Virginia AG Files Suit Over Pension Loans

On March 7, 2018, the Virginia Attorney General’s Office (“Virginia AG”) filed a complaint against two related loan companies and their owner (the “Defendants”) in Virginia state court.  According to the complaint, the Defendants engage in the practice of purchasing portions of Virginia citizens’ pension payments in exchange for a…

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FDIC Enters Into $20 Million Consent Order With Debt Settlement Entities

On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) annou​nced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices.  According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…

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Virginia AG Reaches $243,000 Settlement with Online Payday Lenders and Servicers

On February 23, 2018, the Office of the Attorney General of Virginia (“Virginia AG”) announced that it had entered into a settlement agreement with several affiliated online payday lenders and debt collection companies (the “Defendants”).  According to the Virginia AG, the Defendants, all out-of-state organizations, provided short-term, small-dollar loans to borrowers in Virginia…

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DOJ Settles Claims With Auto Finance Companies Over Repossessing Active Duty Servicemembers’ Vehicles

On September 27, the U.S. Department of Justice (“DOJ”) announced that it had entered into a $760,000 settlement​ with two affiliated auto finance companies stemming from allegations that the companies violated the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3901, et seq., by failing to obtain court orders prior to repossessing vehicles owned…

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CFPB, Student Loan Securitizer, and Debt Collector Agree to Combined $21.6 Million Settlement for Alleged Illegal Collection Practices

On September 18, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a settlement and proposed consent judgment with a student loan owner and securitizer, and a separate consent judgment with the securitizer’s debt collector.  The securitizer has a loan portfolio of approximately 800,000 student loans.  According…

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Loan Brokerage Firm Agrees to $70,000 Settlement with CFPB Over Personal Loans Made to Recipients of Victim Compensation Funds

On September 19, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced a simultaneous complaint and proposed consent order with a loan brokerage company and two associated individuals (the “Defendants”).  The Defendants are alleged to have made misrepresentations concerning the brokerage and the loan terms they offered to potential borrowers.  According to the CFPB,…

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DOJ Obtains $907,000 Settlement for Auto Lender's Repossession of Active Duty Servicemembers' Vehicles

On September 18, 2017, the Department of Justice (“DOJ”) announced that it had entered into a $907,000 settlement with an auto loan lender and servicer (“Defendant”).  In its co​mplaint,​ filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…

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