Banking

West Virginia Attorney General Announces Settlement with Online Lender Over Alleged Usurious Loans

On June 6, 2016, the West Virginia Attorney General announced a settlement with a regional online lender over allegations that the lender’s business practices violated West Virginia’s Consumer Credit and Protection Act. The company markets and sells online installment loans, through an alleged “bank-partnership model.” Under the bank-partnership model, a company partners…

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California AG Files Mortgage-Backed Securities Suit Against Investment Bank

On April 1, 2016, the California Attorney General announced that it filed suit against a prominent investment bank for alleged “misrepresentations about complex investments such as residential mortgage-backed securities, in which large pools of home loans were packaged together and sold to investors.”  The eight-count complaint, which was filed in…

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National Bank Will Pay $600 Million to Settle Federal and State Claims Addressing Loan Origination, Servicing, and Foreclosure Practices

​On February 5, 2016, the Department of Justice, the Department of Housing and Urban Development, the Consumer Financial Protection Bureau, and 49 state attorneys general and the District of Columbia’s attorney general announced a $470 million settlement with a national bank to address alleged mortgage origination, servicing, and foreclosure abuses. …

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CFPB Publishes Rulemaking Agenda Including Proposed Rule Prohibiting Class Action Waivers

On November 20, 2015, the CFPB published​ its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…

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CFPB Summarizes Supervisory Trends for May through August, 2015

On November 3, 2015, the Consumer Financial Protection Bureau (CFPB) released its Supervisory Highlights report​ detailing the Bureau’s supervision efforts for May through August of 2015. The report summarizes the violations of consumer protection laws the Bureau observed during the four-month period and identifies the areas in which the Bureau has…

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CFPB & DOJ Reach $27M Settlement with Regional Bank over Redlining Allegations

​On September 24, 2015, the CFPB and the DOJ announced a settlement with a regional bank over allegeatoins that it engaged in redlining practices in violation of the Equal Credit Opportunity Act (ECOA). According to the complaint, the bank allegedly discriminated against minorities by systematically preventing residents of certain minority neighborhoods from…

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