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 Orders Student-Loan Servicer to Pay $1 Million Penalty and Remedy Miscommunications

On March 30, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a student-loan servicer for alleged deceptive acts and practices in violation of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1)(B). The CFPB alleged that the servicer made deceptive statements to student loan borrowers and misrepresented their…

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Court Enjoins Credit Repair Company From Making Misrepresentations to Consumers

On March 21, 2022, the Department of Justice (DOJ) announced that it obtained a permanent injunction against a credit repair company and its CEO, barring the company from making representations that it can improve consumers’ credit scores.  The injunction was issued by the United States District Court for the Southern District of Texas in relation…

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Credit Union Enters Into Consent Order with U.S. Attorney's Office Over Alleged SCRA Violations

On March 11, 2022, the U.S. Attorney’s Office (USAO) for the Eastern District of Virginia filed a consent order and settlement with a Virginia-based credit union for alleged violations of the Servicemembers Civil Relief Act (SCRA). The lawsuit, filed in U.S. District Court for the Eastern District of Virginia, alleged that the defendant unlawfully charged…

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Goodwin's 2021 Consumer Financial Services Year In Review

Goodwin’s Consumer Financial Services Enforcement & Investigations and Litigation practices are once again proud to present our annual Consumer Finance Year In Review. Industry regulators staked out a clear intent to return to normal, rescinding pandemic-specific policies and letting go of relaxed enforcement. Reviewing the key developments and events in…

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Massachusetts AG Settles Claims Against Subprime Auto Lender for $5.56 Million

On February 8, 2022,​ the Massachusetts Attorney General’s Office (Massachusetts AG) announced that it entered into a settlement agreement with a lender concerning its subprime auto loan disclosure and debt collection practices.  The Massachusetts AG filed an assurance of discontinuance​ in Suffolk County Superior Court alleging that the lender failed to provide consumers with adequate disclosures regarding how deficiencies…

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DC AG Reaches $4 Million Settlement with Online Lender

On February 8, 2022, the Attorney General for the District of Columbia (DC AG) announced​ that a Delaware-based online lender has agreed to pay $3​.3 million to refund over 2,500 consumers who allegedly received misleadingly high-cost loans and lines of credit.  This agreement resolves​ a lawsuit filed by the DC AG in the Superior Court of the District of Columbia,…

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FTC Announces Settlement With Remaining Defendants in Student Loan Debt Relief Action

FTC

On January 26, 2022, the Federal Trade Commission (FTC) announced that it resolved claims against the remaining defendants in an action concerning student loan debt relief products and services that commenced in 2019.  As we ​​previously reported​, the FTC filed a complaint ​against a collection of interrelated companies in November 2019, alleging that they used fraudulent…

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CFPB Settles With Chicago-Based Payment Processer Over Services Provided to Telemarketers

CFPB sign

On January 18, the Consumer Financial Protection Bureau (CFPB) announced that it had agreed to a settlement with a payment processing company, resolving allegations that the company assisted third parties in profiting from fraudulent services and products.  The proposed stipulated judgment, if entered by the court, will resolve allegations that the company was processing…

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Student Loan Servicer Reaches $8 Million Agreement with DOJ to Resolve False Claims Allegations

On January 14, ​2022, the Department of Justice (DOJ) ​anno​un​ced​ that it reached an agreement ​with a student loan servicer that had serviced loans under the Federal Family Education Loan (FFEL) Program.  The agreement resolves allegations that the loan servicer submitted false claims to the Department of Education (DOE) in violation of the False Claims Act (FCA)​….

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