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.

CFPB Files Complaint Against Pawnshop Lenders for Alleged Military Lending Act Violations

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On November 12, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint in the United States District Court for the Northern District of Texas against two pawnshop lenders, alleging violations of the Military Lending Act (MLA), 10 U.S.C. § 987.  Under the MLA, consumer credit extended to military servicemembers may…

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FTC Reaches $500,000 Settlement with Payment Processor for Its Role in Alleged Student Loan Debt Relief Scheme

Piggy Bank with a Graduation Cap

On November 8, 2021 the Federal Trade Commission (FTC) announced that it entered into a stipulated order with a payment processor, resolving allegations that the payment processor violated Section 5 of the Federal Trade Commission Act (FTC Act) and the Telemarketing Sales Rule (TSR) ​​​by facilitating payments related to an unlawful student…

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CFPB Issues Orders to Collect Information from Big Tech Companies

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On October 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has issued orders to collect information about the business plans and practices of multiple large technology companies operating payment systems in the United States.  Notably, these orders were issued pursuant to the CFPB’s rulemaking authority under Dodd-Frank Section 1022, rather than its…

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CFPB Announces Consent Order with Reverse Mortgage Lender Imposing $1.1 Million in Penalties

On October 8, 2021, the Consumer Financial Protection Bureau (“CFPB”) a​nnounced  the filing of a complaint and proposed consent order against a reverse mortgage lender in the U.S. District Court for the Central District of California.  In the complaint, the CFPB alleged the lender engaged in deceptive advertising practices in violation of the Consumer Financial…

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Minnesota AG Announces Approval of $38 Million in Student Loan Debt Relief and Restitution

On September 30, 2021, the Minnesota Attorney General (“Minnesota AG”) announced that a federal bankruptcy court had approved $23.6 million in student debt relief and $15.8 million in restitution for students of two for-profit universities that allegedly engaged in consumer fraud and illegal lending practices. The settlement​, originally announced in March 2021, resolved allegations that the universities misled students…

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DOJ Reaches $1.5 Million Settlement with Auto Lender Resolving Alleged SCRA Violation

On September 29, 2021, the Department of Justice (DOJ) announced that it reached a settlement with a California-based auto lender, resolving allegations that the lender violated the Servicemembers Civil Relief Act (SCRA). In a simultaneously-filed complaint filed in the United States District Court for the Central District of California, the DOJ…

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West Virginia AG Files Suit to Block New York Debt Collection Company from Doing Business in West Virginia

On September 23, 2021, the West Virginia Attorney General’s Office (AG) announced  that it had filed a complaint  against a New York-based debt collection agency for violations of the West Virginia Consumer Credit and Protection Act (WVCCPA) . The complaint alleges that the debt collection agency violated West Virginia law by operating without proper authorization and by using illegal, high-pressure…

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California DFPI Issues $375,000 Sanction Against Debt Collector

​On September 22, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it issued its first enforcement action against a debt collection company for various practices, including threatening to sue consumers and garnish wages, and for submitting negative information to credit bureaus without first providing required notice, in violation…

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CFPB Sues Software Company for Allegedly Supporting Illegal Credit-Repair Fees

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On September 20, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court of the Central District of California against a California-based software company and its owner.  The complaint alleges that the software company violated the Telemarking Sales Rule (TSR) and Consumer Financial…

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