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.

Massachusetts AG Resolves Allegations that Motor Vehicle Title Lender Issued Illegal Loans

On June 29, 2022, the Massachusetts Attorney General’s Office announced ​that it had resolved allegations that a motor vehicle title lender made illegal loans to customers and repossessed cars to collect payments, with a settlement agreement that requires the lender to pay over $900,000 in redress to consumers.​ The Attorney General alleged that the motor…

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HUD Reaches Settlement with Mortgage Originator for Alleged Lending Discrimination

​On June 2, 2022,​ the U.S. Department of Housing and Urban Development (HUD) announced it reached a settlement agreemen​t with a non-bank residential mortgage lender to resolve allegations of race-based lending discrimination in violation of the Fair Housing Act (FHA), 42 U.S.C. 3601 et seq.  The settlement arose from a complaint filed ​with a fair…

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North Carolina AG Permanently Enjoins Debt Settlement Business

​On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor.  The lawsuit, filed on June 25, 2021 in the North Carolina Superior Court for Wake County, alleged that the entity violated North Carolina’s Debt Adjusting Act, N.C. Gen. Stat….

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CFPB and NY AG Reach $4 Million Settlement with Debt Collectors

CFPB sign

On May 23, 2022, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (NY AG) announced that they have settled a case filed against six New York debt collection companies and affiliated individuals, resolving a one-and-a-half year enforcement action.  The original complaint ​was filed on September 20, 2020 in the U.S. District Court for the Western…

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Arizona AG Announces $1.6 Million Settlement with Debt Collectors

​On May 16, 2022, the Arizona Attorney General’s Office (Arizona AG) announced that it reached a settlement agreement with the owner of several debt collection companies regarding alleged deceptive debt collection practices in violation of state law. The agreement resolves a lawsuit by the Arizona AG filed in September 2020, alleging that the companies collected or attempted to collect payments…

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CFPB Orders Debt-Relief Payment Processors to Pay $11 Million in Redress and Penalties

​On May 11, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it had resolved an enforcement action against two debt-relief payment processors and one of their co-founders. The CFPB alle​ged the processors improperly collected debt relief fees from consumers, misled consumers about timing of fee payments, and sent illegal fee advancements to debt-relief companies….

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