On November 30, 2020, the Consumer Financial Protection Bureau (CFPB) granted a no-action letter to an online loan marketplace company for its artificial intelligence (AI) loan origination and underwriting platform. The company offers an AI-based underwriting model for banks, credit unions, and non-bank lenders to use in originating loans. Consumers provide information to start a loan…
On December 1, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it filed suit against a Massachusetts debt settlement and relief company over alleged violations of the Telemarketing Sales Rule (TSR) and Consumer Financial Protection Act (CFPA) in connection with the company’s debt-settlement and debt relief services. The complaint filed in the U.S. District…
On November 20, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a Florida-based company that offers auto loans over the company’s alleged violations of the Consumer Financial Protection Act (CFPA). The consent order, entered against both the company and personally against the company’s…
On November 20, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had filed a complaint against an Illinois-based debt settlement company and the company’s owners for alleged violations of Telemarketing Sales Rule (TSR), 16 C.F.R. § 310.4, and the Consumer Financial Protection Act (CFPA), 12 U.S.C. § 5536….
On November 19, 2020, the Federal Trade Commission (FTC) announced that it had reached a settlement with three California-based student loan debt relief companies and their founder after they allegedly misled consumers by falsely promising that their monthly payments would go toward lowering their student loan debt. The complaint, filed in the U.S. District Court for the Northern District…
On November 18, 2020, the Federal Trade Commission (FTC) announced that it had filed a complaint against a California-based mobile banking app and its founder and CEO for allegedly falsely misrepresenting to users that they would receive high interests rates on their banking accounts and that they would have constant access to their funds. According to the complaint,…
On November 16, 2020, the Maryland Attorney General (Maryland AG) announced a settlement with a Texas-based debt buyer regarding a portfolio of student loan debt the buyer purchased from a court-appointed receiver following the closure of a for-profit college. The $2,622,877 settlement immediately discharges any outstanding loans and refunds 75%…
On November 12, 2020, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with an Illinois-based debt collector that collects debts on behalf of telecommunications companies and furnishes consumer-account information to credit reporting agencies. The CFPB alleged that the debt collector violated the Fair Credit Reporting Act (FCRA) and the…
On November 5, 2020, the Consumer Protection Financial Bureau (CFPB) announced that it had filed a complaint against a California student loan debt settlement company and the company’s CEO in the U.S. District Court for the Central District of California. The complaint alleges that the company violated the Telemarketing Sales…
On November 5, 2020, the Consumer Protection Financial Bureau (CFPB) announced that it had filed a complaint against a Florida-based payday lender and its CEO in the Southern District of Florida. The complaint alleges that the company violated the Consumer Financial Protection Act (CFPA) by engaging in deceptive acts and practices in connection with the…