Archive for September, 2021

Minnesota AG Announces Approval of $38 Million in Student Loan Debt Relief and Restitution

On September 30, 2021, the Minnesota Attorney General (“Minnesota AG”) announced that a federal bankruptcy court had approved $23.6 million in student debt relief and $15.8 million in restitution for students of two for-profit universities that allegedly engaged in consumer fraud and illegal lending practices. The settlement​, originally announced in March 2021, resolved allegations that the universities misled students…

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DOJ Reaches $1.5 Million Settlement with Auto Lender Resolving Alleged SCRA Violation

On September 29, 2021, the Department of Justice (DOJ) announced that it reached a settlement with a California-based auto lender, resolving allegations that the lender violated the Servicemembers Civil Relief Act (SCRA). In a simultaneously-filed complaint filed in the United States District Court for the Central District of California, the DOJ…

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Atlanta-Based Debt Collection Company Agrees to Permanent Ban From Debt Collection Industry

FTC

​On September 27, 2021, the Federal Trade Commission (FTC) announced a settlement with an Atlanta-based debt collection company and its owners​ that would ban them from the debt collection industry.​ ​The FTC had originally filed suit in ​2020, after which the court issued an ex parte temporary restraining order​ ​prohibiting the company from doing business.  The complaint, filed in September 2020, alleged violations of Section 5(a)…

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West Virginia AG Files Suit to Block New York Debt Collection Company from Doing Business in West Virginia

On September 23, 2021, the West Virginia Attorney General’s Office (AG) announced  that it had filed a complaint  against a New York-based debt collection agency for violations of the West Virginia Consumer Credit and Protection Act (WVCCPA) . The complaint alleges that the debt collection agency violated West Virginia law by operating without proper authorization and by using illegal, high-pressure…

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California DFPI Issues $375,000 Sanction Against Debt Collector

​On September 22, 2021, the California Department of Financial Protection and Innovation (DFPI) announced that it issued its first enforcement action against a debt collection company for various practices, including threatening to sue consumers and garnish wages, and for submitting negative information to credit bureaus without first providing required notice, in violation…

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CFPB Sues Software Company for Allegedly Supporting Illegal Credit-Repair Fees

CFPB sign

On September 20, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a lawsuit in the U.S. District Court of the Central District of California against a California-based software company and its owner.  The complaint alleges that the software company violated the Telemarking Sales Rule (TSR) and Consumer Financial…

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DOJ Reaches $50,000 Settlement with NJ Higher Education Student Assistance Authority

​On September 20, 2021, the Department of Justice (DOJ) announced that it rea​ched a settlement with the New Jersey Higher Education Student Assistance Authority (HESAA), resolving allegations that the state agency unlawfully obtained default judgments against two military servicemembers for student loan debt in violation of the Servicemembers Civil Relief Act (SCRA). In a…

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