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.

Virginia AG Files Suit Over Pension Loans

On March 7, 2018, the Virginia Attorney General’s Office (“Virginia AG”) filed a complaint against two related loan companies and their owner (the “Defendants”) in Virginia state court.  According to the complaint, the Defendants engage in the practice of purchasing portions of Virginia citizens’ pension payments in exchange for a…

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FTC Obtains Preliminary Injunction Against Mortgage Relief Operation

FTC

On May 8, the Federal Trade Commission (“FTC”) announced that the U.S. District Court for the Central District of California granted its request to preliminarily enjoin affiliated California-based debt relief companies from continuing operations, and to freeze their assets. In its complaint, the FTC alleged that the companies violated Section 5(a) of the Federal Trade Commission Act,…

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Virginia Attorney General Files Suit Against Online Lender Alleging Predatory Lending

On May 4, Virginia Attorney General Mark R. Herring (“VA Attorney General”) announced that its Predatory Lending Unit had filed suit in Virginia state court against a Chicago-based online lender, alleging violations of the Virginia Consumer Protection Act, Virginia Code §§ 59.1-196 to 59.1-207 (“VCPA”). The complaint alleges that the lender, one of the largest online…

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Webinar: What's Happening Inside the CFPB and How It Impacts State Enforcement of Consumer Finance Laws

On Tuesday, May 8, 2018, Anthony Alexis, head of Goodwin’s Consumer Financial Services Enforcement Practice and former Assistant Director and Head of the Office of Enforcement at the Consumer Financial Protection Bureau, and Kyle Tayman, partner in Goodwin’s Consumer Financial Services Enforcement Practice, kicked off Goodwin’s State of Enforcement Series with the webinar “What’s Happening Inside the CFPB and…

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CFPB and OCC Settle with National Bank for $1 Billion Over Auto and Mortgage Lending Practices

On April 20, 2018, the Consumer Financial Protection Bureau (CFPB)​ and Office of the Comptroller of the Currency (OCC) each announced settlements totaling $1 billion with a national bank resulting from a coordinated action between the two agencies. The OCC found that deficiencies in the bank’s enterprise-wide compliance risk management program…

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Illinois Attorney General Alleges Pension Sales Violate State Lending Laws

On April 19, 2018, the Illinois Attorney General’s Office (“Illinois AG”) announced that it had filed a complaint against a Nevada-based company that claimed to “purchase” portions of consumers’ pension plans.  According to the complaint​, these transactions constituted predatory installment loans with excessive interests rates in violation of Illinois law.  The complaint alleges that the…

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Georgia AG Announces $8.5 Million Settlement with Debt Collector

On April 4, Georgia Attorney General Chris Carr (“Georgia AG”) announced​ an $8.5 million settlement with a national debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act. The Georgia AG had alleged that the company harassed and deceived consumers…

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