Search Results: CFPA

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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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…

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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…

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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…

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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…

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District Court Rejects Servicer's Argument that CFPB is Unconstitutional

​On August 4, 2017, the United States District Court for the Middle District of Pennsylvania denied a student loan servicer’s motion to dismiss claims brought against it by the Consumer Financial Protection Bureau (CFPB), rejecting the servicer’s argument that the claims fail because the CFPB is unconstitutional. In January 2017, the…

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Five State Regulators Settle Claims Against Student Loan Debt Collector for $500,000

​On August 10, 2017, the Massachusetts Division of Banks (DOB) announced that it had reached, together with the financial regulators of Connecticut, Idaho, Minnesota, and North Dakota, a settlement with two companies, resolving allegations that their debt collection practices failed to comply with state and federal consumer protection laws, including the Fair Debt…

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CFPB Orders National Bank to Pay $4.6 Million in Civil Penalties for Credit Reporting Practices

On August 2, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations as to the bank’s allegedly unlawful credit reporting activities. According to the CFPB, the bank violated several federal laws with respect to its reporting practices, including the Fair Credit Reporting Act, 15…

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CFPB Files Complaints Against Credit Repair Companies for Charging Illegal Fees and Misleading Consumers

On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced​ that it filed two complaints and proposed final judgments against four California-based credit repair companies for misleading consumers and charging illegal fees. The CFPB alleged that the companies charged illegal advance fees for credit repair services and misrepresented their ability to repair…

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CFPB Lawsuit Targets High-Interest Online Lenders

On April 27, 2017, the Consumer Financial Protection Bureau (CFPB) announced the filing of a suit against four online lenders alleging that the lenders illegally collected debts on invalid loans.  The complaint alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531(a), 5536(a), and 5564(a), and the Truth in Lending Act (TILA),…

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CFPB Files Complaint Against Ohio Debt Collection Law Firm Over Misrepresentations

​On April 17, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint in the U.S. District Court for the Northern District of Ohio against an Ohio-based debt collection law firm, alleging violations of the Fair Debt Collection Practices Act (FDCPA) and Consumer Financial Protection Act (CFPA). The…

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CFPB Enters Into Consent Order with Credit Reporting Agency Over Alleged Misrepresentations

On March 23, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a California-based credit reporting agency (CRA) and its subsidiaries, resolving allegations that the CRA deceived consumers by misrepresenting that the credit score reports that it marketed to consumers were used by lenders in determining a consumer’s credit worthiness….

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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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