.
Winter 2016
National Association of Consumer Bankruptcy Attorneys