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…
On September 13, 2017, Virginia Attorney General (“Virginia AG”) Mark R. Herring announced that it had filed suit in Virginia state court against an open-end credit plan lender for allegedly violating the Virginia Consumer Protection Act (“VCPA”), Virginia Code §§ 59.1-196 to 59.1-207, through its lending practices. The defendant lender allegedly made illegal, unlicensed loans at…
In the second quarter of 2017, Consumer Enforcement Watch tracked 40 enforcement actions taken against consumer financial service providers. This represents a marginal decrease from the 46 enforcement actions taken against consumer financial service providers that we tracked last quarter, and from the 46 enforcement actions tracked in the second…
On August 24, 2017, the Attorney General for the District of Columbia (D.C. AG) announced that his office won a judgment in the D.C. Superior Court against a debt relief provider and its owners. The DC AG alleged that the defendants unlawfully marketed student debt relief services to D.C. consumers. The court…
On August 23, 2017, Massachusetts Attorney General Maura Healey announced that her office had sued one of the nation’s largest federal student loan servicers, alleging that the servicer deprived public servants of relief under the Public Service Loan Forgiveness Program (PSLF), a federal student loan forgiveness program that forgives loans of borrowers that hold public service positions…
On August 17, 2017, the Associated Press announced that Minnesota’s Attorney General is suing two lending firms (with the same Nevada address) for allegedly pressuring veterans and senior citizens into signing over large portions of their monthly pensions to cover small loans. According to the complaint, some interest rates were as…
On August 8, 2017, the District of Columbia Attorney General (AG) announced that it had reached a settlement with a Florida-based debt relief company and its owner, resolving allegations that their debt collection practices violated District of Columbia consumer protection statutes. According to the AG, the company entered into contracts with…
On July 27, 2017, the Arizona Attorney General’s Office (Arizona AG) announced that it had obtained a judgment against an allegedly fraudulent mortgage relief company and its owner. The company is alleged to have targeted homeowners who were considering defaulting on “upside down” mortgages. The company purportedly promised to take over…
On July 25, 2017, the Virginia Attorney General’s Office (Virginia AG) announced that it had reached a settlement with a small-dollar open-end credit lender. According to the Virginia AG, the lender offered open-end cash advances, both at a storefront and online, through short term loans with interest rates as high as…
On July 13, 2017, the Massachusetts Attorney General’s Office (“Massachusetts AG”) announced that it obtained a preliminary injunction against a debt collection law firm and its principal attorney. The Massachusetts AG alleged that the law firm engaged in unlawful collection practices, in violation of the Massachusetts AG’s debt collection regulations. The law firm collected debts for…
On June 30, 2017, the Attorney General for the Commonwealth of Virginia (Virginia AG) announced that it had entered into a proposed consent order to resolve an action filed in Richmond City Circuit Court against a Virginia-based pawn broker that allegedly assessed excessive fees, made motor-vehicle-secured loans without a title loan license, and charged illegal interest…
On June 22, 2017, the New Jersey Office of the Attorney General (“New Jersey AG”) and the New Jersey Division of Consumer Affairs (“New Jersey DCA”) announced a settlement with a Georgia financing company that facilitates on-the-spot financing for home improvements through participating home improvement contractors. The New Jersey DCA opened…
On June 16, 2017, the New Jersey Office of the Attorney General (“New Jersey AG”) and the New Jersey Division of Consumer Affairs announced a settlement with a for-profit student loan consolidation service that allegedly operated in the State of New Jersey without a debt-adjuster license. The New Jersey AG brought the action…
On June 5, 2017, the Federal Trade Commission (FTC) announced that a federal district court had entered its eighth order against the remaining defendants in an illegal robocall ring in which defendants promised to help consumers lower their credit card interest rates. The FTC, in conjunction with the Florida Office of the Attorney…
On June 2, 2017, the Florida Attorney General (“Florida AG”) announced that it entered into a consent order with a Florida car dealership and its president following allegations that the dealership and the individual violated the Federal Trade Commission Act (“FTC Act”) and its regulations, specifically 16 C.F.R. § 255.5, and the Florida Consumer…
On May 25, 2017, Kentucky Attorney General Andy Beshear (“Kentucky AG”) announced steps it is taking to provide guidance to Kentucky homeowners whose banks use online mortgage recording databases instead of traditional public land records to track land ownership. The Kentucky AG has provided county clerks with information to post in…
On May 25, 2017, the Federal Trade Commission (“FTC”) announced that it filed a complaint in federal court in the United States District Court for the Southern District of Florida against a student loan debt relief and credit repair company, its affiliated companies, and owner. The complaint alleged that the defendants operated an…
On May 25, 2017, Massachusetts Attorney General Maura Healey (“Massachusetts AG”) announced a final judgment and permanent injunction entered in Suffolk Superior Court against an unlicensed online auto title lender, permanently banning the company from operating in Massachusetts and voiding over 200 loans made by the company to Massachusetts borrowers. The judgment also prohibits…
On May 23, 2017, the Florida Attorney General’s Office (AG) announced that it had filed a complaint against a Florida student loan debt relief company that falsely promised consumers it could substantially reduce their student loan debt, or even have their student loan debt forgiven. According to the complaint, the company convinced consumers to pay…
On May 23, 2017, the District of Columbia Attorney General’s Office announced that it had entered into a consent order with a Maryland debt relief company and its owner for violating the District of Columbia’s Consumer Credit Service Organizations Act, D.C. Code § 28-4601, et seq., by falsely promising to help consumers reduce or eliminate debt. The debt relief…