Archive for February, 2021

FTC Announces $114 Million Settlement with Payday Lenders


On February 11, 2021, the Federal Trade Commission (FTC) announced a $114 million settlement with the owners and operators of an alleged tribal payday lending scheme.  The settlement resolves allegations concerning defendants’ purported violations of the unfair or deceptive practice provisions (UDAP) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45(a), the Telemarketing and Consumer Fraud…

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Pennsylvania AG Sues Five Companies Involved in Alleged Mortgage Modification Scam

On July 26, 2018, the Attorney General for the Commonwealth of Pennsylvania announced a lawsuit against five Pennsylvania mortgage foreclosure companies and two company owners for cheating consumers into signing contracts to have their mortgage loans modified—but never delivering the services paid for—in violation of Pennsylvania’s Unfair Trade Practices and Consumer…

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FTC Distributes $1.7 Million to Affected Consumers in Alleged Student Loan Debt Relief Scam

On February 10, 2021, the Federal Trade Commission (FTC) announced that it will begin distributing over $1.7 million to consumers that it claims lost money as a result of an alleged student loan debt relief scheme.  The payments are part of a 2018 settlement with a student debt relief group, previously covered ​by Enforcement Watch, that resolved…

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FTC Announces $10.9 Million Settlement for Credit Card Laundering Scheme

​On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processing companies and two individuals, resolving claims concerning an alleged credit card laundering scheme perpetrated in violation of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 53(b), and the Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), 15 U.S.C. §§…

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Massachusetts AG Settles Claims Against Federal Student Loan Servicer

On February 10, 2021, the Massachusetts Attorney General (Massachusetts AG) announced that it reached a settlement with a national federal student loan servicer, resolving allegations that the entity engaged in deceptive acts or practices in violation of state law related to its student loan servicing practices.  In particular, the Massachusetts​ AG alleged…

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New York Department of Financial Services Settles with Mortgage Company

On February 10, 2021, the New York Department of Financial Service (DFS) entered into a settlement with a New York-based mortgage company to resolve allegations that the company utilized an unauthorized domain name and website, and failed to provide mortgage loan applicants with pre-application disclosures in violation of Article 12-D of the New York Banking Law…

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CFPB Investigating Digital-Payment Company's Collection Practices

CFPB sign

​On February 5, 2021, a digital-payment company disclosed in a filing with the Securities Exchange Commission (SEC) that they received​ a Civil Investigative Demand (CID) from the Consumer Financial Protection Bureau (CFPB) on January 21, 2021.  The CID requests documents and answers to written questions concerning allegedly unauthorized funds transfers and collections processes relating to one of the company’s products. …

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Delaware AG Files Lawsuit Against Debt-Management Services Company

On February 8, 2021, the Delaware Attorney General (Delaware AG) announced that it filed an administrative lawsuit against a California-based debt-management services company for allegedly violating the Delaware Uniform Debt-Management Services Act, the Delaware Consumer Fraud Act, and the Delaware Deceptive Trade Practices Act. According to the Delaware AG, ​​the debt-management company used misleading advertising to target elderly and…

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