In the wake of the financial crisis and with the advent of the Consumer Financial Protection Bureau (CFPB), federal and state enforcement officials have increasingly scrutinized consumer financial products and services. In many situations, these officials and agencies coordinate to advance common or similar claims and actions. Against this backdrop, we created the Consumer Finance Enforcement Watch blog – the marketplace’s first resource for real-time reporting on the full range of public federal and state consumer finance enforcement activity. Here, you will also find links to enforcement documents, statistics on the volume and nature of enforcement actions as well as reports and comments on significant enforcement trends and issues.

Minnesota AG Settles with Student Loan Debt-Relief Company for Allegedly Unlawful Fee Collection

On January 14, 2021, Minnesota Attorney General Keith Ellison (Minnesota AG​​) announced that his office reached a settlement with a California-based student loan debt-relief company that allegedly collected unlawful fees from customers and made misrepresentations to them regarding its ability to forgive student loans. According to the Minnesota AG, the company allegedly made false promises to…

Read More

FTC Reaches $1.5 Million Settlement with Payment Processor Over Fraud Allegations

FTC

On December 10, 2020, the Federal Trade Commission (Commission) announced that it reached a settlement with a payment processor and its former CEO for alleged violations of the Federal Trade Commission Act (FTCA). The complaint alleges that the payment processor illegally processed more than $93 million in consumer credit card charges related to fraudulent…

Read More

CFPB Enters Into $4.75 Million Consent Order With Subprime Auto Lender and Servicer for FCRA Violations

On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national lender and originator of subprime auto loans over the company’s alleged violations of Section 623(a)(1)(A) of the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681-s2(a)) and Regulation V, 12 C.F.R. § 1022.42(a). The…

Read More

CFPB Secures Consent Order Against Student Loan Servicer for Failure to Comply with 2015 Consent Order and Alleged Deceptive Acts and Practices

On December 22, 2020, the Consumer Financial Protection Bureau (CFPB) announced​ that it had secured a consent order ​against a national student loan servicer based on its failure to comply with a 2015 consent order issued by the CFPB.  Specifically, the company misrepresented the minimum periodic payments owed by consumers on their student loans, misrepresented…

Read More

CFPB Announces Consent Order with Remittance Transfer Provider

On December 21, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a remittance transfer provider, with locations in 15 states and the District of Columbia.  Remittance transfers are transfers of money by consumers in the United States to individuals living abroad.  The consent order states that…

Read More

CFPB Enters Into Consent Order With Servicer Concerning Foreclosure-Related Practices

On December 18, 2020, the Consumer Financial Protection Bureau (Bureau) announced that it had entered into a consent order with a mortgage servicing company (and its successor in interest) resolving allegations that the company’s conduct between 2014 and 2018 violated the Consumer Financial Protection Act (CFPA) and Regulation X, the implementing regulations of the…

Read More

Pennsylvania AG Halts Operations of Student Loan Forgiveness Company

​On December​ 16, 2020, the Pennsylvania Attorney General (Pennsylvania AG) announced ​a settlement with a California-based student loan forgiveness company for alleged violations of state consumer protection laws.  According to the Pennslyvania AG, the company used false advertising tactics and posted fraudulent customer reviews on the Better Business Bureau website.  Further, the company…

Read More

CFPB and Arkansas AG Settle with Home Security Company for Alleged FCRA and CFPA Violations

On December 11, 2020, the Consumer Financial Protection Bureau (Bureau) and the Arkansas Attorney General (AG) announced that they filed a complaint and proposed stipulated judgment in the U.S. District Court for the Eastern District of Arkansas against a home-security company​.  The complaint alleges that the company—which provided credit to customers for its products and services—violated the Consumer…

Read More