Archive for November, 2015

FTC Reaches Settlement with Two Ohio Auto Dealers

FTC

​On November 24, the Federal Trade Commission (“FTC”) announced that it reached a settlement agreement with two Ohio auto dealers relating to allegations that the auto dealers violated Section 184 of the Consumer Leasing Act, 15 U.S.C. § 1667c, and Section 213.7 of Regulation M, 12 C.F.R. §​ 213.7.  Specifically, the FTC’s administrative ​complaint alleged that the auto dealers failed to disclose key…

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Two Student Debt Relief Companies Banned from Operating in Massachusetts

On November 24, the Massachusetts Attorney General’s Office (“AG’s Office”) announced​ that it has reached two separate settlement agreements with student debt relief companies.  The two companies agreed to assurances of discontinuance and agreed to pay $56,000 and $40,000 respectively relating to allegations of charging illegal upfront fees prior to delivering​ full…

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Federal Reserve Board Announces Settlement Agreements with Two Regional Banks for Alleged Violations of the National Flood Insurance Act

On November 24,​ the Board of Governors of the Federal Reserve System announced the execution of two settlement agreements in enforcement actions against two regional banks concerning alleged violations of the National Flood Insurance Act (“NFIA”), 42 U.S.C. § 4012a(f)(4).  The Board of Governors asserted that where a pattern or practice of violations of the NFIA is found, civil money penalties can be…

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Massachusetts Insurance Company Settles Claims Relating to Force-Placed Insurance

On November 23, 2015, the Attorney General’s Office for the Commonwealth of Massachusetts reached a settlement agreement with a Massachusetts force-place-insurance company relating to allegations that it required homeowners to purchase unnecessary or overpriced force-placed insurance policies. Force-placed insurance is a form of homeowner’s insurance that may be acquired by a lender or mortgage…

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CFPB Publishes Rulemaking Agenda Including Proposed Rule Prohibiting Class Action Waivers

CFPB sign

On November 20, 2015, the CFPB published​ its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…

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Tayman in Bloomberg BNA: CFPB’s Question Unanswered—What is ‘Abuse’?

CFPB sign

Goodwin Procter Consumer Finance Enforcement associate Kyle Tayman was recently published in Bloomberg BNA’s Banking Report for their article, CFPB’s Question Unanswered—What is ‘Abuse’?  The article takes the position that the Consumer Financial Protection Bureau’s silence on what exactly constitutes an ‘‘abusive’’ practice under the Dodd-Frank Act’s provisions governing ‘‘unfair,…

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California Department of Business Oversight Announces $10.1 Million Settlement with Mortgage Company Over Improper Fees

On November 19, 2015, the California Department of Business Oversight (DBO) announced that it had reached a settlement with a national mortgage company over allegations the company overcharged customers for mortgage settlement services. The company allegedly charged consumers a $200 settlement service fee in connection with mortgage loans. The fee…

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New York Financial Firm Ordered to Surrender License Over Alleged Cheating on Regulatory Exams

On November 19, 2015, the New York Department of Financial Services (DFS) announced​ that it had ordered​ a regional mortgage company to pay a $1 million fine and surrender its mortgage license over allegations the firm’s senior managers cheated on continuing education exams. Under New York law, all mortgage originators must…

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National Finance Company to Pay Approximately $1 Million in Restitution Over Alleged Predatory Lending Practices

On November 18, 2015, California’s Department of Business Oversight (DBO) announced that a national finance company paid approximately $1 million in restitution to California consumers as part of a prior settlement with the DBO​ related to company’s lending practices. Enforcement Watch previously covered the settlement​, in which the the company agreed to pay $125 per consumer…

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DOJ and State AGs Obtain $100 Million in Student Debt Relief for Students of For-Profit Colleges

On November 16, 2015, the DOJ announced a settlement with a national for-profit education company over alleged violations of the False Claims Act and the Higher Education Act. The settlement resolves four separate qui tam suits filed against the company in federal court. In conjunction with the DOJ announcement, the Attorneys General…

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