On September 1, 2022, the Federal Trade Commission (FTC) announced that it reached a settlement with a personal finance company to resolve allegations that it engaged in deceptive acts or practices in violation of Section 5(a) of the Federal Trade Commission Act (FTCA), 15 U.S.C. § 45(a). According to the FTC, the personal…
On July 28, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a large national bank to resolve alleged violations of the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., and its implementing regulation, Regulation Z (Reg Z), 12 C.F.R. part 1026; the Fair Credit…
On March 21, 2022, the Department of Justice (DOJ) announced that it obtained a permanent injunction against a credit repair company and its CEO, barring the company from making representations that it can improve consumers’ credit scores. The injunction was issued by the United States District Court for the Southern District of Texas in relation…
On March 23, 2021, the New York State Department of Financial Services (“DFS”) announced that it had issued a report summarizing its findings on the compliance of the underwriting of a technology company’s credit card with fair lending practices and the Equal Credit Opportunity Act (“ECOA”). DFS began investigating the credit card’s underwriter, a…
On March 4, 2021, Virginia’s Attorney General (AG) announced that it had reached a settlement with an open-end credit lender, resolving allegations that the lender violated the state’s consumer finance statutes. The AG alleged that from September 2013 through July 2017, the lender charged $100 origination fees on loans that were in…
On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processing companies and two individuals, resolving claims concerning an alleged credit card laundering scheme perpetrated in violation of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 53(b), and the Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), 15 U.S.C. §§…
On February 8, state Attorneys General for North Carolina, Iowa, Massachusetts, New Jersey, and Pennsylvania (State AGs) announced a $4.2 million settlement with a national bank to resolve allegations that it overcharged credit card interest for certain customers. According to the settlement agreement, the State AGs conducted a joint investigation into whether, between 2011…
On January 29, 2021, the FTC announced that it filed a proposed settlement in the District of Nevada with two Nevada-based consulting companies, resolving claims that the companies violated the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, Credit Repair Organizations Act, and Consumer Review Fairness Act. The FTC alleged that, since…
On December 10, 2020, the Federal Trade Commission (Commission) announced that it reached a settlement with a payment processor and its former CEO for alleged violations of the Federal Trade Commission Act (FTCA). The complaint alleges that the payment processor illegally processed more than $93 million in consumer credit card charges related to fraudulent…
On July 24, 2020, the Federal Trade Commission (FTC) announced that it settled charges with the operators of a Florida-based company that allegedly defrauded financially-distressed and often older-adult consumers with deceptive robocalls. The proposed court order would ban the defendants from selling debt relief services and from all telemarketing based on…