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.

New York AG Announces Court Order Requiring Debt Collectors to Pay $27 Million

On September 21, New York Attorney General Barbara D. Underwood announced a stipulated court order against three entities and individuals for illegal debt collection practices (collectively, “defendants”), which permanently bans the defendants from the debt collection industry and requires collective payment of almost $27 million in restitution and damages. The court…

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New York AG Sues Nine Student Loan Debt Relief Companies Over Misrepresentations

On September 20, New York Attorney General Barbara D. Underwood announced a lawsuit against nine student loan debt relief companies, their financing company, and two individuals with leadership roles in several of the companies (collectively, “defendants”).  The lawsuit alleges that defendants violated the Federal Credit Repair Organization Act, 15 U.S.C. §…

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Federal Reserve Board Fines National Bank $8.6 Million Civil Penalty for Mortgage Servicing Related Deficiencies, Ends Enforcement Action from 2011

On August 10, 2018, the Board of Governors of the Federal Reserve (“Board of Governors”) announced that a national bank had consented to the assessment of a civil money penalty totaling $8.6 million pursuant to the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b)(3) and 1818(i)(2)(B), for engaging in…

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CFPB Settles Claims that Lender Misrepresented Finance Charges in Auto Title Loans

​On July 19, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a lender and its subsidiaries, resolving allegations that the company violated the Consumer Financial Protection Act (CFPA) and Truth in Lending Act (TILA). The lender and its subsidiaries are financial services companies…

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CFPB Settles with South Carolina Companies Over Improper Debt Collection Practices

On June 13, 2018, the Consumer Financial Protection Bureau​ (CFPB) annou​nced its settlement with a South Carolina corporation and its subsidiaries over allegations that the companies engaged in improper debt collection and credit furnishing practices. According to the consent order, the CFPB found that the companies made improper in-person and…

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FTC Settles Claims Against Student Loan Debt Relief Company for Over $2.3 Million

FTC

On June 11, the Federal Trade Commission (FTC) announced that it had settled claims against an individual and his loan debt relief companies in connection with its coordinated federal-state enforcement initiative to target deceptive student loan debt relief scams, called “Operation Game of Loans.”  Enforcement Watch covered a similar enforcement action earlier…

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CFPB Dismisses Administrative Proceedings Against PHH Corp.

On June 7, 2018, the Consumer Financial Protection Bureau (CFPB) issued an order dismissing administrative proceedings against PHH Corp.  The dismissal follows a January ​31, 2018 opinion by the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit) reinstating the court’s prior interpretation of Section 8 of the Real Estate Settlement Procedures Act (RESPA).  ​​​According to the…

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