In this interview in DSNews, attorney David Biderman, a partner in Perkins Coie, explains the expanded role of loan servicers in the banking industry, Dodd-Frank, and the growing role of the Consumer Financial Protection Bureau (CFPB) in protecting the rights of borrowers.
Significant is this paragraph under the second bold-face section of the article:
“In California, we have our own state rules providing, essentially, rights to borrowers. The other thing is, virtually all of these regulations that were enacted after Dodd-Frank, all of them provide for private rights of action. So if there’s a violation under any kind of notices that are required, an individual borrower can sue. So there are a lot of technical violations for which a borrower has a right to bring a claim – notice of errors, information requests, payoff requests, those kinds of things. There can be problems, and then borrowers have a right to bring a claim.”