On November 5, 2021, the Illinois Attorney General’s Office (Illinois AG) announced a settlement with three online payday lending lead generators to resolve allegations that the companies violated Illinois state lending laws. The Illinois AG alleged that the lead generators violated state lending laws by generating payday loan leads without a license…
On October 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it has issued orders to collect information about the business plans and practices of multiple large technology companies operating payment systems in the United States. Notably, these orders were issued pursuant to the CFPB’s rulemaking authority under Dodd-Frank Section 1022, rather than its…
On September 1, 2021, the Massachusetts Attorney General (“Massachusetts AG”) announced that an auto lending company had agreed to pay more than $27 million to resolve claims that it engaged in unfair and deceptive auto loan practices. The Massachusetts AG alleged that the company made high interest auto loans to borrowers, despite the…
On July 21, 2021, the Mississippi Attorney General announced that it had reached a settlement with a national auto lender to resolve claims that the company placed borrowers into auto loans with a high probability of default. The Attorney General also alleged that the auto lender engaged in aggressive collection practices in violation…
On July 12, 2021 the Consumer Financial Protection Bureau (CFPB) announced that a consent order had been reached with an Atlanta-based non-bank lending company that would require the company to cancel up to $9 million in loans for consumers, resolving allegations that the fintech company violated the Consumer Financial Protection Act (CFPA) by originating and servicing unauthorized loans….
On July 14, 2021, the Federal Trade Commission (FTC) entered into a settlement agreement with a national peer-to-peer personal loan lender to resolve allegations stemming form 2018 lawsuit that the FTC had filed in the U.S. District Court for the Northern District of California. Pursuant to the settlement, the lender agreed to pay $18 million to…
On February 3, 2021, the California Department of Financial Protection and Innovation (DFPI) announced its first formal enforcement action against an Irvine-based student debt relief company. The DFPI’s action alleges that the company’s student debt relief practices violated the California Consumer Financial Protection Law and Student Loan Servicing Act. According to the DFPI, for over three…
On January 29, 2021, the FTC announced that it filed a proposed settlement in the District of Nevada with two Nevada-based consulting companies, resolving claims that the companies violated the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, Credit Repair Organizations Act, and Consumer Review Fairness Act. The FTC alleged that, since…
On December 4, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against an online lender that offers single-payment and installment loans to consumers for alleged violations of the Military Lending Act (MLA). The MLA contains protections associated with extensions of consumer credit for active-duty servicemembers, including a maximum allowable annual…
On November 30, 2020 the Federal Trade Commission (FTC) announced that it had reached a settlement with a debt collection company for its “debt parking scheme” (also known as “passive debt collection”) in which the company allegedly placed bogus or questionable debts on consumers’ credit reports in an attempt to coerce them to pay the…