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CFPB Issues Consent Order Regarding National Bank's Student Loan Servicing Practices

On August 22, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a large national bank in relation to the company’s private student loan servicing practices.  The CFPB asserts that the bank’s practices allegedly increased costs and penalized certain borrowers, leading to illegal fees and inaccurate credit…

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Minnesota AG Settles Suit Against California Online Lender Relating to Alleged "Rent-a-Tribe" Scheme

On August 19, the Attorney General’s Office for the State of Minnesota (Minnesota AG) announced that it had settled a lawsuit against a California-based online lender relating to an alleged “rent-a-tribe” scheme.  The settlement bars the lender from doing business in Minnesota unless and until it complies with the state’s usury, lending,…

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National Bank Settles False Claims Act Allegations for $64 Million

On May 13, the Department of Justice (DOJ) announced that it has reached a $64 million settlement agreement with a national bank relating to the bank’s participation in the Direct Endorsement Lender Program of the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA). The agreement resolves claims that were originally brought…

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CFPB Brings Action Against Mississippi Pay Day Lending and Check Cashing Company

On May 11, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it is taking action against a Mississippi-based check cashing and payday lending company and its owner for purportedly “tricking and trapping” customers.  According to the complaint, filed in the U.S. District Court for the Southern District of Mississippi, the defendants…

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Pennsylvania AG Sues Financial Services Company for Defrauding Veterans

On May 5, 2016, the Pennsylvania Attorney General announced the filing of a civil lawsuit in the Clinton County (PA) Court of Common Pleas against an Ohio financial services company and its owner for misleading at least four Pennsylvania consumers, including three military veterans.  The lawsuit states that the company catered specifically to…

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California Man Pleads Guilty to Criminal Charges Relating to HAMP Modification Scheme

On May 4, 2016, the United States Attorney for the Southern District of New York and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) announced that a California man was found guilty of de​fraudin​g over 30,000 homeowners out of $31 million through a large mortgage modification scheme.​ The defendant was…

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National Bank Finalizes $1.2 Billion Settlement Relating to FHA Lending Program

On April 8, 2016​, the Department of Justice (DOJ) officially announced a $1.2 billion settlement with a national bank and one of its executives relating to the bank’s participation in the Federal Housing Administration (FHA) Direct Endorsement​ Lender Program.  As part of the settlement agreement, the bank acknowledged that between the period of May…

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State AGs Announce $13 Million Nationwide Settlement with Money Services Company

​On February 11, 2016, 49 state attorney generals and the Attorney General for the District of Columbia, collectively the “State AGs,”​ announced​ a $13 million nationwide settlement with a Dallas-based money services company.  The settlement agreement was the result of a multi-state investigation headed by the Consumer Protection Divisions of the respective State AGs….

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OCC Terminates Mortgage Servicing Consent Order and Assesses Penalties Against Two National Banks

On February 9, 2016, the Office of the Comptroller of Currency (“OCC”) announced that it has terminated mortgage servicing-related consent orders against two national banks because the banks now comply with the orders.   In terminating the consent orders, the OCC assessed a $10 million civil money penalty against the first bank and a $3.4 million civil money penalty against the…

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