Archive for July, 2015

CFPB Issues Consent Order Against National Servicer for Unfair Mortgage Practices

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On July 30, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national mortgage servicing company, resolving claims that the servicer engaged in unfair and deceptive practices in violation of the Consumer Financial Protection Act.  The CFPB alleged that the servicer failed to honor modifications…

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Co-Conspirators Plead Guilty in Connection with Mortgage Modification Scam

On July 29, the United States Attorney for the Southern District of New York announced that co-conspirators in a mortgage modification scam pled guilty to conspiracy and fraud.  The defendants, through a mortgage modification company, collected fees from residential mortgage holders and promised consumers that the company would either secure them a mortgage modification…

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CFPB Enters Consent Orders with Mortgage Payment Processing Company and Servicer for Deceptive Advertisements

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On July 28, the Consumer Financial Protection Board (CFPB) announced that it entered into consent orders with a mortgage payment processing company and servicer related to allegedly deceptive advertisements.  The consent orders allege that the payment processer partnered with servicers to market and an provide electronic payment system that directly debited…

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North Carolina AG Secures Default Judgment Against Mortgage Broker for Unfair Trade Practices

On July 28, the North Carolina Attorney General announced that it obtained a default judgment against a mortgage broker and its president in North Carolina Superior Court.  The Attorney General brought claims against the defendants under the North Carolina Unfair and Deceptive Trade Practices Act, N.C. Gen. Stat. § 75-1.1.  The Attorney General alleged that the…

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CFPB Enters Consent Agreement with Student Loan Lender Concerning Sales and Billing Practices

On July 23, 2015, the Consumer Financial Protection Bureau (“CFPB”)​ filed a complaint and proposed consent order in the United States District Court for the Eastern District of California in connection with a settlement reached with a student loan lender that offered fee-based assistance to consumers filling out the federal government’s Free Application…

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CFPB Issues Order and Penalties Against National Bank for Student Loan Servicing Practices

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On July 22, 2015, the Consumer Financial Protection Bureau (“CFPB”)​ issued a consent order against a national bank and its affiliates for its servicing practices affecting private student loan borrowers.​  The order asserts that the bank violated various sections of the Consumer Financial Protection Act of 2010 (“CFPA”) and the Fair…

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CFPB and OCC Issue Consent Orders Against National Bank for Credit Card Practices

​On July 21, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a consent order requiring a national bank and its subsidiaries to provide roughly $700 million in consumer relief due to the bank’s practices relating to its credit card services and add-on products.  The consent order states that a CFPB review of the bank’s practices…

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Colorado AG Files Action Against Retailer Over Credit Extended to Military Servicemembers

On July 17, 2015, the Attorney General for the State of Colorado (“Colorado AG”) filed a lawsuit in Denver District Court alleging that a retailer and its related companies repeatedly violated Colorado’s consumer lending laws concerning credit extended to military servicemembers. ​ The action is the second lawsuit filed by the Colorado AG in the…

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Auto Finance Company Settles Action Brought by CFPB and DOJ

On July 15, the Consumer Financial Protection Bureau (“CFPB”) and the Department of Justice (“DOJ”) announced that claims concerning an indirect auto finance company’s alleged discriminatory lending practices were settled as part of a consent order requiring $24 million in restitution payments to borrowers and changes to the lender’s dealer compensation system.  The consent order alleges…

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