Federal Court Expresses Concern with the State Maryland’s Arguments that It May Violate Federal Law which Protects Servicemembers in Perpetuity with No Consequences   On March 21, 2024, the United States District Court for the District of Maryland issued a landmark decision of first impression finding that the State of Maryland could be liable to out-of-state servicemembers who were denied the core rights and protections established by the Servicemember Civil Relief Act (SCRA).  Active duty servicemembers Latasha Rouse, Daniel Riley, and Oscar Davines and each of their spouses (wh ..read more

Consumer Law Center Client Wins Unlawful Debt Collection Appeal Against Mortgage Company Churning Fees   The Consumer Law Center’s clients won a significant appeal in the United States Court of Appeals for the Fourth Circuit last month. In this case, Alexander v. Carrington Mortgage, our clients challenged a mortgage company’s fee harvesting program that involved imposing and collecting fees on mortgage accounts that are not authorized by law or contract as part of its debt collection activities.  Here, the specific fees disputed were the company’s fees for collecting payments ..read more

Maryland Sued for Violating the SCRA Servicemembers Sue the State of Maryland for Allowing Unlawful Debt Collection in Violation of Federal Law January 18, 2022…On behalf of six clients who are protected persons under the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C.A. § 3901, et seq., the Consumer Law Center LLC has filed suit today challenging Maryland’s laws which permit a Nevada collector to unlawfully pursue them on bogus debt collection claims.  These protected servicemembers have no connections to Maryland whatsoever, but the State allowed George LeMay to use its laws an ..read more

When There is Doubt About the Enforceability of a Purported Lien, Maryland’s In Rem Foreclosure Procedures do not Create a Presumption in Favor of Foreclosure The Maryland Court of Special Appeals (the intermediate appellate court) ruled in favor of the CLC’s client in a wrongful foreclosure debt collection action. In Newsom v. Brock & Scott, PLLC, et al., the Court reversed the irregular rulings of the trial court that prevented Ms. Newsom from having a jury of her peers hear her unlawful debt collection and mortgage fraud claims against a debt collection law firm and its attorney designa ..read more

When the COVID-19 pandemic shut down businesses and Congress enacted the CARES Act in part to help hundreds of thousands of homeowners fell behind on their mortgages.  Most homeowners were able to qualify for a forbearance plan or some other loss mitigation relief to stay in their homes.  As the economy comes back and people are back to work, arrangements have to be made for homeowners to remain in their homes and end the threat of foreclosure.  Now that the forbearance periods are coming to an end, homeowners who are back to work are seeking help and want to know what to do.&nb ..read more