On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) announced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices. According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…
On March 12, 2018, the California Department of Business Oversight (California DBO) announced that it reached a settlement with a payday lender over allegations that the lender improperly raised the principal value of its vehicle-secured loans to avoid interest rate caps imposed by the California Finance Law, Fin. Code §…
On March 7, the Federal Deposit Insurance Corporation (FDIC) announced that it reached a settlement with a Delaware bank, resolving allegations that the bank engaged in unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act (the “FTC Act”) and violated the Electronic Funds Transfer Act,…
On February 23, 2018, the Office of the Attorney General of Virginia (“Virginia AG”) announced that it had entered into a settlement agreement with several affiliated online payday lenders and debt collection companies (the “Defendants”). According to the Virginia AG, the Defendants, all out-of-state organizations, provided short-term, small-dollar loans to borrowers in Virginia…
On February 22, 2018, the Department of Justice (“DOJ”) announced that it had entered into a settlement with an auto financial services company for alleged violations of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3955(f) relating to upfront leases. In its complaint, filed the same day in the United States District…
Goodwin announces the release of its third annual Consumer Finance Year in Review, an in-depth report that analyzes the principal litigation, enforcement actions and regulations that have impacted the consumer finance industry over the prior year. This report synthesizes Goodwin’s consumer finance coverage from 2017 and offers predictions and insights…
On February 6, 2018, a Kansas state court entered a default judgment against a Florida student debt relief company banning it from doing business in Kansas and ordering it to pay over $39,000 back to one consumer. Kansas Attorney General Derek Schmidt (“Kansas AG”) had accused the company of violating the Kansas…
On February 7, 2018, the Federal Trade Commission (“FTC”) announced an enforcement action against a student loan debt relief operation, claiming it deceived consumers out of $28 million by falsely promising that their monthly payments would go towards their student loans. In the complaint, filed in the U.S. District Court for the Northern…
On February 7, 2018, Virginia Attorney General Mark R. Herring (Virginia AG) announced a settlement with a Virginia based online lender for alleged violations of the Virginia Consumer Protection Act. The lender allegedly offered closed-end, installment loans online and falsely claimed it was licensed in Virginia to do so. According to the…
On January 31, 2018, the U.S. Court of Appeals for the D.C. Circuit (D.C. Circuit), sitting en banc, issued its long-awaited decision in PHH Corp. v. CFPB, holding that the provision of the Dodd-Frank Act shielding the single director of the CFPB from removal without cause is constitutional. In all,…