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FTC and Florida AG Agree to Nearly $5 Million Settlement With Defendants Pitching "Worthless" Credit Card Interest Rate Reductions

FTC

On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…

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Car Dealership Agrees to Consent Order to Pay $5.1 Million in Debt Forgiveness

On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered​ into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual violated the Federal Trade Commission Act (“FTC Act”) and its regulations, specifically 16 C.F.R. § 255.5, and the Florida Consumer…

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Reverse Mortgage Servicer to Pay $89 Million to Resolve False Claims Act and FIRREA Claims

On May 16, 2017, the U.S. Department of Justice (“DOJ”) announced that it had reached a settlement with a company engaged in reverse mortgage servicing, in connection with the company’s participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage (“HECM”) program, which offers senior citizens reverse mortgages insured by the Federal Housing Administration…

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FDIC Announces Settlements With Wisconsin Banks Over Lending Violations

On May 11, 2017, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with a Wisconsin bank and two affiliated institutions, resolving allegations that the three lenders violated Section 5 of the Federal Trade Commission (FTC) Act, which prohibits unfair and deceptive practices.  The lenders allegedly violated this provision by: (1) charging…

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Virginia AG Settles Action Against Pawnbroker Over Illegal Interest Rates

On May 9, 2017, the Attorney General for the Commonwealth of Virginia (Virginia AG) announced that it had entered into a proposed consent order to resolve an action filed in Spotsylvania County Circuit Court against a Virginia-based pawn broker that allegedly charged illegal interest rates on loans.  The proposed consent order would require the pawnbroker…

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Massachusetts AG Settles With Mortgage Broker and Insurance Agent Over Alleged Deceptive Practices

On April 12, 2017, the Massachusetts Attorney General’s Office (AG) announced that it had reached a settlement with a mortgage broker, its employee, and an insurance agent, resolving allegations that they had preyed on elderly consumers by causing them to take out reverse mortgages on their homes.  The AG alleged that the broker and agent induced elderly…

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California DBO Enters Into $1.4 Million Consent Order With Mortgage Lender Over Interest Charges

On April 10, 2017, the California Department of Business Oversight (DBO) announced​ that it had entered into a consent order with a Michigan-based residential mortgage lender and servicer over allegations that the firm was overcharging consumers for interest on a number of loans. The DBO brought an enforcement action against the…

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Massachusetts and Delaware AGs Announce $25 Million in Settlements with Subprime Auto Lender

On March 29, 2017, the Massachusetts and Delaware Attorney Generals (“AGs”) announced settlements with a national bank, resolving allegations that the bank originated unfair and usurious automobile loans in violation of Massachusetts and Delaware consumer protection law.  According to the AGs, the bank originated subprime loans to more than 2,000 Massachusetts and Delaware…

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FTC Announces Settlement with Municipal Debt Collector Over Alleged Abusive Debt Collection Practices

​On March 24, 2017, the Federal Trade Commission (FTC) announced​ that it entered into a consent order with a debt collection company, resolving allegations that the company engaged in unfair and abusive debt collection practices in violation of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p, and section 5 of…

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North Carolina Attorney General Secures $377,000 in Settlement with Private Student Lender

​On March 27, 2017, the North Carolina Attorney General (“AG”) announced that it had settled a lawsuit filed in the Wake County, North Carolina Superior Court against a student loan company. As a result of the settlement, the parties filed a consent judgment requiring that the company pay $377,048 in restitution…

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CFPB Enters Into Consent Order with Credit Reporting Agency Over Alleged Misrepresentations

On March 23, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a California-based credit reporting agency (CRA) and its subsidiaries, resolving allegations that the CRA deceived consumers by misrepresenting that the credit score reports that it marketed to consumers were used by lenders in determining a consumer’s credit worthiness….

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HUD Reaches $1 Million Settlement with Illinois Bank Over Redlining Allegations

On March 10, 2017, the Department of Housing and Urban Development (“HUD”) announced that it reached a settlement with an Illinois bank resolving allegations that the bank engaged in illegal “redlining” of minority neighborhoods in the Rockford, Illinois metropolitan area. HUD initiated its investigation after the Hope Fair Housing Alliance (“Hope”)…

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Georgia AG Follows Familiar Pattern; Settles Suit Against California Payday Lender for Alleged Rent-A-Tribe Scheme

On February 9, the Attorney General’s Office for the State of Georgia (Georgia AG) announced that it reached a settlement and entered into a consent order with a California-based online lender relating to an alleged “rent-a-tribe” scheme.  The consent order, filed in Georgia state court, bars the lender from doing…

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CFPB Takes First MSA-Related Action in Nearly Two Years; Orders Mortgage Lender to Pay $3.5M Civil Penalty for Kickbacks

On January 31, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it ordered a California-based mortgage lender to pay $3.5 million in civil penalties for an illegal mortgage kickback scheme.  According to the CFPB, the lender entered into several different referral programs with multiple third parties, each of which the CFPB contends violated…

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