In the wake of the financial crisis and with the advent of the Consumer Financial Protection Bureau (CFPB), federal and state enforcement officials have increasingly scrutinized consumer financial products and services. In many situations, these officials and agencies coordinate to advance common or similar claims and actions. Against this backdrop, we created the Consumer Finance Enforcement Watch blog – the marketplace’s first resource for real-time reporting on the full range of public federal and state consumer finance enforcement activity. Here, you will also find links to enforcement documents, statistics on the volume and nature of enforcement actions as well as reports and comments on significant enforcement trends and issues.

CFPB Investigating Digital-Payment Company's Collection Practices

​On February 5, 2021, a digital-payment company disclosed in a filing with the Securities Exchange Commission (SEC) that they received​ a Civil Investigative Demand (CID) from the Consumer Financial Protection Bureau (CFPB) on January 21, 2021.  The CID requests documents and answers to written questions concerning allegedly unauthorized funds transfers and collections processes relating to one of the company’s products. …

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Delaware AG Files Lawsuit Against Debt-Management Services Company

On February 8, 2021, the Delaware Attorney General (Delaware AG) announced that it filed an administrative lawsuit against a California-based debt-management services company for allegedly violating the Delaware Uniform Debt-Management Services Act, the Delaware Consumer Fraud Act, and the Delaware Deceptive Trade Practices Act. According to the Delaware AG, ​​the debt-management company used misleading advertising to target elderly and…

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State AGs Announce $4.2 Million Settlement with National Bank for Alleged CARD Act Violations

​On February 8, state ​Attorneys General for North Carolina, Iowa, Massachusetts, New Jersey, and Pennsylvania (State AGs) announced a $4.2 million settlement ​with a national bank to resolve allegations that it overcharged credit card interest for certain customers. According to the settlement agreement, the State AGs conducted a joint investigation into whether, between 2011…

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California DFPI Files First Enforcement Action Against Student Debt Relief Company

On February 3, 2021, the California Department of Financial Protection and Innovation (DFPI) announced its first formal enforcement action against an Irvine-based student debt relief company.  The DFPI’s action alleges that the company’s student debt relief practices violated the California Consumer Financial Protection Law and Student Loan Servicing Act. According to the DFPI, for over three…

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California DFPI Launches Investigation Into Four Student-Loan Debt-Relief Companies

On February 4, 2021, the California Department of Financial Protection and Innovation (DFPI) launched an investigation into whether four California-based student-loan debt-relief companies violated the new California Consumer Financial Protection Law (CCFPL) and Student Loan Servicing Act (SLSA).  The CCFPL took effect on January 1, 2021 and expanded the DFPI’s regulatory…

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FTC Reaches Settlement with Two Nevada Companies for Alleged Credit Card Scheme

On January 29, 2021, the FTC announced that it filed a proposed settlement in the District of Nevada with two Nevada-based consulting companies, resolving claims ​that the companies violated the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, Credit Repair Organizations Act, and Consumer Review Fairness Act. The FTC alleged that, since…

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California Agency Enters into MOUs with Five Earned Wage Access Companies

On January 28, 2021, the California Department of Financial Protection & Innovation (DFPI) announced that it entered into five Memorandums of Understanding (MOUs) with five different earned wage access companies.  Earned wage access companies provide consumers with advances or “on-demand pay” before their pay day for wages that they have earned but not yet received.  According to…

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California DFPI Announces Investigation of a Dozen Debt Collectors

On January 19, 2020, the California Department of Financial Protection and Innovation (DFPI) launched an investigation ​into a dozen debt collectors potentially engaging in unlawful, unfair, deceptive, or abusive acts or practices (UDAAP) under California law.  This represents the first major public action taken under the expanded oversight and enforcement authority of the California…

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Financial Aid Services Company Ordered to Pay $14.7 Million in Deceptive Practices Lawsuit

On January 26, 2021, a California federal judge granted the Consumer Financial Protection Bureau’s (CFPB) motion for default judgment against a now-defunct financial aid services company.  The court also granted in part the CFPB’s motion for summary judgment against the company’s founder. The ruling resolves a complaint filed by the CFPB in 2015, previously covered ​by…

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Alli Schoenthal Joins as New York Head of Consumer Financial Services Litigation + Enforcement

Enforcement Watch and Goodwin’s Consumer Financial Services Enforcement Team are excited to announce the arrival of Alli Schoenthal to our team! Alli will reside in our New York office.  Alli represents banks, trusts, lenders, government-sponsored enterprises, private equity firms, and loan servicers in consumer finance litigation and enforcement matters.  Her practice…

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