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 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 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 September 28, 2015, the CFPB announced that it had entered into a consent order and settlement with a national bank for alleged violations of the Dodd-Frank Act’s UDAAP provision for deceptive acts or practices in the marketing and sales of its “Debt Protection” credit card add-on product. The debt…
A U.S. District Judge in the Northern District of Illinois recently granted summary judgment in favor of defendant PNC Bank on a borrower’s promissory estoppel and Illinois Consumer Fraud Act (ICFA) claims in connection with PNC’s HAMP procedures. In its August 25, 2015 decision the court found that PNC’s actions…
On August 24, 2015, the Third Circuit affirmed the United States District Court for the District of New Jersey’s denial of a motion to dismiss in FTC v. Wyndham Worldwide Corp. In Wyndham, the Federal Trade Commission brought suit against Wyndham in the wake of three cybersecurity attacks that allegedly…
The Consumer Financial Protection Bureau (CFPB) has set its sights on debt collection practices again. In April, we wrote about the CFPB’s $63 million settlement with a mortgage servicer, Green Tree Mortgage, in part for Green Tree’s alleged treatment of mortgage debt. On July 8, 2015, the CFPB once again demonstrated it was…
On July 8, 2015, New York Attorney General Eric T. Scheiderman announced that a court order was obtained that permanently bars a consumer debt collection agency from operating as a debt collector and further requires payment of $550,000 in consumer restitution, civil penalties, and costs. The order was signed following a…
The Consumer Financial Protection Bureau (“CFPB”) took action against two credit card vendors, entering into proposed consent orders regarding the companies’ offerings of allegedly unlawful add-on products. Credit card companies offer consumers “add-on” services, such as credit monitoring or identity theft protection for a monthly or annual membership fee. Following an…
On May 20, 2015, Ohio Attorney General Mike DeWine, along with attorneys general of thirty other states (“the State AGs”), announced a $6,000,000 settlement with three major credit reporting agencies (“CRAs”). According to the announcement and the Settlement Agreement, the settlement is a culmination of a multistate investigation that the…
On Friday, May 15, 2015, the California Department of Business Oversight (DBO) announced that it filed a complaint in state court against an Ohio-based biweekly debt repayment firm and allegedly associated entities (collectively “Defendants”) claiming certain violations of licensing, fee, and consumer protection provisions of California’s Financial Code and Business & Professions…
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…
On May 11, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed suit in the United States District Court for the Northern District of California against the provider of a mortgage payment liaison service for allegedly misleading customers about costs associated with its bi-weekly mortgage payment program and misrepresenting…
The Consumer Financial Protection Bureau (CFPB) settled claims with three defendants after the CFPB claimed the corporations were targeting homeowners who were struggling to make mortgage payments. The parties stipulated to final judgments for the individual defendants that were filed with the Court. The CFPB also filed a motion for default judgment as…
On May 4, 2015, Illinois Attorney General Lisa Madigan announced five lawsuits filed on behalf of the State against student loan debt settlement services companies based in Texas, California, Florida, Georgia, and Illinois. The complaints allege that the companies violated Illinois’ consumer protection laws by charging hundreds to thousands of…
On April 20, the Consumer Financial Protection Bureau (CFPB) announced that it entered a Consent Order with a military payroll processor over allegations that the payroll processor applied hidden monthly fees against funds in servicemembers’ accounts, which were designated to pay creditors. The CFPB found that servicemembers usually contracted with…
On April 20, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered a settlement with a Kentucky-based financial services provider over claims that the company charged excessive fees for the payroll deductions of military servicemen, and that it failed to disclose these fees to consumers. The copany allegedly…
On April 9, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a settlement with a California-based mortgage lender over claims that the lender engaged in deceptive advertising practices. The company allegedly mailed advertisements bearing the logos of the Department of Veterans Affairs and the Federal Housing Administration, ostensibly to give…
On April 8, 2015, the CFPB announced that it filed a complaint against a group of individuals and companies, alleging that they engaged in a false debt collection scheme targeting consumers in Georgia and New York. After obtaining consumer information from debt brokers and other sources, the group allegedly robo-called…
On March 30, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that a California-based debt collection agency agreed to settle claims over alleged illegal and deceptive collection practices in violation of the Consumer Financial Protection Act (“CFPA”) and the Fair Debt Collection Practices Act (“FDCPA”). The CFPB alleged in its complaint…