CFPA

CFPB Orders Prepaid Card Service Provider and Processor to Pay $13 Million

On February 1, 2017, the Consumer Financial Protection Bureau (CFPB) announced a settlement with a credit card service provider and a credit card provider over a disruption of service for prepaid credit card consumers. According to the CFPB, the credit card provider marketed its prepaid credit card to consumers nationally as a way to get…

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CFPB Files Suit Against Debt Relief Attorneys

On January 30, 2017, the Consumer Financial Protection Bureau (CFPB) filed a complaint in the United States District Court for the Central District of California against several debt relief law firms and individual attorneys based in Orange County, California and Kansas City, Kansas.  The CFPB brought the action under the Telemarketing and Consumer Fraud and Abuse…

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Ninth Circuit Compels Tribal Lenders to Comply with CFPB Investigative Demand

On January 20, 2017, the Ninth Circuit affirmed a trial court ruling that ordered three tribal lending entities to comply with the Consumer Financial Protection Bureau’s (CFPB) civil investigative demands. The CFPB’s investigation concerns whether small-dollar online lenders or similar persons had engaged in illegal advertising, marketing, or collection practices in…

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CFPB Secures $8.8 Million Consent Order Against Mortgage Servicer

On January 23, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a mortgage servicer, resolving alleged violations of the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Consumer Financial Protection Act’s (CFPA) prohibition on deceptive acts or practices….

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CFPB Settles RESPA Claims with Mortgage Servicer for $20 Million

On January 23, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a mortgage servicer, resolving allegations that the servicer violated the Real Estate Settlement Procedures Act (RESPA) and the Consumer Financial Protection Act (CFPA). The CFPB alleged that, during 2014, the servicer informed borrowers seeking loss mitigation…

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CFPB Files Suit Alleging Bank Deceived Consumers into Buying Overdraft Protection

On January 19, 2017, the CFPB announced it filed a suit against a Minnesota bank, alleging the bank deceived consumers into purchasing overdraft services. The CFPB alleged that the bank, which operates throughout ​Minnesota, Wisconsin, Illinois, Michigan, Colorado, Arizona, and South Dakota, made it seem mandatory to purchase overdraft protection…

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CFPB Enters Consent Orders with Credit Reporting Agencies Over Allegedly Deceptive Credit Scores

On January 3, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into two consent orders, available here and here, with two national credit reporting agencies over allegations that the agencies violated the Consumer Financial Protection Act by misrepresenting how lenders use certain credit scores that the agencies…

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CFPB Enters Consent Order with Lender Over Defective Disclosures

On December 20, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a mid-Atlantic financing company over allegations that the company entered into revolving-credit agreements with consumers without providing adequate disclosures.  The consent order alleged that the company violated the Electronic Fund Transfer Act…

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CFPB Files Lawsuits Against Four Virginia Pawnbrokers for Misstating Loan Charges

On December 19, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it had filed actions against four separate Virginia-based pawnbrokers for alleged violations of the Truth in Lending Act (TILA) and Consumer Financial Protection Act (CFPA). The nearly identical Complaints allege that the pawnbrokers misled consumers by enticing them…

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CFPB Enters Consent Order with Seattle-Based Payday Lender

On December 16, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order relating to a Seattle-based payday lender and check-cashing company’s allegedly deceptive online advertisements and collection letters.  The consent order alleges that the company violated sections 1031(a) and 1036(a)(1)(B) of the Consumer Financial Protection Act of 2010 (CFPA), 12 U.S.C. §§ 5531(a), 5536(a)(1)(B),…

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