Enforcement Trends

Georgia AG Secures Agreement from Online Payday Lender to Suspend $6.5 Million in Collections

On November 3, 2016, the Georgia Attorney General’s Office (Georgia AG) announced that affiliated online payday lenders will suspend collections on approximately $6.5 million in loans following a Georgia Supreme Court ruling that state law applied to the online payday lenders.  As a result of that ruling, the Georgia AG’s case currently…

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Q2 2016 Sees Increased Personal and Student Lending Enforcement (Interactive Charts Inside)

For the second quarter of 2016, Consumer Enforcement Watch tracked 46 enforcement actions taken against consumer finance providers. This represents a slight decrease from the 50 enforcement actions that were tracked last quarter, and a decrease from the 56 actions that we tracked in the second quarter of 2015. Approximately two-thirds of…

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Q1 2016 Sees Continued Focus on Mortgages, Fair Lending, and CFPB Enforcement (Interactive Charts Inside)

For the first quarter of 2016, Consumer Finance Enforcement Watch tracked 50 enforcement actions taken against consumer finance providers, marking a slight increase from the 46 actions we had tracked a year ago in Q1 2015.  Of the Q1 2016 enforcement actions, the majority were settlement agreements. Consistent with the…

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CFPB Announces Settlement with Debt Collection Law Firm and Debt Buyer Over Alleged Abusive Debt Collection Practices

On April 25, 2016, the Consumer Financial Protection Bureau (CFPB) announced​ it entered into two settlements, available here​ and here, with a law firm and a financial services company over allegations the entities filed debt collection lawsuits without properly verifying the underlying debt obligations, in violation of the Consumer Financial Protection Act…

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Massachusetts AG Announces Settlement With Auto Lender Over Alleged Usurious Interest Rates

​On March 16, 2016, the Massachusetts Attorney General’s Office announced that two financial services companies specializing in auto loans agreed to pay a total of $7.4 million in restitution to Massachusetts consumers over allegations the companies charged excessive interest rates on auto loans. According to the Massachusetts AG, the companies purchased loans from primary creditors…

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CFPB Publishes Rulemaking Agenda Including Proposed Rule Prohibiting Class Action Waivers

On November 20, 2015, the CFPB published​ its current rulemaking agenda. Under the Dodd-Frank Wall Street Reform Act, the CFPB drafts and implements new regulations governing certain consumer finance products and services. The CFPB publishes its regulatory agenda twice a year, which summarizes the proposed regulations (or “rules”) the Bureau is…

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Massachusetts AG Announces Auto Loan Company will Pay $5.4 Million to Settle Allegations it Charged Usurious Interest Rates

​On November 5, 2015 the Massachusetts Attorney General’s Office announced that a national auto loan company agreed to pay $5.4 million in restitution to Massachusetts consumers to settle allegations it charged excessive interest rates on automobile loans. According to the Massachusetts AG, the company purchased loans from primary creditors that contained…

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California AG Settles with National Bank over Alleged Abusive Debt Collection Practices

On November 2, 2015, the California Attorney General’s Office announced that it had entered into a $100 million stipulated judgment with a national bank over allegations that the bank engaged in abusive debt collection practices, in violation of California’s Fair Debt Collection Practices Act. The allegations relate to the bank’s…

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2Q 2015 Sees Increase in Enforcement Litigation

For the second quarter of 2015, Consumer Finance Enforcement Watch tracked 56 enforcement actions taken against consumer finance providers, a slight uptick in enforcement activity from the previous quarter’s 46 actions.  Although the 56 actions ranged from court-enforcement consent settlement agreements, administrative settlements, administrative actions, civil judgments, and new civil…

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