Consumer Finance Litigation and Creditors’ Rights
Goldberg Segalla represents banks, mortgage lenders, mortgage servicers, mortgage and title insurance providers, and other clients in the consumer finance industry in a range of litigated matters, with a particular focus on nonroutine litigation—complex matters including claims by mortgagors and other consumers, title disputes, landlord-tenant disputes, and claims brought under federal and state laws governing lenders and servicers. Our clients—including the largest mortgage lenders, mortgage servicers, and title insurance companies in the country—trust us to advise on and efficiently resolve their most sophisticated and sensitive matters.
We understand the lending relationship at the core of many litigated and regulatory matters our clients face, and we understand the procedural issues and other nuances of defending them, including the interplay of bankruptcy law, landlord-tenant law, the federal and state laws, title and mortgage insurance, and more. To provide our clients with a 360-degree defense against complex claims brought by borrowers and actions to quiet title for lenders, we draw on the full strength and support of our 80-lawyer Commercial Litigation practice and our 60-lawyer Management and Professional Liability practice as well as our specialized 20-lawyer Real Estate and Land Use practice, and our Banking and Financial Services industry group.
We have earned our clients’ trust because of exceptional knowledge in this niche area of law, our consistent and cost-effective results, and our dedication to the financial services, lending, and title insurance industries. Our team includes:
- Past Chair of the American Bar Association (ABA) Tort Trial & Insurance Practice Section (TIPS) Title Insurance Litigation Committee (TILC)
- Chair of the ABA TIPS Professional Liability Insurance General Committee (PLIC)
- Chair of the ABA TIPS PLIC Financial Services Subcommittee
- Past Chair of the Defense Research Institute (DRI) Professional Liability Committee
Experience Highlights
A substantial part of our practice involves representing financial institutions in litigation arising from consumer protection claims, including class actions and high-exposure single-borrower matters. We have defended clients against claims brought under the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), Home Ownership and Equity Protection Act (HOEPA), Uniform Commercial Code (UCC), and state-specific consumer fraud statutes.
Our attorneys also have extensive experience in the area of contested mortgage foreclosures. When economic conditions worsen, consumers often challenge the ability of a lender to foreclose on property through extended litigation in which origination, foreclosure procedure, and standing are all placed at issue. Our intimate knowledge of the lending industry and secondary mortgage market provides us with a unique perspective in providing pre-foreclosure advisory services and defending these common challenges through trial. Our experience includes:
- Obtained reversal of a trial court decision denying standing to a mortgagee’s expungement of a subsequent lien pre-acquisition at sheriff’s sale
- Prevailed on behalf of mortgage service at summary judgment stage on claim that inconsistencies in the execution and recording of an assignment of mortgage evidenced fraud and lack of standing to foreclose
- Secured trial victory on foreclosure matter in which the defendant was over five years in arrears and challenged the chain of title and compliance with the applicable Pooling and Servicing Agreement
- Attained dispositive relief on behalf of reverse mortgage holder in matter where the borrower asserted origination fraud and mortgage broker negligence
Our work on behalf of clients in the consumer finance and lending sector often involves defending and asserting creditors’ rights in matters involving foreclosures and Chapter 7, 11, 12, and 13 bankruptcy proceedings. Our experience includes:
- Protecting and defending creditors’ rights in all aspects of Chapter 7, 11, 12, and 13 bankruptcy proceedings involving a variety of industries, including aviation, real estate, hospitality, transportation, health care, manufacturing, residential and commercial construction, and entertainment
- Representing creditors’ committees in reorganizations, liquidations, and purchases of assets
- Prosecuting creditor claims for fraud, misappropriation, and in cases involving Ponzi schemes
- Negotiating and drafting initial credit facilities and other collateralized lending designed to minimize credit risks and maximize recovery prospects in the event of default
- Loan workouts for lenders and prosecuting related collection actions
- Defending and prosecuting preference and fraudulent transfer claims
Learn more about our Bankruptcy, Restructuring, and Creditors’ Rights practice.
We have extensive experience representing mortgagors, mortgage services, banks, debt collectors, debt collection law firms, and other entities in the lending and debt business in a range of commercial matters, professional liability claims, and class-action lawsuits brought under the Fair Debt Collection Practices Act (FDCPA). We understand the nuances of the FDCPA, the significant risks of massive damage awards and the FDCPA’s fee-shifting provision, the types of claims that can be brought under the act, and the unique risks and requirements pertaining to professionals and entities operating in this space. We have defended clients against claims arising from improper phone calls and dunning letters; actions taken in court and in post-judgment enforcement proceedings; alleged false or misleading representations; and actions alleged to harass, oppress, or abuse consumers.
FDCPA class action litigation has increased over the last decade, and uncertain economic conditions will only serve to continue or even exacerbate this trend. Backed by the full strength of our firm’s deeply experienced Class Action Litigation practice, we work with our clients from the outset of a matter to assess the potential risks and costs, and we frequently create strategies aimed at achieving early positive outcomes—including defeating class certification, securing dismissal of the class action complaint, or negotiating a favorable settlement when it is in the client’s best interests. We have defeated these lawsuits through successful motion practice, and when necessary, we have defended them through trial and appeal.
Goldberg Segalla has significant experience advising and defending both owners and lenders under title and other insurance policies. Attorneys in our Consumer Financial Litigation and Real Estate and Title Litigation practices routinely handle matters involving:
- Title and priority issue litigation concerning property line disputes, mechanic’s liens, easements, notices of pendency, and adverse possession claims
- Mortgage fraud, fraudulent real estate conveyances, and forgeries
- Equity analysis surrounding mortgages, property liens, and subrogation
- Bankruptcy proceedings involving motions to lift stays and advisory proceedings
- In rem tax proceedings and foreclosure sales
- Lobbying efforts to resolve issues with prior governmental properties
- Coverage investigation, response, recoupment, and litigation
- Expert opinions in bad faith litigation
Representative Matters
- Successfully represented a U.S. financial institution in a quiet title action to establish ownership of real property
- Successfully represented a large U.S. mortgage association in a property dispute involving a family who moved into a house conveyed to them by someone who no longer owned it, securing a ruling from New York Supreme Court Appellate Division, Third Department, affirming our client as titleholder
Click here to learn more about our Real Estate and Title Litigation practice.
We represent large financial institutions, mortgage lenders, title companies, and other clients in a wide range of other litigated matters brought by commercial tenants, individual tenants, borrowers, and others. Our experience includes defending claims for injury, property damage, wrongful eviction, wrongful foreclosure and lockout, wrongful trash-out, breach of contract, and more.
Representative Matters
- Represented a U.S. financial institution against claims involving ejectment, wrongful eviction, and eviction by illegal forced detainer
- Defended a major U.S. financial institution in a multimillion-dollar commercial claim for invasion of privacy, trespass and conversion, where the plaintiff also sought punitive damages
- Successfully represented a U.S. financial institution against claims involving intentional and negligent misrepresentation
- Successfully represented a U.S. financial institution in a commercial lawsuit for claims brought by a building owner for alleged fees and costs owed for damage to commercial property
- Successfully received a dismissal of a U.S. financial institution, in a case of first impression in New Jersey, by using the “as-is”, warranty, and indemnity agreements in a contract of sale for a foreclosure property to bar claims made by the purchaser
Our Management and Professional Liability team has a particularly deep bench of attorneys with decades of experience serving the financial industry, where companies and officials face civil and administrative litigation brought under federal and state banking, consumer, and securities laws and regulations. We bring not only extensive experience litigating claims involving these rules and statutes, but also a thorough understanding of the individualized concerns and nuanced needs of the public as well as privately held financial institutions. We defend banks, credit unions, captive insurance companies, mortgage lenders and servicers, and other financial institutions in a broad range of management and professional liability.
Our experience includes:
- Civil rights claims
- Class actions
- Collateral sales and replevin actions
- Commercial and business litigation claims
- Commercial loan workouts and restructurings
- Director and officer liability
- Employment litigation
- Errors and omissions
- Federal and state fair lending laws
- Fraud claims
- Insurance claims, including safe deposit box losses
- Predatory lending claims
- Regulatory compliance
- Secured transactions
- Surety and fidelity bonds
- Unfair and deceptive business practices
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