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DOJ Files Suit Against California Lenders Alleging Discriminatory Loan Modification Scheme

On August 23, 2016, the Department of Justice (DOJ) announced the filing of a lawsuit in the United States District Court for the Northern District of California against several California-based mortgage loan modification service providers.  The complaint alleges that defendants violated the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA)…

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CFPB and National Bank Reach $32.25 Million Settlement Regarding Credit Card Add-On Products

On August 25, 2016, the Consumer Financial Protection Bureau (CFPB) announced an order against a national bank that will require the bank to pay $32.25 million in consumer relief and civil penalties based on practices relating to credit card add-on products.  These practices allegedly violated sections 1031 and 1036(a)(1)(B) of the Consumer Financial Protection Act…

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CFPB Issues Consent Order Regarding National Bank's Student Loan Servicing Practices

On August 22, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a large national bank in relation to the company’s private student loan servicing practices.  The CFPB asserts that the bank’s practices allegedly increased costs and penalized certain borrowers, leading to illegal fees and inaccurate credit…

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Minnesota AG Settles Suit Against California Online Lender Relating to Alleged "Rent-a-Tribe" Scheme

On August 19, the Attorney General’s Office for the State of Minnesota (Minnesota AG) announced that it had settled a lawsuit against a California-based online lender relating to an alleged “rent-a-tribe” scheme.  The settlement bars the lender from doing business in Minnesota unless and until it complies with the state’s usury, lending,…

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National Bank Settles False Claims Act Allegations for $64 Million

On May 13, the Department of Justice (DOJ) announced that it has reached a $64 million settlement agreement with a national bank relating to the bank’s participation in the Direct Endorsement Lender Program of the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA). The agreement resolves claims that were originally brought…

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CFPB Brings Action Against Mississippi Pay Day Lending and Check Cashing Company

On May 11, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it is taking action against a Mississippi-based check cashing and payday lending company and its owner for purportedly “tricking and trapping” customers.  According to the complaint, filed in the U.S. District Court for the Southern District of Mississippi, the defendants…

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Pennsylvania AG Sues Financial Services Company for Defrauding Veterans

On May 5, 2016, the Pennsylvania Attorney General announced the filing of a civil lawsuit in the Clinton County (PA) Court of Common Pleas against an Ohio financial services company and its owner for misleading at least four Pennsylvania consumers, including three military veterans.  The lawsuit states that the company catered specifically to…

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California Man Pleads Guilty to Criminal Charges Relating to HAMP Modification Scheme

On May 4, 2016, the United States Attorney for the Southern District of New York and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) announced that a California man was found guilty of de​fraudin​g over 30,000 homeowners out of $31 million through a large mortgage modification scheme.​ The defendant was…

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National Bank Finalizes $1.2 Billion Settlement Relating to FHA Lending Program

On April 8, 2016​, the Department of Justice (DOJ) officially announced a $1.2 billion settlement with a national bank and one of its executives relating to the bank’s participation in the Federal Housing Administration (FHA) Direct Endorsement​ Lender Program.  As part of the settlement agreement, the bank acknowledged that between the period of May…

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State AGs Announce $13 Million Nationwide Settlement with Money Services Company

​On February 11, 2016, 49 state attorney generals and the Attorney General for the District of Columbia, collectively the “State AGs,”​ announced​ a $13 million nationwide settlement with a Dallas-based money services company.  The settlement agreement was the result of a multi-state investigation headed by the Consumer Protection Divisions of the respective State AGs….

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OCC Terminates Mortgage Servicing Consent Order and Assesses Penalties Against Two National Banks

On February 9, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it has terminated mortgage servicing-related consent orders against two national banks because the banks now comply with the orders.   In terminating the consent orders, the OCC assessed a $10 million civil money penalty against the first bank and a $3.4 million civil money penalty against the…

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National Bank Announces $1.2 Billion Settlement Relating to FHA Lending Program

​On February 3, 2016, a national bank announced in its SEC filing that it has reached a $1.2 billion agreement in principle with the United States Department of Justice (“DOJ”), the United States Attorney’s Office for the Southern District of New York, the United States Attorney’s Office for the Northern District of California, and…

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FTC and Florida AG Sue Payment Processing Company for Credit Card Processing and Debt Relief Services

On January 8, 2016, the Federal Trade Commission​ (“FTC”) and the Attorney General for the State of Florida​ (“Florida AG”) announced charges against a payment processing business relating to an alleged nationwide debt relief telemarketing scam.  The amended complaint was filed on December 21, 2015 in the United States District Court for the Middle​ District…

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FTC and State AGs Announce Four Actions Against Debt Collectors as Part of Operations Collection Protection

FTC

On January 7, 2016, the Federal Trade Commission (“FTC”) and its law enforcement partners announced four separate actions against various debt collectors.  The FTC stated that the actions were part of a continuing nationwide crackdown referred to as “Operation Collection Protection,” which is designed to target debt collectors using illegal tactics.  The FTC claims the debt…

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FTC Reaches Settlement with Online Payday Lenders Relating to Deception Charges

FTC

On January 5, 2016, the Federal Trade Commission (“FTC”)​ announced that two online payday lenders ​reached a settlement with the FTC to resolve charges that payday lenders illegally charged consumers undisclosed and inflated fees.  As part of the settlement, each company agreed to a penalty of $2.2 million and combined waived $68 million in uncollected consumer…

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OCC Terminates Mortgage Servicing Consent Order and Assesses Civil Money Penalties Against Two National Banks

On January 5, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it had terminated consent orders against two national banks.  In doing so, the OCC assessed civil money penalties against the banks relating to previous violations of the existing consent orders.  The OCC announced that it was terminating…

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FTC Reaches Settlement with Two Ohio Auto Dealers

FTC

​On November 24, the Federal Trade Commission (“FTC”) announced that it reached a settlement agreement with two Ohio auto dealers relating to allegations that the auto dealers violated Section 184 of the Consumer Leasing Act, 15 U.S.C. § 1667c, and Section 213.7 of Regulation M, 12 C.F.R. §​ 213.7.  Specifically, the FTC’s administrative ​complaint alleged that the auto dealers failed to disclose key…

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