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CFPB Settles Discriminatory Lending Claims Against Auto Manufacturer for $21.9 Million

On February 2, 2016, the Consumer Financial Protection Bureau announced a settlement with an auto manufacturer resolving claims of alleged discrimination under the Equal Credit Opportunity Act.  Under the terms of the settlement, the auto manufacturer will pay “$21.9 million in restitution to thousands of African-American and Asian and Pacific Islander…

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FDIC and Federal Reserve Settle Claims Against Bank and Financial Aid Refund Distributor

On December 23, the FDIC and Federal Reserve each announced settlements in closely related enforcement actions against a bank and a company that distributed financial aid refunds.  The FDIC settled its claims for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act with each defendant.  The Federal Reserve brought its Section 5…

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FTC Settles Claims Against Credit Card Payment Processor

FTC

On December 22, 2015, the Federal Trade Commission (“FTC”) announced that it settled claims under the FTC Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act against participants in a purported credit card money laundering scheme wherein the defendants allegedly helped enable third-party telemarketing scammers to charge consumers’ credit cards.  According to…

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Debt Relief Scammer Settles With FTC for $7.9 Million

FTC

On October 5, 2015, the Federal Trade Commission (FTC) announced that it reached a settlement with defendants who allegedly operated a debt scamming business by promising consumers debt relief services that they did not deliver.  Defendants allegedly disseminated false and misleading information regarding their services through telemarketing, internet ads, and other media.  After…

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FDIC Penalizes Louisiana Bank For Alleged Violation of the National Flood Insurance Act

​On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals.  Among these was an Order to Pay Civil Money Penalties​ assessed against ​a Louisiana bank for $123,000 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA), the National Flood Insurance…

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FDIC Penalizes Ohio Bank For Alleged Violation of the National Flood Insurance Act

On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals.  Among those actions was an Order to Pay assessed against an Ohio bank for $9,600 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA) and Part 339 of the FDIC Rules and Regulations.  Specifically, the FDIC…

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Mortgage Services Company To Pay $167,000 to Maryland Residents For Allegedly Unlawful Lockouts

On August 28, 2015, the Maryland Attorney General announced that it reached a settlement with an Ohio-based mortgage field-services company to resolve allegations that the company wrongfully locked Maryland residents out of their homes and took or damaged personal property.  The company contracts with lenders and mortgage servicers to provide services related to inspecting,…

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Bank Settles Debt Collection Action Brought by CFPB and Claims of 47 State Attorneys General

​On July 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that claims concerning a bank’s alleged debt collection practices in violation of the Consumer Financial Protection Act (“CFPA”) had been settled for over $200 million.  According to the consent order, the bank “sold to debt buyers certain accounts that were inaccurate, settled, discharged…

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FTC Reaches Accord With Companies and Individuals Accused of Phony Debt Collection Scam

FTC

​On July 8, 2015, the Federal Trade Commission (FTC) announced that settlements were approved against companies and individuals who allegedly operated a fraudulent debt collection scheme that targeted Spanish-speaking consumers.  According to the complaint, the defendants cold called Spanish-speaking consumers nationwide, and falsely held themselves out to be government officials seeking to collect a debt…

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Court Enters Injunctive Relief in FTC and Florida Attorney General Action Against Telemarketers Who Offered Debt Relief Services

​On July 7, the Federal Trade Commission (FTC) announced that a federal court entered a preliminary injunction​ halting an alleged nationwide debt relief telemarketing scam and freezing the defendants’ assets. The FTC claims that the defendants millions from consumers.  The complaint, brought by the FTC and Florida Attorney General, alleged that the defendants contacted consumers…

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Payday Lenders Agree to Exit Consumer Lending Business in Settlement With FTC

FTC

On July 7, 2015, the FTC ​announced that it reached two stipulated settlements (available here and here) with payday lenders who allegedly deceived customers by signing them up for loans without their permission and then withdrawing “finance” charges indefinitely. The settlements stem from allegations in a complaint​ filed last year that defendants “purchase consumers’ sensitive financial information from online lead generators or data…

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New York AG Obtains Default Judgment Against Two Law Firms for Mortgage Rescue Scheme

On May 13, New York Attorney General Eric T. Schneiderman annouced that the AG obtained default judgment against Brooklyn and Florida Law Firms and the firms’ principal attorney for participating in a fraudulent mortgage rescue scheme. The AG’s petition alleged that, directly and through their third-party marketers, the firms collected…

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FDIC State-Member Bank Agrees to Civil Money Penalty to Resolve Flood Insurance Enforcement Action by the Federal Reserve

​On May 12, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a state member bank concerning alleged violation of Section 102(f) of the National Flood Insurance Act (NFIA). The settlment noted that where a pattern of practice of…

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