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 Obtains Temporary Restraining Order Against Credit Repair Operation

FTC

On May 6, 2022, the Federal Trade Commission (FTC) announced that, at its request, the U.S. District Court for the Middle District of Florida had issued a temporary restraining order (TRO), effectively shutting down a credit repair operation. In the FTC’s complaint, it alleged that the company charged consumers hundreds of dollars for credit repair services that…

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CFBP and NY AG Sue Global Payment Company

CFPB sign

On April 21, 2022, the Consumer Financial Protection Bureau (CFPB) anno​unced ​a joint enforcement action with the New York Attorney General (NY AG) against one of the largest international remittance providers in the United States. The seven-count complaint, filed in U.S. District Court for the Southern District of New York, challenges the Dallas-based company’s remittance…

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FTC Obtains Permanent Injunction Against For-Profit Medical School

FTC

On April 15, 2022, the Federal Trade Commission (FTC) announced that it obtained a permanent injunction against an Illinois-based, offshore, for-profit medical school for deceptive marketing practices. In its complaint ​and stipulated ​order​ filed same-day in the U.S. District Court for the Northern District of Illinois, the FTC alleged that the school violated the Telemarketing Sales Rule (TSR) when…

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CFPB Files Lawsuit Against TransUnion for Deceptive Marketing

CFPB sign

On April 12, 2022, the Consumer Financial Protection Bureau (CFPB) announced ​that it filed a lawsuit against TransUnion and the company’s former executive.  The complaint​, filed in the U.S. District Court for the Northern District of Illinois, alleges that TransUnion violated a 2017 CFPB consent order which resolved allegations that the company deceptively marketed credit scores…

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Goodwin Webinar on CFPB Supervisory and Enforcement Priorities

On April 5th, Goodwin attorneys hosted a webinar discussing the Consumer Financial Protection Bureau’s (CFPB) changes to its supervisory and enforcement priorities with respect to unfair, deceptive, or abusive acts or practices (UDAAPs) under the Consumer Financial Protection Act (CFPA). To recap what was discussed: Download our presentation materials. Watch…

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FTC Announces $10 Million Settlement With Auto Dealers for Alleged Junk Fees and Discriminatory Practices

On April 1, 2022, the Federal Trade Commission (FTC) announced that it reached a settlement​ with a group of Illinois-based auto dealers to resolve allegations that they had violated Sections 13(b) and 19 of the Federal Trade Commission Act (FTCA), 15 U.S.C. § 53(b), 57b, the Truth in Lending Act (TILA), 15 U.S.C. §§ 1601-1666j,…

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CFPB Orders Student-Loan Servicer to Pay $1 Million Penalty and Remedy Miscommunications

On March 30, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a student-loan servicer for alleged deceptive acts and practices in violation of the CFPA, 12 U.S.C. §§ 5531(a), 5536(a)(1)(B). The CFPB alleged that the servicer made deceptive statements to student loan borrowers and misrepresented their…

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Court Enjoins Credit Repair Company From Making Misrepresentations to Consumers

On March 21, 2022, the Department of Justice (DOJ) announced that it obtained a permanent injunction against a credit repair company and its CEO, barring the company from making representations that it can improve consumers’ credit scores.  The injunction was issued by the United States District Court for the Southern District of Texas in relation…

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FTC Stops Alleged Credit Repair Scheme that Filed False Identify Theft Complaints

FTC

On March 21, 2022, the Federal Trade Commission (FTC) announced that it had obtained an injunct​​ion halting a Texas-based credit repair operation.  The company allegedly obtained millions of dollars from consumers by falsely claiming to consumers the company could remove negative information from credit reports.  The company would then allegedly file fake identify theft reports to remove…

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