| Kentucky Court of Appeals Corrects Misinterpretation of Regulation Governing Fees for Cancelled Foreclosure Sales |
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February 24, 2010 Link
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For years disagreement (often informal or unspoken) has existed in Kentucky between counsel and Master Commissioners’ offices regarding the correct method for calculating fees payable to the Master Commissioner for foreclosure sales that are cancelled either at the request of a lienholder or as required by law (e.g. a bankruptcy filing by the property owner). Submitted by Martin B. Tucker.
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| Indiana Court of Appeals Rules that Six-Year Statute of Limitations for Unwritten Contracts Applies to Credit Card Debt Collection Actions |
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February 11, 2010 Link
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The Indiana Court of Appeals recently concluded that a consumer credit card debt arose from an unwritten contract or an “account” for the purposes of determining the applicable statute of limitations. See, Smither v. Asset Acceptance, LLC, 919 N.E.2d 1153 (Ind.Ct.App. 2010). Jason Smither (“Smither”) owed over $1,700 on a credit card issued by Provident Bank. On September 18, 2000, Provident Bank “charged off” Smither’s account and subsequently sold the account to Asset Acceptance, LLC (“Asset”). On May 30, 2006, Asset filed suit against Smither, seeking damages of $2,152.67, plus interest. Submitted by Daniel P. King.
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| What Is Enough Knowledge To File A Proof Of Claim |
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February 8, 2010 Link
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Bankruptcy Rule 9011 is the bankruptcy court’s version of Rule 11 and it applies to proof of claim documents. When the Proof of Claim is filed by the original creditor, there is often little doubt about the filing creditor’s knowledge of the claim and that creditor’s possession of adequate supporting documentation. Submitted by Vincent E. Mauer.
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| Noting the Notary Provisions |
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February 3, 2010 Link
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As this financial crisis continues and more cases wind themselves through to the bankruptcy courts, a rather disturbing trend is becoming apparent. The bankruptcy courts are finding that what would appear to be valid and secured debts are really unsecured. To the erstwhile secured party, such a change comes as a most unpleasant shock. This is particularly true when the reason for this transformation is revealed: the lack of a proper notary clause! Submitted by Kimberly K. Mauer.
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| Four More are Sentenced for their Roles in Extensive Mortgage Fraud Scheme |
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February 3, 2010 Link
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On January 26, 2010, Edward McGee (76), Kenneth O. McGee (50), and Robert Mitchell (43) - of Vandalia, Ohio - and Kamal J. Gregory (35) - of Centerville, Ohio, were sentenced in federal court by U.S. District Judge Michael A. Barrett for their respective roles in an extensive mortgage fraud scheme involving 210 residential properties. Submitted by Jeffrey S. Rosenstiel.
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| The Seventh Circuit Rules the Application of Indiana’s Uniform Consumer Credit Code to an Illinois Lending Company Violates the Commerce Clause |
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February 3, 2010 Link
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This past week, the U.S. Court of Appeals for the Seventh Circuit held that the application of Indiana’s Uniform Consumer Credit Code (“UCCC”) to an Illinois company, which had offices only in Illinois, but advertised and made loans to a significant number of Indiana residents just across the state line, violated the commerce clause of the U.S. Constitution. 1 Submitted by Lucy R. Dollens.
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