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.

FTC Announces $114 Million Settlement with Payday Lenders


On February 11, 2021, the Federal Trade Commission (FTC) announced a $114 million settlement with the owners and operators of an alleged tribal payday lending scheme.  The settlement resolves allegations concerning defendants’ purported violations of the unfair or deceptive practice provisions (UDAP) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45(a), the Telemarketing and Consumer Fraud…

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Pennsylvania AG Sues Five Companies Involved in Alleged Mortgage Modification Scam

On July 26, 2018, the Attorney General for the Commonwealth of Pennsylvania announced a lawsuit against five Pennsylvania mortgage foreclosure companies and two company owners for cheating consumers into signing contracts to have their mortgage loans modified—but never delivering the services paid for—in violation of Pennsylvania’s Unfair Trade Practices and Consumer…

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FTC Distributes $1.7 Million to Affected Consumers in Alleged Student Loan Debt Relief Scam

On February 10, 2021, the Federal Trade Commission (FTC) announced that it will begin distributing over $1.7 million to consumers that it claims lost money as a result of an alleged student loan debt relief scheme.  The payments are part of a 2018 settlement with a student debt relief group, previously covered ​by Enforcement Watch, that resolved…

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FTC Announces $10.9 Million Settlement for Credit Card Laundering Scheme

​On February 10, 2021, the Federal Trade Commission (FTC) announced settlements with two payment processing companies and two individuals, resolving claims concerning an alleged credit card laundering scheme perpetrated in violation of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 53(b), and the Telemarketing and Consumer Fraud and Abuse Act (Telemarketing Act), 15 U.S.C. §§…

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CFPB Investigating Digital-Payment Company's Collection Practices

CFPB sign

​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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