CFPB Enters Into $15.5 Million Consent Order with Bank Over Stop Payment and Error Resolution Practices

​On January 3, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a $15.5 million consent order with a federally-chartered savings association bank.  The consent order resolves allegations that the bank violated the Electronic Fund Transfer Act (EFTA) and Consumer Financial Protection Act (CFPA) between 2011 and 2016. Specifically, the CFPB…

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FDIC Enters Into $20 Million Consent Order With Debt Settlement Entities

On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) annou​nced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices.  According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…

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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 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 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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CFPB Orders National Bank to Pay $10 Million for Overdraft Practices

On July 14, 2016, the CFPB announced that it ordered a bank to pay $10 million in fines for its overdraft service practices.  According to the CFPB, the bank’s telemarketing vendor used allegedly deceptive marketing and sales pitches to mislead consumers to sign up for its overdraft service without the consumers’ consent. The overdraft…

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State AGs Announce $13 Million Nationwide Settlement with Money Services Company

​On February 11, 2016, 49 state attorney generals and the Attorney General for the District of Columbia, collectively the “State AGs,”​ announced​ a $13 million nationwide settlement with a Dallas-based money services company.  The settlement agreement was the result of a multi-state investigation headed by the Consumer Protection Divisions of the respective State AGs….

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FTC Reaches Settlement with Online Payday Lenders Relating to Deception Charges


On January 5, 2016, the Federal Trade Commission (“FTC”)​ announced that two online payday lenders ​reached a settlement with the FTC to resolve charges that payday lenders illegally charged consumers undisclosed and inflated fees.  As part of the settlement, each company agreed to a penalty of $2.2 million and combined waived $68 million in uncollected consumer…

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Payday Lender and CFPB Settle Debt Collection Allegations for $10 Million

On December 16, 2015, the CFPB announced a consent order and settlement with a small-dollar lender concerning its debt collection practices in 15 states.  According to the consent order, the lender’s unlawful conduct allegedly included:  in-person collection visits at consumers’ homes and workplaces and phone calls to supervisors, landlords, and…

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