On July 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that claims concerning a bank’s alleged debt collection practices in violation of the Consumer Financial Protection Act (“CFPA”) had been settled for over $200 million. According to the consent order, the bank “sold to debt buyers certain accounts that were inaccurate, settled, discharged…
On July 8, 2015, the Federal Trade Commission (FTC) announced that settlements were approved against companies and individuals who allegedly operated a fraudulent debt collection scheme that targeted Spanish-speaking consumers. According to the complaint, the defendants cold called Spanish-speaking consumers nationwide, and falsely held themselves out to be government officials seeking to collect a debt…
On July 8, 2015, New York Attorney General Eric T. Scheiderman announced that a court order was obtained that permanently bars a consumer debt collection agency from operating as a debt collector and further requires payment of $550,000 in consumer restitution, civil penalties, and costs. The order was signed following a…
On July 7, the Federal Trade Commission (FTC) announced that a federal court entered a preliminary injunction halting an alleged nationwide debt relief telemarketing scam and freezing the defendants’ assets. The FTC claims that the defendants millions from consumers. The complaint, brought by the FTC and Florida Attorney General, alleged that the defendants contacted consumers…
On July 7, 2015, the FTC announced that it reached two stipulated settlements (available here and here) with payday lenders who allegedly deceived customers by signing them up for loans without their permission and then withdrawing “finance” charges indefinitely. The settlements stem from allegations in a complaint filed last year that defendants “purchase consumers’ sensitive financial information from online lead generators or data…
On June 22, 2015, the US Attorney’s office for the Eastern District of Pennsylvania filed an information charging Adrian Rubin of Jenkintown, PA, with: (1) one count of conspiracy to violate RICO, 18 U.S.C. § 1962(d); (2) one count of conspiracy to commit mail fraud and wire fraud, 18 U.S.C. §…
For the second time in recent weeks, the Consumer Financial Protection Bureau (CFPB) delayed the launch of the new integrated disclosures for residential mortgage loans under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The launch date, now set for Saturday, October 3, was announced…
On July 1, 2015, Governor Cuomo announced a student loan debt relief provider was ceasing operations following an investigation by the Student Protection Unit of the Department of Financial Services. The company allegedly engaged in misleading and deceptive advertising as well as other improper practices. The company claimed it could…
The Consumer Financial Protection Bureau (“CFPB”) took action against two credit card vendors, entering into proposed consent orders regarding the companies’ offerings of allegedly unlawful add-on products. Credit card companies offer consumers “add-on” services, such as credit monitoring or identity theft protection for a monthly or annual membership fee. Following an…
On Monday, June 29, 2015, the Florida Attorney General and the Federal Trade Commission (“FTC”) obtained an ex parte temporary restraining order from a federal court for the Middle District of Florida to shut down the operations of a Florida corporation operating in violation of the FTC’s Telemarketing Sales Rule. Under the Telemarketing Sales…