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 and State AGs Seek Preliminary Injunction in Suit Against Student Loan Debt Relief Companies

​On October 21, 2019, the Consumer Financial Protection Bureau (CFPB) announced that, together with the Attorneys General (AGs) of Minnesota, North Carolina, and California, it had filed a complaint and sought a temporary restraining order in the U.S. District Court for the Central District of California against a group of debt relief companies. …

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Real Estate Investment Company Forced to Dissolve Following Washington AG Suit

On October 16, 2019, the Washington Attorney General’s Office (Washington AG) announced that it had reached a settlement with a Kirkland- and Portland-based real estate investment company that requires the company to dissolve and pay up to $85,000 in fines and enforcement costs. ​The Washington AG initiated this action in May 2018, alleging violations of the Washington Consumer Protection Act, RCW 19.86.020.  According…

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New York Attorney General Sues Student-Loan Servicer for Failure to Administer Federal Loan Forgiveness Program

​On October 3, 2019, the New York Attorney General’s office (NY AG) announced that it had filed a lawsuit against a major student-loan servicer for failing to properly administer the federal Public Service Loan Forgiveness program. According to the complaint, the servicer allegedly employed deceptive, unfair, and abusive practices such…

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CFPB Files Suit Against Debt Collector for FCRA Violations

​On September 25, the Consumer Financial Protection Bureau (CFPB) filed suit in the U.S. District Court for the District of Maryland against a Maryland-based debt collector, its subsidiaries, and its CEO.  According to the CFPB, the companies operated the largest debt-collection company in the multi-unit housing industry, collecting debt on…

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California AG Files Suit Against Auto Dealership Over Allegedly Fraudulent Conduct

​On September 23, the California Attorney General’s Office (AG) announced that it had filed a complaint against a network of auto dealerships and its chief executive, alleging that they targeted low-income consumers with subprime credit using false advertising promising fictitiously low interest rates; made false statements on credit applications to…

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FTC Settles With Operators of Alleged Student Loan Debt Relief Schemes

On September 12, 2019, the Federal Trade Commission (FTC) announced that it had settled lawsuits​ against the operators of two alleged student loan debt relief schemes, and a financing company that assisted them, alleging that they had bilked millions of dollars from consumers.  The FTC alleged that the defendants violated…

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