On November 20, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a Texas-based financial services company, resolving allegations that the company violated sections 1031 and 1036 of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531, 5536. Specifically, the CFPB alleged that the company engaged in deceptive…
On November 2, 2018, the United States Attorney for the Southern District of New York announced a settlement with a New York based credit union, resolving allegations that the credit union had illegally repossessed cars owned by servicemembers on active duty in violation of the Servicemembers Civil Relief Act, 50 U.S.C. § 3952 (“SCRA”). Under…
On July 19, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lender and its subsidiaries, resolving allegations that the company violated the Consumer Financial Protection Act (CFPA) and Truth in Lending Act (TILA). The lender and its subsidiaries are financial services companies…
On April 20, 2018, the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) each announced settlements totaling $1 billion with a national bank resulting from a coordinated action between the two agencies. The OCC found that deficiencies in the bank’s enterprise-wide compliance risk management program…
On March 28, 2018, the Department of Justice (“DOJ”) announced it had filed a lawsuit in the Central District of California against an auto lender for allegedy repossessing the vehicles of members of the armed forces protected by the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3952. According to the complaint,…
On February 22, 2018, the Department of Justice (“DOJ”) announced that it had entered into a settlement with an auto financial services company for alleged violations of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3955(f) relating to upfront leases. In its complaint, filed the same day in the United States District…
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…
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 complaint, filed the same day in the United States District Court for the Northern District of Texas, the DOJ alleged that the Defendant had…
On May 25, 2017, Massachusetts Attorney General Maura Healey (“Massachusetts AG”) announced a final judgment and permanent injunction entered in Suffolk Superior Court against an unlicensed online auto title lender, permanently banning the company from operating in Massachusetts and voiding over 200 loans made by the company to Massachusetts borrowers. The judgment also prohibits…
On May 8, 2017, the North Carolina Attorney General (“NC AG”) announced that it had obtained a final judgment against an auto title lender and two of its employees in North Carolina State Court. The NC AG alleged that the lender solicited loans online, and required consumers to secure the loans with their vehicle titles. If…