On August 24, 2016, the Federal Trade Commission (FTC) announced that the FTC and the Attorney General for the State of New York (New York AG) reached a settlement with a New York debt collector that will ban the owner and his companies from the debt collection business. The action was part…
On August 23, the Attorney General for the State of Minnesota (Minnesota AG) announced the filing of a lawsuit against a debt collection company operating call centers in Jamaica based on its alleged unlicensed calls attempting to collect on fake payday loans, or “phantom” debts. According to the Minnesota AG, state residents reported…
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,…
On August 19, 2016, the Kansas Attorney General announced a settlement with a Michigan-based auto credit company for “improperly disclaiming warranties in contracts with Kansas consumers in violation of the Kansas Consumer Protection Act.” According to the company, the warranties were disclaimed inadvertently. Under the terms of the settlement, each…
On August 1, 2016, Colorado Attorney General Cynthia H. Coffman announced a settlement of two lawsuits against lenders for targeting the military and other allegedly illegal lending practices. According to the Attorney General, the settlement comes after charges filed against the lenders in 2015, alleging that the lenders used illegal…
On June 21, the Attorney General for the District of Columbia announced a settlement with a debt collector for alleged violations of the District’s debt collection and consumer protection laws. Specifically, the District alleged that the debt collector unlawfully sought collection of “court costs and legal fees without a supporting…
On June 24, the Arkansas Attorney General (AG) announced a settlement with three entities and two individuals, resolving allegations that the defendants conspired to offer illegal payday loans to consumers online while claiming to be affiliated with a Native American tribe. The complaint, filed in 2013, alleged that the defendants violated Arkansas state law…
On June 30, 2016, the Iowa Attorney General announced a settlement with a for-profit cosmetology college to resolve alleged violations of the Iowa Consumer Fraud Act. The settlement, which took the form of a consent judgment, settled claims that the college engaged in “deceptive, omissive, and unfair practices in marketing,…
On June 21, 2016, the North Carolina Attorney General announced that two online fast cash lenders have agreed to pay more than $9 million in refunds for allegedly illegal loans issued to North Carolina consumers. The settlement stems from a December 2013 complaint alleging that the lenders violated North Carolina usury…
On June 8, 2016, the Michigan Attorney General announced that a Michigan court entered a default judgment and permanent injunction against an automobile title loan company over alleged usurious loans that violated the Michigan Consumer Protection Act. According to the Attorney General, the company charged usurious interest rates on automobile title loans, engaged…
On June 8, 2016, the Colorado Attorney General announced that several national lenders were ordered to pay approximately $8 million in restitution to Colorado consumers over alleged usurious loans, which violated Colorado’s Consumer Protection Act. The lenders allegedly originated loans with interest rates that reached as high as 355%. In…
On June 6, 2016, the West Virginia Attorney General announced a settlement with a regional online lender over allegations that the lender’s business practices violated West Virginia’s Consumer Credit and Protection Act. The company markets and sells online installment loans, through an alleged “bank-partnership model.” Under the bank-partnership model, a company partners…
On May 25, the Federal Trade Commission (FTC) and the State of Florida announced that they had filed complaints in the United States District Court for the Southern District of Florida seeking permanent injunctive relief against two debt relief providers. The complaints (available here and here) allege that the companies violated the Federal…
On May 20, the Vermont Attorney General announced a settlement with an Arizona processer of internet payday loans, resolving allegations that the company violated the state’s prohibition on unfair and deceptive acts in commerce. This settlement represents the AG’s fourth and largest settlement against a similar entity. In the settlement…
On May 5, 2016, Nebraska Attorney General (“AG”) Doug Peterson and the Department of Banking and Finance announced a settlement with unlicensed online lenders that allegedly engaged in unfair and deceptive lending practices through a tribal lending scheme. The Nebraska AG brought an action on May 4, 2016 against several online lending…
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…
On May 4, 2016, the Kentucky Attorney General announced that it filed a lawsuit against an out-of-state student loan company on May 2, 2016 for failing to turn over key documents in response to a subpoena in an ongoing investigation. The lawsuit alleges that, under the Kentucky Consumer Protection Act, Kentucky…
On May 2, 2016, the North Carolina Attorney General (“AG”) announced that a state court judge temporarily banned online auto lenders from engaging in allegedly deceptive lending practices, including charging unlawful fees. The North Carolina AG filed suit against the unlicensed lenders for allegedly charging excessive interest rates and engaging…
On April 13, 2016, the New York Attorney General announced the filing of a lawsuit against several affiliated companies and individuals who lease credit card transaction processing equipment to small business owners. The Attorney General alleges that the companies engaged in fraudulent and deceptive practices by inducing individuals into signing lease…
On March 23, the Hawaii Attorney General (AG) announced that a consent judgment had been entered in Hawaii state court between a group of state attorneys general and a for-profit education company, under which the company will forgive approximately $118,865 in student loans for former Hawaii students. As previously covered by Enforcement Watch,…