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.

CFPB Reaches $200,000 Settlement with Online Retailer Over Payment Forwarding

On October 4, 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with online retailer and its subsidiaries that sells products through revolving-credit accounts and installment-credit accounts, and then sells charged-off account to third-party debt collectors. The consent order resolves the CFPB’s allegations…

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CFPB Files Complaint Against Pension-Advance Lender

On September 13, 2018, the Consumer Financial Protection Bureau (“CFPB”) announced that it filed a complaint against a lender, its president, and related entities (“Defendants”) for allegedly making small-dollar loans in exchange for borrowers’ monthly pension payments, which the CFPB alleges is a violation of the Consumer Financial Protection Act, 12 U.S.C. § 5536(a)(1)(B).  The Complaint…

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FTC Settles with Student Debt Relief Companies for $19 Million

FTC

On September 28, 2018, the Federal Trade Commission (FTC) announced that it had reached a settlement with loan debt relief operators in connection with the coordinated federal-state enforcement initiative to target deceptive student loan debt relief scams, called “Operation Game of Loans.” According to the FTC, the operators violated the federal law by allegedly…

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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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FTC Settles for Nearly $3.5 Million with Debt Collectors Over Alleged Debt Collection Scheme

FTC

​On September 7, 2018, the Federal Trade Commission (FTC) announced a settlement with a Georgia debt collection company and its principals over alleged illegal collection practices. In October 2017, the FTC filed an action against the defendants alleging violations of the Federal Trade Commission Act (FTC Act), 15 U.S.C. §§ 45(a), 53(b),…

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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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