Archive for January, 2018

Court Awards $10 Million Penalty Against Payday Lender, Rejecting CFPB’s Request for $280 Million in Restitution and Penalties

CFPB sign

In August 2016, the U.S. District Court for the Central District of California granted partial summary judgment to the Consumer Financial Protection Bureau (CFPB) in a federal lawsuit against a California-based online payday lender, its individual owner, its subsidiary, and a servicer of its loans (“Defendants”), where the CFPB alleged that…

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Colorado AG Announces $2 Million Settlement with Two Lenders

On January 22, 2018, Colorado Attorney General Cynthia H. Coffman (“Colorado AG”) announced that her office has settled a lawsuit against two lenders.  The Colorado AG alleged that the lenders charged predatory interest rates to Colorado consumers by lending money to consumers who had pending personal injury claims and then requiring those consumers to pay…

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Federal Reserve Assesses a Combined $35.1 Million in Civil Money Penalties Against 5 Mortgage Servicers Over Mortgage Servicing Practices

On January 12, 2018, the Federal Reserve Board (FRB) announced the assessment of civil money penalties and consent orders against five national banking organizations over mortgage servicing deficiencies, resulting in a total monetary settlem​ent of $35.1 million. In 2011 and 2012, the FRB initiated enforcement actions against ten firms, including the five against…

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DOJ Settles With Mortgage Lender for $11.7 Million for FHA Mortgages

On December 8, the U.S. Department of Justice (DOJ) announced that it had settled allegations that a Louisiana-based mortgage lender violated the False Claims Act (FCA) through its underwriting of Federal Housing Administration (FHA)-insured mortgage loans.  In the lawsuit, which is pending in the U.S. District Court for the Eastern District of Arkansas, the…

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