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Virginia AG Settles with Local Small Dollar Lender Over Excessive Fees

On August 1, 2017, the Virginia Attorney General’s Office (AG) announced​ that it had entered into a consent order with a state pawnbroker, settling allegations that the company overcharged consumers and was “skirting laws.” According to the AG, the company was in the business of offering consumers small dollar loans in exchange for the…

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Massachusetts AG Obtains Preliminary Injunction Against Debt Collection Law Firm Over Illegal Practices

On July 13, 2017, the Massachusetts Attorney General’s Office (“Massachusetts AG”) announced​ that it obtained a preliminary injunction against a debt collection law firm and its principal attorney.  The Massachusetts AG alleged that the law firm engaged in unlawful collection practices, in violation of the Massachusetts AG’s debt collection regulations. The law firm collected debts for…

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HUD Bans Mortgage Lender from Originating FHA-Insured Loans Because of False Financial Statements

​On July 11, 2017, the United States Department of Housing and Urban Development (HUD) announced​ that its Mortgagee Review Board had suspended a national mortgage lender from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA).  ​HUD’s Departmental Enforcement Center also banned the lender’s owner from doing business with the federal…

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Mortgage Lender Pays $4.157 Million to Settle False Claims Act Allegations Concerning FHA Loans

​On July 3, 2017, the United States Department of Housing and Urban Development (HUD), the HUD Office of Inspector General (HUD-OIG), the U.S. Attorney’s Office for the Northern District of Georgia, and the U.S. Attorney’s Office for the Northern District of California announced that they had reached a settlement with a national mortgage lender, resolving…

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CFPB Enforcement Continues to Rise in Q1 2017 as Other Federal and State Enforcement Trend Downwards

In the first quarter of 2017, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer financial service providers.  This represents a slight decrease from the 50 enforcement actions taken against consumer financial service providers in Q1 of 2016. 34 of the 2017 Q1 enforcement actions were settlements (with or…

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CFPB Takes Action Against Mortgage Servicer for Unlawful Practices

On June 7, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Chicago-based mortgage servicing company, settling allegations that it failed to provide borrowers with the foreclosure protections required by law. According to the CFPB, the mortgage servicer violated federal consumer protection laws in its…

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FTC and Florida AG Agree to Nearly $5 Million Settlement With Defendants Pitching "Worthless" Credit Card Interest Rate Reductions

FTC

On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…

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Car Dealership Agrees to Consent Order to Pay $5.1 Million in Debt Forgiveness

On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered​ into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual violated the Federal Trade Commission Act (“FTC Act”) and its regulations, specifically 16 C.F.R. § 255.5, and the Florida Consumer…

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Reverse Mortgage Servicer to Pay $89 Million to Resolve False Claims Act and FIRREA Claims

On May 16, 2017, the U.S. Department of Justice (“DOJ”) announced that it had reached a settlement with a company engaged in reverse mortgage servicing, in connection with the company’s participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage (“HECM”) program, which offers senior citizens reverse mortgages insured by the Federal Housing Administration…

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