On March 31, 2020, the U.S. Department of Justice (DOJ) announced that it had entered into a $2.47 million settlement agreement with a national reverse mortgage lender in order to resolve allegations that the bank’s predecessor entity had failed to meet the Department of Housing and Urban Development’s (HUD) criteria in originating and…
On April 1, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an installment-loan lender, resolving allegations that the lender violated the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1)(B), Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681 et seq….
On December 11, the Federal Trade Commission (FTC) announced it had reached a settlement with the remaining Defendants in an enforcement action against multiple related companies and their controllers involved in an alleged phantom debt scheme in which the Defendants pressured consumers into paying non-existent debts by threatening legal action…
On October 31, 2019, Michigan Attorney General Dana Nessel (“Michigan AG”) filed a complaint in the United States District Court for the Eastern District of Michigan against an online tribal lender for allegedly charging borrowers interest rates in excess of state usury laws and committing unfair, deceptive, and/or abusive acts or practices under…
On August 28, 2019, the Consumer Financial Protection Bureau (CFPB) announced a settlement with an Illinois-based debt collection company, resolving allegations that the company engaged in deceptive practices in violation of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531 and 5536, and the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C….
On August 27, 2019, the Federal Trade Commission (FTC) announced it had reached a $30 million settlement with an Illinois-based operator of for-profit post-secondary schools and related subsidiaries resolving allegations that the company used lead generators who engaged in deceptive conduct to market its schools in violation of Section 5(a) of the Federal Trade…
On August 21, 2019, Minnesota Attorney General Keith Ellison (“Minnesota AG”) announced a settlement with a Minnesota based lender that finances sales of door-to-door products, such as vacuum cleaners and air purifiers. This settlement resolved allegations that the lender hid high interest rates from consumers, failed to provide complete financing agreements to consumers, and failed to give…
On August 8, 2019, New York Attorney General Letitia James (“New York AG”) announced a settlement and consent order with a student loan debt relief company, resolving the complaint’s allegations that the company deceived borrowers into paying for debt relief services that are available to the public for free from the federal government…
On July 17, 2019, Ohio Attorney General Dave Yost (Ohio AG) announced that it and the FTC had secured a temporary restraining order from the United States District Court for the Western District of Texas against two companies that allegedly defrauded consumers struggling with credit card debt out of millions of dollars. The complaint alleged that…
On April 16, 2019, the Maryland Attorney General (“Maryland AG”), in cooperation with Maryland’s Office of the Commissioner of Financial Regulation, announced it had reached a settlement with a Michigan reverse mortgage servicer resolving allegations that the company charged homeowners for home inspection fees in violation of the Maryland Consumer Protection Act, Md. Code…
On April 15, 2019, the FTC announced that it had reached a settlement with an online lending company for $3.85 million, resolving allegations that the company had engaged in unfair and deceptive loan servicing practices in violation of Section 5 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45, the Telemarketing Sales…
On December 21, 2018, the Massachusetts Attorney General’s Office (“Mass. AG”) announced that it had reached a settlement with a national mortgage servicer, resolving allegations that the company mishandled mortgage loans in violation of the Massachusetts Act Preventing Unlawful and Unnecessary Foreclosures, a 2012 law designed to protect borrowers from foreclosure caused by unfair terms on subprime mortgages….
On November 2, 2018, the United States Attorney for the Southern District of New York announced a settlement with a New York based credit union, resolving allegations that the credit union had illegally repossessed cars owned by servicemembers on active duty in violation of the Servicemembers Civil Relief Act, 50 U.S.C. § 3952 (“SCRA”). Under…
On October 24, 2018, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a Consent Order with a Tennessee-based small dollar lender, resolving allegations that the lender had committed deceptive acts and practices in violation of the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. §§ 5531, 5536(a)(1)(B). The Consent Order…
On August 10, 2018, the Board of Governors of the Federal Reserve (“Board of Governors”) announced that a national bank had consented to the assessment of a civil money penalty totaling $8.6 million pursuant to the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b)(3) and 1818(i)(2)(B), for engaging in…
On May 8, the Federal Trade Commission (“FTC”) announced that the U.S. District Court for the Central District of California granted its request to preliminarily enjoin affiliated California-based debt relief companies from continuing operations, and to freeze their assets. In its complaint, the FTC alleged that the companies violated Section 5(a) of the Federal Trade Commission Act,…
On May 4, Virginia Attorney General Mark R. Herring (“VA Attorney General”) announced that its Predatory Lending Unit had filed suit in Virginia state court against a Chicago-based online lender, alleging violations of the Virginia Consumer Protection Act, Virginia Code §§ 59.1-196 to 59.1-207 (“VCPA”). The complaint alleges that the lender, one of the largest online…
On May 8, the Department of Justice (“DOJ”) announced that it had reached a voluntary settlement with a family-owned Minnesota bank, resolving allegations that the bank had violated the Fair Housing Act, 42 U.S.C. §§ 3601 et seq. (“FHA”) and the Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 et seq. (“ECOA”) by…
On April 4, Georgia Attorney General Chris Carr (“Georgia AG”) announced an $8.5 million settlement with a national debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act. The Georgia AG had alleged that the company harassed and deceived consumers…
On February 6, 2018, a Kansas state court entered a default judgment against a Florida student debt relief company banning it from doing business in Kansas and ordering it to pay over $39,000 back to one consumer. Kansas Attorney General Derek Schmidt (“Kansas AG”) had accused the company of violating the Kansas…