On September 28, 2018, the Federal Trade Commission (FTC) announced that it had reached a settlement with loan debt relief operators in connection with the coordinated federal-state enforcement initiative to target deceptive student loan debt relief scams, called “Operation Game of Loans.” According to the FTC, the operators violated the federal law by allegedly…
On September 28, 2018, the United States Attorney’s Office for the Northern District of California (USAO) announced a civil settlement with an online peer-to-peer lender over allegations that it made false statements to its loan originator, resulting in the origination of over 200 loans to consumers who did not satisfy…
On September 27, 2018, the Department of Justice (“DOJ”) announced that it had reached a settlement with a Washington-based foreclosure services company, resolving allegations that the company violated the Servicemembers Civil Relief Act, 50 U.S.C. §§ 3901-4043 (“SCRA”) when foreclosing on certain servicemembers’ home. The SCRA protects servicemembers on active duty from having their…
On September 14, 2018, the Community Financial Services Association of America, Ltd. and the Consumer Service Alliance of Texas (Industry Groups) moved for a preliminary injunction to prevent many of the provisions of the Consumer Financial Protection Bureau’s (CFPB’s) payday lending rule (12 C.F.R. Part 1041) from becoming effective on…
On September 21, 2018, the Attorney General for the State of Washington announced a lawsuit against three debt collection agencies and their owner, alleging that they violated the state’s Collection Agency Act, RCW 19.16.100 et seq., and the state’s Consumer Protection Act, RCW 19.86.010 et seq. The complaint, filed in…
On September 21, New York Attorney General Barbara D. Underwood announced a stipulated court order against three entities and individuals for illegal debt collection practices (collectively, “defendants”), which permanently bans the defendants from the debt collection industry and requires collective payment of almost $27 million in restitution and damages. The court…
On September 20, New York Attorney General Barbara D. Underwood announced a lawsuit against nine student loan debt relief companies, their financing company, and two individuals with leadership roles in several of the companies (collectively, “defendants”). The lawsuit alleges that defendants violated the Federal Credit Repair Organization Act, 15 U.S.C. §…
On September 7, 2018, the Federal Trade Commission (FTC) announced a settlement with a Georgia debt collection company and its principals over alleged illegal collection practices. In October 2017, the FTC filed an action against the defendants alleging violations of the Federal Trade Commission Act (FTC Act), 15 U.S.C. §§ 45(a), 53(b),…
On August 28, 2018, the Ninth Circuit affirmed Judge Yvonne Gonzalez Rogers’ decisions in two putative class actions challenging Citibank’s and J.P. Morgan Chase’s default servicing practices. In Stitt v. Citibank, N.A. and Ellis v. J.P. Morgan Chase & Co., the Ninth Circuit concluded that Judge Rogers had correctly dismissed…