On February 23, 2018, the Office of the Attorney General of Virginia (“Virginia AG”) announced that it had entered into a settlement agreement with several affiliated online payday lenders and debt collection companies (the “Defendants”). According to the Virginia AG, the Defendants, all out-of-state organizations, provided short-term, small-dollar loans to borrowers in Virginia…
On February 6, 2018, a Kansas state court entered a default judgment against a Florida student debt relief company banning it from doing business in Kansas and ordering it to pay over $39,000 back to one consumer. Kansas Attorney General Derek Schmidt (“Kansas AG”) had accused the company of violating the Kansas…
On February 7, 2018, Virginia Attorney General Mark R. Herring (Virginia AG) announced a settlement with a Virginia based online lender for alleged violations of the Virginia Consumer Protection Act. The lender allegedly offered closed-end, installment loans online and falsely claimed it was licensed in Virginia to do so. According to the…
On January 22, 2018, Colorado Attorney General Cynthia H. Coffman (“Colorado AG”) announced that her office has settled a lawsuit against two lenders. The Colorado AG alleged that the lenders charged predatory interest rates to Colorado consumers by lending money to consumers who had pending personal injury claims and then requiring those consumers to pay…
On January 17, the New York Attorney General (AG) filed a motion to compel a debt collection company and its owner to produce financial documents, business records, and other documents in a lawsuit alleging that the defendants were part of an illegal debt collection scheme. The lawsuit, which was filed…
On November 29, the New Mexico Attorney General (AG) announced that, after a year-long investigation of a national bank, the AG will seek damages on behalf of thousands of New Mexico consumers for whom the bank had created unauthorized banking and credit card accounts. The AG announced that if he cannot reach a resolution with the bank,…
On November 1, the Federal Trade Commission (FTC) and Illinois Attorney General’s Office (Illinois AG) announced (here and here) that they had reached a settlement to resolve a joint action brought against affiliated Chicago-based debt collectors that allegedly used false and misleading tactics in attempting to collect on payday or other small-dollar loans. The…
On October 5, 2017, the Pennsylvania Attorney General’s Office (AG) announced that it had filed suit against a federal student loan provider and servicer (and its subsidiary) in the U.S. District Court for the Middle District of Pennsylvania, alleging violations of the Consumer Financial Protection Act (CFPA) and Pennsylvania Unfair Trade Practices and Consumer…
On September 26, 2017, Massachusetts Attorney General Maura Healey (AG) announced that she sued a Massachusetts used car dealership for allegedly using predatory practices to sell poor quality cars with high cost loans. The AG’s lawsuit asserts that the dealership violated the Massachusetts Consumer Protection Act, G.L. c. 93A, § 4, by…
On September 22, 2017, Massachusetts Attorney General Maura Healey (AG) announced a settlement with a company to resolve claims that the company used abusive and illegal debt collection practices. The AG’s complaint alleges that the company added hidden, illegal, and unauthorized late fees and charges to consumers’ accounts—including a $25 late…