Search Results: test UDAP/UDAAP

CFPB Takes Action Against Companies for Unfair Billing of Credit Card Add-On Products and Services

The Consumer Financial Protection Bureau (“CFPB”) took action against two credit card vendors, entering into proposed consent orders regarding the companies’ offerings of allegedly unlawful add-on products.  Credit card companies offer consumers “add-on” services, such as credit monitoring or identity theft protection for a monthly or annual membership fee. Following an…

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State Attorneys General Announce Settlement with Credit Reporting Agencies

On May 20, 2015, Ohio Attorney General Mike DeWine, along with attorneys general of thirty other states (“the State AGs”), announced a $6,000,000 settlement with three major credit reporting agencies (“CRAs”). According to the announcement and the Settlement Agreement, the settlement is a culmination of a multistate investigation that the…

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CA Department of Business Oversight Sues Debt Repayment Service for Alleged Excessive Fees and Unlicensed Operations

On Friday, May 15, 2015, the California Department of Business Oversight (DBO) announced that it filed a complaint in state court against an Ohio-based biweekly debt repayment firm and allegedly associated entities (collectively “Defendants”) claiming certain violations of licensing, fee, and consumer protection provisions of California’s Financial Code and Business & Professions…

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New York AG Obtains Default Judgment Against Two Law Firms for Mortgage Rescue Scheme

On May 13, New York Attorney General Eric T. Schneiderman annouced that the AG obtained default judgment against Brooklyn and Florida Law Firms and the firms’ principal attorney for participating in a fraudulent mortgage rescue scheme. The AG’s petition alleged that, directly and through their third-party marketers, the firms collected…

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Consumer Financial Protection Bureau Files Suit Against Mortgage Payment Liaison

On May 11, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed suit in the United States District Court for the Northern District of California against the provider of a mortgage payment liaison service for allegedly misleading customers about costs associated with its bi-weekly mortgage payment program and misrepresenting…

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CFPB Settles Claims with Corporations that Targeted Struggling Homeowners

The Consumer Financial Protection Bureau (CFPB) settled claims with three defendants after the CFPB claimed the corporations were targeting homeowners who were struggling to make mortgage payments.  The parties stipulated to final judgments for the individual defendants that were filed with the Court.  The CFPB also filed a motion for default judgment as…

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Illinois AG Sues Student Loan Debt Settlement Companies Under State Consumer Protection Laws

On May 4, 2015, Illinois Attorney General Lisa Madigan announced five lawsuits filed on behalf of the State against student loan debt settlement services companies based in Texas, California, Florida, Georgia, and Illinois. The complaints allege that the companies violated Illinois’ consumer protection laws by charging hundreds to thousands of…

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Military Allotment Payroll Processor Enters Consent Order With CFPB Over Fees

On April 20, the Consumer Financial Protection Bureau (CFPB) announced that it entered a Consent Order with a military payroll processor over allegations that the payroll processor applied hidden monthly fees against funds in servicemembers’ accounts, which were designated to pay creditors. The CFPB found that servicemembers usually contracted with…

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Military Financial Services Provider Settles With CFPB for Alleged Failure to Disclose Fees

On April 20, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered a settlement with a Kentucky-based financial services provider over claims that the company charged excessive fees for the payroll deductions of military servicemen, and that it failed to disclose these fees to consumers. The copany allegedly…

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California Mortgage Lender Settles With CFPB for Allegedly Deceptive Advertising Practices

On April 9, 2015, the Consumer Financial Protection Bureau (“CFPB”) announced a settlement with a California-based mortgage lender over claims that the lender engaged in deceptive advertising practices. The company allegedly mailed advertisements bearing the logos of the Department of Veterans Affairs and the Federal Housing Administration, ostensibly to give…

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