On April 30, 2015, the FTC announced that a Federal Court entered a preliminary injunction against a regional mortgage relief company over claims the company falsely represented to consumers that they could obtain mortgage modifications. The company allegedly represented that it was associated with various federally-approved mortgage relief programs, and…
On April 29, 2015, the Consumer Financial Protection Bureau and the Maryland Attorney General announced the filing of a complaint and proposed consent order against a regional title insurance company, its principals, and certain loan officers. The title company allegedly provided payments to loan officers in exchange for referrals for…
On April 28, 2015, the Consumer Financial Protection Bureau announced a consent decree with a national bank regarding improper overdraft fees in violation of Regulation E, the implementing regulation of the Electronic Fund Transfer Act (“EFTA”). When a consumer does not have sufficient funds to cover a purchase or withdrawal,…
On April 27, 2015, the Colorado Attorney General announced that it released restitution payments to over 20,000 homeowners in connection with a settlement reached with a foreclosure law firm. On July 14 2014, the Colorado Attorney General filed a complaint against the law firm, alleging that the law firm charged inflated…
On April 24, 2015, the U.S. Department of Housing and Urban Development (HUD) announced that it would reform its Distressed Asset Stabilization Program (DASP), requiring purchasers to take stronger steps to ensure that homeowners are given further options to avoid foreclosure. DASP was set up in 2010, to pool distressed…
On April 2, 2015, a regional bank reached an agreement in principle to settle allegations brought by the U.S. Department of Justice (DOJ) and U.S. Department of Housing and Urban Development (HUD) relating to its former subsidiary’s issuance of mortgage loans insured by the Federal Housing Administration (FHA). The DOJ…
The mortgage servicing industry remains under scrutiny, as evidenced by the recent joint enforcement action against Green Tree Servicing, LLC by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC). In a joint complaint filed in Minnesota, the regulators allege that Green Tree, through its collection activities…
The Consumer Financial Protection Bureau (“CFPB”) announced that it and the Federal Trade Commission (FTC) entered into a Proposed Consent Order with a national mortgage servicing company over allegations that its loss-mitigation activities violated the Federal Trade Commission Act (“FTCA”), the Consumer Financial Protection Act (“CFPA”), the Fair Debt Collection Practices…
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 Tennessee Attorney General announced that it and the Tennessee Division of Consumer Affairs reached a settlement with a state auto dealer over allegations that the auto dealer violated the Tennessee Consumer Protection Act by mailing two false advertisements to consumers. The allegedly false advertisements purported…
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 14, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it reached a settlement with a New Mexico-based tax-refund lender over claims that the lender steered borrowers to excessively costly products, failed to accurately disclose the APR for loans, and failed to notify the availability of refunds. The CFPB alleged in…
On April 10, the Federal Trade Commission (FTC) announced that the U.S. District Court for the Central District of California had issued a temporary restraining order against a company offering mortgage-relief services to borrowers in financial trouble. The FTC’s complaint, filed on March 31, alleged that the company violated Section 5(a)…
An Illinois federal district court held on March 20, 2015 that California law protects T-Mobile from having to turn over the names and addresses of thousands of its California customers without their consent in response to a third-party subpoena in a nationwide class action. The case, Birchmeier v. Caribbean Cruise Line,…
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…
In November 2014, we reported that class action lawsuits were being filed across the country by consumers against large banks regarding their involvement with short term loans. These actions allege that lenders were engaging in unlawful practices relating to online short-term, small dollar – or “payday” – loans, and were…
On April 7, 2015, the Washington State Attorney General Office announced that it filed suit against a California-based student-loan debt-adjustment company, alleging that the company charged illegal fees in violation of Washington’s Consumer Protection Act and the state’s Debt Adjusting Act. According to the complaint, the company allegedly marketed services…
New York Supreme Court Justice John Michalski dismissed a suit brought by the New York Attorney General against HSBC Bank USA, alleging that HSBC failed to file Requests for Judicial Intervention along with their proof of service in foreclosure actions. In New York, Requests for Judicial Intervention entitle homeowners facing…
On March 26, 2015, CFPB Director Richard Cordray announced a proposed outline of changes to payday lending that would vastly alter the current rules and regulations. The new rules would address both short-term and longer-term credit products such as payday loans; deposit advance products; high-cost installment loans; certain other open-end lines…