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…
On December 22, 2015, the Federal Trade Commission (“FTC”) announced that it settled claims under the FTC Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act against participants in a purported credit card money laundering scheme wherein the defendants allegedly helped enable third-party telemarketing scammers to charge consumers’ credit cards. According to…
On December 3, two telemarketers stipulated to a preliminary injunction preventing the companies from making allegedly misleading robocalls to consumers regarding reduction in credit card interest rates as part of a debt relief offering. In the underlying lawsuit, the Federal Trade Commission (FTC) and the State of Florida filed a…
On November 24, the Federal Trade Commission (“FTC”) announced that it reached a settlement agreement with two Ohio auto dealers relating to allegations that the auto dealers violated Section 184 of the Consumer Leasing Act, 15 U.S.C. § 1667c, and Section 213.7 of Regulation M, 12 C.F.R. § 213.7. Specifically, the FTC’s administrative complaint alleged that the auto dealers failed to disclose key…
On November 4, 2015, the Ohio Attorney General announced that it had filed a civil enforcement action against a regional debt collection company. The lawsuit is part of an ongoing partnership with the Federal Trade Commission (FTC) and other federal agencies to investigate abusive debt collection practices. Enforcement Watch previously…
On November 4, 2015, the Washington Attorney General announced five enforcement actions against debt collection companies. The enforcement actions are part of an ongoing partnership with the Federal Trade Commission (FTC) and other federal agencies to investigate abusive debt collection practices. Enforcement Watch previously reported on the FTC partnership, named…
On November 4, 2015, the Federal Trade Commission (FTC) announced a new enforcement initiative targeting debt collection companies. The initiative, which is known as “Operation Collection Protection,” involves partnerships with state authorities to investigate debt collectors and prosecute civil and criminal enforcement actions against debt collection companies engaged in illegal…
On October 20, the Federal Trade Commission (FTC) announced that it approved final consent orders against two Law Vegas auto dealers for misrepresenting the cost of cars in advertising, which the dealers had agreed to settle back in June (available here and here). The complaints (available here and here) alleged that the…
On October 5, 2015, the Federal Trade Commission (FTC) announced that it reached a settlement with defendants who allegedly operated a debt scamming business by promising consumers debt relief services that they did not deliver. Defendants allegedly disseminated false and misleading information regarding their services through telemarketing, internet ads, and other media. After…
On September 16, the Federal Trade Commission (FTC) announced that it had entered a stipulated order with a debt collection services provider over allegations that the debt collector violated the Federal Trade Commission Act and Fair Debt Collection Practices Act by misrepresenting to payday loan recipients that they were delinquent on their debts, collected millions…
On September 16, the Federal Trade Commission (FTC) announced that it had entered a stipulated order with the financing arm of a Texas auto dealer to settle allegations regarding the auto dealer’s credit reporting practices. In its simultaneously filed complaint, the FTC alleged that the auto dealer violated the Federal Trade Commission Act, the Fair Credit…
On August 24, 2015, the Third Circuit affirmed the United States District Court for the District of New Jersey’s denial of a motion to dismiss in FTC v. Wyndham Worldwide Corp. In Wyndham, the Federal Trade Commission brought suit against Wyndham in the wake of three cybersecurity attacks that allegedly…
On September 3, 2015, the Federal Trade Commission (“FTC”) agreed to settle allegations with a mortgage relief services company that allegedly charged homeowners an illegal fee for assistance the company never provided. The FTC brought its claims under section 5(a) of the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 45(a), the Mortgage Assistance Relief Services Rule (“MARS…
On August 4, the Federal Trade Commission (FTC) announced that it had reached a settlement with a national credit repair company and its officers over allegations that they misrepresented the nature of the services provided to Spanish-language consumers. The complaint, filed on March 16, alleged that the company charged consumers up-front for credit repair services, falsely claimed…
On July 30, the Federal Trade Commission (FTC) announced that it will mail checks totaling over $969,000 to consumers who lost money as part of a credit card interest rate reduction scam. In June 2013, the FTC brought suit in the Middle District of Florida against a payment processor and telemarketing company,…
On July 10, the Federal Trade Commission (FTC) announced that it had entered into a consent order permanently banning a state debt relief services provider from advertising or providing debt relief services. The complaint, filed on January 26, alleged that the provider violated the Federal Trade Commission Act and Telemarketing and Consumer…
On July 10, the Federal Trade Commission (FTC) announced that it had entered a consent order with affiliated auto dealerships that allegedly misrepresented to consumers that auto payment programs or add-on products would save them money. The consent order prohibits the dealerships from representing that any payment program or add-on product or…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
On July 8, 2015, the Federal Trade Commission (FTC) announced that settlements were approved against companies and individuals who allegedly operated a fraudulent debt collection scheme that targeted Spanish-speaking consumers. According to the complaint, the defendants cold called Spanish-speaking consumers nationwide, and falsely held themselves out to be government officials seeking to collect a debt…
On July 7, the Federal Trade Commission (FTC) announced that a federal court entered a preliminary injunction halting an alleged nationwide debt relief telemarketing scam and freezing the defendants’ assets. The FTC claims that the defendants millions from consumers. The complaint, brought by the FTC and Florida Attorney General, alleged that the defendants contacted consumers…