CFPA

CFPB Files Complaint Alleging Debt-Relief Providers Misrepresented Affiliation with U.S. Government

On October 12, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against two debt-relief companies and their owners, and a third company that processed payments for and provided other services in connection the debt-relief providers. The complaint alleges violations under the Consumer Financial Protection Act of…

Read More

Pennsylvania AG Files Suit Against Nationwide Student Loan Provider and Servicer

​On October 5, 2017, the Pennsylvania Attorney General’s Office (AG) announced that it had filed suit against a federal student loan provider and servicer (and its subsidiary) in the U.S. District Court for the Middle District of Pennsylvania, alleging violations of the Consumer Financial Protection Act (CFPA) and Pennsylvania Unfair Trade Practices and Consumer…

Read More

UPDATE: CFPB's $21.6 Million Settlement Concerning Student Loan Servicing and Debt Collection in Doubt

As Enforcement Watch reported in late September, the Consumer Financial Protection Bureau (“CFPB”) announced that it had filed a proposed consent judgment in the United States District Court for Delaware to resolve claims relating to the servicing and debt collection activities on a portfolio of about 800,000 student loans.  Under the proposed settlement agreement, the student loan trusts…

Read More

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…

Read More

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…

Read More

CFPB Secures $7.9 Million Trial Verdict Against Mortgage Loan Servicer

On September 8, a federal judge in California ordered a national mortgage services company to pay a $7.9 million civil penalty based on false or misleading marketing statements it allegedly made to consumers about its mortgage loan repayment services.  The court, however, denied the Consumer Financial Protection Bureau’s (“CFPB”) request for $74 million in restitution, finding that the…

Read More

CFPB Enters Consent Order with Lead Aggregator For Steering Consumers to Illegal Loans

On September 6, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lead aggregator over claims the aggregator steered consumers towards lenders who offered installment or payday loans that were illegal in consumers’ states.  The consent order claimed that the aggregator sold loan applications to lenders…

Read More

CFPB Secures Stipulated Final Judgment Against Credit Repair Company

​On August 30, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a stipulated proposed final judgment in the U.S. District Court for the Central District of California in a case against a California-based credit repair company. The lawsuit, which was initially filed in September 2016, alleges that the credit repair…

Read More

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…

Read More

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…

Read More