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Reverse Mortgage Servicer to Pay Over $29 Million to Resolve False Claims Act Allegations

On September 4, 2015, the Department of Justice (“DOJ”) announced that a company engaged in reverse mortgage servicing agreed to pay $29.63 million​ to settle allegations that it violated the False Claims Act (“FCA”) in connection with its participation in the Department of Housing and Urban Development’s (“HUD”) Home Equity Conversion Mortgage…

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FTC Bans Mortgage Relief Company from Selling Debt Relief Services

FTC

On September 3, 2015​, the Federal Trade Commission (“FTC”) agreed to settle allegations with a mortgage relief services company that allegedly charged homeowners an illegal fee for assistance the company never provided.  The FTC brought its claims under section 5(a) of the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 45(a), the Mortgage Assistance Relief Services Rule (“MARS…

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North Carolina Judge Bars Payday Lender from Lending Activity

On September 1, 2015​, North Carolina Special Court Superior Judge Gregory P. McGuire issued a preliminary injunction​ barring a North Dakota-based online fast cash lender from advertising, lending, and collection activity in the state of North Carolina.  The preliminary injunction bars the lender and its affiliated companies from advertising, offering or entering into contracts to…

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CFPB Enters Consent Agreement with Student Loan Lender Concerning Sales and Billing Practices

On July 23, 2015, the Consumer Financial Protection Bureau (“CFPB”)​ filed a complaint and proposed consent order in the United States District Court for the Eastern District of California in connection with a settlement reached with a student loan lender that offered fee-based assistance to consumers filling out the federal government’s Free Application…

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CFPB Issues Order and Penalties Against National Bank for Student Loan Servicing Practices

On July 22, 2015, the Consumer Financial Protection Bureau (“CFPB”)​ issued a consent order against a national bank and its affiliates for its servicing practices affecting private student loan borrowers.​  The order asserts that the bank violated various sections of the Consumer Financial Protection Act of 2010 (“CFPA”) and the Fair…

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CFPB and OCC Issue Consent Orders Against National Bank for Credit Card Practices

​On July 21, 2015, the Consumer Financial Protection Bureau (“CFPB”) issued a consent order requiring a national bank and its subsidiaries to provide roughly $700 million in consumer relief due to the bank’s practices relating to its credit card services and add-on products.  The consent order states that a CFPB review of the bank’s practices…

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Colorado AG Files Action Against Retailer Over Credit Extended to Military Servicemembers

On July 17, 2015, the Attorney General for the State of Colorado (“Colorado AG”) filed a lawsuit in Denver District Court alleging that a retailer and its related companies repeatedly violated Colorado’s consumer lending laws concerning credit extended to military servicemembers. ​ The action is the second lawsuit filed by the Colorado AG in the…

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Pennsylvania Attorney General Announces Settlement with Mortgage Loan Modification Companies

On July 13, 2015, Pennsylvania Attorney General Kathleen G. Kane announced a settlement with two Philadelphia-based mortgage loan modification companies following an investigation by the states’ Bureau of Consumer Protection.  According to the Attorney General’s announcement, the Bureau initiated the investigation as a result of consumer complaints filed against the companies for,…

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