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Massachusetts AG Announces $2.4 Million Settlement with Student Loan Servicer Over Improper Servicing Practices

On November 22, 2016, the Massachusetts Attorney General announced that it entered into a settlement agreement with a national student loan servicing company over allegations the company violated various state and federal consumer protection laws.  The investigation into the company’s student loan servicing practices began in December 2015. According to…

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CFPB Files Suit Against Structured Settlement Company for Allegedly Defrauding Lead Paint Victims

On November 21, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit in the U.S. District Court for the District of Maryland against a structured settlement company and certain of the company’s principals, alleging that the company violated the Consumer Financial Protection Act (CFPA) by defrauding lead paint victims. According to the…

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United States Attorney’s Office Announces Guilty Pleas in Criminal Prosecution of Alleged $31 Million Debt Collection Scheme

On November 18, 2016, the U.S. Attorney’s Office for the Southern District of New York (“USAO”) announced that the co-owner and chief financial officer of a debt collection company, and a company manager, pleaded guilty to engaging in illegal and abusive debt collection practices.  The Court also sentenced another company employee to…

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Ohio AG Files Lawsuit Against Mortgage-Relief Services Provider

On November 4, 2016, the Ohio Attorney General’s office (AG) announced it filed a complaint against a California-based mortgage-relief services provider and its director (Defendants) alleging violations of Ohio’s consumer protection laws.  The complaint alleges that the provider sent advertisements to Ohio residents stating that the company has helped consumers to “receive payment…

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CFPB Settles with National Credit Union Over Alleged Deceptive Debt Collection Practices

On October 11, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a national credit union over allegations that the credit union made false and misleading representations to consumers when attempting to collect on past due accounts. The credit union serves military members and their families. The…

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HUD/DOJ Settle with FHA Mortgage Lender for $52.4 Million Over Alleged False Claims Act Violations

On September 13, 2016, the Department of Justice (“DOJ”) announced a settlement agreement with a bank for allegedly violating the False Claims Act by improperly underwriting and originating of FHA-insured mortgage loans. According to the DOJ, from January 1, 2006 to December 31, 2011, the lender was improperly underwriting and certifying that mortgage loans…

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CFPB Issues Consent Order Against Education Company For Illegal Student Lending Practices

On September 12, 2016, the Consumer Financial Protection Bureau (“CFPB”) announced the issuance of a consent order with a for-profit college chain that allegedly deceived its students into taking out loans that were more expensive than advertised. For the last several years, the for-profit education company allegedly had enrolled hundreds of thousands of…

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CFPB Wins Judgment Against Online Payday Lender in Lawsuit Alleging “Rent-a-Tribe” Scheme and Violations of State Usury Laws

  On August 31, 2016, the Consumer Financial Protection Bureau (CFPB) obtained summary judgment against a California-based online payday lender, its individual owner, its subsidiary, and a servicer of its loans, which allegedly used a “rent-a-tribe” scheme to avoid state usury and licensing laws in violation of the Consumer Financial Protection Act. According to the…

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Massachusetts AG Settles with Force-Placed Insurance Company

On September 7, 2016, the Massachusetts Attorney General (“AG”) announced that it reached a settlement with a Massachusetts force-placed insurance company relating to allegations that it improperly charged homeowners for insurance. According to the Massachusetts AG, mortgage lenders improperly provided homeowners with duplicative force-placed insurance policies through the subject insurance…

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Massachusetts AG Settles with Student Debt Relief Company Over Alleged Illegal Fees

On September 1, 2016, the Massachusetts Attorney General (“AG”) announced a settlement with a student loan debt relief company, over allegations the company charged illegal fees to enroll borrowers in income-based repayment plans and other loan modification services. The company allegedly offered “debt relief” services to borrowers, which included assisting borrowers…

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Colorado AG Settles Illegal Lending And Debt Collection Claims Against Two Lenders

Colorado

On August 1, 2016, Colorado Attorney General Cynthia H. Coffman announced a settlement of two lawsuits against lenders for targeting the military and other allegedly illegal lending practices. According to the Attorney General, the settlement comes after charges filed against the lenders in 2015, alleging that the lenders used illegal…

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DOJ Files Lawsuit Against Regional Credit Union Over Alleged SCRA Violations

On July 26, the Department of Justice (DOJ) announced that it filed a lawsuit against a regional credit union over alleged violations of the Servicemembers Civil Relief Act (SCRA). The SCRA prohibits lenders from repossessing servicemembers’ vehicles without a court order while servicemembers are on activity military duty. The DOJ alleged in…

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FTC Settles with Fraudulent Debt Collectors for Millions as Operation Collection Protection Continues

FTC

On July 14, 2016, the FTC announced that, as part of an ongoing crackdown on deceptive collection practices, it reached a settlement with two debt collectors and three companies charged with using illegal collection tactics.  As Enforcement Watch previously covered here, the FTC initially brought the action against the companies in October of 2015 for allegedly taking payments…

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