Financial Services Litigation

Balch & Bingham’s Financial Services Litigation Practice Group, together with the other Financial Institutions practice groups and the Creditor’s Rights and Bankruptcy practice group, provide one of the most comprehensive representation of the financial services industry in the Southeast. We have handled hundreds of litigation and administrative disputes for banks, finance companies, mortgage companies, loan servicers, retailers, insurance companies and others involved in banking and consumer finance disputes, including credit card matters. The Group’s attorneys have a wide variety of experience in representing financial institutions in disputes with consumers, other financial entities, and regulators, including considerable trial, appellate and arbitration experience in such matters. In addition, the Financial Services Litigation Group has defended scores of the class actions that have come to be regularly a part of these disputes. Among the many types of actions handled by this Group are:

UCC Article 3 & 4 Litigation: The Group has defended countless lawsuits in which consumers or financial institutions claimed that the liability for fraudulently issued, fraudulently endorsed, or otherwise invalid or worthless checks should fall on the defendants. Among the many examples of these cases are:

Defended major regional bank in state court lawsuit by business of multiple fraudulently drawn checks by employees over multi-year time frame. Successfully obtained summary judgment.
Defended major regional bank in consumer dispute over allegedly fraudulently drawn checks over multi-year time frame. Successfully obtained summary judgment.
Successfully defended bank from claims by business account holder when employee embezzled funds.
Defending major regional bank in state court lawsuit by business over hundreds of thousands of dollars of fraudulently endorsed checks by employees over a two year time frame

Fair Credit Reporting Act (“FCRA”): Attorneys in the Group have defended numerous FCRA claims against an assortment of financial services entities. For example, they have recently defended FCRA claims against a mortgage loan servicer and successfully defended a number of claims filed against one of the major credit reporting agencies.

RESPA: The Group has defended a number of class actions related to both RESPA Sections 8(a) and 8(b) for closing agents, banks, title insurance agents, and finance companies.

Mortgage Fees and Escrow Litigation: We have defended a variety of claims against banks, mortgage companies and loan servicers dealing with fees charged, foreclosure, and escrow accounts. The claims have been included mass litigation (consolidated by the MDL panel), individual litigation and class actions. Examples include claims of improper charges against escrow accounts, inappropriate interest charges, forced placed insurance as well as failure to place insurance.

Routine Banking litigation: We have handled virtually every type of routine bank litigation. For instance, the Group has (1) defeated a class action over the wording of certificates of deposits, (2) defeated a class action over the fees resulting from the posting order of checks, (3) defended claims regarding whether CDs were paid, were payable, were paid to correct persons, and similar claims, and (4) defended claims that accounts were paid to incorrect persons or paid inconsistently with instructions.

Merchant Credit Card Litigation: We have prosecuted cases for a merchant credit card issuer against ISO’s and merchants for amounts owed for fees and chargebacks, including disputes over the duty owed by a merchant processor, successfully recovering virtually all amounts. Such litigation involved world-wide searches for assets and the prosecution of actions in several countries simultaneously, as well as coordinating with federal law enforcement personnel.

Identity Theft: Recently claims of identity theft have expanded and will likely continue to expand. Examples of recent matters handled by this Group include defending banks against claims that an imposter opened a checking account, as well as filing a suit against the Veteran’s Administration over its loss of substantial private information of over 2 million veterans on a laptop.

Equal Credit Opportunity Act (“ECOA”): The Group has defended ECOA actions against financial institutions and other institutions. For instance, it recently defended such a claim relating to auto loans, successfully compelling arbitration.

State Tax Litigation for Financial Institutions: The Group has assisted several financial institutions in disputing amounts owed for state taxes, including multiple actions. The legal issues raised by these actions ranged broadly from nexus issues to the status of certain subsidiaries as financial institutions.

Securities Litigation: Most of the Financial Services Litigation Group is also part of the Securities Litigation Practice Group and have defended securities lawsuit and arbitrations brought against Financial Services Corporations, including NASD customer disputes, broker dealer disputes, and securities claims. LINK HERE TO PAGE

Lender Liability: Attorneys in the Financial Services Litigation Practice Group have also defended actions alleging that banks or other financial services corporations failed to lend after making representations or failed to fulfill promises made after problems occurred, or failed to correctly advise a customer of the tax consequences of actions.

Credit Card Litigation: We have successfully defended a national financial institution from claims resulting from alleged internet gambling charges on credit cards.

Consumer Fraud Disputes: Among many other matters, the Group represented numerous national and regional financial institutions in hundreds of lawsuits resulting from the financing of satellite dishes, furniture, and other merchandise.

Other Financial Institution litigation: In addition, our Group has represented Financial Institutions in a wide variety of virtually any type of litigation, including, for example: