On January 7, the Federal Trade Commission (FTC) announced that it had agreed to a settlement with a company that collected and generated leads for financial services products. In its simultaneously-filed complaint in the U.S. District court for the Central District of California, the FTC alleged that the company collected consumer data through a network…
On December 21, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it reached an agreement with a California-based fintech company that would require the company to cease “(1) making new loans; (2) collecting on outstanding loans to harmed consumers; (3) selling consumer information; and (4) making misrepresentations when providing loans or collecting debt or helping…
The Consumer Financial Protection Bureau (CFPB) announced this week that it is opening an inquiry into “buy now, pay later” (BNPL) services, which have become increasingly popular with online consumers. In a December 16, 2021 statement, the CFPB said that it is looking to “collect information on the risks and…
On December 17, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a proposed settlement with a Maryland company that offers lump sum payouts to consumers with structured settlements. The settlement resolves a 2016 complaint filed by the CFPB in the U.S. District Court for the District of Maryland alleging that the…
In response to recent changes at the Consumer Financial Protection Bureau (CFPB), including the appointment of Director Rohit Chopra, Goodwin’s Consumer Financial Industry practice created a CFPB Hub to serve as a resource for companies in the consumer financial services space as they navigate regulatory developments. With specific regard to…
On December 14, 2021, the California Department of Financial Protection and Innovation (DPFI) announced that it entered what it described as a “novel” consent order with a Los Angeles-based automobile title loan lender prohibiting the company from marketing or servicing title loans under $10,000 with interest rates above 36 percent within the state of California for the next…
On December 13, 2021, the Federal Trade Commission (FTC) announced that it reached a settlement with a group of South Carolina-based debt collection companies to resolve allegations that the companies violated the Federal Trade Commission Act (FTC Act) and the Fair Debt Collection Practices Act (FDCPA). The FTC’s complaint, originally filed in July…
On November 30, the District of Columbia Attorney General’s Office (DC AG) announced a settlement with an online lender targeting consumers with below-average credit, under which the lender agreed to pay $1.5 million in refunds to consumers and $250,000 to the District, and to waive over $640,000 in interest. Further, the agreement obligates the lender to reduce its interest…
On November 23, 2021, New York Attorney General Letitia James (“New York AG”) announced that her office entered into an agreement with a debt collection company to resolve allegations that the company violated the Fair Debt Collections Practices Act, 15 USC § 1692 et seq. (“FDCPA”), the Consumer Financial Protection Act, 12 U.S.C. § 5552…
On November 12, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint in the United States District Court for the Northern District of Texas against two pawnshop lenders, alleging violations of the Military Lending Act (MLA), 10 U.S.C. § 987. Under the MLA, consumer credit extended to military servicemembers may…