Q2 2017 Sees Significant Decrease In Civil Penalties and Consumer Relief

In the second quarter of 2017, Consumer Enforcement Watch tracked 40 enforcement actions taken against consumer financial service providers. This represents a marginal decrease from the 46 enforcement actions taken against consumer financial service providers that we tracked last quarter, and from the 46 enforcement actions tracked in the second…

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Massachusetts AG Sues Student Loan Servicer

On August 23, 2017, Massachusetts Attorney General Maura Healey announced that her office had sued one of the nation’s largest federal student loan servicers, alleging that the servicer deprived public servants of relief under the Public Service Loan Forgiveness Program (PSLF), a federal student loan forgiveness program that forgives loans of borrowers that hold public service positions…

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CFPB Files Complaint Against Private Equity Firm for Predatory Lending Practices for Student Loans

On August 17, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed a complaint ​and proposed settlement ​against an Oregon private equity firm and related entities for aiding a post-secondary education company and its school’s predatory lending scheme. The CFPB alleges that the private equity firm enabled the school…

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CFPB Files Complaints Against Credit Repair Companies for Charging Illegal Fees and Misleading Consumers

On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced​ that it filed two complaints and proposed final judgments against four California-based credit repair companies for misleading consumers and charging illegal fees. The CFPB alleged that the companies charged illegal advance fees for credit repair services and misrepresented their ability to repair…

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FTC Brings Suit Against Debt Collector for "Phantom Debts"

On June 23, 2017, the Federal Trade Commission (FTC) announced​​ that it has filed a complaint in the U.S. District Court for the Western District of North Carolina against a North Carolina debt collection company and its owner, alleging that the defendants took money from consumers for fake or “phantom” debts they did not owe. According…

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Massachusetts DOB Enters Consent Order With Company for Unlicensed Mortgage Lending and Illegal Fees

On May 11, 2017, the Massachusetts Division of Banks (DOB) entered into a consent order with a Massachusetts residential mortgage lending company, alleging that, between January 2013 and December 2016, the company engaged in unlicensed residential mortgage lending and charged fees in violation of Massachusetts law, and failed to comply with the Real…

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Massachusetts DOB Issues Findings of Fact and Temporary Cease and Desist Order Against Loan Servicing Company

On April 20, 2017, the Massachusetts Division of Banks (DOB) issued Findings of Fact and a Temporary Order to Cease and Desist against a loan servicing company, alleging that the company engaged in residential mortgage loan servicing practices that violate state and federal laws, and failed to meet the requirements…

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Massachusetts Commissioner of Banks Enters Into Consent Order with Motor Vehicle Sales Finance Company

​On March 24, 2017, the Massachusetts Commissioner of Banks (“Commissioner”) entered into a consent order with a licensed motor vehicle sales finance company, agreeing to refrain from further violations of Massachusetts state law governing the conduct of motor vehicle sales financing.  The consent order came after the Commissioner examined the company and subsequently issued a…

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