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.

FTC Settles With Operators of Debt Collection Scheme, Permanently Barring Defendants From Debt Collection

FTC

On December 11, the Federal Trade Commission (FTC) announced it had reached a settlement with the remaining Defendants in an enforcement action against multiple related companies and their controllers involved in an alleged phantom debt scheme in which the Defendants pressured consumers into paying non-existent debts by threatening legal action…

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Massachusetts AG Announces Settlement with Used Car Dealership for Alleged Deceptive Sales Practices

On November 19, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled its investigation into a used car dealership’s allegedly unfair and deceptive sales practices in violation of the Massachusetts Consumer Protection Act. The AG alleged that the Massachusetts​ car dealership​ and its owner misrepresented material information about…

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CFPB Settles FCRA Claims with NY Background Screening Company

On November 22, 2019 the Consumer Financial Protection Bureau (CFPB) announced that it had filed a proposed stipulated judgment in the federal district court in the Southern District of New York that would resolve claims that a New York-based employment background screening company violated sections 605(a), 607(b), and 613(a) of the Fair Credit…

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CFPB Settlement with Military Travel Loan Lender, Servicer Results in $3.5 Million "Suspended Judgment"

On November 25, 2019, the Consumer Finance Protection Bureau (CFPB) filed concurrent consent orders against a Kentucky-based military travel loan lender (here) and its loan servicer (here). The lender sold and financed airline tickets to military servicemembers and their families from 2010-2016​ by both facilitating financing by other creditors and originating loans itself.  The CFPB…

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FTC Files Suit and Obtains Temporary Restraining Order Against Alleged Student Loan Debt Relief Scam

FTC

On November 12, 2019, the Federal Trade Commission (FTC) announced that on it had filed a lawsuit against a collection of interrelated companies and individual defendants for allegedly misrepresenting themselves as affiliated with the Department of Education in order to convince consumers to sign up for student loan debt relief. The…

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Massachusetts AG Announces Settlement with Debt Buyer for Alleged Abusive Debt Collection Practices

On November 11, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled an investigation against a national debt buyer and collector for alleged violations of Massachusetts’ consumer protection law and debt collection regulations through its debt-collection practices. Specifically, the AG alleged that the debt collector pressured debtors…

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CFPB and State AGs Seek Preliminary Injunction in Suit Against Student Loan Debt Relief Companies

​On October 21, 2019, the Consumer Financial Protection Bureau (CFPB) announced that, together with the Attorneys General (AGs) of Minnesota, North Carolina, and California, it had filed a complaint and sought a temporary restraining order in the U.S. District Court for the Central District of California against a group of debt relief companies. …

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