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 Mexico AG Announces Investigation Into National Bank for Opening Fake Consumer Accounts

​On November 29, the New Mexico Attorney General (AG) announced that, after a year-long investigation of a national bank, the AG will seek damages on behalf of thousands of New Mexico consumers for whom the bank had created unauthorized banking and credit card accounts.  The AG announced that if he cannot reach a resolution with the bank,…

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Federal Reserve Enters Consent Order With Kansas Bank Over Deceptive Mortgage Origination Practices

​On November 28, the Federal Reserve announced that it had entered into a consent order with a Kansas state bank, resolving allegations that the bank engaged in deceptive residential mortgage lending practices in violation of Section 5 the Federal Trade Commission Act. According to the consent order, the bank’s loan officers often gave borrowers…

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CFPB Settles With National Bank Over Student Lending Practices for $6.5 Million

​On November 21, 2017, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a national bank, resolving allegations over the bank’s allegedly harmful student loan servicing practices and requiring it to pay millions in consumer relief and civil penalties. ​ According to the CFPB, the bank engaged…

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DOJ Sues Foreclosure Trustee for Illegally Foreclosing on Homes of Servicemembers

On November 9, the Department of Justice (“DOJ”) annou​nced its lawsuit against a foreclosure trustee for wrongfully foreclosing on at least twenty-eight servicemembers in violation of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3953. The SCRA prohibits foreclosure on the home of a servicemember during active military service…

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CFPB Files Suit Against National Debt-Settlement Services Provider For Allegedly Misleading Consumers

On November 8, 2017, the Consumer Financial Protection Bureau (“CFPB”) announced it filed suit in federal court in California against a national debt-settlement services provider and its CEO based on alleged violations of the Consumer Financial Protection Act, 12 U.S.C. §§ 5531, 5536(a), 5564, 5565, the Telemarketing Consumer Fraud and Abuse…

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