Archive for June, 2016

Online Fast Cash Lenders to Pay $9 Million to Settle Claims of Illegal Lending to North Carolina Consumers

On June 21, 2016, the North Carolina Attorney General announced that two online fast cash lenders have agreed to pay more than $9 million in refunds for allegedly illegal loans issued to North Carolina consumers.  The settlement stems from a December 2013 complaint alleging that the lenders violated North Carolina usury…

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Michigan Attorney General Announces Default Judgment Against Automobile Title Loan Company Over Alleged Usurious Loans

On June 8, 2016, the Michigan Attorney General announced that a Michigan court entered a default judgment and permanent injunction against an automobile title loan company over alleged usurious loans that violated the Michigan Consumer Protection Act.  According to the Attorney General, the company charged usurious interest rates on automobile title loans, engaged…

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Department of Housing and Urban Development Announces Settlement with National Bank over Alleged Discriminatory Lending Practices

On June 8, 2016, the Department of Housing and Urban Development (HUD) announced it entered into a settlement agreement with a national bank over allegations the bank engaged in discriminatory lending practices in violation of the Fair Housing Act. According to HUD, the bank discriminated against African American, Latino American and…

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Colorado Attorney General Announces Lenders Will Return $8 Million to Consumers over Alleged Usurious Loans

On June 8, 2016, the Colorado Attorney General announced that several national lenders were ordered to pay approximately $8 million in restitution to Colorado consumers over alleged usurious loans, which violated Colorado’s Consumer Protection Act. The lenders allegedly originated loans with interest rates that reached as high as 355%. In…

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CFPB Files Lawsuit Against Payment Processor Over Alleged Unauthorized Withdrawals from Consumer Accounts

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On June 6, 2016, the Consumer Financial Protection Bureau (CFPB) announced it filed a lawsuit against a third-party payment processor and two of the company’s executives over allegations the company permitted unauthorized withdrawals from consumer accounts, in violation of the Dodd-Frank Consumer Protection Act. The company facilitated ACH payment transactions between…

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West Virginia Attorney General Announces Settlement with Online Lender Over Alleged Usurious Loans

On June 6, 2016, the West Virginia Attorney General announced a settlement with a regional online lender over allegations that the lender’s business practices violated West Virginia’s Consumer Credit and Protection Act. The company markets and sells online installment loans, through an alleged “bank-partnership model.” Under the bank-partnership model, a company partners…

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Q1 2016 Sees Continued Focus on Mortgages, Fair Lending, and CFPB Enforcement (Interactive Charts Inside)

For the first quarter of 2016, Consumer Finance Enforcement Watch tracked 50 enforcement actions taken against consumer finance providers, marking a slight increase from the 46 actions we had tracked a year ago in Q1 2015.  Of the Q1 2016 enforcement actions, the majority were settlement agreements. Consistent with the…

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