Archive for June, 2017

Home Financing Company Settles with State of New Jersey

On June 22, 2017, the New Jersey Office of the Attorney General (“New Jersey AG”) ​​and the New Jersey Division of Consumer Affairs (“New Jersey DCA”) announced a settlement with a Georgia financing company that facilitates on-the-spot financing for home improvements through participating home improvement contractors.  The New Jersey DCA opened…

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FTC Brings Suit Against Debt Collector for "Phantom Debts"

On June 23, 2017, the Federal Trade Commission (FTC) announced​​ that it has filed a complaint in the U.S. District Court for the Western District of North Carolina against a North Carolina debt collection company and its owner, alleging that the defendants took money from consumers for fake or “phantom” debts they did not owe. According…

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CFPB Enforcement Continues to Rise in Q1 2017 as Other Federal and State Enforcement Trend Downwards

CFPB sign

In the first quarter of 2017, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer financial service providers.  This represents a slight decrease from the 50 enforcement actions taken against consumer financial service providers in Q1 of 2016. 34 of the 2017 Q1 enforcement actions were settlements (with or…

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CFPB Takes Action Against Mortgage Servicer for Unlawful Practices

CFPB sign

On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Chicago-based mortgage servicing company, settling allegations that it failed to provide borrowers with the foreclosure protections required by law. According to the CFPB, the mortgage servicer violated federal consumer protection laws in its…

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FTC and Florida AG Agree to Nearly $5 Million Settlement With Defendants Pitching "Worthless" Credit Card Interest Rate Reductions

FTC

On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…

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Car Dealership Agrees to Consent Order to Pay $5.1 Million in Debt Forgiveness

On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered​ into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual violated the Federal Trade Commission Act (“FTC Act”) and its regulations, specifically 16 C.F.R. § 255.5, and the Florida Consumer…

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