On March 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced that a federal district court entered final judgment against a debt relief company over allegations the company charged illegal upfront fees and engaged in other deceptive business tactics. The CFPB filed suit against the company in 2013, alleging violations of the…
On March 17, 2016, the New York Department of Financial Services (NYDFS) announced that it entered into a consent order and settlement with a financial services company over allegations the company offered illegal online payday loans in New York. The company allegedly operated an online payday loan “lead generation” business. Although payday lending is…
The U.S. Department of Housing and Urban Development (HUD) announced that it reached an agreement with a regional bank over a disparate treatment fair housing claim. HUD alleged that the bank engaged in racially discriminatory redlining by lending less in the majority-minority neighborhood of the East Side of Kansas City, Missouri….
On January 27, 2016, the Federal Trade Commission (“FTC”) announced that it has filed a complaint against a for-profit college for allegedly violating the FTC Act by engaging in deceptive advertising. The suit was filed in the U.S. District Court for the Central District of California. The FTC has requested a permanent…
On December 28, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a Georgia-based law firm over allegations that the law firm used improper and abusive debt collection tactics in violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act (CFPA). The…
On December 18, 2015, the Office of the Comptroller of the Currency (OCC) announced that it had entered into a consent order with a Rhode Island bank over allegations the bank engaged in unfair, deceptive, unsafe, and unsound acts and practices in violation of the Federal Trade Commission Act (Section 5). The alleged…
On November 20, 2015, the CFPB published its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…
On November 19, 2015, the California Department of Business Oversight (DBO) announced that it had reached a settlement with a national mortgage company over allegations the company overcharged customers for mortgage settlement services. The company allegedly charged consumers a $200 settlement service fee in connection with mortgage loans. The fee…
On November 19, 2015, the New York Department of Financial Services (DFS) announced that it had ordered a regional mortgage company to pay a $1 million fine and surrender its mortgage license over allegations the firm’s senior managers cheated on continuing education exams. Under New York law, all mortgage originators must…
On November 18, 2015, California’s Department of Business Oversight (DBO) announced that a national finance company paid approximately $1 million in restitution to California consumers as part of a prior settlement with the DBO related to company’s lending practices. Enforcement Watch previously covered the settlement, in which the the company agreed to pay $125 per consumer…
On November 16, 2015, the DOJ announced a settlement with a national for-profit education company over alleged violations of the False Claims Act and the Higher Education Act. The settlement resolves four separate qui tam suits filed against the company in federal court. In conjunction with the DOJ announcement, the Attorneys General…
On October 27, 2015, the United States Attorney’s Office for the Southern District of New York announced the indictment of fifteen individuals in connection with a nationwide debt collection operation. The Defendants operated a large debt collection company that allegedly collected debts from consumers who had defaulted on payday loans…
On November 18, 2015, the CFPB announced that it had initiated an enforcement action against an online finance company. The company offered personal loans in amounts ranging from $100 to $1,000, which consumers applied for using an online application on the company’s website. When consumers applied for the loans, the…
The District Court for the District of Columbia recently ruled that a company challenging a CFPB Civil Investigative Demand (“CID”) has the right to maintain its anonymity. John Doe Company No. 1 v. CFPB, No. 1:15-cv-1177 (D.D.C. Oct. 16, 2015). After receiving a CID from the CFPB, the John Doe Company…
On November 10, 2015, the Washington Attorney General announced it received a judgment in Washington Superior Court against a student loan debt adjustment company for allegedly overcharging students and collecting unlawful fees. The judgment comes approximately three months after summary judgment was entered in favor of the Attorney General, as was reported by…
On November 5, 2015 the Massachusetts Attorney General’s Office announced that a national auto loan company agreed to pay $5.4 million in restitution to Massachusetts consumers to settle allegations it charged excessive interest rates on automobile loans. According to the Massachusetts AG, the company purchased loans from primary creditors that contained…
On November 4, 2015, the Ohio Attorney General announced that it had filed a civil enforcement action against a regional debt collection company. The lawsuit is part of an ongoing partnership with the Federal Trade Commission (FTC) and other federal agencies to investigate abusive debt collection practices. Enforcement Watch previously…
On November 4, 2015, the Washington Attorney General announced five enforcement actions against debt collection companies. The enforcement actions are part of an ongoing partnership with the Federal Trade Commission (FTC) and other federal agencies to investigate abusive debt collection practices. Enforcement Watch previously reported on the FTC partnership, named…
On November 4, 2015, the Federal Trade Commission (FTC) announced a new enforcement initiative targeting debt collection companies. The initiative, which is known as “Operation Collection Protection,” involves partnerships with state authorities to investigate debt collectors and prosecute civil and criminal enforcement actions against debt collection companies engaged in illegal…
On November 5, 2015, the DOJ’s U.S. Trustee Program announced that it entered into a nationwide settlement agreement with a national bank over allegations the bank failed to file mortgage payment change notices in bankruptcy proceedings. When a debtor has entered Chapter 13 bankruptcy proceedings, federal bankruptcy law requires mortgage…