Missouri recently amended Mo. Rev. Stat. §525.230 to allow for higher fees to be charged by financial institutions in processing garnishment orders. Previously, the statute allowed a financial institution to charge a fee equal to the greater of $8 or 2% of the amount to be garnished, for the trouble and expense of processing the garnishment and paying over any garnished funds to the court.
Compliance & Regulations
Do you remember that children’s game called “Telephone” that you played long ago at birthday parties, on car trips or around campfires? You know — the game where one person passes a message to the next, and then to the next? The message evolves as it travels, inevitably surprising and confounding everyone by the time it reaches the end of the circle.
Effective May 1, 2014, the Missouri Division of Finance is authorized to license all Missouri mortgage brokers and originators through the Nationwide Mortgage Licensing System (NMLS). All currently licensed Missouri companies may request transition of their licenses onto the NMLS beginning on June 2, 2014.
The Missouri Court of Appeals for the Western District recently issued an opinion that reminds banks in Missouri, and elsewhere, of several important points when modifying loans.
One of the most persistent rumors regarding individual retirement accounts (“IRAs”) is that they are exempt from all creditors. While it is true that the laws of most states exempt IRAs from general creditors, including in the event of a bankruptcy, IRAs are generally not exempt from tax levies.
We frequently receive questions from banks regarding garnishments, particularly in response to recent changes in applicable regulations. To assist banks with such questions, the Office of the Comptroller of the Currency recently issued the “Garnishment of Accounts Containing Federal Benefit Payments” booklet.
Lenders beware! A federal district court recently held that despite a lender’s use of a model form, the disclosure provided by the lender did not adequately notify the borrower of his rescission rights under the Truth in Lending Act (“TILA”) and Regulation Z. In the case of Simmons v. CitiMortgage Inc. the United States District Court for the District of Utah the borrowers successfully sued the lender to enforce their rescission rights.
A recent decision from the Seventh Circuit reminds creditors, including banks, that the provisions of the Fair Debt Collection Practices Act (the “FDCPA”) may apply to parties other than the debtor. In the case of Todd v. Collecto, Inc., a man brought claims under the FDCPA against a debt collection company that contacted him with respect to a debt owed by the man’s mother.
The reach of the Equal Credit Opportunity Act (“ECOA”) and Regulation B (“Reg B”) has become a popular conversation topic among banking professionals. As part of that conversation, many commentators have questioned whether Regulation B prohibits the use of a spousal waiver.
Did you know that most states do not require that a limited liability company adopt a formal operating agreement? In fact, only five states, including California, Delaware, Maine, Missouri and New York, require that an LLC maintain an operating agreement. Therefore, the question often arises as to whether a customer needs or should have an operating agreement.