Search Results: test UDAP/UDAAP

CFPB Announces $236,000 Settlement With Illinois Debt Collector

On August 28, 2019, the Consumer Financial Protection Bureau (CFPB) announ​ced a settlement with an Illinois-based debt collection company, resolving allegations that the company engaged in deceptive practices in violation of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531 and 5536, and the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §…

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CFPB and Arkansas AG Settle with Brokers Over Illegal Credit Contracts

On August 14, 2019, the Consumer Financial Protection Bureau (CFPB) and the Office of the Arkansas Attorney General (AG) entered into a proposed stipulated final judgment with three corporations that brokered extensions of credit to consumers, and the co-founder and owner of one of the corporations.  The simultaneously filed complaint, filed…

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CFPB Announces Settlement with Tennessee Small Dollar Lender

On October 24, 2018, the Consumer Financial Protection Bureau (“CFPB”) announced that it had entered into a Consent Order with a Tennessee-based small dollar lender, resolving allegations that the lender had committed deceptive acts and practices in violation of ​the Consumer Financial Protection Act (“CFPA”), 12 U.S.C. §§ 5531, 5536(a)(1)​​(B).  The Consent Order…

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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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FTC Accuses Student Loan Debt Relief Operation of Deceiving Consumers

​On February 7, 2018, the Federal Trade Commission (“FTC”) announced an enforcement action against a student loan debt relief operation, claiming it deceived consumers out of $28 million by falsely promising that their monthly payments would go towards their student loans. In the complaint, filed in the U.S. District Court for the Northern…

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Massachusetts AG Obtains Judgment Against Online Auto Title Lender for Illegal Loans

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…

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Student Loan Company Ordered to Stop Doing Business in Kentucky

On September 27, 2016, the Kentucky Attorney General announced that on September 15, 2016, a Franklin Circuit Judge ordered a Florida-based student loan company to cease all operations in Kentucky.  The Attorney General’s lawsuit was filed after the Attorney General launched an investigation “into the company’s potentially misleading college loan forgiveness claims aimed…

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Online Fast Cash Lenders to Pay $9 Million to Settle Claims of Illegal Lending to North Carolina Consumers

On June 21, 2016, the North Carolina Attorney General announced that two online fast cash lenders have agreed to pay more than $9 million in refunds for allegedly illegal loans issued to North Carolina consumers.  The settlement stems from a December 2013 complaint alleging that the lenders violated North Carolina usury…

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