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 Reaches Consent Agreement with Fintech Company Concerning Facilitation of Loans to Consumers Without Their Authorization

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On July 12, 2021 the Consumer Financial Protection Bureau (CFPB) announced that a consent order had been reached with an Atlanta-based non-bank lending company that would require the company to cancel up to $9 million in loans for consumers, resolving allegations that the fintech company violated the Consumer Financial Protection Act (CFPA) by originating and servicing unauthorized loans….

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Washington AG Reaches Settlement with Debt Collector to Resolve Lawsuit Concerning Its Alleged Failure to Offer Garnishment Exemptions and Collection of Unlawful Fees

On June 8, 2020 the Washington Attorney General’s office (Washington AG) announced that a consent order had been reached with a Colorado-based debt collection agency that would require the agency to pay $475,000 to approximately 5,000 Washington consumers to resolve a lawsuit originally filed in April 2020 in Washington state…

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FTC Settles Claims with Student Loan Debt Relief Companies

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On May 17, 2021, the Federal Trade Commission (FTC) announced​ a settlement​ with several student loan debt relief companies and their respective owners.  The settlement stems from a complaint filed in 2019, in which the FTC alleged the companies charged illegal upfront fees and led consumers to believe the fees​ were going towards consumers’ student loans in violation of Sections…

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CFPB and Debt Settlement Company Agree to Stipulated Final Judgment and Order

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​On May 17, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has entered​ into a stipulated judgment​ and order​ to resolve a civil action that it previously filed against a debt settlement company in the U.S. District Court for the District of Massachusetts on December 1, 2020, as previously reported he​​re. ​The CFPB initially filed suit against the debt settlement company…

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California Settles with Online School for Allegedly Deceptive Financing Practices

On April 26, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a settlement agreement with an online coding school, resolving allegations that the school engaged in deceptive acts and practices in violation of California’s new Consumer Financial Protection Law (CCFPL). The school offers its…

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Indiana AG Secures $1.3 Million Default Judgment Against Illinois-based Debt Collector

On Ap​ril 14, 2021, the Indiana Attorney General (Indiana AG) announced that his office obtained a default judgment against an Illinois-based debt collection agency and the agency’s owner. The original complaint filed by the Indiana AG alleged the agency violated Indiana’s Deceptive Consumer Sales Act by improperly threatening borrowers with legal action, such as liens…

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Pennsylvania AG Settles with Student Loan Debt Buyer for $2.6 Million

Piggy Bank with a Graduation Cap

On April 6, 2021, the Pennsylvania Attorney General (Pennsylvania AG) announced that it reached an agreement with a Texas-based debt buyer concerning a portfolio of student loan debt it purchased from a now-defunct for-profit college. According to the Pennsylvania AG, the debt purchaser purchased the portfolio of loans after the for-profit college abruptly closed in December 2018 due to…

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CFPB Announces $860,000 Settlement with Debt Collection Company for Alleged Deceptive Practices and CFPA Violations

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​On April 6, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a third-party debt collection company and its former owner for alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536 and Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et ​​seq. The CFPB alleged that…

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