On April 1, 2016, the California Attorney General announced that it filed suit against a prominent investment bank for alleged “misrepresentations about complex investments such as residential mortgage-backed securities, in which large pools of home loans were packaged together and sold to investors.” The eight-count complaint, which was filed in…
On March 30, the Federal Trade Commission (FTC) announced that the Northern District of Illinois granted the FTC and Illinois Attorney General’s request for a temporary restraining order against an Illinois payday loan collection operation. The FTC and AG alleged the payday loan collector was in violation of the FTC Act, Fair Debt Collection…
On March 29, the Ohio Attorney General (“AG”) announced a lawsuit filed in Ohio state court against a Pennsylvania-based attorney, for alleged violations of Ohio’s Consumer Sales Practices Act and Debt Adjuster’s Act. According to the complaint, the attorney contacted Ohio consumers, offering loan modification services. He allegedly represented to consumers that…
On March 28, the Massachusetts Attorney General (“AG”) announced that a lender agreed to resolve allegations that it made predatory and illegal loans to 85 Massachusetts pensioners and veterans. The lender allegedly entered into contracts with consumers, whereby the lender provided loans ranging from $1,800 to $40,000. Every month, the…
On March 28, the Massachusetts Attorney General (“AG”), together with the U.S. Secretary of Education, announced that more than 2,000 students who were allegedly defrauded by a national for-profit college are eligible to have their federal loans forgiven. In November 2015, the AG had submitted an application to the U.S. Department of Education…
On March 21, the West Virginia Attorney General’s office announced that it had settled allegations against a debt collector over alleged violations of the West Virginia Collection Agency Act, W. Va. Code §§ 47-16-1 (“Collection Agency Act”) and the West Virginia Consumer Credit and Protection Act, W. Va. Code §§ 46A-1-101 (“WVCCPA”). The…
On March 28, 2016, the Office of the California Attorney General announced a settlement of $8,500,000 with a national bank regarding alleged privacy violations concerning the recording of consumer telephone calls without their consent, as required by California law. The complaint alleged that the bank violated sections 632 and 632.7 of…
This time last year, LLW reported on the Department of Justice going after subprime auto lenders, and more recently we have reported on the CFPB’s targeting of subprime auto lenders. But Massachusetts has also gotten in on the regulatory action. On March 16, 2016, the Massachusetts Attorney General’s Office (MAG) announced that American Credit…
On March 18, 2016, the Massachusetts Attorney General announced that it obtained a preliminary injunction against an online auto lender over claims the company originated loans with illegal interest rates and fees in violation of Massachusetts usury laws. According to the Attorney General, the company offered online title loans to…
On March 9, 2016, the Vermont Attorney General announced a $22,000 settlement with a payment processor over its alleged violation of Vermont consumer protection laws. The Attorney General asserted that between 2012-2013, the company processed debits from over 500 consumer bank accounts on behalf of at least 36 online lenders whose interest rates often exceeded 100-300%….
On February 25, the West Virginia Attorney General’s office announced that it had reached a settlement with an Ohio payday lender, resolving allegations that the payday lender had engaged in debt collection activities that “may violate” provisions of the West Virginia Consumer Credit and Protection Act (WVCCPA), W. Va. Code § 46A-…
On February 18, the Massachusetts Attorney General (“AG”) announced a $4 million settlement with a national mortgage lender and servicer, resolving allegations that the lender received kickbacks for force-placed insurance policies. The AG alleged that, prior to June 1, 2012, the lender received compensation and other kickbacks tied to (already high) force-placed insurance…
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….
On February 5, 2016, the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, and 49 state attorneys general and the District of Columbia’s attorney general announced a $470 million settlement with a national bank to address alleged mortgage origination, servicing, and foreclosure abuses. …
Update: The AG announced on January 26, 2016 that court granted the preliminary injunction against the company. The AG also warned that if the company continues to ignore the lawsuit, he will seek a default judgment that would effectively cancel the loans issued by the company. On January 14, the Michigan Attorney…
On January 20, the New York Attorney General’s Office (Attorney General) announced that it had filed a complaint against several New York auto dealerships over allegations that the dealerships sold deceptive “after-sale” products to consumers. The lawsuit alleges that the dealerships partnered with an independent credit repair company to charge 1,426 consumers…
Late last year, the Federal Trade Commission (FTC) revealed an ongoing nationwide enforcement initiative targeting debt collectors, called Operation Protection Collection. The initiative is the first of its kind coordinated crackdown by state and federal enforcers targeting abusive and deceptive debt collection practices. According to statements by the FTC, the…
On January 11, the Florida Attorney General announced the filing of a consent order against two credit counseling and debt management companies and their controlling officer, resolving allegations that the defendants violated Florida’s Deceptive and Unfair Trade Practices Act by marketing and selling putative debt management and/or credit counseling services, which claim…
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…
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…