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.

California Department of Business Oversight Enters Into $900,000 Consent Order With Payday Lender

On January 22, 2019, the California Department of Business Oversight (DBO) announced that it had entered into a consent order with a payday lender to resolve allegations that the company violated the California Financing Law, Fin. Code Section 22000 et seq. Per the consent order, the payday lender allegedly steered borrowers into loans…

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CFPB Enters Into $15.5 Million Consent Order with Bank Over Stop Payment and Error Resolution Practices

​On January 3, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a $15.5 million consent order with a federally-chartered savings association bank.  The consent order resolves allegations that the bank violated the Electronic Fund Transfer Act (EFTA) and Consumer Financial Protection Act (CFPA) between 2011 and 2016. Specifically, the CFPB…

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49 State Attorneys General Obtain Nearly $500 Million in Student Loan Debt Relief

​On January 2, 2019, 49 state attorneys general reached a settlement with an Illinois-based for-profit education company, securing approximately $493.7 million in debt relief for over 179,000 students nationwide.  The settlement is the result of a five-year investigation, which began in 2014 after states received complaints from students and the U.S. Senate’s Health, Education, Labor and Pensions…

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Massachusetts AG Obtains $4 Million in Settlement Over Subprime Mortgage Modifications

On December 21, 2018, the Massachusetts Attorney General’s Office (“Mass. AG”) announced that it had reached a settlement with a national mortgage servicer, resolving allegations that the company mishandled mortgage loans in violation of the Massachusetts Act Preventing Unlawful and Unnecessary Foreclosures, a 2012 law designed to protect borrowers from foreclosure caused by unfair terms on subprime mortgages….

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Florida AG and FTC Obtain $23 Million Judgment in Robocall Enforcement Action

On December 14, the Florida Attorney General (AG) and the Federal Trade Commission (FTC) announced a $23 million federal district court judgment against the owner of an Orlando-based “robocall” operation.  The massive robocall operation tricked consumers into paying upfront fees of $500 to $1500 for false credit card interest-rate-reduction and debt-elimination services,…

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