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 New York AG Settle Claims with Debt Collection Group for $65 Million

On July 25, 2019, the Consumer Financial Protection Bureau (“CFPB”) and the New York Attorney General (“New York AG”) announced that they have filed two proposed settlements with three debt collection companies and two individuals who conducted business together in Buffalo, New York.  The proposed settlements were filed in the U.S. District Court for…

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Delaware Consumer Protection Unit Reaches Settlement with Two California Loan Modification Companies

​On July 23, 2019, Delaware’s Department of Justice, Consumer Protection Unit (“Delaware CPU”) announced that it reached a settlement​ with two-California based companies that would require them to cease advertising and selling loan modification and debt relief services in the state of Delaware. According to the cease and desist agreement, the companies and their…

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FTC and Ohio Secure TRO Against Companies Concerning Alleged Telemarketing Scheme

On July 17, 2019, Ohio Attorney General Dave Yost (Ohio AG) announced that it and the FTC had secured a temporary restraining order from the United States District Court for the Western District of Texas against two companies that allegedly defrauded consumers struggling with credit card debt out of millions of dollars. The complaint alleged that…

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CFPB Settles $25 Million Lawsuit with Debt Settlement Provider

On July 9, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it settled its lawsuit against the nation’s largest debt-settlement services provider for allegedly engaging in deceptive debt-settlement acts or practices. The company agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty….

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New York AG and FTC Secure Judgment Against Alleged Phantom Debt Collection Scheme

On July 1, 2019, New York Attorney General Letitia James (“New York AG”) announced that together with the Federal Trade Commission (“FTC”), the agencies had entered into a settlement with a debt collection company, a related entity, and corporate officers to resolve a case filed in the United States District Court for the Western District of New…

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FTC Sues Credit Repair Companies Over Allegedly Deceptive Marketing Practices

FTC

On June 21, 2019, the Federal Trade Commission (FTC) announced that it had filed a lawsuit against affiliated companies offering services to repair consumers’ damaged credit.  The FTC’s Complaint, filed in the U.S. District Court for the District of Connecticut, alleged that the companies used deceptive marketing campaigns that promised to eliminate derogatory credit from consumers’ credit reports and raise…

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CA DBO Settles with Mortgage Servicer Over Alleged Failure to Pay Escrow Interest

​On June 18, 2019, the California Department of Business Oversight (DBO) announced that it entered into a ​settlement and consent order with a mortgage servicer over an alleged failure to pay interest on ​escrow impound accounts for 94,483​ residential mortgage loans.​  Servicers are required to pay interest on such accounts under…

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